SB 461: Alcoholic beverage control: tied house restrictions.

Existing law creates the Department of Alcoholic Beverage Control, to which is committed the authority for the administration and enforcement of alcoholic beverage laws in the state in a strict and impartial manner. Existing law, commonly referred to as tied-house restrictions, generally prohibits a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler from having an ownership interest in an on-sale license, among other things, subject to a variety of exceptions. Existing law excepts from tied-house restrictions the issuance or transfer of a retail on-sale or off-sale license with respect to premises that are an integral part of the operations of a hotel or motel, notwithstanding that a manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler has an interest in the premises, the retail license, or the retail licensee, provided certain conditions are met. In this regard, in the case of a hotel or motel, the hotel or motel must have not less than 100 guestrooms.

This bill, for the purpose of excepting a transfer of a retail on-sale or off-sale license from the tied-house restriction described above, would reduce the necessary number of guestrooms in a hotel or motel to 25. The bill would also specify that this exception applies notwithstanding the fact that an out-of-state distilled spirits shipper has an interest in the premises, the retail license, or the retail licensee.