California 2021 2021-2022 Regular Session

California Assembly Bill AB495 Amended / Bill

Filed 06/16/2022

                    Amended IN  Senate  June 16, 2022 Amended IN  Assembly  March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 495Introduced by Assembly Member BigelowFebruary 09, 2021An act to amend Section Sections 23771, 23772, and 24044 of the Business and Professions Code, relating to alcoholic beverages.LEGISLATIVE COUNSEL'S DIGESTAB 495, as amended, Bigelow. Alcoholic beverage control: licenses. licensure.Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law prohibits the issuance of a distilled spirits license, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, to any person, or to any officer, director, employee, or agent of a person, that manufactures distilled spirits within or without this state. Existing law prohibits a person that holds any ownership or interest, as specified, in a craft distillers license, distilled spirits wholesalers license, rectifiers license, or retailers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license.This bill would also prohibit a person that holds a specified ownership or interest in an importers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license. The bill would except from the prohibitions described in the above paragraph a person holding a distilled spirits wholesalers license, or any officer, director, employee, or agent of the person, if that person has specified characteristics. The bill would require, in this regard, that the person be a manufacturer of beer with at least 2 manufacturing locations in California, that the person hold at least 2 beer and wine wholesale licenses in California, and that the person have an ownership interest in both an in-state and out-of-state distilled spirits manufacturer that imports and distributes only distilled spirits products that meet certain criteria. The bill would also make technical and conforming changes.The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law Act allows licenses for the retail sale of alcoholic beverages to be issued for, or transferred to, premises that are to be constructed or are in the process of construction.This bill would require a licensee transferring a license, as described above, to follow specified notification requirements.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 23771 of the Business and Professions Code is amended to read:23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.SEC. 2. Section 23772 of the Business and Professions Code is amended to read:23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.SECTION 1.SEC. 3. Section 24044 of the Business and Professions Code is amended to read:24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.

 Amended IN  Senate  June 16, 2022 Amended IN  Assembly  March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 495Introduced by Assembly Member BigelowFebruary 09, 2021An act to amend Section Sections 23771, 23772, and 24044 of the Business and Professions Code, relating to alcoholic beverages.LEGISLATIVE COUNSEL'S DIGESTAB 495, as amended, Bigelow. Alcoholic beverage control: licenses. licensure.Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law prohibits the issuance of a distilled spirits license, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, to any person, or to any officer, director, employee, or agent of a person, that manufactures distilled spirits within or without this state. Existing law prohibits a person that holds any ownership or interest, as specified, in a craft distillers license, distilled spirits wholesalers license, rectifiers license, or retailers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license.This bill would also prohibit a person that holds a specified ownership or interest in an importers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license. The bill would except from the prohibitions described in the above paragraph a person holding a distilled spirits wholesalers license, or any officer, director, employee, or agent of the person, if that person has specified characteristics. The bill would require, in this regard, that the person be a manufacturer of beer with at least 2 manufacturing locations in California, that the person hold at least 2 beer and wine wholesale licenses in California, and that the person have an ownership interest in both an in-state and out-of-state distilled spirits manufacturer that imports and distributes only distilled spirits products that meet certain criteria. The bill would also make technical and conforming changes.The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law Act allows licenses for the retail sale of alcoholic beverages to be issued for, or transferred to, premises that are to be constructed or are in the process of construction.This bill would require a licensee transferring a license, as described above, to follow specified notification requirements.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Senate  June 16, 2022 Amended IN  Assembly  March 18, 2021

Amended IN  Senate  June 16, 2022
Amended IN  Assembly  March 18, 2021

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 495

Introduced by Assembly Member BigelowFebruary 09, 2021

Introduced by Assembly Member Bigelow
February 09, 2021

An act to amend Section Sections 23771, 23772, and 24044 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 495, as amended, Bigelow. Alcoholic beverage control: licenses. licensure.

Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law prohibits the issuance of a distilled spirits license, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, to any person, or to any officer, director, employee, or agent of a person, that manufactures distilled spirits within or without this state. Existing law prohibits a person that holds any ownership or interest, as specified, in a craft distillers license, distilled spirits wholesalers license, rectifiers license, or retailers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license.This bill would also prohibit a person that holds a specified ownership or interest in an importers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license. The bill would except from the prohibitions described in the above paragraph a person holding a distilled spirits wholesalers license, or any officer, director, employee, or agent of the person, if that person has specified characteristics. The bill would require, in this regard, that the person be a manufacturer of beer with at least 2 manufacturing locations in California, that the person hold at least 2 beer and wine wholesale licenses in California, and that the person have an ownership interest in both an in-state and out-of-state distilled spirits manufacturer that imports and distributes only distilled spirits products that meet certain criteria. The bill would also make technical and conforming changes.The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law Act allows licenses for the retail sale of alcoholic beverages to be issued for, or transferred to, premises that are to be constructed or are in the process of construction.This bill would require a licensee transferring a license, as described above, to follow specified notification requirements.

Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law prohibits the issuance of a distilled spirits license, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, to any person, or to any officer, director, employee, or agent of a person, that manufactures distilled spirits within or without this state. Existing law prohibits a person that holds any ownership or interest, as specified, in a craft distillers license, distilled spirits wholesalers license, rectifiers license, or retailers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license.

This bill would also prohibit a person that holds a specified ownership or interest in an importers license from also holding a distilled spirits manufacturers license or a distilled spirits manufacturers agents license. The bill would except from the prohibitions described in the above paragraph a person holding a distilled spirits wholesalers license, or any officer, director, employee, or agent of the person, if that person has specified characteristics. The bill would require, in this regard, that the person be a manufacturer of beer with at least 2 manufacturing locations in California, that the person hold at least 2 beer and wine wholesale licenses in California, and that the person have an ownership interest in both an in-state and out-of-state distilled spirits manufacturer that imports and distributes only distilled spirits products that meet certain criteria. The bill would also make technical and conforming changes.

The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law Act allows licenses for the retail sale of alcoholic beverages to be issued for, or transferred to, premises that are to be constructed or are in the process of construction.

This bill would require a licensee transferring a license, as described above, to follow specified notification requirements.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 23771 of the Business and Professions Code is amended to read:23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.SEC. 2. Section 23772 of the Business and Professions Code is amended to read:23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.SECTION 1.SEC. 3. Section 24044 of the Business and Professions Code is amended to read:24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 23771 of the Business and Professions Code is amended to read:23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.

SECTION 1. Section 23771 of the Business and Professions Code is amended to read:

### SECTION 1.

23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.

23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.

23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.



23771. Except as provided in Section 23771.5, Sections 23771.5 and 23772, a distilled spirits license of any kind, except a distilled spirits manufacturers, a craft distillers, or a distilled spirits manufacturers agents license, shall not be issued to any person, or to any officer, director, employee, or agent of any person person, that manufactures distilled spirits within or without this state.

SEC. 2. Section 23772 of the Business and Professions Code is amended to read:23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.

SEC. 2. Section 23772 of the Business and Professions Code is amended to read:

### SEC. 2.

23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.

23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.

23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:(1) On-sale general license for a bona fide club.(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:(1) They are a beer manufacturer with at least two manufacturing locations in this state.(2) They hold at least two beer and wine wholesale licenses in this state.(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.(4) They import and distribute only distilled spirits products that meet any of the following criteria:(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.



23772. (a) A distilled spirits manufacturers or distilled spirits manufacturers agents license shall not be held by any person that holds any ownership or interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, loan, mortgage, or lien on any personal or real property, or otherwise, in any craft distillers, distilled spirits wholesalers, importers, rectifiers, or retailers license.

(b) The provisions of this section subdivision (a) shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and a person holding only one of the following types of licenses:

(1) On-sale general license for a bona fide club.

(2) Club license (issued under Article 4 (commencing at Section 23425) of Chapter 3).

(3) Veterans club license (issued under Article 5 (commencing at Section 23450) of Chapter 3).

(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturers agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished, or given, directly or indirectly, to the on-sale licensee.

(c) The provisions of subdivision (a) and Section 23771 shall not apply to any person, or to any officer, director, employee, or agent of that person, that produces distilled spirits within or without this state, provided that the person holding the distilled spirits importer or wholesalers license has all of the following characteristics:

(1) They are a beer manufacturer with at least two manufacturing locations in this state.

(2) They hold at least two beer and wine wholesale licenses in this state.

(3) They have a direct or indirect ownership interest in both an in-state and out-of-state distilled spirits manufacturer.

(4) They import and distribute only distilled spirits products that meet any of the following criteria:

(A) The distilled spirits are manufactured or produced either within or without this state by an entity in which the licensee holds a direct or indirect interest.

(B) The distilled spirits are manufactured or produced under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.

(C) The distilled spirits are produced and bottled under a written contract with another manufacturer within or without this state for an entity in which the licensee holds a direct or indirect interest.

SECTION 1.SEC. 3. Section 24044 of the Business and Professions Code is amended to read:24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.

SECTION 1.SEC. 3. Section 24044 of the Business and Professions Code is amended to read:

### SECTION 1.SEC. 3.

24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.

24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.

24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.



24044. (a) Licenses for the retail sale of alcoholic beverages may be issued for or transferred to premises that are to be constructed or that are in the process of construction. Alcoholic beverages shall not be sold pursuant to the license until the premises have been completed.

(b) A licensee transferring a license to a premises pursuant to this section shall follow the notification requirements prescribed in Section 23985. Nothing in this section shall require an existing licensee to comply with the notification requirements if the construction is taking place on the existing premises of the existing license.