AB 2452: Alcoholic beverages: tied-house restrictions.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-09-22
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.
Tied-house restrictions permit specified licensees to conduct or participate in, and serve specified alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would revise the advertising prohibitions to, among other things, allow for pictures, illustrations, and depictions of the retailers premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
This bill would incorporate additional changes to Section 25503.56 of the Business and Professions Code proposed by AB 1891 and SB 1164 to be operative only if this bill and AB 1891 are enacted, this bill and SB 1164 are enacted, or all three bills are enacted and this bill is enacted last.
This bill would also incorporate additional changes to Section 25503.57 of the Business and Professions Code proposed by AB 1891 to be operative only if this bill and AB 1891 are enacted and this bill is enacted last.
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.
Tied-house restrictions permit specified licensees to conduct or participate in, and serve specified alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would revise the advertising prohibitions to, among other things, allow for pictures, illustrations, and depictions of the retailers premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
This bill would incorporate additional changes to Section 25503.56 of the Business and Professions Code proposed by AB 1891 and SB 1164 to be operative only if this bill and AB 1891 are enacted, this bill and SB 1164 are enacted, or all three bills are enacted and this bill is enacted last.
This bill would also incorporate additional changes to Section 25503.57 of the Business and Professions Code proposed by AB 1891 to be operative only if this bill and AB 1891 are enacted and this bill is enacted last.
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.
Tied-house restrictions permit specified licensees to conduct or participate in, and serve specified alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would revise the advertising prohibitions to, among other things, allow for pictures, illustrations, and depictions of the retailers premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
This bill would incorporate additional changes to Section 25503.56 of the Business and Professions Code proposed by AB 1891 and SB 1164 to be operative only if this bill and AB 1891 are enacted, this bill and SB 1164 are enacted, or all three bills are enacted and this bill is enacted last.
This bill would also incorporate additional changes to Section 25503.57 of the Business and Professions Code proposed by AB 1891 to be operative only if this bill and AB 1891 are enacted and this bill is enacted last.
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.
Tied-house restrictions permit specified licensees to conduct or participate in, and serve specified alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would revise the advertising prohibitions to, among other things, allow for pictures, illustrations, and depictions of the retailers premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.
Tied-house restrictions permit a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, specified licensees to conduct or participate in, and serve wine specified alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would eliminate the prohibition on the presence of pictures or illustrations of the retailers premises in the advertisements described above. revise the advertising prohibitions to, among other things, allow for pictures, illustrations, and depictions of the retailers premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met. In this regard, the listing of names, addresses, and telephone numbers, among other information, of two or more unaffiliated on-sale or off-sale retailers selling alcoholic beverages that are produced, distributed, or imported by a nonretail industry member is not a thing of value or a prohibited inducement to the on-sale or off-sale retailer, if certain conditions are met, including that the listing not refer only to one on-sale or off-sale retailer or only to on-sale or off-sale retail establishments controlled by the same retailer.
This bill would eliminate the requirement that the listing of information, described above, refer to more than one on-sale or off-sale retailer or more than one on-sale or off-sale retail establishments controlled by the same retailer.(2)Tied-house restrictions permit a person employed or engaged by an authorized licensee to appear at a promotional event at the premises of an off-sale retail licensee for the purposes of providing autographs if specified conditions are met. In this regard, the authorized licensee may advertise the promotional event only in authorized licensee publications and, among other things, those advertisements are prohibited from providing pictures or illustrations of the off-sale retail licensees premises. This bill would eliminate the prohibition on the presence of pictures or illustrations of the off-sale retail licensees premises in the advertisements described above.(3)Tied-houseTied-house restrictions permit a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would eliminate the prohibition on the presence of pictures or illustrations of the retailers premises in the advertisements described above.
(1)Existing law, known as tied-house restrictions, generally prohibits a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met. In this regard, the listing of names, addresses, and telephone numbers, among other information, of two or more unaffiliated on-sale or off-sale retailers selling alcoholic beverages that are produced, distributed, or imported by a nonretail industry member is not a thing of value or a prohibited inducement to the on-sale or off-sale retailer, if certain conditions are met, including that the listing not refer only to one on-sale or off-sale retailer or only to on-sale or off-sale retail establishments controlled by the same retailer.
This bill would eliminate the requirement that the listing of information, described above, refer to more than one on-sale or off-sale retailer or more than one on-sale or off-sale retail establishments controlled by the same retailer.
(2)Tied-house restrictions permit a person employed or engaged by an authorized licensee to appear at a promotional event at the premises of an off-sale retail licensee for the purposes of providing autographs if specified conditions are met. In this regard, the authorized licensee may advertise the promotional event only in authorized licensee publications and, among other things, those advertisements are prohibited from providing pictures or illustrations of the off-sale retail licensees premises.
This bill would eliminate the prohibition on the presence of pictures or illustrations of the off-sale retail licensees premises in the advertisements described above.
(3)Tied-house restrictions permit a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises, if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
This bill would eliminate the prohibition on the presence of pictures or illustrations of the retailers premises in the advertisements described above.
(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in any advertisement for the instructional event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)Notwithstanding any other provision of this division, the name, address, telephone number, email address, Internet Web site address, and any other electronic media of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
SEC. 2.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 2.1.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 3.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 3.1.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 4.(a)Section 2.1 of this bill incorporates amendments to Section 25503.56 of the Business and Professions Code proposed by this bill, Assembly Bill 1891, and Senate Bill 1164. That section of this bill shall only become operative if (1) either Assembly Bill 1891 and this bill, Senate Bill 1164 and this bill, or all three bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.56 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891 or Senate Bill 1164, or both, in which case Section 2 of this bill shall not become operative.
(b)Section 3.1 of this bill incorporates amendments to Section 25503.57 of the Business and Professions Code proposed by both this bill and Assembly Bill 1891. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.57 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891, in which case Section 3 of this bill shall not become operative.
(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in any advertisement for the instructional event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)Notwithstanding any other provision of this division, the name, address, telephone number, email address, Internet Web site address, and any other electronic media of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
SEC. 2.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 2.1.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 3.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 3.1.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 4.(a)Section 2.1 of this bill incorporates amendments to Section 25503.56 of the Business and Professions Code proposed by this bill, Assembly Bill 1891, and Senate Bill 1164. That section of this bill shall only become operative if (1) either Assembly Bill 1891 and this bill, Senate Bill 1164 and this bill, or all three bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.56 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891 or Senate Bill 1164, or both, in which case Section 2 of this bill shall not become operative.
(b)Section 3.1 of this bill incorporates amendments to Section 25503.57 of the Business and Professions Code proposed by both this bill and Assembly Bill 1891. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.57 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891, in which case Section 3 of this bill shall not become operative.
(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in any advertisement for the instructional event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement and any pictures, illustrations, or depictions are is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)Notwithstanding any other provision of this division, the name, address, telephone number, email address, Internet Web site address, and any other electronic media of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
SEC. 2.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement and any pictures, illustrations, or depictions are is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 2.1.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in an any advertisement to the general public the name and address for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)(1)The advertisement does not contain the retail price of the alcoholic beverages.
(B)The listing of the licenseholders name and address is the only reference to the licenseholder in the advertisement.(2)Pictures or illustrations of the licenseholders licensed premises and laudatory references to the licenseholder in these advertisements are not authorized. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 3.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)The advertisement does not contain the retail price of the alcoholic beverages.
(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement and any pictures, illustrations, or depictions are is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 3.1.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in an any advertisement to the general public the name and address for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)(1)The advertisement does not contain the retail price of the alcoholic beverages.
(B)The listing of the on-sale retail licensees name and address is the only reference to the on-sale retail licensee in the advertisement.(2)Pictures or illustrations of the on-sale retail licensees licensed premises and laudatory references to the on-sale retail licensee in these advertisements are not authorized. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the on-sale retail licensee.(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SEC. 4.(a)Section 2.1 of this bill incorporates amendments to Section 25503.56 of the Business and Professions Code proposed by this bill, Assembly Bill 1891, and Senate Bill 1164. That section of this bill shall only become operative if (1) either Assembly Bill 1891 and this bill, Senate Bill 1164 and this bill, or all three bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.56 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891 or Senate Bill 1164, or both, in which case Section 2 of this bill shall not become operative.
(b)Section 3.1 of this bill incorporates amendments to Section 25503.57 of the Business and Professions Code proposed by both this bill and Assembly Bill 1891. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.57 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1891, in which case Section 3 of this bill shall not become operative.
(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in any advertisement for the instructional event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is and any pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)Notwithstanding any other provision of this division, the name, address, telephone number, email address, Internet Web site address, and any other electronic media of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
SEC. 2.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)(1)The advertisement does not contain the retail price of the alcoholic beverages.
(B)(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is and any pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(2)Laudatory references to the licenseholder in these advertisements are not authorized. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 3.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)(1)The advertisement does not contain the retail price of the alcoholic beverages.
(B)(2)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is and any pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all of the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(2)Laudatory references to the licenseholder in these advertisements are not authorized. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in an advertisement the name and address any advertisement for the instructional event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailers premises and laudatory references to the retailer in these advertisements are not hereby authorized.(2)The listing of the retailers name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)Notwithstanding any other provision of this division, the name and address name, address, telephone number, email address, Internet Web site address, and any other electronic media of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
SEC. 2.Section 25503.56 of the Business and Professions Code is amended to read:25503.56.(a)An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)(A)Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturers license, an out-of-state beer manufacturers certificate, or more than six distilled spirits wholesalers licenses.
(C)No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, type of alcoholic beverage means distilled spirits, wine, or beer.
(b)For purposes of this section:
(1)Authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. Authorized licensee shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)Licenseholder means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)Location means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in an advertisement to the general public the name and address any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)The advertisement does not contain the retail price of the alcoholic beverages.
(B)The listing of the licenseholders name and address is the only reference to the licenseholder in the advertisement.(2)Pictures or illustrations of the licenseholders licensed premises and laudatory references to the licenseholder in these advertisements are not authorized. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.(B)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole.
(2)Laudatory references to the licenseholder in these advertisements are not authorized. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(i)Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)(1)A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholders carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 3.Section 25503.57 of the Business and Professions Code is amended to read:25503.57.(a)(1)An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)For purposes of this section, authorized licensee means a winegrower, California winegrowers agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, distilled spirits manufacturer, distilled spirits manufacturers agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shippers certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. Authorized licensee shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)(1)In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in his or her absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in an any advertisement to the general public the name and address for the instructional tasting the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailers premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(A)The advertisement does not contain the retail price of the alcoholic beverages.
(B)The listing of the on-sale retail licensees name and address is the only reference to the on-sale retail licensee in the advertisement.(2)Pictures or illustrations of the on-sale retail licensees licensed premises and laudatory references to the on-sale retail licensee in these advertisements are not authorized. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the on-sale retail licensee.(B)The listing of the licenseholders name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement is relatively inconspicuous in relation to the advertisement as a whole.
(2)Laudatory references to the licenseholder in these advertisements are not authorized. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, Internet communications, and interior signage.
(f)No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.
SECTION 1.Section 25503.4 of the Business and Professions Code is amended to read:25503.4.(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.(c)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, provided:(1)The advertisement does not also contain the retail price of the wines.(2)The listing of the retailers name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not hereby authorized.(d)Notwithstanding any other provision of this division, the name and address of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not hereby authorized.
(d)Notwithstanding any other provision of this division, the name and address of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
(a)The listing of the names, addresses, telephone numbers, email addresses, or Internet Web site addresses, or other electronic media, of two or more unaffiliated on-sale or off-sale retailers selling beer, wine, or distilled spirits produced, distributed, or imported by a nonretail industry member does not constitute a thing of value or prohibited inducement to the listed on-sale or off-sale retailer, provided all of the following conditions are met:
(1)The listing does not also contain the retail price of the product.
(2)The listing is the only reference to the on-sale or off-sale retailers in the direct communication.
(3)The listing does not refer only to one on-sale or off-sale retailer or only to on-sale or off-sale retail establishments controlled directly or indirectly by the same retailer.(4)(3)The listing is made, or produced, or paid for, exclusively by the nonretail industry member.
(b)For the purposes of this section, nonretail industry member is defined as a manufacturer, including, but not limited to, a beer manufacturer, winegrower, brandy manufacturer, rectifier, or distiller of alcoholic beverages or an agent of that entity, or a wholesaler, regardless of any other licenses held directly or indirectly by that person.
(c)The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SEC. 2.Section 25502.2 of the Business and Professions Code is amended to read:25502.2.(a)A person employed or engaged by an authorized licensee may appear at a promotional event at the premises of an off-sale retail licensee for the purposes of providing autographs to consumers at the promotional event only under the following conditions:
(1)A purchase from the off-sale retail licensee is not required.
(2)A fee is not charged to attend the promotional event.
(3)Autographing may only be provided on consumer advertising specialities given by the authorized licensee to a consumer or on any item provided by the consumer.
(4)The promotional event does not exceed four hours in duration.
(5)There are no more than two promotional events per calendar year involving the same authorized licensee at a single premises of an off-sale retail licensee.
(6)The off-sale retail licensee may advertise the promotional event to be held at its licensed premises.
(7)An authorized licensee may advertise in advance of the promotional event only in publications of the authorized licensee, subject to the following conditions:
(A)The advertising only lists the name and address of the off-sale retail licensee, the name of the alcoholic beverage product being featured at the promotional event, and the time, date, and location of the off-sale retail licensee location where the promotional event is being held.
(B)The listing of the off-sale retail licensees name and address is the only reference to the off-sale retail licensee in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole, and the advertisement does not contain any pictures or illustrations of the off-sale retail licensees premises or laudatory references to the off-sale retail licensee.
(8)A wholesaler does not directly or indirectly underwrite, share in, or contribute to any costs related to the promotional event, except that a beer and wine wholesaler that holds at least six distilled spirits wholesaler licenses may directly or indirectly underwrite, share in, or contribute to any costs related to a promotional event for which the wholesaler employs or engages the person providing autographs to consumers at the promotional event.
(9)The authorized licensee notifies the department in writing of the promotional event at least 30 days in advance of the promotional event.
(10)The authorized licensee maintains records necessary to establish its compliance with this section.
(b)For purposes of this section, authorized licensee means a manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, importer, brandy manufacturer, brandy importer, or wholesaler.
SEC. 3.Section 25503.4 of the Business and Professions Code is amended to read:25503.4.(a)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrowers agent, wine importer, or retailer, except as authorized by this division.
(2)No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailers premises by the authorized person.
(3)No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrowers premises.
(b)Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)Notwithstanding any other provision of this division, a winegrower, California winegrowers agent, or wine importer, in advance of an instructional event for consumers being held at a retailers premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, provided:
(1)The advertisement does not also contain the retail price of the wines.
(2)The listing of the retailers name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailers premises and laudatory Laudatory references to the retailer in these advertisements are not hereby authorized.
(d)Notwithstanding any other provision of this division, the name and address of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)Nothing in this section authorizes a winegrower, wine importer, or winegrowers agent licensee to share in the costs, if any, of the retailer licensees advertisement.
(f)Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.
|
Date
|
Status
|
|---|---|
| Sep 22, 2018 | Chaptered by Secretary of State - Chapter 705, Statutes of 2018. |
| Sep 22, 2018 | Approved by the Governor. |
| Sep 7, 2018 | Enrolled and presented to the Governor at 2:30 p.m. |
| Aug 29, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 28, 2018 | From committee: That the Senate amendments be concurred in. (Ayes 17. Noes 0.) (August 28). |
| Aug 23, 2018 | Re-referred to Com. on G.O. pursuant to Assembly Rule 77.2. |
| Aug 22, 2018 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 24 pursuant to Assembly Rule 77. |
| Aug 21, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 15, 2018 | Read second time. Ordered to third reading. |
| Aug 14, 2018 | Read third time and amended. Ordered to second reading. |
| Aug 7, 2018 | Read second time. Ordered to third reading. |
| Aug 6, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Aug 6, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Jun 26, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 26). Re-referred to Com. on APPR. |
| Jun 20, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O. |
| May 10, 2018 | Referred to Com. on G.O. |
| Apr 26, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 26, 2018 | Read third time. Passed. Ordered to the Senate. |
| Apr 19, 2018 | Read second time. Ordered to Consent Calendar. |
| Apr 18, 2018 | From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 18). |
| Apr 5, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 21. Noes 0.) (April 4). Re-referred to Com. on APPR. |
| Apr 3, 2018 | Re-referred to Com. on G.O. |
| Apr 2, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended. |
| Mar 5, 2018 | Referred to Com. on G.O. |
| Feb 15, 2018 | From printer. May be heard in committee March 17. |
| Feb 14, 2018 | Read first time. To print. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 29, 2018 | AB 2452 AGUIAR-CURRY Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 28, 2018 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Governmental Organization |
Passed |
|
| Aug 21, 2018 | Assembly 3rd Reading AB2452 Aguiar-Curry et al. By Dodd | Senate Floor |
Passed |
|
| Jun 26, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
Passed |
|
| Apr 26, 2018 | AB 2452 AGUIAR-CURRY Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 18, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 4, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Alcohol Justice | ** Against | Apr 3, 2018 |
| Family Winemakers Of California | * Support | Aug 28, 2018 |
| Napa Valley Vineyards | * Support | Apr 4, 2018 |
| Napa Valley Vintners | ** Support | Aug 15, 2018 |
| Napa Valley Vintners Association | * Support | Aug 28, 2018 |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 2452
Author:(Aguiar-Curry)
As Amended Ver:August 14, 2018
Majority vote
ASSEMBLY: | 74-0 | (April 26, 2018) | SENATE: | 39-0 | (August 21, 2018) |
COMMITTEE VOTE: | 17-0 | (August 28, 2018) | RECOMMENDATION: | concur |
(G.O.)
Original Committee Reference: G.O.
SUMMARY: This bill would revise various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer's location, to, among other things, allow for pictures, illustrations, and depictions of the retailer's premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
The Senate amendments:
- Allow various specified licensees, in advance of an instructional event for consumers being held at a retailer's premises to list in any advertisement for the instructional event, the name, address, telephone number, email address, Internet Web site address, any other electronic media of the retailer, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers.
- Require the listing of the retailer's name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement to be relatively inconspicuous in relation to the advertisement as a whole.
- Specify that pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video.
- Prohibit the use of laudatory references to the retailer in these advertisements.
- State that the reposting of social media posts, including posts by the retailer, is permitted provided that the reposting is consistent with the provisions of this bill.
- Specify that nothing in this bill shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the license holder.
- Clarify that "relatively inconspicuous" applies to the advertisement as a whole and add chaptering out language in case SB 1164 (Skinner) and AB 1891 (Levine), both of the current legislative session, are also enacted.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the "tied-house" law or "three-tier" system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: a) promote the state's interest in an orderly market; b) prohibit the vertical integration and dominance by a single producer in the market place; c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.
- Permits specified licensees to conduct or participate in, and serve alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailer's premises if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
- Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower's agent, wine importer, or retailer, except as authorized.
- Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower's premises.
AS PASSED BY THE ASSEMBLY, this bill would eliminate the prohibition on the presence of pictures or illustrations of the retailer's premises in advertisements for an instructional event for consumers held at a retailer's premises featuring wines produced by or for the winegrower or, imported by the wine importer, as specified.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
Purpose of the bill: According to the author's office, "communication today is fast-paced. Online searching and social media apps allow users to quickly, easily, and often visually, express details about their products, where they are sold as well as when and where there are special events. This user-friendly information sharing is critical in today's competitive business and marketing climate. Current tied-house restrictions relating to social media put the wine industry at a disadvantage when competing for free social media promotion. This bill will help to modernize advertising restrictions under current law by acknowledging use of social media to build brand awareness and loyalty."
Background: Winemakers are currently allowed to conduct and participate in, and serve wine at, instructional events and "meet the winemaker dinners" held at a retailer's premises featuring wines produced by or for the winegrower or, imported by the wine importer, provided the wine samples are taken from "barrels" or from "tanks." Winemakers participating in such events may also offer samples of wine (three one-ounce tastes per customer) from bottles provided by the winemaker.
An authorized licensee in advance of an instructional event for consumers being held at a retailer's premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, under specified conditions. For instance, the listing of the retailer's name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailer's premises and laudatory references to the retailer in these advertisements are also prohibited.
Tied-house laws: Tied-house refers to a practice in this country prior to Prohibition and still occurring in England today where a bar or public house, from whence comes the "house" of tied house, is tied to the products of a particular manufacturer, either because the manufacturer owns the house, or the house is contractually obligated to carry only a particular manufacturer's products. Existing tied-house laws generally prohibit a manufacturer, importer or wholesaler from furnishing, giving, or lending any money or other thing of value to any person engaged in operating, owning, or maintaining any off-sale or on-sale licensed retail premise. Existing law also provides two separate tied-house exceptions (one pertaining to on-sale retailers and the other to off-sale retailers) relative to the listing of a licensed retailer as a thing of value or prohibited inducement.
Related/Prior Legislation: AB 780 (Williams), Chapter 408, Statutes of 2015. Made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.
AB 636 (Hall), Chapter 329, Statutes of 2013. Permitted a winegrower, California winegrower's agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall), Chapter 480, Statutes of 2012. Created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wiggins), Chapter 177, Statutes of 2010. Clarified that winemakers who participate in instructional events or "meet the winemaker dinners," held at a retailer's licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from "bottles."
AB 605 (Portantino), Chapter 230, Statutes of 2010. Added new provisions to the Act authorizing ABC to issue to the holder of an "off-sale" retail license an "instructional tasting license" for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro), Chapter 149, Statutes of 2010. Created a new tied-house exception in the Act that allows licensed brewers to conduct and participate in events called "Beer Maker Dinners" for consumers held at an on-sale retail licensed premise.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0005056
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2452
Author:(Aguiar-Curry)
As Amended Ver:August 14, 2018
Majority vote
ASSEMBLY: | 74-0 | (April 26, 2018) | SENATE: | 39-0 | (August 21. 2018) |
Original Committee Reference: G.O.
SUMMARY: This bill would revise various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer's location, to, among other things, allow for pictures, illustrations, and depictions of the retailer's premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
The Senate amendments:
- Allow various specified licensees, in advance of an instructional event for consumers being held at a retailer's premises to list in any advertisement for the instructional event, the name, address, telephone number, email address, Internet Web site address, any other electronic media of the retailer, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers.
- Require the listing of the retailer's name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement to be relatively inconspicuous in relation to the advertisement as a whole.
- Specify that pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video.
- Prohibit the use of laudatory references to the retailer in these advertisements.
- State that the reposting of social media posts, including posts by the retailer, is permitted provided that the reposting is consistent with the provisions of this bill.
- Specify that nothing in this bill shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the license holder.
- Clarify that "relatively inconspicuous" applies to the advertisement as a whole and add chaptering out language in case SB 1164 (Skinner) and AB 1891 (Levine), both of the current legislative session, are also enacted.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the "tied-house" law or "three-tier" system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: a) promote the state's interest in an orderly market; b) prohibit the vertical integration and dominance by a single producer in the market place; c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.
- Permits specified licensees to conduct or participate in, and serve alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailer's premises if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
- Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower's agent, wine importer, or retailer, except as authorized.
- Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower's premises.
AS PASSED BY THE ASSEMBLY, this bill would eliminate the prohibition on the presence of pictures or illustrations of the retailer's premises in advertisements for an instructional event for consumers held at a retailer's premises featuring wines produced by or for the winegrower or, imported by the wine importer, as specified.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This bill was substantially amended in the Senate.
Purpose of the bill: According to the author's office, "communication today is fast-paced. Online searching and social media apps allow users to quickly, easily, and often visually, express details about their products, where they are sold as well as when and where there are special events. This user-friendly information sharing is critical in today's competitive business and marketing climate. Current tied-house restrictions relating to social media put the wine industry at a disadvantage when competing for free social media promotion. This bill will help to modernize advertising restrictions under current law by acknowledging use of social media to build brand awareness and loyalty."
Background: Winemakers are currently allowed to conduct and participate in, and serve wine at, instructional events and "meet the winemaker dinners" held at a retailer's premises featuring wines produced by or for the winegrower or, imported by the wine importer, provided the wine samples are taken from "barrels" or from "tanks." Winemakers participating in such events may also offer samples of wine (three one-ounce tastes per customer) from bottles provided by the winemaker.
An authorized licensee in advance of an instructional event for consumers being held at a retailer's premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, under specified conditions. For instance, the listing of the retailer's name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailer's premises and laudatory references to the retailer in these advertisements are also prohibited.
Tied-house laws: Tied-house refers to a practice in this country prior to Prohibition and still occurring in England today where a bar or public house, from whence comes the "house" of tied house, is tied to the products of a particular manufacturer, either because the manufacturer owns the house, or the house is contractually obligated to carry only a particular manufacturer's products. Existing tied-house laws generally prohibit a manufacturer, importer or wholesaler from furnishing, giving, or lending any money or other thing of value to any person engaged in operating, owning, or maintaining any off-sale or on-sale licensed retail premise. Existing law also provides two separate tied-house exceptions (one pertaining to on-sale retailers and the other to off-sale retailers) relative to the listing of a licensed retailer as a thing of value or prohibited inducement.
Related/Prior Legislation: AB 780 (Williams), Chapter 408, Statutes of 2015. Made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.
AB 636 (Hall), Chapter 329, Statutes of 2013. Permitted a winegrower, California winegrower's agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall), Chapter 480, Statutes of 2012. Created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wiggins), Chapter 177, Statutes of 2010. Clarified that winemakers who participate in instructional events or "meet the winemaker dinners," held at a retailer's licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from "bottles."
AB 605 (Portantino), Chapter 230, Statutes of 2010. Added new provisions to the Act authorizing ABC to issue to the holder of an "off-sale" retail license an "instructional tasting license" for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro), Chapter 149, Statutes of 2010. Created a new tied-house exception in the Act that allows licensed brewers to conduct and participate in events called "Beer Maker Dinners" for consumers held at an on-sale retail licensed premise.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0004215
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2452
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/26/18
AYES: Dodd, Wilk, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Portantino, Vidak, Wiener
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 74-0, 4/26/18 (Consent) - See last page for vote
DIGEST: This bill revises various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location, to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
Senate Floor Amendments of 8/14/18 clarify that “relatively inconspicuous” applies to the advertisement as a whole and add chaptering out language in case SB 1164 (Skinner) and AB 1891 (Levine) are also enacted.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.
- Permits specified licensees to conduct or participate in, and serve alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailer’s premises if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
- Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
- Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
This bill:
- Allows various specified licensees, in advance of an instructional event for consumers being held at a retailer’s premises to list in any advertisement for the instructional event, the name, address, telephone number, email address, Internet Web site address, any other electronic media of the retailer, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers.
- Requires the listing of the retailer’s name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement to be relatively inconspicuous in relation to the advertisement as a whole.
- Specifies that pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video.
- Prohibits the use of laudatory references to the retailer in these advertisements.
- Specifies that the reposting of social media posts, including posts by the retailer, is permitted provided that the reposting is consistent with the provisions of this bill.
- Specifies that nothing in this bill shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
Comments
Purpose of the bill. According to the author’s office, “communication today is fast-paced. Online searching and social media apps allow users to quickly, easily, and often visually, express details about their products, where they are sold as well as when and where there are special events. This user-friendly information sharing is critical in today’s competitive business and marketing climate. Current tied-house restrictions relating to social media put the wine industry at a disadvantage when competing for free social media promotion. AB 2452 will help to modernize advertising restrictions under current law by acknowledging use of social media to build brand awareness and loyalty.”
Tied-house laws. Tied-house refers to a practice in this country prior to Prohibition and still occurring in England today where a bar or public house, from whence comes the “house” of tied house, is tied to the products of a particular manufacturer, either because the manufacturer owns the house, or the house is contractually obligated to carry only a particular manufacturer’s products. Existing tied-house laws generally prohibit a manufacturer, importer or wholesaler from furnishing, giving, or lending any money or other thing of value to any person engaged in operating, owning, or maintaining any off-sale or on-sale licensed retail premise. Existing law also provides two separate tied-house exceptions (one pertaining to on-sale retailers and the other to off-sale retailers) relative to the listing of a licensed retailer as a thing of value or prohibited inducement.
Related/Prior Legislation
SB 1164 (Skinner, 2018) makes various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Appropriations Committee)
AB 1891 (Levine, 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending on the Senate Floor)
AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.
AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”
AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro, Chapter 149, Statutes of 2010) created a new tied-house exception in the Act that allows licensed brewers to conduct and participate in events called “Beer Maker Dinners” for consumers held at an on-sale retail licensed premise.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Napa Valley Vintners (source)
Family Winemakers of California
OPPOSITION: (Verified 8/14/18)
None received
ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “existing rules about how wineries can use social media to promote upcoming events are antiquated. For example, existing rules currently prohibit using photos of a retailer’s premises in any of the advertisements generated by the winery. Images are a powerful medium to generate interest and excitement in an event and their prohibition thwarts a wine brand’s efforts to authentically engage with their audience.”
ASSEMBLY FLOOR: 74-0, 4/26/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Fong, Cristina Garcia, Rodriguez
8/15/18 11:08:32
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2452
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/26/18
AYES: Dodd, Wilk, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Portantino, Vidak, Wiener
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 74-0, 4/26/18 (Consent) - See last page for vote
DIGEST: This bill revises various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location, to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.
- Permits specified licensees to conduct or participate in, and serve alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailer’s premises if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
- Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
- Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
This bill:
- Allows various specified licensees, in advance of an instructional event for consumers being held at a retailer’s premises to list in any advertisement for the instructional event, the name, address, telephone number, email address, Internet Web site address, any other electronic media of the retailer, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers.
- Requires the listing of the retailer’s name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement to be relatively inconspicuous in relation to the advertisement as a whole.
- Specifies that pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video.
- Prohibits the use of laudatory references to the retailer in these advertisements.
- Specifies that the reposting of social media posts, including posts by the retailer, is permitted provided that the reposting is consistent with the provisions of this bill.
- Specifies that nothing in this bill shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
Comments
Purpose of the bill. According to the author’s office, “communication today is fast-paced. Online searching and social media apps allow users to quickly, easily, and often visually, express details about their products, where they are sold as well as when and where there are special events. This user-friendly information sharing is critical in today’s competitive business and marketing climate. Current tied-house restrictions relating to social media put the wine industry at a disadvantage when competing for free social media promotion. AB 2452 will help to modernize advertising restrictions under current law by acknowledging use of social media to build brand awareness and loyalty.”
Tied-house laws. Tied-house refers to a practice in this country prior to Prohibition and still occurring in England today where a bar or public house, from whence comes the “house” of tied house, is tied to the products of a particular manufacturer, either because the manufacturer owns the house, or the house is contractually obligated to carry only a particular manufacturer’s products. Existing tied-house laws generally prohibit a manufacturer, importer or wholesaler from furnishing, giving, or lending any money or other thing of value to any person engaged in operating, owning, or maintaining any off-sale or on-sale licensed retail premise. Existing law also provides two separate tied-house exceptions (one pertaining to on-sale retailers and the other to off-sale retailers) relative to the listing of a licensed retailer as a thing of value or prohibited inducement.
Related/Prior Legislation
AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.
AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”
AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro, Chapter 149, Statutes of 2010) created a new tied-house exception in the Act that allows licensed brewers to conduct and participate in events called “Beer Maker Dinners” for consumers held at an on-sale retail licensed premise.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Napa Valley Vintners (source)
Family Winemakers of California
None received
ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “existing rules about how wineries can use social media to promote upcoming events are antiquated. For example, existing rules currently prohibit using photos of a retailer’s premises in any of the advertisements generated by the winery. Images are a powerful medium to generate interest and excitement in an event and their prohibition thwarts a wine brand’s efforts to authentically engage with their audience.”
ASSEMBLY FLOOR: 74-0, 4/26/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Fong, Cristina Garcia, Rodriguez
8/7/18 17:11:36
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2017 - 2018 Regular
Bill No: 2452 Hearing Date: 6/26/2018
Author: | , et al. | ||
Version: | 6/20/2018 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Felipe Lopez | ||
SUBJECT: Alcoholic beverages: tied-house restrictions
DIGEST: This bill revises various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location, to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.
- Permits specified licensees to conduct or participate in, and serve alcoholic beverages at, an instructional event or instructional tasting event for consumers held at a retailer’s premises if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
- Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
- Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
This bill:
- Allows various specified licensees, in advance of an instructional event for consumers being held at a retailer’s premises to list in any advertisement for the instructional event, the name, address, telephone number, email address, Internet Web site address, any other electronic media of the retailer, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers.
- Requires the listing of the retailer’s name, address, telephone number, email address, Internet Web site address, and any other electronic media in the advertisement to be relatively inconspicuous in relation to the advertisement as a whole.
- Prohibits the use of laudatory references to the retailer in these advertisements.
- Specifies that the reposting of social media posts, including posts by the retailer, is permitted provided that the reposting is consistent with the provisions of this bill.
Background
Purpose of the bill. According to the author’s office, “communication today is fast-paced. Online searching and social media apps allow users to quickly, easily, and often visually, express details about their products, where they are sold as well as when and where there are special events. This user-friendly information sharing is critical in today’s competitive business and marketing climate. Current tied-house restrictions relating to social media put the wine industry at a disadvantage when competing for free social media promotion. AB 2452 will help to modernize advertising restrictions under current law by acknowledging use of social media to build brand awareness and loyalty.”
Tied-house laws. Tied-house refers to a practice in this country prior to Prohibition and still occurring in England today where a bar or public house, from whence comes the “house” of tied house, is tied to the products of a particular manufacturer, either because the manufacturer owns the house, or the house is contractually obligated to carry only a particular manufacturer’s products. Existing tied-house laws generally prohibit a manufacturer, importer or wholesaler from furnishing, giving, or lending any money or other thing of value to any person engaged in operating, owning, or maintaining any off-sale or on-sale licensed retail premise. Existing law also provides two separate tied-house exceptions (one pertaining to on-sale retailers and the other to off-sale retailers) relative to the listing of a licensed retailer as a thing of value or prohibited inducement.
Prior/Related Legislation
AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.
AB 636 (Hall, Chapter 329, Statutes of 2013) permits a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibits a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”
AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the department to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro, Chapter 149, Statutes of 2010) created a new tied-house exception in the ABC Act that allows licensed brewers to conduct and participate in events called “Beer Maker Dinners” for consumers held at an on-sale retail licensed premise.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
Napa Valley Vintners (Source)
Family Winemakers of California
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “existing rules about how wineries can use social media to promote upcoming events are antiquated. For example, existing rules currently prohibit using photos of a retailer’s premises in any of the advertisements generated by the winery. Images are a powerful medium to generate interest and excitement in an event and their prohibition thwarts a wine brand’s efforts to authentically engage with their audience.”
Date of Hearing: April 18, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 2452
Author:(Aguiar-Curry) – As Amended Ver:April 2, 2018
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill allows a winemaker to include pictures or illustrations of a retailer’s premises for an instructional event held at those premises.
FISCAL EFFECT:
No additional state costs.
COMMENTS:
Background. Current "tied-house" law, also called “three-tier” law, is designed to prevent vertical integration between alcohol producers, wholesalers, and retailers. Generally, any cross ownership between the three tiers is prohibited, and manufactures are not allowed to provide anything of value to distributors or retailers, such as free goods, services, or advertising.
There are a range of exceptions to California’s tied-house law. One such exception is that a winemaker may participate in and serve wine at instructional events at a retailer location. However, there are rules around what wine may be served and the how the event may be advertised. While a winemaker may advertise the event, that advertisement may not include photos or illustrations of the retailer’s premises.
According to the author, AB 2452 will modernize advertising restrictions that put the wine industry at a competitive disadvantage when competing for free social media promotion. The author’s office notes that social media, which relies heavily on photographs and images, is critical in today’s marketing climate.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 4, 2018
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
ABPCA Bill Id:AB 2452 (
Author:Aguiar-Curry) – As Amended Ver:April 2, 2018
SUBJECT: Alcoholic beverages: tied-house restrictions
SUMMARY: Would eliminate the prohibition on the presence of pictures or illustrations of the retailer’s premises in advertisements for an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer, as specified.
EXISTING LAW:
1) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
2) Current law, known as the "tied-house" law, separates the alcoholic beverage industry into three component parts of manufacturer, wholesaler, and retailer. The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.
3) Permits a winegrower, California winegrower’s agent, wine importer, or other specified parties to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer if specified conditions are met. In this regard, these parties may list certain information in advertisements for the event, but those advertisements are prohibited from containing pictures or illustrations of the retailer premises.
4) Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
5) Specifies that no alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from the barrels or from tanks, may be supplied and provided as samples at the instructional event. Specifies that an authorized person may provide no more than three one-ounce tastes of wine per consumer at the instructional event from the bottles of wine provided by the authorized person. Minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, the authorized person shall remove any unused wine provided by the authorized person from the retailer’s premises.
6) Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
FISCAL EFFECT: Unknown
COMMENTS:
Winemakers are currently allowed to conduct and participate in, and serve wine at, instructional events and “meet the winemaker dinners” held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer, provided the wine samples are taken from “barrels” or from “tanks.” Winemakers participating in such events may also offer samples of wine (three one-ounce tastes per customer) from bottles provided by the winemaker.
An authorized licensee in advance of an instructional event for consumers being held at a retailer’s premises, may list in an advertisement the name and address of the retailer, the names of the wines being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, under specified conditions. For instance, the listing of the retailer’s name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailer’s premises and laudatory references to the retailer in these advertisements are also prohibited.
According to the author's office, "online searching and social media use is extensive. Communication is fast-paced; social media apps allow users to quickly, easily, and often visually, express information about their products, where they are sold, as well as when and where there are special events. This user-friendly information sharing is critical in today’s competitive business and marketing climate. The sharing of pictures and graphics is a much more eye-catching and engaging means of communication information, in comparison to text alone. Many social media and online platforms rely on photographs, images, and videos as the sole means of interaction. Current "tied-house" restrictions relating social media advertising puts the wine industry at a competitive disadvantage when competing for free social media advertisement and promotion."
The author's office states, this bill would eliminate the prohibition on the presence of pictures or illustrations of the retailer’s premises in advertisements for instructional events. "Posting a picture of the location where a tasting would be held will be more descriptive than strictly the name of the venue. When there are limitations and requirements on what can be posted, it takes away from a business’ ability to use the resource. This bill will help to modernize advertising restrictions under current law in the direction of today’s realm of social media and communication while building brand awareness and loyalty."
Prior legislation. AB 636 (Hall), Chapter 329, Statutes of 2013. Permits a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibits a requirement of the purchase of any alcoholic beverage in connection with such autographing.
AB 2184 (Hall), Chapter 480, Statutes of 2012. Created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.
SB 1101 (Wolk), Chapter 177, Statutes of 2010. Clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples (no more than three one-ounce tastes) of wine from “bottles.”
AB 605 (Portantino), Chapter 230, Statutes of 2010. Added new provisions to the Act authorizing the department to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.
AB 2134 (Chesbro), Chapter 149, Statutes of 2010. Created a new tied-house exception in the ABC Act that allows licensed brewers to conduct and participate in events called “Beer Maker Dinners” for consumers held at an on-sale retail licensed premise.
SB 1548 (Murray), Chapter 670, Statutes of 2006. Authorized beer manufacturers and wholesalers to offer beer samples (not to exceed 8 ounces per person, per day) to individuals of legal drinking age at on-sale retail licensed premises under specified conditions.
AB 2868 (Floyd), Chapter 471, Statutes of 1992. Authorized a winegrower, California winegrower’s agent, importer, or their specified representatives, to participate in an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or imported by the importer, under specified conditions.
REGISTERED SUPPORT / OPPOSITION:
Support
Family Winemakers of California
Opposition
Alcohol Justice
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Discussed in Hearing
1MIN
Assembly Floor
1MIN
Assembly Standing Committee on Governmental Organization
4MIN
Senate Floor
2MIN
Assembly Standing Committee on Governmental Organization
Bill Author
Bill Co-Author(s):
