2010 California Code
Business and Professions Code
Article 3. Rights And Obligations Of Licensees

BUSINESS AND PROFESSIONS CODE
SECTION 23355-23405.3



23355.  Except as otherwise provided in this division and subject to
the provisions of Section 22 of Article XX of the Constitution, the
licenses provided for in Article 2 of this chapter authorize the
person to whom issued to exercise the rights and privileges specified
in this article and no others at the premises for which issued
during the year for which issued.



23355.1.  Notwithstanding any other provision of this division, the
following acts are authorized:
   (a) Deliveries of distilled spirits by a licensee to a retail
licensee may be made from the vendor's licensed premises or from a
warehouse located within the county in which the vendor's licensed
premises are located except as permitted by Section 23383. Deliveries
to a licensed importer may also be made from any point outside the
state.
   (b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits rectifier general, or
rectifier may store, bottle, cut, blend, mix, flavor, color, label,
and package distilled spirits owned by another distilled spirits
manufacturer, distilled spirits manufacturer's agent, distilled
spirits rectifier general, rectifier, or a distilled spirits
wholesaler, and may deliver those distilled spirits from the premises
where stored, bottled, cut, blended, mixed, flavored, colored,
labeled, or packaged, or from a warehouse located in the same county
as that premises for the account of the owner of those distilled
spirits to any licensee that owner would be authorized to deliver to
under his or her own license, except to a retail licensee.
   (c) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits rectifier general, rectifier,
or distilled spirits wholesaler may store and deliver distilled
spirits for the account of another licensee who would be authorized
to make the delivery under his or her own license, except that
licensee shall not make a delivery to a retail licensee on behalf of
another licensee.
   (d) A retail off-sale licensee with annual United States auction
sales revenues of at least five hundred million dollars
($500,000,000) or annual wine auction sales revenues of at least five
million dollars ($5,000,000), may sell wine consigned by any person,
whether or not the auctioned wine is "vintage wine" as defined in
Section 23104.6, at any auction held in compliance with Section 2328
of the Commercial Code to consumers and retail licensees and may
deliver wines sold to any purchaser at that auction from the vendor's
licensed premises or from any other storage facility.



23355.2.  (a) For purposes of this section, "controlled access
alcoholic beverage cabinet" means a closed container, either
refrigerated, in whole or in part, or nonrefrigerated, and access to
the interior of which is (1) restricted by means of a locking device
which requires the use of a key, magnetic card, or similar device, or
(2) controlled at all times by the licensee.
   (b) Notwithstanding any other provision of this division, a hotel
or motel having an on-sale license may sell alcoholic beverages to
its registered guests by means of a controlled access alcoholic
beverage cabinet located in the guestrooms of those registered
guests, provided that each of the following conditions is met:
   (1) Access to a controlled access alcoholic beverage cabinet in a
particular guestroom is provided, whether by furnishing a key,
magnetic card, or similar device, or otherwise, only to the adult
registered guest, if any, registered to stay in the guestroom.
   (2) Prior to providing a key, magnetic card, or other similar
device required to attain access to the controlled access alcoholic
beverage cabinet in a particular guestroom to the registered guest
thereof, or prior to otherwise providing access thereto to the
registered guest, the licensee shall verify, in accordance with
Article 3 (commencing with Section 25657), of Chapter 16 of this
division, that each registered guest to whom a key, magnetic card, or
similar device is provided, or to whom access is otherwise provided,
is not a minor.
   (3) All employees handling the alcoholic beverages to be placed in
the controlled access alcoholic beverage cabinet in any guestroom,
including, but not limited to, any employee who inventories or
restocks and replenishes the alcoholic beverages in the controlled
access alcoholic beverage cabinet, shall be at least 21 years of age.
   (4) There is no replenishing or restocking of the alcoholic
beverages in any controlled access alcoholic beverage cabinet between
the hours of 2 a. m. and 6 a.m. of the same day.
   (c) Notwithstanding any other provision of this division, a hotel
or motel having an on-sale general license or an on-sale general
license for restricted service lodging establishments may, upon
issuance of a permit from the department, sell from its controlled
access alcoholic beverage cabinets distilled spirits in containers of
50 milliliters or less, or in containers of comparable size. The
department shall charge an annual fee for a permit issued pursuant to
this subdivision equal to the annual renewal fee applicable to an
off-sale general license pursuant to Section 23320.
   (d) Notwithstanding any other provision of this division, a hotel
or motel having an on-sale general license or an on-sale general
license for restricted service lodging establishments and an off-sale
general license may sell from its controlled access alcoholic
beverage cabinets distilled spirits in containers of 50 milliliters
or less, or in containers of comparable size, without having to
obtain the permit specified in subdivision (c).
   (e) A controlled access alcoholic beverage cabinet may be part of
another cabinet or similar device, whether refrigerated, in whole or
in part, or nonrefrigerated, from which nonalcoholic beverages or
food may be purchased by the guests in hotel or motel guestrooms.
However, in that event, the portion of the cabinet or similar device
in which alcoholic beverages are stored shall be a controlled access
alcoholic beverage cabinet, as defined in this section.
   (f) For purposes of this section, "hotel" or "motel" shall mean an
establishment which is licensed to sell alcoholic beverages and
which contains guestroom accommodations with respect to which the
predominant relationship existing between the occupants thereof and
the owner or operator of the establishment is that of innkeeper and
guest. For purposes of this subdivision, the existence of other legal
relationships as between some occupants and the owner or operator
thereof shall be immaterial.



23356.  Any manufacturer's or winegrower's license authorizes the
person to whom it is issued to become a manufacturer or producer of
the alcoholic beverage specified in the license, and to do any of the
following:
   (a) Whether manufactured or produced by him or her or any other
person, to package, rectify, mix, flavor, color, label, and export
the alcoholic beverage specified in the license.
   (b) To sell only those alcoholic beverages as are packaged by or
for him or her only to persons holding wholesaler's, manufacturer's,
winegrower's, manufacturer's agent's, or rectifier's licenses
authorizing the sale of those alcoholic beverages and to persons who
take delivery of those alcoholic beverages within this state for
delivery or use without the state.
   (c) To deal in warehouse receipts for the alcoholic beverage
specified in the license.



23356.1.  (a) A winegrower's license also authorizes the person to
whom issued to conduct winetastings of wine produced or bottled by,
or produced and packaged for, the licensee, either on or off the
winegrower's premises. When a winetasting is held off the winegrower'
s premises at an event sponsored by a private nonprofit organization,
no wine may be sold, and no sales or orders solicited, 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. For
purposes of this subdivision, "private nonprofit organization" means
an organization described in Section 23701a, 23701b, 23701d, 23701e,
23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the
Revenue and Taxation Code.
   (b) Notwithstanding any other provisions of this division, a
winegrower who, prior to July 1, 1970, had, at his or her premises of
production, sold to consumers for consumption off the premises
domestic wine other than wine which was produced or bottled by, or
produced and packaged for, the licensee, and which was not sold under
a brand or trade name owned by the licensee, and who had, prior to
July 1, 1970, conducted winetastings of the domestic wine at his or
her licensed premises, is authorized to continue to conduct the
winetasting and selling activities at the licensed premises.
   (c) A winegrower who was licensed as such prior to July 1, 1954,
and who prior to July 1, 1970, had, at his or her licensed premises,
sold to consumers for consumption off the premises, wine packaged for
and imported by him or her, and who conducted winetastings of the
wines at his or her licensed premises, may continue to conduct the
winetasting and selling activities at the licensed premises.
   (d) The department may adopt the rules as it determines to be
necessary for the administration of this section.



23356.2.  (a) No license or permit shall be required for the
manufacture of beer for personal or family use, and not for sale, by
a person over 21 years of age. The aggregate amount of beer with
respect to any household shall not exceed (1) 200 gallons per
calendar year if there are two or more adults in the household or (2)
100 gallons per calendar year if there is only one adult in the
household.
   (b) No license or permit shall be required for the manufacture of
wine for personal or family use, and not for sale, by a person over
21 years of age. The aggregate amount of wine with respect to any
household shall not exceed (1) 200 gallons per calendar year if there
are two or more adults in the household or (2) 100 gallons per
calendar year if there is only one adult in the household.
   (c) Any beer manufactured pursuant to this section may be removed
from the premises where manufactured for use in competition at
organized affairs, exhibitions, or competitions, including homemakers'
contests, tastings, or judgings.
   (d) Any wine made pursuant to this section may be removed from the
premises where made for personal or family use, including use at
organized affairs, exhibitions, or competitions, such as homemakers'
contests, tastings, or judgings. Wine used under this section shall
not be sold or offered for sale.
   (e) Except as provided herein, nothing in this section authorizes
any activity in violation of Section 23300, 23355, or 23399.1.



23356.3.  Notwithstanding any other provision of this division, an
out-of-state winegrower, after notification to, and approved by, the
department, may furnish American wine which the winegrower produces
and bottles for wine tastings sponsored by a private nonprofit
organization. This privilege shall be extended to winegrowers in
those states which accord California winegrowers a substantially
equal reciprocal wine tasting privilege. Certification by an
appropriate state official of his or her state's reciprocal wine
tasting privilege shall be included with the required notification.



23356.5.  A wine blender's license authorizes the person to whom
issued to exercise all of the privileges of a winegrower's license
except:
   (a) To crush and ferment and produce wine from grapes, berries or
other fruits.
   (b) To obtain or be issued a duplicate winegrower's license as
provided for in Section 23390.
   (c) To buy, sell, receive or deliver wine from persons other than
authorized licensees.
   (d) To sell and deliver wine to consumers for consumption off the
premises where sold.
   (e) To exercise on-sale privileges as provided in Section 23358 of
this code.



23356.6.  Except as otherwise provided in this act, all provisions
in this division pertaining to winegrowers, or to directors,
officers, agents and employees of winegrowers, shall apply to wine
blenders and to directors, officers, agents and employees of wine
blenders.



23356.7.  Nothing in this division shall be or be construed to be
retroactive or to affect the rights of a person holding a winegrower'
s license or licenses or winegrower's duplicate license or licenses
at the time this section becomes effective, or to prohibit the
renewal or transfer of such existing license or licenses from one
person to another person or from one premise to another premise.



23356.8.  A licensed wine blender shall not be issued and shall not
own or hold, directly or indirectly, any retailer's license, nor
shall the holder of a retailer's license be issued or own or hold,
directly or indirectly, a wine blender's license, or own or hold any
interest in a wine blender's license.
   This section shall not apply to a wine blender with respect to a
retailer's license held by him on or before February 2, 1968, or to
the holder of a retailer's license with respect to a wine blender's
license for which an application for transfer to the holder of the
retailer's license was on file with the department on or before
February 2, 1968.



23356.9.  A wine blender's license does not authorize winetasting
activities or the conducting or sponsoring of wine tastings either on
or off the wine blender's licensed premises.
   This section shall not apply to a wine blender who was licensed as
such on or before February 2, 1968, or with respect to a wine
blender's license for which an application for transfer to the holder
of a retailer's license was on file with the department on or before
February 2, 1968.


23357.  A licensed beer manufacturer may, at the licensed premises
of production, sell to consumers for consumption off the premises
beer which is produced and bottled by, or produced and packaged for
that manufacturer. Licensed beer manufacturers may also sell beer to
any person holding a license authorizing the sale of beer and may
sell beer to consumers for consumption on the manufacturer's licensed
premises or on premises owned by the manufacturer which are
contiguous to the licensed premises and which are operated by and for
the manufacturer. Licensed beer manufacturers may also sell beer and
wine, regardless of source, to consumers for consumption at a bona
fide public eating place on the manufacturer's licensed premises or
at a bona fide public eating place on premises owned by the
manufacturer which are contiguous to the licensed premises and which
are operated by and for the manufacturer. Notwithstanding any other
provision of this division, licensed beer manufacturers and holders
of out-of-state beer manufacturer's certificates may be issued and
may hold retail package off-sale beer and wine licenses. Alcoholic
beverage products sold at or from the off-sale premises which are not
produced and bottled by, or produced and packaged for, the beer
manufacturer shall be purchased by the beer manufacturer only from a
licensed wholesaler.



23357.1.  An out-of-state beer manufacturer's certificate authorizes
the shipment of beer manufactured without this state to licensed
importers within this state. Beer manufactured without this state,
but not beer manufactured without the United States, may only be
obtained by a licensed importer within this state from the holder of
an active out-of-state beer manufacturer's certificate. Only one
out-of-state beer manufacturer's certificate may be issued to any one
beer manufacturer.
   A California beer manufacturer with a license in good standing in
this state may ship into this state beer which was manufactured at
plants out of this state without holding an out-of-state beer
manufacturer's certificate.


23357.2.  (a) An out-of-state beer manufacturer's certificate may be
issued by the department upon the written undertaking and agreement
by the applicant:
   (1) That it and its agents and all agencies within this state
controlled by it shall comply with all laws of this state and all
rules of the department with respect to the sale of alcoholic
beverages, including, but not limited to, Chapter 12 (commencing with
Section 25000) of Division 9, and Section 25509, to the same extent
as licensees.
   (2) That it shall make available, both in California and outside
the state, for inspection and copying by the department, all books,
documents, and records, located both within and without this state,
which are pertinent to the activities of the applicant, its agents
and agencies within this state controlled by it, in connection with
the sale and distribution of its products within this state.
   (b) The department may suspend or revoke an out-of-state beer
manufacturer's certificate for cause in the manner provided for the
suspension or revocation of licenses, and after a hearing which shall
be held in the City of Sacramento or in any other county seat in
this state as the department determines to be convenient to the
holder of an out-of-state certificate.
   (c) The annual fees for an out-of-state beer manufacturer's
certificate shall be fifty-four dollars ($54) for certificates issued
during the 2002 calendar year, fifty-seven dollars ($57) for
certificates issued during the 2003 calendar year, sixty dollars
($60) for certificates issued during the 2004 calendar year, and for
certificates issued during the years thereafter, the annual fee shall
be calculated pursuant to subdivisions (c) and (d) of Section 23320.
   (d) All money collected from the fees provided for in this section
shall be deposited in the Alcohol Beverage Control Fund as provided
by Section 25761.


23357.3.  (a) A beer manufacturer's license or out-of-state beer
manufacturer's certificate issued to a manufacturer located within
the United States authorizes the licensee to conduct tastings of beer
produced or bottled by, or produced or bottled for, the licensee, on
or off the licensee's premises. Beer tastings may be conducted by
the licensee off the licensee's premises only for an event sponsored
by a nonprofit organization and only if persons attending the event
are affiliated with the sponsor. No beer shall be sold or solicited
for sale in that portion of the premises where the beer tasting is
being conducted. Notwithstanding Section 25600, the manufacturer may
provide beer without charge for any tastings conducted pursuant to
this section.
   (b) (1) For purposes of this section, "nonprofit organization"
does not include any community college or other institution of higher
learning, as defined in the Education Code, nor does it include any
officially recognized club, fraternity, or sorority whether or not
that entity is located on or off the institution's campus.
   (2) For purposes of this section, "affiliated with the sponsor"
means directors, officers, members, employees, and volunteers of bona
fide charitable, fraternal, political, religious, trade, service, or
similar nonprofit organizations and their invited guests.
   (3) For purposes of this section, persons "affiliated with the
sponsor" also includes up to three guests invited by persons
described in paragraph (2).
   (c) The sponsoring organization shall first obtain a permit from
the department at a fee equal to the actual cost of issuing the
permit but not to exceed twenty-five dollars ($25) per day.
   (d) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.



23357.4.  (a) Notwithstanding any other provision of this division,
an incorporated beer manufacturer's trade association may conduct
beer tastings on behalf of one or more licensed beer manufacturers
for public educational purposes. Beer tastings conducted by an
incorporated beer manufacturer's trade association may be conducted
for groups of individuals unaffiliated with a sponsoring nonprofit
organization, provided that the participants do not exceed 100 in
number at any beer tasting event.
   No beer shall be sold or solicited for sale in that portion of the
premises where the beer tasting is being conducted. Notwithstanding
Section 25600, a licensed beer manufacturer may provide beer without
charge to an incorporated beer manufacturer's trade association for
any tastings conducted pursuant to this section.
   (b) (1) For purposes of this section, "nonprofit organization"
does not include any community college or other institution of higher
learning, as defined in the Education Code, nor does it include any
officially recognized club, fraternity, or sorority whether or not
that entity is located on or off the institution's campus.
   (2) For purposes of this section, "affiliated with the sponsor"
means directors, officers, members, employees, and volunteers of bona
fide charitable, fraternal, political, religious, trade, service, or
similar nonprofit organizations and their invited guests.
   (c) The incorporated beer manufacturer's trade association shall
first obtain a permit from the department for each tasting event at a
fee equal to the actual cost of issuing the permit but not to exceed
twenty-five dollars ($25) per day.
   (d) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.




23358.  (a) Licensed winegrowers, notwithstanding any other
provisions of this division, may also exercise the following
privileges:
   (1) Sell wine and brandy to any person holding a license
authorizing the sale of wine or brandy.
   (2) Sell wine and brandy to consumers for consumption off the
premises where sold.
   (3) Sell wine to consumers for consumption on the premises.
   (4) Sell all beers, wines, and brandies, regardless of source, to
consumers for consumption on the premises in a bona fide eating place
as defined in Section 23038 of this code, which is located on the
licensed premises or on premises owned by the licensee that are
contiguous to the licensed premises and which is operated by and for
the licensee. At such bona fide public eating place beer, wine, and
brandy may be used in the preparation of food and beverages to be
consumed on the premises.
   (5) Produce spirits of wine and blend those spirits of wine into
wine produced by the winegrower or sell those spirits of wine to an
industrial alcohol dealer.
   (b) A winegrower may also have upon the premises all beers, wines,
and brandies, regardless of source, for sale or service only to
guests during private events or private functions not open to the
general public. Alcoholic beverage products sold at the premises that
are not produced and bottled by, or produced and packaged for, the
winegrower shall be purchased by the winegrower only from a licensed
wholesaler.
   (c) A winegrower shall actually produce on his or her licensed
premises by conversion of grapes, berries, or other fruit, into wine,
not less than 50 percent of all wines sold to consumers on his or
her licensed premise or premises and any licensed branch premise or
premises.
   (d) The department may, if it shall determine for good cause that
the granting of any such privilege would be contrary to public
welfare or morals, deny the right to exercise any on-sale privilege
authorized by this section in either a bona fide eating place the
main entrance to which is within 200 feet of a school or church, or
on the licensed winery premises, or both.
   (e) Nothing in this section or in Section 23390 is intended to
alter, diminish, replace, or eliminate the authority of a county,
city, or city and county from exercising land use regulatory
authority by law to the extent the authority may restrict, but not
eliminate, privileges afforded by these sections.



23358.2.  Notwithstanding any other provision of this division, a
winegrower or brandy manufacturer, at his licensed premises where the
sale of wine or brandy is authorized or permitted, when selling to
consumers, may sell only wine or brandy which is produced or bottled
by such licensee, or wine or brandy which is produced for or is
produced and packaged for such licensee, and which is sold under a
brand name owned by such licensee. The rights and privileges of a
winegrower or brandy manufacturer to be issued and to hold an
off-sale beer and wine license for any of his licensed premises, or
for other premises, shall not in any way be changed or affected, or
be construed to be changed or affected, by the provisions of this
section.



23358.3.  A wine grape grower's storage license authorizes the
holder to store bulk wine, made from grapes produced by the holder,
on the premises of a licensed winegrower and to sell that wine,
within this state, to winegrowers, distilled spirits manufacturers,
brandy manufacturers, wine blenders, and vinegar producers.
   The annual fee for a wine grape grower's storage license shall be
sixty dollars ($60) for licenses issued during the 2002 calendar
year, sixty-four dollars ($64) for licenses issued during the 2003
calendar year, sixty-seven dollars ($67) for licenses issued during
the 2004 calendar year, and for licenses issued during the years
thereafter, the annual fee shall be calculated pursuant to
subdivisions (c) and (d) of Section 23320.



23359.  A wine grower's license also authorizes the manufacture of
grape brandy to be used exclusively in the production of wine by its
holder on the premises for which issued and also the sale of grape
brandy to licensed wine growers to be used exclusively in the
production of wine.



23360.  Licensed brandy manufacturers, notwithstanding any other
provisions of this division, may also sell brandy and wine to
consumers for consumption off the premises where sold, and to any
person holding a license authorizing the sale of brandy and wine.




23361.  A person holding a brandy manufacturer's license may also
sell grape brandy, fruit brandy, or spirits of wine to licensed wine
growers for use by the latter in the production of wine and the
production or manufacturing of alcohol for the United States
Government, and beverage brandy for sale to consumers for consumption
off the premises.



23362.  Notwithstanding any other provisions of this division, a
licensed winegrower or brandy manufacturer may be issued and may hold
an off-sale general license or a retail package off-sale beer and
wine license. The issuance of these off-sale general licenses shall
be subject to the pertinent provisions of Article 2 (commencing with
Section 23815) of Chapter 5 of this division. Nothing in this
division shall be construed to be retroactive or to affect the right
of a licensed winegrower or brandy manufacturer to hold, renew or
transfer any off-sale general license held by such licensed
winegrower or brandy manufacturer on the 30th day of September, 1959.




23363.  Any licensed manufacturer of distilled spirits originally
distilled in this State may sell them to any person holding a license
authorizing the sale of distilled spirits.
   This section shall not apply to distilled spirits manufacturer
licenses issued after the effective date of the amendment of this
section enacted at the 1959 Regular Session of the Legislature, and
this section shall not apply to manufacturers of distilled spirits
who have not regularly and continuously exercised the privileges of
this section by sales to retail licensees.
   In addition to the rights and privileges granted by this section,
any person holding a distilled spirits manufacturer license may sell
brandy to any person holding a license authorizing the sale of
brandy.


23363.1.  (a) A distilled spirits manufacturer's license authorizes
the licensee to conduct tastings of distilled spirits produced or
bottled by, or produced or bottled for, the licensee, on or off the
licensee's premises. Distilled spirits tastings may be conducted by
the licensee off the licensee's premises only for an event sponsored
by a nonprofit organization and only if persons attending the event
are affiliated with the sponsor. No distilled spirits shall be sold
or solicited for sale in that portion of the premises where the
distilled spirits tasting is being conducted. Notwithstanding Section
25600, the licensee may provide distilled spirits without charge for
any tastings conducted pursuant to this section.
   (b) For purposes of this section:
   (1) "Nonprofit organization" does not include any community
college or other institution of higher learning, as defined in the
Education Code, nor does it include any officially recognized club,
fraternity, or sorority, whether or not that entity is located on or
off the institution's campus.
   (2) "Affiliated with the sponsor" means directors, officers,
members, employees, and volunteers of bona fide charitable,
fraternal, political, religious, trade, service, or similar nonprofit
organizations and their invited guests. Persons "affiliated with the
sponsor" also includes up to three guests invited by persons
described in this paragraph.
   (c) The sponsoring organization shall first obtain a permit from
the department.
   (d) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.




23363.2.  (a) A distilled spirits manufacturer not licensed in
California may designate in writing a California licensee, other than
the holder of any retail license, to conduct tastings of distilled
spirits produced or bottled by, or produced or bottled for, the
manufacturer, off the designated licensee's premises only for an
event sponsored by a nonprofit organization and only if persons
attending the event are affiliated with the sponsor. No distilled
spirits shall be sold or solicited for sale in that portion of the
premises where the distilled spirits tasting is being conducted.
Notwithstanding Section 25600, the designated licensee may provide
distilled spirits without charge for any tastings conducted pursuant
to this section.
   (b) For purposes of this section:
   (1) "Nonprofit organization" does not include any community
college or other institution of higher learning, as defined in the
Education Code, nor does it include any officially recognized club,
fraternity, or sorority whether or not that entity is located on or
off the institution's campus.
   (2) "Affiliated with the sponsor" means directors, officers,
members, employees, and volunteers of bona fide charitable,
fraternal, political, religious, trade, service, or similar nonprofit
organizations and their invited guests. Persons "affiliated with the
sponsor" also includes up to three guests invited by persons
described in this paragraph.
   (c) The sponsoring organization shall first obtain a permit from
the department.
   (d) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.



23364.  All provisions of this division relating to the sale and
delivery of distilled spirits from distilled spirits wholesalers or
rectifiers to on- or off-sale licensees, all provisions of Part 14 of
Division 2 of the Revenue and Taxation Code imposing an excise tax
upon the sale of distilled spirits, and all provisions of Part 14 of
Division 2 of the Revenue and Taxation Code relating to distilled
spirits excise tax procedure applies to distilled spirits
manufacturers when making sales, authorized by this division, of
distilled spirits produced in this State to on- or off-sale
licensees.



23365.  Neither a corporation nor a limited partnership required to
maintain a register under Section 23405.1 or licensed under Section
23405.2 engaged in the manufacture of distilled spirits shall,
directly or indirectly, through affiliates, subsidiaries, or
otherwise, distribute distilled spirits to its stockholders by
dividend, or to its limited partners by return of capital
contribution or share of profits, either by distribution in kind or
the granting of purchase privileges. This section does not restrict
the sale of alcoholic beverages to persons holding manufacturer's,
distilled spirits manufacturer's agent's, rectifier's, or wholesaler'
s licenses.



23366.  A distilled spirits manufacturer's agent's license
authorizes any of the following:
   (a) The possession of distilled spirits in public or private
warehouses.
   (b) The exportation of distilled spirits.
   (c) The cutting, blending, mixing, flavoring, and coloring of
distilled spirits for his own account or for the account of a
distilled spirits manufacturer, manufacturer's agent, rectifier, or
wholesaler.
   (d) Whether cut, blended, mixed, flavored, or colored by him, or
any other person, the packaging and the sale or delivery of distilled
spirits only to holders of distilled spirits manufacturer's,
rectifier's, or distilled spirits wholesaler's licenses.
   A person need not actually engage in the cutting, blending, or
bottling of distilled spirits in order to qualify for a distilled
spirits manufacturer's agent's license.



23366.1.  No distilled spirits manufacturer or any agent thereof
shall solicit a consumer to purchase amounts or lots of distilled
spirits through a specific retailer.
   This section shall not prevent any distilled spirits manufacturer
or the agent thereof who holds any license or licenses authorizing
sales to consumers from making sales of alcoholic beverages to
consumers as permitted by such license or licenses.



23366.2.  An out-of-state distilled spirits shipper's certificate
authorizes the shipment of distilled spirits manufactured without
this state to licensed importers within this state. Distilled spirits
manufactured without this state may only be obtained by a licensed
importer from the holder of an active out-of-state distilled spirits
shipper's certificate. Only one out-of-state distilled spirits
shipper's certificate may be issued to any one distilled spirits
shipper.


23366.3.  (a) An out-of-state distilled spirits shipper's
certificate may be issued by the department upon the written
undertaking and agreement by the applicant:
   (1) That it and its agents and all agencies within this state
controlled by it shall comply with all laws of this state and all
rules of the department with respect to the sale of alcoholic
beverages;
   (2) That it shall make available, both in California and outside
the state, for inspection and copying by the department, all books,
documents, and records, located both within and without the state,
which are pertinent to the activities of the applicant, its agents
and agencies within this state controlled by it, in connection with
the sale and distribution of its products within this state.
   (b) The department may suspend or revoke an out-of-state distilled
spirits shipper's certificate for cause in the manner provided for
the suspension and revocation of licenses, and after a hearing which
shall be held in the City of Sacramento or in such other county seat
in the state as the department determines to be convenient to the
holder of an out-of-state distilled spirits shipper's certificate.
   (c) The annual fees for an out-of-state distilled spirits shipper'
s certificate shall be fifty-four dollars ($54) for certificates
issued during the 2002 calendar year, fifty-seven dollars ($57) for
certificates issued during the 2003 calendar year, sixty dollars
($60) for certificates issued during the 2004 calendar year, and for
certificates issued during the years thereafter, the annual fee shall
be calculated pursuant to subdivisions (c) and (d) of Section 23320.
   (d) All money collected from the fees provided for in this section
shall be deposited in the Alcohol Beverage Control Fund, as provided
by Section 25761.



23366.5.  A winegrower's license, brandy manufacturer's license,
California winegrower's agent's license, beer and wine wholesaler's
license or a distilled spirits manufacturer's agent's license also
authorizes the solicitation of orders for wine or brandy, or both,
which are produced or manufactured in this state and which the
licensee is authorized to sell by his license for and on behalf of
any licensee for the sale to other licensees of such wine or brandy.



23367.  A still license authorizes the person to whom issued to own
or possess the number of stills indicated in the license upon the
premises for which issued.



23368.  A rectifier's license authorizes the person to whom issued
to cut, blend, rectify, mix, flavor, and color distilled spirits and
wine upon which the excise tax imposed by Part 14 of Division 2 of
the Revenue and Taxation Code has been paid, and, whether so cut,
blended, mixed, flavored, or colored by him or any other person, to
package, label, export, and sell the products to persons holding
licenses authorizing the sale of distilled spirits.



23368.1.  A distilled spirits rectifier's general license authorizes
the person to whom issued to cut, blend, rectify, mix, flavor, and
color distilled spirits, and whether so cut, blended, mixed,
flavored, or colored by him or any other person to package, label,
export, and sell the distilled spirits to distilled spirits
manufacturers, distilled spirits manufacturer's agents, distilled
spirits wholesalers, distilled spirits general importers, rectifiers,
and distilled spirits general rectifiers.
   No distilled spirits rectifier's general license shall be issued
to any person who holds an interest, directly or indirectly, in an
on-sale or off-sale general license. The number of distilled spirits
rectifier's general licenses which may be issued shall not be limited
by the provisions of Section 23820.
   A distilled spirits rectifier's general license may be issued to
the same premises for which a manufacturer's, manufacturer's agent,
importer's, rectifier's or wholesaler's license has been issued and
is in effect whether issued to the same person or another person.
   The fee for a distilled spirits rectifier's general license shall
be two hundred seventy-six dollars ($276), which shall be deposited
in the Alcoholic Beverage Control Fund.



23369.  In order to qualify for a rectifier's license, a person
shall actually be engaged at the time the license is issued or
renewed, or within 30 days thereafter, in the bottling of distilled
spirits owned by him. The distilled spirits owned by him shall
comprise at least 50 percent of the total distilled spirits bottled
by him.



23370.  Nothing in Sections 23368 and 23369 prohibits the issuance
of a distilled spirits manufacturer's agent's license to any person
who is engaged in the bottling of distilled spirits owned solely by
other manufacturer's agents, rectifiers, wholesalers, or
manufacturers.



23371.  A rectifier who also performs the functions of a distilled
spirits wholesaler shall comply with all the provisions of this
division applicable to a holder of a distilled spirits wholesaler's
license.


23372.  A wine rectifier's license authorizes the person to whom
issued to cut, blend, rectify, mix, flavor, or color wine upon which
the excise tax imposed by Part 14 of Division 2 of the Revenue and
Taxation Code has been paid, and whether so cut, blended, rectified,
mixed, flavored, or colored by him, or any other person, to package,
label, export, and sell the products to persons holding licenses
issued by the department authorizing the sale of wine. The holder of
a wine rectifier's license may apply for and hold a wine importer's
license, a distilled spirits manufacturer's license, or a distilled
spirits manufacturer's agent's license. A wine rectifier's license
shall not be issued to or held by the holder of a retail off-sale or
retail on-sale license.



23373.  A California winegrower's agent's license authorizes any of
the following:
   (a) The possession of wine produced in California and brandy
distilled in California in public or private warehouses.
   (b) The sale to wholesalers for his or her own account or the
solicitation of and sale to wholesalers for the account of a licensed
winegrower of wine that was produced in this state and brandy that
was distilled in this state.
   (c) The invoicing and collection on behalf of a winegrower of
payments for orders solicited by the agent.
   (d) Performance or furnishing on behalf of the winegrower for
which he or she is an agent, of the services which the winegrower is
authorized to perform or furnish under the provisions of Sections
23356.1, 25503.1, 25503.2, 25503.3, 25503.5, 25503.8, 25503.9,
25503.26, and 25503.85.



23373.1.  Neither the holder of any wholesaler's license nor the
holder of any retail license may hold a California winegrower's agent'
s license, except that the holder of a wholesaler's license who has
been a primary distributor for a winegrower for more than 20 years
immediately prior to the effective date of this section may continue
to be issued and to hold a beer and wine wholesaler's license and a
distilled spirits wholesaler's license as well as a California
winegrower's agent's license.



23373.2.  A winegrower or brandy manufacturer may be represented by
only one California winegrower's agent.



23373.4.  A California winegrower's agent's license authorizes the
holder to furnish samples, to produce and distribute wine lists, to
produce and furnish advertising material, retailers' advertising
specialties and consumer advertising specialties, with respect to the
wine or brandy he distributes as an agent for a winegrower or brandy
manufacturer so authorized.



23373.5.  Nothing in this division shall preclude the department
from taking disciplinary action against a winegrower or brandy
manufacturer for any violation of this division when such violation
was committed by the holder of a California winegrower's agent's
license while acting on behalf of the winegrower or brandy
manufacturer.



23374.  Any importer's license authorizes the person to whom issued
to become an importer of alcoholic beverages specified in the
license, to export the alcoholic beverages, and to transfer the
beverages to himself under another license.


23374.5.  A distilled spirits importer's general license authorizes
the person to whom issued to become an importer of distilled spirits
and to sell distilled spirits to distilled spirits manufacturers,
distilled spirits manufacturer's agents, distilled spirits
wholesalers, rectifiers and distilled spirits general importers.




23374.6.  A beer and wine importer's general license authorizes the
person to whom issued to become an importer of beer or wine and to
sell state tax paid beer or wine to beer manufacturer's, wine grower'
s, beer and wine wholesaler's, wine rectifier's and beer and wine
importer's general licensees.



23375.  A public warehouse license authorizes the storage of
alcoholic beverages for the account of another licensee, including
storage in a United States customs bonded warehouse, a United States
internal revenue bonded warehouse, and a United States bonded wine
cellar.



23375.5.  No distilled spirits importer's general license shall be
issued to any person who holds an interest, directly or indirectly,
in an on-sale or off-sale general license.



23375.6.  No beer and wine importer's general license shall be
issued to any person who holds an interest, directly or indirectly,
in any retail license. No retail license shall be issued to any beer
and wine importer's general licensee.


23376.  A customs broker's license authorizes the transfer to
licensed importers of alcoholic beverages brought into the State in
United States internal revenue bond or in United States customs bond
and the exportation of the alcoholic beverages. The holder of a
customs broker's license may receive delivery of, possess, export,
and transfer to licensed importers such alcoholic beverages as are
brought into this State in United States internal revenue bond or
customs bond. Such a license also authorizes the possession and
exportation of alcoholic beverages acquired from licensed
manufacturers or wine growers for export.



23377.  A wine broker's license authorizes the person to whom issued
to act as a wine broker, for a fee or commission, in the purchase of
wine for or on behalf of a person within or without this State
authorized to buy wine for purposes of resale and in the sale of wine
for or on behalf of a person, other than a retail licensee, licensed
to sell wine within the State. A wine broker shall not buy or sell
any wine for his own account, take or deliver title to wine, or
receive or store any wine in his own name in this State. A wine
broker shall not offer to sell, agree to offer to sell, or sell any
wine unless he first has a bona fide authorization to do so from a
person, other than a retail licensee, licensed to sell wine in this
State. A wine broker shall not offer to buy, agree to buy, agree to
offer to buy, or buy any wine unless he first has a bona fide
authorization to do so from a person within or without this State
authorized to buy wine for purposes of resale. The exercise of the
privileges granted by the wine broker's license are subject to such
rules and conditions as the department deems necessary and proper.




23378.  Any wholesaler's license authorizes the sale of the
alcoholic beverage specified in the license only to persons holding
licenses issued by the department authorizing the sale of the
alcoholic beverage, and authorizes the exportation of the alcoholic
beverage.



23378.1.  (a) A California brandy wholesaler's license may be issued
only to the holder of a beer and wine wholesaler's license, and
authorizes the person to whom it is issued (hereafter in this section
called "licensee") to sell only brandy produced in California to
persons holding licenses authorizing the sale of brandy, and to
export such brandy, subject to all of the following conditions:
   (1) Such licensee shall:
   (i) Maintain warehouse space either owned or leased by him or
dedicated to his use in a public warehouse which space is sufficient
to store at one time a stock of California brandy whose cost of
acquisition is one hundred thousand dollars ($100,000) or more.
   (ii) Maintain at all times in his warehouse either owned or leased
by him or in space dedicated to his use in a public warehouse a
stock of California brandy whose cost of acquisition is one hundred
thousand dollars ($100,000) or more. If a licensee has more than one
licensed premise, he shall be required to maintain warehouse space
for and a stock of California brandy whose cost of acquisition is one
hundred thousand dollars ($100,000) or more only in connection with
one licensed premise. For each of the remaining licensed premises,
the licensee shall be required to maintain warehouse space for and a
stock of California brandy whose cost of acquisition is thirty
thousand dollars ($30,000) or more. The stock of California brandy
required by this paragraph shall be owned by the licensee, not held
on consignment, and not acquired pursuant to a prior agreement to
sell it to a specific licensee or licensees.
   (2) Such licensee shall sell California brandy to retailers
generally, rather than a few selected retailers. A licensee who sells
to 25 percent of the retailers in the county where his California
brandy wholesale licensed premises are located, or a licensee whose
total volume of sales of California brandy to retailers during any
12-month period consists of 50 percent or more of individual sales in
quantities of 10 cases or less shall be conclusively presumed to be
selling to retailers generally.
   (3) Such licensee may sell only one California brandy of one
winegrower, which brandy is produced or bottled by such winegrower,
or which is produced for, or is produced and packaged for, such
winegrower, and is sold under a brand name owned or controlled by
such winegrower.
   (4) Such licensee, under the authority of his beer and wine
wholesaler's license, shall stock and offer to sell to retailers a
complete product line of California wines of the winegrower whose
brandy the licensee handles. A "complete product line" for the
purposes of this paragraph means all of the types of wines sold under
a particular label.
   (b) The number of California brandy wholesaler's licenses which
may be issued shall not be limited by any rule of the department
relating to the number which may be issued in any county, nor shall
such licenses be included in any formula used by the department in
determining the number of distilled spirits wholesaler's licenses
which may be issued in a county.
   (c) The fee for a California brandy wholesaler's license shall be
two hundred seventy-six dollars ($276) per year, which shall be
deposited in the Alcoholic Beverage Control Fund.




23378.2.  Notwithstanding any other provision of this division, a
licensed wholesaler or importer may be issued and may hold retail
package off-sale beer and wine licenses if the wholesaler or importer
sells wine and no other alcoholic beverages at or from the retail
premises.



23379.  A beer and wine wholesaler's license also authorizes the
labeling, bottling, or packaging of wine in accordance with and
subject to the rules of the State Department of Public Health. A beer
and wine wholesaler's license shall not permit the sale or delivery
of wine to consumers in containers supplied, furnished, or sold by
the consumer.



23380.  An industrial alcohol dealer's license authorizes the sale
of undenatured ethyl alcohol in packages of more than one gallon for
use in the trades, professions, or industries and not for beverage
consumption and also authorizes the importation and exportation of
undenatured ethyl alcohol.



23381.  Any manufacturer's, wine grower's, manufacturer's agent's,
rectifier's or wholesaler's license authorizes the licensee to:
   (a) Deal in warehouse receipts, for the kind of alcoholic
beverages which the licensee is authorized to sell, with other
licensed manufacturers, wine growers, distilled spirits manufacturer'
s agents, rectifiers, or wholesalers who are authorized to sell the
kind of alcoholic beverages covered by the warehouse receipt.
   (b) Sell warehouse receipts for brandy produced in this State to
licensees of other states who are authorized to deal in brandy, for
the purpose of storage of the brandy covered by the warehouse
receipts in internal revenue bonded warehouses in this State for
subsequent export to another state.
   Nothing in this division prohibits the sale of a warehouse receipt
for alcoholic beverages by any other person, in accordance with
rules adopted by the department, to manufacturers, wine growers,
manufacturer's agents, rectifiers, and wholesalers licensed to sell
the kind of alcoholic beverages covered by the warehouse receipt when
the warehouse receipt was acquired by the person prior to May 1,
1941.


23382.  An offer or agreement to sell distilled spirits, which at
the time of the offer or agreement are stored in containers larger
than one gallon capacity and the ownership of which is represented by
a warehouse receipt, shall be deemed a sale of a warehouse receipt.



23383.  Any manufacturer's, wine grower's, manufacturer's agent's,
importer's, rectifier's, or wholesaler's license also authorizes the
transfer of title to the alcoholic beverages specified in the license
to other licensed manufacturers, wine growers, manufacturer's
agents, importers, rectifiers, and wholesalers when the alcoholic
beverages are in storage in a licensed public warehouse, United
States customs bonded warehouse, United States internal revenue
bonded warehouse, or United States bonded wine cellars located at any
place within the state without any additional or other license
therefor. Such licenses also authorize the sale of alcoholic
beverages specified in the license to persons who, under such
procedure as shall be established by the department, take delivery of
the alcoholic beverages in this State for delivery or use without
the State.


23384.  Any licensed beer manufacturer, wine grower, brandy
manufacturer, rectifier, or wholesaler may, in addition to the other
privileges exercised under his or her license and in accordance with
rules prescribed by the department sell tax-paid alcoholic beverages
mentioned in the license of the licensee to nonlicensees having a
fixed place of business or residence upon territory within this State
which is maintained by the United States Government as a military or
naval reservation or national park or veterans homes, and veterans
homes maintained by the State of California, and Indian country or
land dedicated for use by the Indians.



23385.  Any distilled spirits manufacturer's or brandy manufacturer'
s license and any rectifier's license authorizes the sale, in
conformity with United States internal revenue laws and regulations,
of the distilled spirits authorized to be sold by the license in
packages larger than one gallon for use in the trades, professions,
or industries and not for beverage use.



23386.  (a) Any manufacturer's, wine grower's, manufacturer's agent'
s, rectifier's, importer's, or wholesaler's license also authorizes
the giving away of samples of the alcoholic beverages that are
authorized to be sold by the license under the rules that may be
prescribed by the department. A retail license does not authorize the
furnishing or giving away of any free samples of alcoholic
beverages.
   (b) Notwithstanding subdivision (a), an on-sale retail licensee
authorized to sell wine may instruct consumers at the on-sale retail
licensed premises regarding wines sold by the retail licensee.
Notwithstanding subdivision (a), an on-sale retail licensee
authorized to sell distilled spirits may instruct consumers at the
on-sale retail licensed premises regarding distilled spirits. The
instruction may include, without limitation, the history, nature,
values, and characteristics of the product, and the methods of
presenting and serving the product. 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. Nothing in this subdivision shall limit the giving
away of samples pursuant to subdivision (a).



23387.  In addition to the other privileges exercised under a
wholesaler's or rectifier's license, a wholesaler or rectifier may
sell the alcoholic beverages mentioned in his or her license to
persons who take delivery of the alcoholic beverages within this
state for delivery or use outside of the state within 90 days from
the date of the sale in accordance with rules and regulations
prescribed by the department.



23388.  A licensed beer manufacturer or a licensed beer wholesaler,
in addition to selling beer at his licensed premises, may sell beer
from wagons or trucks operated by him to licensees authorized to sell
beer.


23389.  A licensed beer manufacturer may sell and deliver beer from
branch offices located away from his or her place of manufacture and
exercise all his or her license privileges, other than manufacture,
at or from the branch offices. The department shall upon request
issue to a beer manufacturer a duplicate of his or her original
license which shall authorize the maintenance and operation of each
branch declared and designated by him or her, upon the payment for
each duplicate of the fee specified in Section 23320.
   Notwithstanding the provisions of any other section of this
division, the duplicate license shall be issued forthwith upon the
application therefor. In the event any protest is received by the
department concerning the issuance of the duplicate license, the
protest shall be considered as an accusation against the licensee and
a hearing had thereon as if an accusation had been filed.
   For 30 days from the date of the issuance of the duplicate
license, no retail sales of beer shall be made at any branch office
for which a duplicate license is issued pursuant to this section.



23390.  (a) A licensed winegrower or brandy manufacturer, in
addition to exercising all the privileges of his or her license at
his or her licensed premises, may exercise all his or her license
privileges at or from branch offices or warehouses, or United States
bonded wine cellars located away from his or her place of production
or manufacture, other than the following privileges:
   (1) Production or manufacture.
   (2) The sale of wine or brandy to consumers for consumption on the
premises in a bona fide eating place.
   (3) The sale or delivery of wine to consumers in containers
supplied, furnished, or sold by the consumer.
    (b) The department may issue to a winegrower or brandy
manufacturer a duplicate of his or her original license for a
location or locations other than his or her wine production or brandy
manufacture premises. The duplicate license authorizes the
maintenance and operation of each branch or warehouse or United
States bonded wine cellar declared and designated by the winegrower
or brandy manufacturer at the location for which the duplicate
license is issued. The fee for each duplicate winegrower's license
and for each duplicate brandy manufacturer's license is as specified
in Section 23320.
   (c) Notwithstanding any other provision of law, the department may
allow any person who held more than one original winegrower's
license, on or before January 1, 1981, to transfer any duplicate
license which has been issued, on or before January 1, 1981, on any
of the original winegrower's licenses to any other original
winegrower's license held by that person, on or before January 1,
1981, provided that the licensee cancels the original winegrower's
license from which any duplicate license is transferred. This
subdivision shall not authorize any person to acquire any additional
duplicate licenses other than those held by that licensee on or
before January 1, 1981.


23390.5.  (a) As used in this section, "licensed branch office"
means any branch office or warehouse, or United States bonded wine
cellar located away from the licensed winegrower's or brandy
manufacturer's place of production, or manufacture, for which a
duplicate license has been issued.
   (b) Notwithstanding the provisions of Section 23358, 23360, and
23390, no licensed winegrower or brandy manufacturer shall sell wine
or brandy to consumers or engage in winetasting activities at more
than one licensed branch premise. This section is not and shall not
be construed to be retroactive and notwithstanding any other
provisions of this division shall not prohibit such sales or limit
the quantity thereof or prohibit winetasting activities at any
licensed branch office or branch offices under the existing duplicate
license or licenses therefor in existence on January 1, 1966, or any
renewal or transfer thereof or at any licensed branch office opened
by the licensee in place of such licensed branch office.



23391.  If a violation of any provision of this division or of any
rule of the department is committed in the exercise of the license
privileges authorized to be exercised at any branch office, and the
violation becomes a matter of investigation, hearing, or decision by
the department with relation to the license of the licensee, the
department in making its ruling or decision, if the violation is
found to be one committed in connection with the operation of the
branch office and not a violation in connection with manufacturing or
production or the manufacturing or production premises, shall not
suspend, revoke, or interfere with the manufacturer's or wine grower'
s license privileges or license at his place of manufacture or
production but shall limit the application of its decision,
permissible under this division, to and in connection with the
particular duplicate license and the premises in the operation of
which the violation occurred.


23392.  If a violation of any provision of this division or of any
rule of the department is committed in connection with the premises
where the act of manufacturing beer or producing wine is performed,
the department in making its ruling or decision in connection with
the violation shall limit its decision, permissible under this
division, to and in connection with the license upon the premises of
manufacture or production and to the particular function exercised by
the licensee wherein a violation occurred, such as manufacturing,
production, importing, exporting, packaging, labeling, selling to
wholesalers, or selling to retailers, and any existing duplicate
license for any branch office, unless the branch office actually
participated in the commission of the violation, shall not be
affected or interfered with by the decision or by reason of the
violation.


23393.  A retail package off-sale beer and wine license authorizes
the sale, to consumers only and not for resale, of beer in
containers, and wine in packages and in quantities of 52 gallons or
less per sale, for consumption off the premises where sold.




23394.  An off-sale general license includes the privileges
specified in Section 23393 and authorizes the sale, to consumers only
and not for resale, except to holders of daily on-sale general
licenses issued pursuant to Section 24045.1, of distilled spirits for
consumption off the premises where sold. Standards of fill for
distilled spirits authorized for sale pursuant to this section shall
conform in all respects to the standards established pursuant to
regulations issued under the Federal Alcohol Administration Act (27
U.S.C. Secs. 201 et seq.) and any amendments thereto.



23394.5.  No privileges under an off-sale general license, except as
provided in Section 23106, shall be exercised by the licensee in
more than one room or building unless the rooms or buildings are
contiguous and the access between such rooms or buildings is adequate
and available for general public use without the necessity of using
any public or private street, alley or sidewalk.



23395.  Nothing in this division prevents the sale, in packages of
less than one-half pint, of bitters or other aromatic or flavoring or
medicinal preparations, which are classed for taxing purposes as
distilled spirits, by off-sale general licensees.



23396.  Any on-sale license authorizes the sale of the alcoholic
beverage specified in the license for consumption on the premises
where sold. No alcoholic beverages, other than beers, may be sold or
served in any bona fide public eating place for which an on-sale
license has been issued unless the premises comply with the
requirements prescribed in Section 23038, 23038.1, or 24045.1.



23396.1.  (a) An on-sale general license for restricted service
lodging establishments authorizes those hotels and motels described
in subdivision (b) to sell alcoholic beverages for consumption on the
premises only as follows:
   (1) By means of controlled access alcoholic beverage cabinets
located in guestrooms, subject to the conditions specified in Section
23355.2.
   (2) Under circumstances where the uniform cost of the alcoholic
beverages is included in the price of the overnight transient
occupancy accommodation, whether or not separately stated.
   (3) Beer and wine in sealed containers to the licensee's transient
guests and their invitees from a food sale area as defined in
subdivision (c) located within the lodging establishment itself.
   (b) For purposes of this division, a "restricted service lodging
establishment" is a hotel or motel, within the meaning of subdivision
(f) of Section 23355.2, which meets all of the following conditions:
   (1) It does not operate a bona fide eating place or other public
premise.
   (2) It has at least 10 guestroom accommodations.
   (3) It does not derive more than 5 percent of its total gross
annual revenues from sales of alcoholic beverages.
   (c) "Food sale area" means a food facility, within the meaning of
Section 113789 of the Health and Safety Code, that routinely offers
for sale, throughout the area's normal hours of operation each day to
all of the lodging establishment's transient guests and their
invitees, primarily items like prepackaged sandwiches, salads,
snacks, candy, dairy products, water, soft drinks, and other
nonalcoholic beverages in bottles or cans, and similar food items.
The "food sale area" may also offer for sale various items such as
health and beauty aids, cosmetics, nonprescription drugs, film,
batteries, and similar sundries.
   (d) A premises licensed pursuant to this section shall not be
authorized to sell or furnish alcoholic beverages to the general
public, shall not be entitled to a caterer's permit pursuant to
Section 23399, and shall not be entitled to exercise any off-sale
privileges pursuant to Section 23401. The provisions of Article 2
(commencing with Section 23815) of Chapter 5 do not apply to the
issuance of on-sale general licenses for restricted service lodging
establishments. An on-sale general restricted service lodging
establishment license may be transferred to another person but not to
another location. A licensee specified in this section shall
purchase no alcoholic beverages for sale in this state other than
from a wholesaler or winegrower licensee.
   (e) An applicant for an original on-sale general license for
restricted service lodging establishments shall, at the time of
filing the application for the license, accompany the application
with a fee of six thousand dollars ($6,000). The annual renewal fee
for a license issued pursuant to this section shall be the same as
the applicable annual renewal fee for an on-sale general license.



23396.2.  (a) An on-sale general license for a wine, food and art
cultural museum, and educational center authorizes those persons
described in subdivision (b) to sell, furnish, or give alcoholic
beverages for consumption on the premises and off-sale privileges, as
further qualified herein.
   (b) For purposes of this division, "a wine, food and art cultural
museum, and educational center" is a person which meets all the
following conditions:
   (1) The retail premises shall include an auditorium, concert
terrace, exhibition gallery, teaching kitchen, and library and may be
adjacent to a bona fide eating place as defined in Section 23038.
   (2) The premises is located in Napa County, operated by a
nonprofit entity that is exempt from payment of income taxes under
Section 501(c)(3) of the Internal Revenue Code, and includes real
estate improvements of a value of at least forty-five million dollars
($45,000,000).
   (c) The department shall upon request and qualification issue an
on-sale general wine, food and art cultural museum, and educational
center licensee a duplicate of the original license for a premises
located on commonly owned property contiguous to, or in close
proximity to the original licensed premises. As used in this section,
"close proximity" shall mean the original licensed premises is no
further than 900 feet from the premises issued the duplicate license
regardless of whether the two premises are separated by a public or
private street, alley, or sidewalk.
   (d) There shall be no limit as to the number of events held on an
on-sale general wine, food and art cultural museum, and educational
center premises or duplicate premises at which a person or persons
issued caterer's permits under Section 23399 may sell alcoholic
beverages so long as the on-sale general license for a wine, food and
art cultural museum, and educational center surrenders its license
privileges for any portion of the premises at which a catered event
is held for the duration of the event.
   (e) A wine, food and art cultural museum, and educational center
licensed under this section shall not be included in the definition
of "public premises" under Section 23039.
   (f) The provisions of Article 2 (commencing with Section 23815) of
Chapter 5 do not apply to the issuance of on-sale general licenses
for a wine, food and art cultural museum, and educational center. An
on-sale wine, food and art cultural museum, and educational center
license may be transferred to another person, qualified pursuant to
subdivision (b), but not to another location. A licensee specified in
this section shall purchase no alcoholic beverages for sale in this
state other than from a wholesaler or winegrower licensee.
Notwithstanding any other provision of this division, licensees may
donate wine to a person licensed under this section.
   (g) Notwithstanding any other provision of this division, a
manufacturer, winegrower, manufacturer's agent, California winegrower'
s agent, rectifier, distiller, bottler, importer, or wholesaler may
hold the ownership of any interest, directly or indirectly, in the
premises and in the license of a wine, food and art cultural museum,
and educational center, may serve as an officer, director, employee,
or agent of a wine, food and art cultural museum, and educational
center licensee, and may sponsor or fund educational programs,
special fundraising and promotional events, improvements in capital
projects, and the development of exhibits or facilities of and for a
wine, food and art cultural museum, and educational center licensee
provided the number of items of beer, wine, or distilled spirits by
brand, exclusive of wine labeled for the wine, food and art cultural
museum, and educational center licensee authorized in subdivision (a)
of this section, offered for sale by the wine, food and art cultural
museum, and educational center licensee, which are produced,
bottled, rectified, distilled, processed, imported, or sold by an
individual licensee holding an interest in, serving as an officer,
director, employee or agent of, or sponsoring or funding the programs
and projects of the retail licensee, does not exceed 15 percent of
the total items of beer, wine, or distilled spirits by brand listed
and offered for sale in the retail licensed premises.
   (h) An applicant for an original on-sale general license for a
wine, food and art cultural museum, and educational center shall, at
the time of filing the application for the license, accompany the
application with a fee of twelve thousand dollars ($12,000). The
annual renewal fee for a license issued pursuant to this section
shall be the same as the applicable renewal fee for an on-sale
general license.
   (i) An applicant for a duplicate on-sale general license for a
wine, food and art cultural museum, and educational center shall, at
the time of filing the application for the license, accompany the
application with a fee equal to the license fee for an on-sale
general license. The annual renewal fee for a duplicate license
issued pursuant to this section shall be the same as the applicable
renewal fee for an on-sale general license.



23396.3.  (a) A brewpub-restaurant license is an on-sale retail
license which may be issued to a bona fide public eating place, as
defined in Section 23038. The licensed premises shall have a minimum
seven-barrel brewing capacity, and the licensee shall produce not
less than 100 barrels nor more than 5,000 barrels of beer annually on
the licensed premises. The license authorizes the sale of beer,
wine, and distilled spirits for consumption on the premises, and the
sale of beer produced by the brewpub-restaurant licensee for
consumption on the premises. The license also authorizes the sale of
beer produced by the licensed brewpub-restaurant licensee to a
licensed beer and wine wholesaler, subject to the requirements of
Chapter 12 (commencing with Section 25000). A brewpub-restaurant
license does not authorize the sale, furnishing, or exchange of any
alcoholic beverages with any other brewpub-restaurant licensee or any
retail licensee in California.
   (b) A brewpub-restaurant licensee shall purchase all beer, wine,
or distilled spirits for sale on the licensed premises from a
licensed wholesaler or winegrower, except for the beer produced by
the brewpub-restaurant licensee on the licensed premises.
   (c) A brewpub-restaurant licensee shall offer for sale on the
licensed premises canned, bottled, or draft beer commercially
available from licensed wholesalers.
   (d) The fee for an original brewpub-restaurant license shall be
the same as that specified in Section 23954.5 for an original on-sale
general license.
   (e) The annual license fee for a brewpub-restaurant license shall
be the same as that for an on-sale general license.
   (f) The limitations provided in Section 23816 on the number of
licensed premises shall not apply to a brewpub-restaurant licensee.



23396.5.  Notwithstanding any other law, any on-sale licensee that
maintains a bona fide eating place in conjunction with such license,
any on-sale beer and wine public premises licensee, or any winegrower
that is exercising a privilege pursuant to Section 23358 or 23390
may allow any person who has purchased and partially consumed a
bottle of wine to remove the partially consumed bottle from the
premises upon departure.



23396.6.  (a) The department may issue to the holder of an off-sale
retail license an instructional tasting license at the premises of
the off-sale retail license. An instructional tasting license shall
not be issued to any of the following:
   (1) Off-sale licensees at locations where motor vehicle fuel is
sold, unless the licensee operates a fully enclosed off-sale retail
area encompassing at least 10,000 square feet.
   (2) Off-sale licensees at locations with a total of less than
5,000 square feet of interior retail space, unless the calendar
quarterly gross sales of alcoholic beverages at the licensed location
comprise at least 75 percent of the total gross sales of all
products sold at the licensed premises. A licenseholder that is
issued an instructional tasting license pursuant to this paragraph
shall maintain records that separately reflect the gross sales of
alcoholic beverages and the gross sales of all other products sold on
the licensed premises.
   (b) The provisions of Article 2 (commencing with Section 23815) of
Chapter 5 and Section 23958.4 shall not apply to the issuance of an
instructional tasting license, except that the department may
expressly deny the issuance of an instructional tasting license for
any premises located in an area of undue concentration of licenses as
defined in paragraph (1) of subdivision (a) of Section 23958.4.
Notwithstanding paragraph (3) of subdivision (c), the provisions of
Article 2 (commencing with Section 23985) and Article 3 (commencing
with Section 24011) of Chapter 6 shall apply to the issuance of an
instructional tasting license.
   (c) Notwithstanding subdivision (a) of Section 23386 and paragraph
(3) of subdivision (c) of Section 25612.5, an instructional tasting
license authorizes the licenseholder to allow an authorized licensee
or the designated representative of an authorized licensee, to
conduct an instructional tasting event at which tastes of alcoholic
beverages may be served to consumers subject to the following
limitations, and the limitations set forth in Section 25503.56:
   (1) (A) At all times during an instructional tasting event, the
instructional tasting event area shall be separated from the
remainder of the off-sale licensed premises by a wall, rope, cable,
cord, chain, fence, or other permanent or temporary barrier. The
licenseholder shall prominently display signage prohibiting persons
under 21 years of age from entering the instructional tasting event
area.
   (B) A licenseholder that permits a person under 21 years of age to
enter and remain in the instructional tasting event area during an
instructional tasting event is guilty of a misdemeanor. Any person
under 21 years of age who enters and remains in the instructional
tasting event area during an instructional tasting event is guilty of
a misdemeanor and shall be punished by a fine of not less than two
hundred dollars ($200), no part of which shall be suspended.
   (C) The licenseholder shall not permit any consumer to leave the
instructional tasting area with an open container of alcohol.
   (2) The instructional tasting license shall not authorize the
licenseholder to conduct any on-sale retail sales to consumers
attending the instructional tasting event.

   (3) Unless otherwise restricted, an instructional tasting event
may take place between the hours of 10 a.m. and 9 p.m.
   (d) Unless the context otherwise requires, the definitions set
forth in Section 25503.56 govern the construction of this section.
   (e) An applicant for an instructional tasting license under this
section shall, at the time of filing the application for the license,
accompany the application with a fee of three hundred dollars
($300). The annual renewal fee for a license issued pursuant to this
section shall be two hundred sixty-one dollars ($261) and shall be
subject to subdivisions (c) and (d) of Section 23320. Fees collected
pursuant to this section shall be deposited in the Alcohol Beverage
Control Fund.


23397.  Alcoholic beverages may be served on trains, boats, and
airplanes under onsale licenses issued for trains, boats, and
airplanes, only to passengers or employees not on duty.
   Beer may be served on boats under an onsale beer license for
fishing party boats except during the time such boats are at a dock.



23398.  Nothing in this division prevents the purchase or possession
in packages of less than one-half pint capacity of bitters or other
aromatic or flavoring or medicinal preparations, which are classed
for taxing purposes as distilled spirits, by on-sale licensees.



23398.5.  Any on-sale license, issued pursuant to this division that
authorizes the sale of wine, also authorizes the sale of soju, an
imported Korean alcoholic beverage that contains not more than 24
percent of alcohol by volume and is derived from agricultural
products.



23399.  (a) An on-sale general license authorizes the sale of beer,
wine, and distilled spirits for consumption on the premises where
sold. Any licensee under an on-sale general license, an on-sale beer
and wine license, a club license, or a veterans' club license may
apply to the department for a caterer's permit. A caterer's permit
under an on-sale general license shall authorize the sale of beer,
wine, and distilled spirits for consumption at conventions, sporting
events, trade exhibits, picnics, social gatherings, or similar events
held any place in the state approved by the department. A caterer's
permit under an on-sale beer and wine license shall authorize the
sale of beer and wine for consumption at conventions, sporting
events, trade exhibits, picnics, social gatherings, or similar events
held any place in the state approved by the department. A caterer's
permit under a club license or a veterans' club license shall
authorize sales at these events only upon the licensed club premises.
   (b) Any licensee under an on-sale general license or an on-sale
beer and wine license may apply to the department for an event
permit. An event permit under an on-sale general license or an
on-sale beer and wine license shall authorize, at events held no more
frequently than four days in any single calendar year, the sale of
beer, wine, and distilled spirits only under an on-sale general
license or beer and wine only under an on-sale beer and wine license
for consumption on property adjacent to the licensed premises and
owned or under the control of the licensee. This property shall be
secured and controlled by the licensee and not visible to the general
public.
   (c) This section shall in no way limit the power of the department
to issue special licenses under the provisions of Section 24045 or
to issue daily on-sale general licenses under the provisions of
Section 24045.1. Consent for sales at each event shall be first
obtained from the department in the form of a catering or event
authorization issued pursuant to rules prescribed by it. Any event
authorization shall be subject to approval by the appropriate local
law enforcement agency. The fee for each catering or event
authorization shall be issued at a fee not to exceed twenty-five
dollars ($25) and this fee shall be deposited in the Alcohol Beverage
Control Fund as provided in Section 25761.
   (d) At all approved events, the licensee may exercise only those
privileges authorized by the licensee's license and shall comply with
all provisions of the act pertaining to the conduct of on-sale
premises and violation of those provisions may be grounds for
suspension or revocation of the licensee's license or permit, or
both, as though the violation occurred on the licensed premises.
   (e) The fee for a caterer's permit for a licensee under an on-sale
general license, a caterer's permit for a licensee under an on-sale
beer and wine license, or an event permit for a licensee under an
on-sale general license or an on-sale beer and wine license shall be
one hundred four dollars ($104) for permits issued during the 2002
calendar year, one hundred seven dollars ($107) for permits issued
during the 2003 calendar year, one hundred ten dollars ($110) for
permits issued during the 2004 calendar year, and for permits issued
during the years thereafter, the annual fee shall be calculated
pursuant to subdivisions (b) and (c) of Section 23320, and the fee
for a caterer's permit for a licensee under a club license or a
veterans' club license shall be as specified in Section 23320, and
the permit may be renewable annually at the same time as the licensee'
s license. A caterer's or event permit shall be transferable as a
part of the license.


23399.1.  No license or permit shall be required for the serving and
otherwise disposing of alcoholic beverages where all of the
following conditions prevail:
   1. That there is no sale of an alcoholic beverage.
   2. That the premises are not open to the general public during the
time alcoholic beverages are served, consumed or otherwise disposed
of.
   3. That the premises are not maintained for the purpose of
keeping, serving, consuming or otherwise disposing of alcoholic
beverages.
   Provided, however, that nothing in this section shall be construed
to permit any person to violate any provision of the Alcoholic
Beverage Control Act.



23399.2.  Premises for which a special onsale general license is
issued may be operated only as a club by an organization which meets
all the requirements of Section 23037, or by an organization which
meets all of such requirements except that it is operated for
pecuniary gain, or its property is not owned by its members, or both.




23399.3.  (a) An on-sale special beer and wine license for
hospitals, convalescent homes, and rest homes, authorizes the sale or
service of beer and wine purchased from a licensed winegrower or
beer and wine wholesaler only to patients or residents of the
licensed hospital, convalescent home, or rest home. Such a license
shall not be transferable from person to person and no off-sale
privileges shall be exercised under such a license. Nothing in this
section shall be construed to require a license for the service of
beer and wine purchased at retail.
   (b) As used in this section, "rest home" includes an apartment
building, whether licensed or unlicensed, which rents exclusively to
persons age 62 and older, and provides one to three meals daily for
tenants.


23399.4.  (a) A licensee under a winegrower's license may apply to
the department for a certified farmers' market sales permit. A
certified farmers' market sales permit shall authorize the licensee,
a member of the licensee's family, or an employee of the licensee to
sell wine produced and bottled by the winegrower entirely from grapes
grown by the winegrower at a certified farmers' market at any place
in the state approved by the department. The permit may be issued for
up to 12 months but shall not be valid for more than one day a week
at any single specified certified farmers' market location. A
winegrower may hold more than one certified farmers' market sales
permit. The department shall notify the city, county, or city and
county and applicable law enforcement agency where the certified
farmers' market is to be held of the issuance of the permit. A
"certified farmers' market" means a location operated in accordance
with Chapter 10.5 (commencing with Section 47000) of Division 17 of
the Food and Agricultural Code, and the regulations adopted pursuant
thereto.
   (b) The licensed winegrower eligible for the certified farmers'
market sales permit shall not sell more than 5,000 gallons of wine
annually pursuant to all certified farmers' market sales permits held
by any single winegrower. The licensed winegrower shall report total
certified farmers' market wine sales to the department on an annual
basis. The report may be included within the annual report of
production submitted to the department, or pursuant to any regulation
as may be prescribed by the department.
   (c) The fee for any permit issued pursuant to this section shall
be forty-four dollars ($44) for permits issued during the 2002
calendar year, forty-seven dollars ($47) for permits issued during
the 2003 calendar year, fifty dollars ($50) for permits issued during
the 2004 calendar year, and for permits issued during the years
thereafter, the annual fee shall be calculated pursuant to
subdivisions (c) and (d) of Section 23320.
   (d) All money collected as fees pursuant to this section shall be
deposited in the Alcohol Beverage Control Fund as provided in Section
25761.



23399.5.  (a) No license or permit is required for the serving of
alcoholic beverages in a limousine by any person operating a
limousine service regulated by the Public Utilities Commission,
provided there is no extra charge or fee for the alcoholic beverages.
   For purposes of this subdivision, there is no extra charge or fee
for the alcoholic beverages when the fee charged for the limousine
service is the same regardless of whether alcoholic beverages are
served.
   (b) No license or permit is required for the serving of alcoholic
beverages as part of a hot air balloon ride service, provided there
is no extra charge or fee for the alcoholic beverages.
   For purposes of this subdivision, there is no extra charge or fee
for the alcoholic beverages when the fee charged for the hot air
balloon ride service is the same regardless of whether alcoholic
beverages are served.



23399.6.  (a) Any licensee under a winegrower's license may apply to
the department for a wine sales event permit. The wine sales event
permit shall authorize the sale of bottled wine produced by the
winegrower at festivals, state, county, district, or citrus fruit
fairs, civic or cultural celebrations, or similar events approved by
the department. The sale of the wine shall not be the primary purpose
of the event, and the sale shall be for consumption off the premises
where sold. The permit shall be valid for a maximum of five
consecutive days during the event period. The event shall be
sponsored by an organization that is exempt from taxation under
Section 23701a of the Revenue and Taxation Code, including state
designated fairs as specified in Section 19418 of the Revenue and
Taxation Code, or exempt from taxation under Section 23701b, 23701d,
23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of
the Revenue and Taxation Code.
   (b) A wine sales event permit may not be used more than two times
a month at a particular location.
   (c) Consent for sales at each event shall be first obtained by an
annual authorization issued by the department. The applicant for the
wine sales permit is required to notify the city, county, or city and
county where the event is being held at least five days prior to the
event. At all events, a copy of the wine sales permit shall be
maintained. The licensee may exercise only those privileges
authorized by the licensee's license and shall comply with all
provisions of the act pertaining to that license, and any violation
of those provisions may be grounds for suspension or revocation of
the licensee's license or permit, or both, as though the violation
occurred on the licensed premises.
   (d) (1) A licensee may not sell more than 5,000 gallons of wine
annually pursuant to wine sales event permits issued under this
section to that licensee.
   (2) A licensee holding a wine sales event permit may not sell more
than 1,250 gallons of wine per event.
   (3) A licensee that is eligible to receive a certified farmers'
market sales permit under Section 23399.4 and a wine sales event
permit may not, under both permits collectively, sell more than a
total of 5,000 gallons of wine annually.
   (4) The licensee shall annually report to the department the total
gallons of wine sold by that licensee under permits issued under
this section to that licensee. The report may be included within the
annual report of production submitted by the licensee to the
department, or may be made in another manner as prescribed by the
department in regulation.
   (e) The sponsoring tax-exempt organization may charge a fee of the
licensee for the licensee's use of display booth space. The fee, if
paid, shall be comparable with, or less than, fees, or goods or
services of equivalent value, paid by other vendors at the event for
a similar booth size and location.
   (f) The sponsoring tax-exempt organization shall allow the
participation of more than one winegrower under a wine sales event
permit at an event if public attendance at the event is expected to
reach or exceed 1,000 attendees. The prior year's stated attendance
for the event shall be used to determine the expected attendance.
   (g) (1) The fee for the authorization to utilize a wine sales
permit shall be fifty dollars ($50) per year, and the authorization
may be renewable annually at the time of the licensee's license. The
wine sales permit authorization shall be transferable as part of the
license.
   (2) All money collected as fees pursuant to this subdivision shall
be deposited in the Alcohol Beverage Control Fund, as described in
Section 25761, for allocation, upon appropriation by the Legislature,
as provided in subdivision (d) of that section.
   (h) The department may adopt any regulations as it determines to
be necessary for the administration of this section.



23399.7.  Any license issued to any golf course facility, or any
license issued to a licensee that operates at any golf course
facility, entitles the licensee to make sales of alcoholic beverages
from any golf cart, as defined in Section 345 of the Vehicle Code,
that the licensee operates on the golf course premises.



23400.  An on-sale general license authorizes the purchase and
possession of distilled spirits in packages which packages shall
conform with standards of fill for distilled spirits in all respects
to the regulations issued pursuant to Federal Alcohol Administration
Act (27 U.S.C. Secs. 201 et seq.) and any amendments thereto. An
on-sale general license shall not authorize the purchase of distilled
spirits in packages containing less than six ounces or whiskey, gin,
or vodka in packages containing one-tenth gallon.



23401.  An on-sale general license, with respect to beer and wine,
and any on-sale license, with respect to the particular beverage or
beverages mentioned in the license, also authorizes the exercise of
the rights and privileges granted by an off-sale beer and wine
license; provided, however, that a daily on-sale general license
issued pursuant to Section 24045.1 shall not authorize the foregoing
rights and privileges. None of the licensees mentioned in this
section may, by reason of any license mentioned in this section,
label, bottle, package, or refill any package with any alcoholic
beverage.


23402.  No retail on- or off-sale licensee, except a daily on-sale
general licensee holding a license issued pursuant to Section
24045.1, shall purchase alcoholic beverages for resale from any
person except a person holding a beer manufacturer's, wine grower's,
rectifier's, brandy manufacturer's, or wholesaler's license.




23403.  No retail licensee, except a pharmacy or drug store
registered with the California State Board of Pharmacy, shall sell or
possess on his licensed premises any undenatured alcohol of any
proof or compound thereof which is an alcoholic beverage as defined
in Section 23004 containing more than 60 percent of alcohol by
volume. Undenatured alcohol shall be sold at retail only upon the
prescription or order of the holder of a physician's and surgeon's
certificate or a dentist's or veterinarian's license. Any person who
violates any of the provisions of this section is guilty of a
misdemeanor.



23404.  It is unlawful for any salesman to aid or abet in the
violation of any of the provisions of this division or knowingly to
become a party, either directly or indirectly, in the violation of
any of the provisions of this division.


23405.  (a) Any corporation holding a license under this division
shall maintain a record of its shareholders at the principal office
of the corporation in California and the record of its shareholders
shall be available to the department for inspection. The corporation
shall report to the department in writing any of the following:
   (1) Issuance or transfer of any shares of stock to any person
where the issuance or transfer results in the person owning 10
percent or more of the corporate stock.
   (2) Change in any of the corporate officers which are required by
Section 312 of the Corporations Code.
   (3) Change of the members of its board of directors.
   The report shall be filed with the department within 30 days after
the issuance or transfer of corporate stock, change in corporate
officers, or change in members of the board of directors, as the case
may be.
   (b) Any licensee within the purview of this section who is
required by federal law to report to the federal government under the
provisions of the Federal Alcohol Administration Act or the Internal
Revenue Code the information required by this section may send to
the department a copy of the report at the same time as it is sent to
the federal government, and the copy of the report sent to the
department by the licensee shall be deemed sufficient compliance with
the provisions of this section.
   (c) The provisions of this section shall not apply to any of the
following:
   (1) A corporation the stock of which is listed on a stock exchange
in this state or in the City of New York, State of New York.
   (2) A bank, trust company, financial institution or title company
to which a license is issued in a fiduciary capacity.
   (3) A corporation which is required by law to file periodic
reports with the Securities and Exchange Commission.
   (d) The department may deny any application or suspend or revoke
any license of a corporation subject to the provisions of this
section where conditions exist in relation to any officer, director,
or person holding 10 percent or more of the corporate stock of that
corporation which would constitute grounds for disciplinary action
against that person if the person was a licensee.



23405.1.  (a) Any limited partnership holding a license under this
division shall maintain a register at the principal office of the
limited partnership in California and the register shall be available
to the department for inspection. The limited partnership shall
report to the department in writing the assignment or transfer of the
interest of any limited partner of the limited partnership where the
assignment or transfer results in a person owning as a limited
partner 10 percent or more of the capital or profits of the limited
partnership. The limited partnership shall report to the department
in writing any change in the general partners of the limited
partnership.
   The report shall be filed with the department within 30 days after
the assignment or transfer of the limited partnership interest.
   (b) Any licensee within the purview of this section who is
required by federal law to report to the federal government under the
provisions of the Federal Alcohol Administration Act or the Internal
Revenue Code the information required by this section shall send to
the department a copy of the report at the same time as it is sent to
the federal government. The copy of the report sent to the
department by the licensee shall be deemed sufficient compliance with
the provisions of this section.
   (c) The department may deny any application or suspend or revoke
any license of a limited partnership subject to the provisions of
this section where conditions exist in relation to any general
partner or any limited partner holding 10 percent or more of the
capital or profits of the limited partnership that would constitute
grounds for disciplinary action against that person if he or she were
a licensee.
   (d) The register referred to in subdivision (a) of this section
shall consist of a register showing the names of the current limited
partners (whether original limited partners or substituted limited
partners), the current assignees of limited partnership interests and
their addresses, the interest in the capital and profits of the
limited partnership owned by each limited partner and each assignee
of a limited partnership interest, the number and date of
certificates, if any, issued for limited partnership interests, and
the number and date of cancellation of every certificate surrendered
for cancellation. The above information may be kept by the limited
partnership on punchcards, magnetic tape, or other information
storage device related to electronic data-processing equipment
provided that the card, tape, or other equipment is capable of
reproducing the information in clearly legible form for the purposes
of inspection as provided in this section.



23405.2.  (a) Any limited liability company holding a license under
this division shall maintain a record of its members at the principal
office of the company in California and the record of its members
shall be available to the department for inspection. The company
shall report to the department in writing any of the following:
   (1) Issuance or transfer of memberships to any person where the
issuance or transfer results in the person owning 10 percent or more
of the voting interests of the company.
   (2) If the limited liability company is managed by a manager or
managers, any change in the manager or managers of the company.
   (3) If any officer has been appointed, any change in the officers
of the company.
   The report shall be filed with the department within 30 days after
the issuance or transfer of membership voting interests, or any
change in members, managers, or officers.
   (b) Any limited liability company within the purview of this
section that is required under the provisions of the Federal Alcohol
Administration Act or the Internal Revenue Code to report to the
federal government the information required by this section may send
to the department a copy of the report at the same time as it is sent
to the federal government. The copy of the report sent to the
department by the company shall be deemed sufficient compliance with
the provisions of this section.
   (c) The reporting requirements of subdivision (b) shall not apply
to a limited liability company that is required by law to file
periodic reports with the Securities and Exchange Commission.
   (d) The person or persons who are required to sign the application
shall certify to the department on forms prescribed by the
department whether or not any member, manager, or officer holds an
ownership interest, directly or indirectly, in any license within or
without this state to manufacture, import, distribute, rectify, or
sell alcoholic beverages. The department may deny any application or
suspend or revoke any license under this section in the event any
member, manager, or officer holds or acquires any prohibited
ownership interest, directly or indirectly, in any licensed business
in violation of the tied-house provisions of Chapter 15 (commencing
with Section 25500).
   (e) The department may deny any application and suspend or revoke
any license of a limited liability company subject to the provisions
of this section where conditions exist in relation to any manager,
officer, or person holding 10 percent or more of the voting interests
of the limited liability company that would constitute grounds for
disciplinary action against the person if he or she was a licensee.
   (f) All articles of organization and operating agreements of a
limited liability company or certificates or amendments thereto shall
be filed with the department at the time of filing the application
for the license. All articles of organization, operating agreements,
certificates, or amendments executed after the issuance of the
license shall be filed with the department within 30 days after
execution.
   (g) The requirements of this section are in addition to the
requirements set forth in the Beverly-Killea Limited Liability
Company Act, Title 2.5 (commencing with Section 17000) of the
Corporations Code.



23405.3.  If a corporation, limited partnership, or limited
liability company holds, directly or indirectly, 10 percent or more
of the ownership of a license issued under this division, the
licensee shall report any change in the ownership, management, or
control of that corporation, limited partnership, or limited
liability company, in the same manner as would be required by
Sections 23405, 23405.1, and 23405.2, if the corporation, limited
partnership, or limited liability company were itself the licensee.



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