California Alcoholic Beverage Control Act ("ABC Act")

§ 23355. Rights and privileges of licensees 

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.

(Amended by Stats. 1974, Ch. 823.)

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§ 23355.1. Deliveries of distilled spirits by licensees; Handling of another’s products; Sale of wine at auction 

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.

(Amended by Stats. 1999, Ch. 699, Sec. 1. Effective January 1, 2000.)

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§ 23355.2. Sale of alcoholic beverages by hotel or motel by means of controlled access beverage cabinet 

(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.

(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.

(Amended by Stats. 2019, Ch. 29, Sec. 13. (SB 82) Effective June 27, 2019.)

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§ 23355.3. Events conducted by or for the benefit of nonprofit organiza­tions in which licensees are in­volved as sponsors or partici­pants

(a) A licensee may sponsor or otherwise participate in an event conducted by, and for the benefit of, a nonprofit organization in which retail and nonretail licensees are involved as sponsors or participants, subject to all of the following conditions:

1. Except as otherwise provided in this section, any payment of money or other consideration for sponsorship or participation in the event shall be made only to the nonprofit organization conducting the event.
2. Except as otherwise provided in this section, a nonretail licensee shall not, directly or indirectly, pay money or provide any other thing of value to a permanent retail licensee that is also a sponsor of, or participant in, the event.
3. A nonretail licensee may donate alcoholic beverages to a nonprofit only as otherwise authorized by Section 25503.9.
4. Except as otherwise provided by this division, a retail licensee shall not give, sell, or furnish any alcoholic beverages to the temporary licensee.
5. A nonretail or retail licensee may choose to participate in any level of sponsorship, including at the name or principal sponsor level. A nonprofit organization may choose to have one, or multiple, name or principal sponsors.
6. 1. A nonretail licensee may advertise or communicate sponsorship or participation in the event. This advertising or communication may include, but is not limited to, sharing, reposting, or otherwise forwarding a social media post by a permanent retail licensee or a nonretail licensee if the advertisement or communication does not contain the retail price of any alcoholic beverage or otherwise promotes a retail licensee beyond its sponsorship or participation in the event.
   2. A nonretail licensee shall not pay or reimburse a permanent licensee, directly or indirectly, for any advertising services, including by way of social media. Except as otherwise permitted by this section, a permanent retail licensee shall not accept any payment or reimbursement, directly or indirectly, for any advertising services offered by a nonretail licensee.
   3. For the purposes of this subdivision, “social media” means a service, platform, application, or site where users communicate and share media, such as pictures, videos, music, and blogs, with other users.
7. A nonretail licensee shall not require, directly or indirectly, as a condition of sponsorship or participation in any event under this section, that its products be sold or served exclusively at the event. A nonretail licensee shall not receive, directly or indirectly, any advertising, sale, or promotional benefit from any permanent retail licensee in connection with the sponsorship or participation. A permanent retail licensee shall not offer or provide a nonretail licensee any advertising, sale, or promotional benefit in connection with the sponsorship or participation.

(b) This section does not authorize a nonretail licensee to pay, in whole or in part, any costs, including the cost of sponsorship, of any retail licensee that is sponsoring or participating in a nonprofit event.

(c) A licensee that sponsors or participates in a nonprofit event under this section shall keep detailed records of its sponsorship or participation and shall maintain those records for a period of at least three years. These records shall be provided to the department upon request.

(d) Nothing in this section shall be deemed to exempt the nonprofit organization from obtaining any licenses or permits as may be required to conduct the event.

(Amended by Stats. 2016, Ch. 423, Sec. 1. (AB 2913) Effective January 1, 2017.)

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§ 23356. Manufacturer’s or winegrower’s li­censes; Authorized activities

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.

(Amended by Stats. 2004, Ch. 437, Sec. 3. Effective September 9, 2004.)

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§ 23356.1. Wine tastings conducted by li­censee; Sales or orders; Rules

(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.

(Amended by Stats. 2007, Ch. 246, Sec. 1. Effective January 1, 2008.)

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§ 23356.2. Beer or wine manufactured for personal or family use; Donation to nonprofit organization; Ser­vice of beer by nonprofit organi­zation established to promote home production of beer

(a) No license or permit shall be required for the manufacture of beer or wine for personal or family use, and not for sale, by a person over 21 years of age. The aggregate amount of beer or wine with respect to any household shall not exceed (1) 100 gallons per calendar year if there is only one adult in the household or (2) 200 gallons per calendar year if there are two or more adults in the household.

(b) Beer or wine produced pursuant to this section may be removed from the premises where made only under any of the following circumstances:

1. For use, including in a bona fide competition or judging or a bona fide exhibition or tasting.
2. For personal or family use.
3. When donated to a nonprofit organization for use as provided in subdivision (c) or (d).
4. Beer or wine produced pursuant to this section may only be provided or served to the public pursuant to paragraphs (1) and (3) within a clearly identified area, that includes, but is not limited to, a physical barrier with a monitored point of entry. Beer or wine produced by a beer manufacturer or winegrower as defined in Sections 23012 and 23013, respectively, and licensed by the department, shall not be provided or served to the public within this area.
5. 1. Beer produced pursuant to this section may be removed from the premises where made in connection with a homebrewers club meeting or bona fide home brewed beer competition that is held on the premises of an authorized licensee. Homebrewers may exchange containers of home brewed beer during the club meeting or bona fide home brewed beer competition. Home brewed beer made by the club members may be consumed by club members while on the licensed premises during the club meeting or by competition organizers, competition judges, and competition stewards on licensed premises during a bona fide home brewed beer competition. Patrons of the authorized licensee that are not club members, competition organizers, competition judges, or competition stewards shall not consume any home brewed beer.
   2. The authorized licensee shall designate, by signage or other item, which tables within the licensed premises shall be used by club members during the club meeting or bona fide home brewed beer competition.
   3. For purposes of this paragraph, “authorized licensee” means a licensee that holds an on-sale beer license, an on-sale beer and wine license for a bona fide public eating place, an on-sale beer and wine for public premises license, an on-sale general license for a bona fide eating place, a club license, a veterans’ club license, an on-sale general brew pub license, an on-sale general license for public premises, a beer manufacturer’s license, or a small beer manufacturer’s license.

(c)

1. Beer or wine produced pursuant to this section may be donated to a nonprofit organization for sale at fundraising events conducted solely by and for the benefit of the nonprofit organization. Beer and wine donated pursuant to this subdivision may be sold by the nonprofit organization only for consumption on the premises of the fundraising event, under a license issued by the department to the nonprofit organization pursuant to this division.
2. Beer or wine donated and sold pursuant to this subdivision shall bear a label identifying its producer and stating that the beer or wine is homemade and not available for sale or for consumption off the licensed premises. The beer or wine is not required to comply with other labeling requirements under this division. However, nothing in this paragraph authorizes the use of any false or misleading information on a beer or wine label.
3. A nonprofit organization established for the purpose of promoting home production of beer or wine, or whose membership is composed primarily of home brewers or home winemakers, shall not be eligible to sell beer pursuant to this subdivision.

(d) A nonprofit organization established for the purpose of promoting home production of beer shall be eligible to serve beer at a fundraising event conducted solely for the benefit of the nonprofit organization pursuant to this subdivision, subject to the following conditions:

1. The beer that is served is donated by home brewers.
2. The nonprofit organization shall be issued no more than two permits per calendar year for the serving of beer pursuant to this subdivision.
3. The nonprofit organization shall display a printed notice at the event that states that home brewed beer is not a regulated product subject to health and safety standards.
4. The event shall have an educational component that includes instruction on the subject of beer, including, but not limited to, the history, nature, values, and characteristics of beer, the use of beer lists, and the methods of presenting and serving beer.
5. Only bona fide members of the nonprofit organization may attend the event.
6. The nonprofit organization shall not solicit or sign up individuals to be members of the nonprofit organization on the day of the event at the event premises.
7. The nonprofit organization shall provide the department with the number of members that have registered for the event and the estimated number that will be in attendance, 48 hours before the event. This paragraph shall apply only if more than 50 members are expected to be in attendance at the event.

(e) Except as provided in subdivision (c), this section does not authorize the sale or offering for sale by any person of any beer or wine produced pursuant to this section.

(f) Except as provided herein, nothing in this section authorizes any activity in violation of Section 23300, 23355, or 23399.1.

(Amended by Stats. 2016, Ch. 565, Sec. 1. (AB 2172) Effective January 1, 2017.)

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§ 23356.3. Wine tastings; Wines furnished by out–of–state winegrower

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.

(Added by Stats. 1982, Ch. 393, Sec. 1.)

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§ 23356.5. Wine blender’s license; Privileges

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.

(Amended by Stats. 1967, Ch. 1067.)

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§ 23356.6. Statutory provisions pertaining to wine growers to apply to wine blenders

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.

(Added by Stats. 1965, Ch. 499.)

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§ 23356.7. Absence of effect of statute on winegrowers’ licenses; Transfer of license

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.

(Added by Stats. 1965, Ch. 499.)

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§ 23356.8. Wine blender’s license; Prohibi­tion as to issuance or ownership of retailer’s license

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.

(Amended by Stats. 2013, Ch. 463, Sec. 3. (AB 1425) Effective January 1, 2014.)

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§ 23356.9. Wine tasting activity on or off premises prohibited

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.

(Amended by Stats. 2013, Ch. 463, Sec. 4. (AB 1425) Effective January 1, 2014.)

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§ 23357. Licensed beer manufacturers

(a) A licensed beer manufacturer may, at the licensed premises of production, sell to consumers for consumption off the premises beer that is produced and bottled by, or produced and packaged for, that manufacturer. Licensed beer manufacturers may also exercise any of the following privileges:

1. Sell that beer to any person holding a license authorizing the sale of beer.
2. Sell that beer to consumers for consumption on the manufacturer’s licensed premises or on premises owned by the manufacturer that are contiguous to the licensed premises and which are operated by and for the manufacturer.
3. 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.
4. 1. Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
      1. The premises is located within the entertainment zone.
      2. Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
      3. Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone.
      4. Patrons with open containers exit the premises directly into an entertainment zone.
      5. All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone.
      6. The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises.
      7. Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
      8. No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
      9. The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department.
   2. This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone.
   3. Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.

(b) 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 that 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.

(c) Notwithstanding any other provision of this division, a licensed beer manufacturer may manufacture cider or perry at the licensed premises of production and may sell cider or perry to any licensee authorized to sell wine. For purposes of this subdivision, “cider” and “perry” have the meanings provided in Section 4.21(e)(8) of Title 27 of the Code of Federal Regulations. This subdivision does not alter or amend the classification of cider or perry as wine for any purpose other than that provided by this section.

(d) A beer manufacturer may also have upon the licensed premises, or on premises owned by the manufacturer that are contiguous to the licensed premises and are operated by and for the manufacturer all beers and wines, 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 beer manufacturer shall be purchased by the beer manufacturer only from a licensed wholesaler. All alcoholic beverages sold or served shall be produced by a licensee authorized to manufacture the product.

(Amended by Stats. 2023, Ch. 700, Sec. 2.5. (SB 76) Effective January 1, 2024.)

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§ 23357.1. Out–of–state beer manufacturer’s certificate; Authorized shipment by California manufacturer

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.

(Added by Stats. 1971, Ch. 1457.)

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§ 23357.2. Out-of-state beer manufacturer’s certificate; Provisions of appli­cant’s undertaking and agree­ment; Suspension or revocation

(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.

(Amended by Stats. 2019, Ch. 29, Sec. 14. (SB 82) Effective June 27, 2019.)

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§ 23357.3. Beer tastings; Restrictions; Permit and fee; Regulations

(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 fee for a special temporary license for beer and wine, as specified in Section 24045.

(d) The department may adopt rules and regulations as it determines to be necessary for the administration of this section.

(Amended by Stats. 2019, Ch. 29, Sec. 15. (SB 82) Effective June 27, 2019.)

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§ 23357.4. Beer tastings for public educational purposes

(a)

1. 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.
2. Beer shall not 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) For purposes of this section:

1. “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.
2. “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.

(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 fee for a special temporary license for beer and wine, as specified in Section 24045.

(d) The department may adopt rules and regulations as it determines to be necessary for the administration of this section.

(Amended by Stats. 2019, Ch. 29, Sec. 16. (SB 82) Effective June 27, 2019.)

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§ 23358. Licensed winegrowers.

(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, 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 a 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. 1. Permit consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone if all of the following conditions are satisfied:
      1. The premises is located within the entertainment zone.
      2. Consumption of that type of alcoholic beverage is authorized by the ordinance creating the entertainment zone.
      3. Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone.
      4. Patrons with open containers exit the premises directly into an entertainment zone.
      5. All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone.
      6. The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises.
      7. Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
      8. No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
      9. The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department.
   2. This paragraph does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone.
   3. Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
6. 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 or a distilled spirits manufacturer.

(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 the winegrower’s licensed premises by conversion of grapes, berries, or other fruit, into wine, not less than 50 percent of all wines sold to consumers on the winegrower’s licensed premises and any licensed branch 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.

(Amended by Stats. 2023, Ch. 700, Sec. 3.5. (SB 76) Effective January 1, 2024.)

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§ 23358.2. Winegrower or brandy manufacturer; Products that may be sold at licensed premises.

Notwithstanding any other provision of this division, a winegrower or brandy manufacturer, at his or her 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 or her 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.

(Amended by Stats. 2011, Ch. 296, Sec. 27. (AB 1023) Effective January 1, 2012.)

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§ 23358.3. Wine grape grower’s storage license.

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.

(Amended (as amended by Stats. 2010, Ch. 296, Sec. 3) by Stats. 2019, Ch. 29, Sec. 17. (SB 82) Effective June 27, 2019.)

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§ 23359. Winegrower’s license; Additional rights.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23360. Licensed brandy manufacturers.

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.

(Amended by Stats. 1959, Ch. 750.)

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§ 23361. Brandy manufacturer’s licensee; Sale to winegrowers and consumers.

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.

(Amended by Stats. 1959, Ch. 750.)

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§ 23362. Issuance of off–sale licenses to licensed winegrowers or brandy manufacturers.

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.

(Amended by Stats. 1988, Ch. 116, Sec. 2. Effective May 25, 1988.)

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§ 23363. Licensed manufacturers of distilled spirits originally distilled in this State; Sale to licensees.

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.

(Amended by Stats. 1959, Ch. 1588.)

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§ 23363.1. Distilled spirits tastings conducted by licensed distilled spirits manufacturer; Restrictions for off-premises tastings; Conditions for on-premises
tastings

(a) A distilled spirits manufacturer’s license or a craft distiller’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.

(b)

1. Distilled spirits tastings may be conducted by the licensee off the licensee’s premises only for an event sponsored by a nonprofit organization. A distilled spirits manufacturer shall not sell or solicit sales of distilled spirits at an event. The sponsoring organization shall first obtain a permit from the department.
2. For purposes of this subdivision, “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.

(c) Tastings on the licensee’s premises shall be subject to the following conditions:

1. The total volume of tastings of distilled spirits shall not exceed one and one-half ounces per individual per day.
2. Tastings shall only include the products that are authorized to be produced or bottled by or for the licensee.
3. A person under 21 years of age shall not serve tastes of distilled spirits.

(d) Notwithstanding Section 25600, the licensee may provide distilled spirits without charge for any tastings conducted pursuant to this section. The licensee may charge for tastings conducted by the licensee on its licensed premises.

(e) This section shall not relieve the holder of a craft distiller’s license or a distilled spirits manufacturer’s license of any civil or criminal liability arising out of a violation of Section 25602.

(Amended by Stats. 2018, Ch. 695, Sec. 2. (SB 1164) Effective January 1, 2019.)

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§ 23363.2. Licensee authorized to conduct off–premises tastings of distilled spirits; Restrictions; Permit.

(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.

(Added by Stats. 1997, Ch. 544, Sec. 2. Effective January 1, 1998.)

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§ 23363.3. Brandy tastings conducted by licensed brandy manufacturer; Restrictions for off-premises tastings; Conditions for on-premises tastings.

(a) A brandy manufacturer’s license authorizes the licensee to conduct tastings of brandy produced or bottled by, or produced or bottled for, the licensee, on or off the licensee’s premises.

(b)

1. A brandy manufacturer shall not sell or solicit sales of brandy at the event. The sponsoring organization shall first obtain a permit from the department.
2. For purposes of this subdivision, “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.

(c) Tastings on the licensee’s premises shall be subject to the following conditions:

1. Tastings of brandy shall not exceed one-fourth of one ounce and shall be limited to no more than six tastes per individual per day.
2. Tastings shall only include the products that are authorized to be produced or bottled by or for the licensee.
3. A person under 21 years of age shall not serve tastes of brandy.

(d) Notwithstanding Section 25600, the licensee may provide brandy without charge for any tastings conducted pursuant to this section. The licensee may charge for tastings conducted by the licensee on its licensed premises.

(e) This section shall not relieve the holder of a brandy manufacturer’s license of any civil or criminal liability arising out of a violation of Section 25602.

(Amended by Stats. 2023, Ch. 532, Sec. 1. (AB 546) Effective January 1, 2024.)

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§ 23364. Sales by manufacturers of distilled spirits; Applicable provisions.

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.

(Amended by Stats. 1955, Ch. 1842.)

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§ 23365. Distribution of distilled spirits as dividend.

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.

(Amended by Stats. 1973, Ch. 680.)

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§ 23366. License of agent of manufacturer of distilled spirits.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23366.1. Solicitation of consumer to purchase through specific retailer; Permissible sales to consumers.

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.

(Added by Stats. 1961, Ch. 2025.)

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§ 23366.2. Out–of–state distilled spirits shipper’s certificate.

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.

(Added by Stats. 1979, Ch. 413.)

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§ 23366.3. Certificate; Issuance, suspension or revocation.

(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.

(Amended by Stats. 2019, Ch. 29, Sec. 18. (SB 82) Effective June 27, 2019.)

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§ 23366.5. Licenses authorizing solicitation of orders for licensees for sale to other licensees of wine or brandy.

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.

(Amended by Stats. 1973, Ch. 783.)

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§ 23367. Still license.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23368. Rectifier’s license.

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.

(Amended by Stats. 1955, Ch. 1842.)

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§ 23368.1. Authority under distilled spirits rectifier’s general license; Limitations on issuance; Fee.

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 Alcohol Beverage Control Fund.

(Amended by Stats. 2011, Ch. 296, Sec. 28. (AB 1023) Effective January 1, 2012.)

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§ 23369. Qualification for rectifier’s license.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23370. Issuance of distilled spirits manufacturer’s agent’s license; Construction.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23371. Rectifier performing functions as distilled spirits wholesaler.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23372. Wine rectifier’s license.

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.

(Amended by Stats. 1955, Ch. 1842.)

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§ 23373. Authority under winegrower’s agent’s license.

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.

(Amended by Stats. 2001, Ch. 567, Sec. 1. Effective October 7, 2001.)

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§ 23373.1. Holding of license of winegrower’s agent by holder of wholesaler’s or retail license.

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.

(Added by Stats. 1973, Ch. 783.)

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§ 23373.2. Representation of winegrower or brandy manufacturer.

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

(Added by Stats. 1973, Ch. 783.)

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§ 23373.4. Additional functions authorized under winegrower’s agent’s license.

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.

(Added by Stats. 1973, Ch. 783.)

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§ 23373.5. Disciplinary action against winegrower or brandy manufacturer for violation committed by holder of winegrower’s agent’s license.

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.

(Added by Stats. 1973, Ch. 783.)

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§ 23374. Importer’s license.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23374.5. Distilled spirits importer’s general license.

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.

(Added by Stats. 1959, Ch. 2192.)

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§ 23374.6. Beer and wine importer’s general license.

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.

(Added by Stats. 1961, Ch. 1687.)

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§ 23375. Public warehouse license; Duplicate.

(a) 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.

(b) The department may issue to the holder of a public warehouse license a duplicate of the original public warehouse license for each additional warehouse operated by the licensee, which authorizes the exercise of all privileges of the original public warehouse license at the additional warehouse or warehouses.

(c) The term “duplicate public warehouse license,” as used in this section, only applies herein.

(Amended by Stats. 2019, Ch. 29, Sec. 19. (SB 82) Effective June 27, 2019.)

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§ 23375.5. Issuance of distilled spirits importer’s general license; Prohibitions.

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.

(Added by Stats. 1959, Ch. 2192.)

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§ 23375.6. Issuance of beer and wine importer’s general license; Prohibitions.

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.

(Added by Stats. 1961, Ch. 1687.)

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§ 23376. Custom broker’s license.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23377. Wine broker’s license.

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.

(Amended by Stats. 1955, Ch. 447.)

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§ 23378. Wholesaler’s license.

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.

(Amended by Stats. 1955, Ch. 447.)

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§ 23378.05. Sale or offer of sale of beer by beer wholesaler; Requirements.

(a) For any sale or offer of sale of beer by a beer wholesaler within the state, the beer wholesaler shall comply with all of the following:

1. Pursuant to Section 25000.5, the beer wholesaler shall file and maintain with the department a written territorial agreement with each beer manufacturer prior to the wholesaler’s sale or offer of sale of each beer manufacturer’s beer.
2. Pursuant to Section 25000, the beer wholesaler shall file prices with the department for each beer manufacturer’s beer prior to the wholesaler’s sale or offer of sale of each manufacturer’s beer.
3. 1. The beer wholesaler shall own or lease a warehouse sufficient to store at one time a stock of beer equal to 10 percent or more of the wholesaler’s annual volume of beer case and keg sales to retailers within this state.
   2. The beer wholesaler shall maintain at all times in a warehouse either owned or leased by the wholesaler a stock of beer equal to not less than 5 percent of the wholesaler’s annual volume of beer case and keg sales to retailers within this state.
   3. If a beer wholesaler has more than one leased or owned licensed warehouse premises, the wholesaler shall be required to comply with the conditions of subparagraphs (A) and (B) only in connection with one licensed warehouse premises.
4. The beer wholesaler shall receive all beer for sale at the wholesaler’s licensed warehouse premises, unload and maintain the beer on the premises, and record the beer into the wholesaler’s inventory and for the California Beverage Container Recycling and Litter Reduction Act, prior to any sale or reloading for delivery.
5. The beer wholesaler shall sell only beer that the wholesaler owns and has in physical possession and that is not acquired, held, or offered for sale under consignment.
6. The beer wholesaler shall sell beer only from the wholesaler’s licensed warehouse premises or pursuant to Section 23388.
7. The beer wholesaler shall deliver all beer sold to retailers for delivery from the wholesaler’s licensed warehouse premises only with equipment owned, leased, or rented by the wholesaler.
8. The beer wholesaler shall sell beer for resale generally and not to a single retailer or retailers that have a direct or indirect interest in the wholesaler or in each other and that are owned in whole or in part or managed or controlled directly or indirectly by the retailer or retailers.

(b) For purposes of this section, “beer manufacturer” means any holder of a beer manufacturer’s license, any holder of an out-of-state beer manufacturer’s certificate, or any holder of a beer and wine importer’s general license.

(Added by Stats. 2018, Ch. 492, Sec. 1. (AB 2469) Effective January 1, 2019.)

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§ 23378.1. California brandy wholesaler’s license; Number authorized; Fee.

(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 that brandy, subject to all of the following conditions:

1. The licensee shall:
   1. Maintain warehouse space either owned or leased by him or her or dedicated to his or her 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.
   2. Maintain at all times in his or her warehouse either owned or leased by him or her or in space dedicated to his or her 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 or she 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. The 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 or her 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. The licensee may sell only one California brandy of one winegrower, which brandy is produced or bottled by the winegrower, or which is produced for, or is produced and packaged for, the winegrower, and is sold under a brand name owned or controlled by the winegrower.
4. The licensee, under the authority of his or her 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 those 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 Alcohol Beverage Control Fund.

(Amended by Stats. 2011, Ch. 296, Sec. 29. (AB 1023) Effective January 1, 2012.)

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§ 23378.2. Issuance of retail package off–sale beer and wine licenses to licensed wholesalers or importers.

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.

(Amended by Stats. 1988, Ch. 284, Sec. 1. Effective July 7, 1988.)

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§ 23379. Beer and wine wholesaler’s license; Additional rights.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23380. Industrial alcohol dealer’s license.

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.

(Amended by Stats. 1957, Ch. 554.)

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§ 23381. Acts authorized by specified licenses.

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.

(Amended by Stats. 1955, Ch. 447.)

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§ 23382. Offer to sell distilled spirits stored in warehouse.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23383. Transfer of title to specified beverages stored in public warehouse to other licensees.

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.

(Amended by Stats. 1955, Ch. 1600.)

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§ 23384. Sale of tax–paid beverages mentioned in license to certain nonlicensees.

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.

(Amended by Stats. 1982, Ch. 906, Sec. 1.)

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§ 23385. Sale of distilled spirits by manufacturers and rectifiers for use in trades, professions, or industries.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23386. Giving away of samples.

(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).

(Amended by Stats. 1998, Ch. 248, Sec. 1. Effective January 1, 1999.)

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§ 23387. Sales by wholesalers or rectifiers for out–of–State delivery and use.

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.

(Amended by Stats. 2006, Ch. 910, Sec. 2. Effective January 1, 2007.)

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§ 23388. Sale of beer from wagons or trucks by manufacturers or wholesalers to licensees.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23389. Duplicate licenses for branch office operations; Limitations; Application.

(a) The department may issue to a beer manufacturer a duplicate of its original license for a location or locations other than its licensed premises of production or manufacture. A duplicate license issued by the department authorizes the maintenance and operation of each branch office by the beer manufacturer and shall only have the license privileges set forth in this section. The fee for each duplicate license, regardless of type, shall be as specified in Section 23320.

(b) Subject to the limitations set forth in this section, a licensed beer manufacturer may exercise all of the privileges under its manufacturer’s license at branch offices licensed by the department, except for production or manufacture; sales to consumers for consumption on or off the branch office premises, except as provided for in subdivision (c); and the sale of beer and wine to consumers for consumption on the branch office premises where a bona fide public eating place is owned and operated by and for the beer manufacturer, except as provided for in subdivision (c).

(c)

1. A beer manufacturer shall not sell any alcoholic beverages to consumers for consumption on or off the licensed premises, or provide authorized tastings to consumers, at more than eight branch office locations, regardless of how many beer manufacturer licenses are held by the beer manufacturer either alone or under common ownership with any other licensed beer manufacturer, and no more than four of the eight branch locations may be bona fide public eating places owned and operated by and for the beer manufacturer. A branch office location authorized to sell an alcoholic beverage or provide a tasting to consumers for consumption on or off the licensed premises or that is a bona fide public eating place owned and operated by and for the beer manufacturer before the effective date of the act adding this section, shall be counted against the limit imposed by this subdivision. A beer manufacturer licensee shall not be eligible to receive a seventh or an eighth duplicate license authorized under this paragraph until it has held a sixth duplicate license for a minimum of one year.
2. A branch office location where consumer tastings or sales for on- or off-premises consumption are authorized shall not sell or serve any alcoholic beverages other than beer that is produced and bottled by, or produced and packaged for, the beer manufacturer.
3. A branch office location where the sale of beer and wine to consumers for consumption on the premises of a bona fide public eating place is authorized shall not sell or serve alcoholic beverages other than the following:
   1. Beer and wine that is produced and bottled by, or produced and packaged for, the beer manufacturer.
   2. Beer and wine that is purchased by the beer manufacturer from a licensed wholesaler.

(d) In order to obtain a duplicate license for a branch location or locations with the privileges described in subdivision (c), a beer manufacturer shall submit any application forms as the department may require. Upon request, and upon payment by the beer manufacturer of a fee of one hundred dollars ($100), the department shall issue to a beer manufacturer a beer manufacturer temporary permit for use at a branch office location during the period the application for a duplicate license with privileges pursuant to subdivision (c) is pending. The beer manufacturer temporary permit shall authorize the beer manufacturer to exercise all of the privileges under the duplicate license except for those privileges described in subdivision (c).

(e) A beer manufacturer temporary permit shall be effective for a period of 120 days and may be extended at the discretion of the department for additional 120-day periods as necessary and upon payment of an additional fee of one hundred dollars ($100).

(f) In order to obtain a duplicate license for a branch office location or locations without the privileges described in subdivision (c), a beer manufacturer shall submit all application forms as the department may require, and the department shall issue that duplicate license forthwith; provided, however, that any duplicate license issued forthwith by the department shall be contingent on the beer manufacturer consenting to the imposition of a condition that the beer manufacturer shall make no changes in the character or mode of operation of the branch office premises that would directly or indirectly expand the privileges under the duplicate license, such as to include those privileges described in subdivision (c), without notice to and approval by the department. If the department receives any protest concerning the issuance of the duplicate license forthwith under this subdivision, the protest shall be considered as an accusation against the licensee and a hearing had thereon as if an accusation had been filed. Any proposed changes in the character or mode of operation of the branch office premises that would directly or indirectly expand the privileges under the duplicate license, such as to include those privileges described in subdivision (c), shall require reapplication and reissuance of the duplicate license pursuant to subdivision (d).

(g) Notwithstanding the provisions of any other section of this division, a beer manufacturer may continue to exercise privileges at all of its licensed branch offices that were in existence and authorized by the department prior to the effective date of the act adding this section, including any privileges resulting from any renewal or transfer of the duplicate licenses for the branch locations, that it was authorized to exercise prior to that date.

(Amended by Stats. 2022, Ch. 962, Sec. 1. (AB 2307) Effective January 1, 2023.)

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§ 23390. Winegrower and brandy manufacturer off-site privileges; Duplicate license; Transferability.

(a) A licensed winegrower or brandy manufacturer, in addition to exercising all the privileges of their license at their licensed premises, may exercise all the license privileges at or from branch offices or warehouses, or United States bonded wine cellars located away from the 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.

(b) The department may issue to a winegrower or brandy manufacturer a duplicate of the original license for a location or locations other than the 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.

(c) Notwithstanding any other law, the department may allow any person that 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.

(Amended by Stats. 2021, Ch. 192, Sec. 1. (AB 239) Effective January 1, 2022.)

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§ 23390.5. Prohibition against sale at “licensed branch office”; Exceptions.

(a) For purposes of this section, “licensed branch office” means a 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 Sections 23358, 23360, and 23390, a licensed winegrower or brandy manufacturer shall not sell wine or brandy to consumers or engage in winetasting activities at more than two licensed branch premises. 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 a 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.

(Amended by Stats. 2021, Ch. 274, Sec. 2. (SB 19) Effective January 1, 2022.)

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§ 23391. Violations in exercise of license privileges at branch office.

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.

(Amended by Stats. 1955, Ch. 447.)

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§ 23392. Violations in connection with premises where manufacture of beer or production of wine is performed.

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.

(Amended by Stats. 1955, Ch. 447.)

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§ 23393. Retail package off–sale beer and wine license.

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.

(Amended by Stats. 1965, Ch. 721.)

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§ 23393.5. Limited off-sale retail wine license; Conditions; Application.

(a) The department may issue a limited off-sale retail wine license which authorizes the sale of wine by the licensee if all of the following conditions are met:

1. Sales are restricted to those solicited and accepted via direct mail, telephone, or the internet.
2. Sales are not conducted from a retail premises open to the public.
3. The licensee takes possession of and title to all wine sold by the licensee.
4. All wine sold by the licensee is delivered to the purchaser from the licensee’s licensed premises or from a licensed public warehouse.

(b) The sale of wine shall only be to consumers and not for resale, in packages or quantities of 52 gallons or less per sale, for consumption off the premises where sold.

(c) The licensee shall comply with Section 23985, but is exempted from Sections 23985.5 and 23986.

(d) The department may impose reasonable conditions upon the licensee as may be needed in the interest of public health, safety, and welfare.

(Amended by Stats. 2019, Ch. 29, Sec. 21. (SB 82) Effective June 27, 2019.)

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§ 23394. Off–sale general license.

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.

(Amended by Stats. 1980, Ch. 24, Sec. 1.)

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§ 23394.5. Rooms or buildings in which off–sale general license privileges exercisable under single license.

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.

(Added by Stats. 1959, Ch. 198.)

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§ 23394.7. No privileges under off-sale license permitted at any customer-operated checkout stand on licensee’s premises.

No privileges under an off-sale license shall be exercised by the licensee at any customer-operated checkout stand located on the licensee’s physical premises.

(Added by Stats. 2011, Ch. 726, Sec. 2. (AB 183) Effective January 1, 2012.)

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§ 23395. Sale of bitters or similar preparations in packages of less than one–half pint.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23396. On-sale license.

(a) 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, 23038.2, or 23038.3.

(b)

1. In addition to the privilege in subdivision (a), any on-sale license for a premises located in an entertainment zone authorizes the licensee to permit consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises within the entertainment zone if all of the following conditions are satisfied:
   1. The alcoholic beverage is specified in both the license and the ordinance creating the entertainment zone.
   2. Open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the entertainment zone.
   3. Patrons with open containers exit the licensed premises directly into an entertainment zone.
   4. All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone.
   5. The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises.
   6. Delivery of alcoholic beverages to consumers within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
   7. No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
   8. The licensee annually submits their notice of intent to participate in an open container entertainment zone to the department.
2. This subdivision does not require a licensee to sell any alcoholic beverage for consumption off the premises within an entertainment zone.
3. Licensees whose privileges are restricted due to operating conditions or other statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this paragraph, any restrictions on the exercise of off-sale privileges shall apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.

(Amended by Stats. 2023, Ch. 700, Sec. 4. (SB 76) Effective January 1, 2024.)

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§ 23396.1. On-sale general license for restricted service lodging establishments.

(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.

(Amended by Stats. 2019, Ch. 29, Sec. 22. (SB 82) Effective June 27, 2019.)

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§ 23396.2. On-sale general license for wine, food and art cultural museum, and educational center.

(a) An on-sale general license for a wine, food and art cultural museum, and educational center and an on-sale general license for a wine and food 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)

1. For purposes of this division, “a wine, food and art cultural museum, and educational center” is a person that 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 the County of Napa, operated by a nonprofit entity that is exempt from payment of income taxes as an organization described in 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).
2. For purposes of this division, “a wine and food cultural museum and educational center” is a person that meets all the following conditions:
   1. The retail premises shall include an auditorium, 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 the County of Sonoma, operated by a nonprofit entity that is exempt from payment of income taxes as an organization described in Section 501(c)(3) of the Internal Revenue Code, and includes real estate improvements of a value of at least ten million dollars ($10,000,000).

(c)

1. The department shall upon request and qualification issue a licensee located in the County of Napa 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.
2. The department shall upon request and qualification issue a licensee located in the County of Sonoma a duplicate of the original license for a premises located on commonly owned, leased, or managed 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 a licensed 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 licensee 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 licensee 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 a license issued pursuant to this section. A license issued pursuant to this section 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, or the holder of an importer’s general license may hold the ownership of any interest, directly or indirectly, in the premises and in the license issued pursuant to this section, may serve as an officer, director, employee, or agent of that 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 that licensee provided the number of items of beer, wine, or distilled spirits by brand, exclusive of wine labeled for the licensee authorized in subdivision (a) of this section, offered for sale by the 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.

(Amended by Stats. 2019, Ch. 29, Sec. 23. (SB 82) Effective June 27, 2019.)

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§ 23396.3. Brewpub-restaurant license.

(a)

1. A brewpub-restaurant license is a 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 commercial brewing system located permanently onsite that is capable of producing at least seven barrels of beer per brewing cycle, 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 any of the following:
   1. The sale, furnishing, or exchange of any alcoholic beverages with any other brewpub-restaurant licensee, any licensed beer manufacturer that is under common ownership or control of the brewpub-restaurant licenseholder, regardless of any other licenses held by the licensed beer manufacturer, or any retail licensee in California.
   2. The sale, furnishing, or exchange of any beer produced on the licensed premises bearing the same trademark as any beer produced by a licensed beer manufacturer.
   3. A brewpub-restaurant licensee to engage a licensed beer manufacturer to produce beer for sale by the brewpub-restaurant licensee.
2. Beer produced on the premises shall be offered for sale to consumers for consumption on the premises or off-premises in a bona fide manner. In determining whether the licensee is offering beer produced on the premises for sale in a bona fide manner, the department may consider, without limitation, whether, and the extent to which, the licensee actually sells beer manufactured on the licensed premises to consumers.

(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) Notwithstanding any other law, a brewpub-restaurant licensee may label, bottle, package, or refill any container with beer produced on the licensed premises and may, at the licensed premises, sell beer produced and packaged by the licensee to consumers for consumption off the premises.

(d) A brewpub-restaurant licensee may donate or sell beer produced by the licensee to a nonprofit charitable corporation or association or a nonprofit incorporated trade association pursuant to subdivisions (a) and (b) of Section 25503.9, provided that beer donated pursuant to this section shall not count in the calculation of minimum amounts of beer required to be manufactured and sold pursuant to subdivision (a).

(e) A brewpub-restaurant licensee shall offer for sale on the licensed premises canned, bottled, or draft beer commercially available from licensed wholesalers.

(f) The fee to transfer a brewpub-restaurant license shall be the same as for an on-sale general license.

(g) An existing brewpub-restaurant license or a brewpub license issued pursuant to an application filed with the department prior to December 31, 2019, shall not be sold or transferred for a price greater than the original license fee paid by the seller or transferor.

(h)

1. The limitations provided in Section 23816 on the number of licensed premises shall not apply to a brewpub-restaurant license application submitted to the department prior to December 31, 2019.
2. The limitations provided in Section 23816 on the number of licensed premises shall apply to a brewpub-restaurant license application submitted to the department on or after December 31, 2019.

(i) The licensee shall maintain records on a monthly or quarterly basis that are adequate to establish compliance with this section and to enable the department to identify which beer sold by a licensee was produced on the premises in order to establish the licensee’s compliance with subdivisions (a) and (b). These records shall be maintained for a period of at least three years and shall be provided to the department within 30 days of receipt of the department’s written request.

(Amended by Stats. 2019, Ch. 362, Sec. 1. (SB 21) Effective September 27, 2019.)

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§ 23396.5. Removal of partially consumed beverage.

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.

(Amended by Stats. 2009, Ch. 535, Sec. 2. (AB 1470) Effective January 1, 2010.)

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§ 23396.6. Issuance of instructional tasting license; Instructional tasting event.

(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. 1. 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.
   2. 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.
   3. 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.

(Amended by Stats. 2019, Ch. 29, Sec. 25. (SB 82) Effective June 27, 2019.)

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§ 23397. On–sale license; Service of beverages on trains, boats, and airplanes; Restrictions.

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.

(Amended by Stats. 1963, Ch. 1218.)

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§ 23398. On–sale licensee; Purchase or possession of bitters in packages of less than one–half pint.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23398.5. Sale of soju.

Any on-sale license, issued pursuant to this division that authorizes the sale of wine, also authorizes the sale of both of the following:

(a) Soju, an imported Korean alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products.

(b) Shochu, an imported Japanese alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products.

(Amended by Stats. 2023, Ch. 653, Sec. 1. (AB 416) Effective January 1, 2024.)

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§ 23399. On-sale general license; Fees; License issued upon renewal or transfer of license; Adjustments; Deposit of fees.

(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)

1. 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 daily fee for each catering or event authorization shall be based on the estimated attendance at each day of the event, as follows:
   1. One hundred dollars ($100) when anticipated attendance is less than 1,000 people.
   2. Three hundred twenty-five dollars ($325) when anticipated attendance is at least 1,000 people and less than 5,000 people.
   3. One thousand dollars ($1,000) when anticipated attendance is 5,000 people or more.
2. All fees collected pursuant to this section 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 the annual fee as specified in subdivision (b) 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.

(f) A catering authorization shall not be issued for use at any one premises for more than 36 events in one calendar year, except when the department determines additional events may be catered to satisfy substantial public demand.

(Amended by Stats. 2021, Ch. 656, Sec. 2. (SB 314) Effective October 8, 2021.)

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§ 23399.1. When license or permit not required for serving and otherwise disposing of alcoholic beverages.

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.

(Added by Stats. 1955, Ch. 1801.)

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§ 23399.2. Authorization under special on–sale general license; Club permitted to operate premises under special license.

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.

(Added by Stats. 1961, Ch. 1914.)

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§ 23399.3. On–sale special beer and wine license for hospitals, convalescent homes, and rest homes.

(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.

(Amended by Stats. 1986, Ch. 701, Sec. 1.)

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§ 23399.4. Certified farmers’ market sales permit issued to licensed winegrower; Instructional tasting event.

(a) A licensed winegrower 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 at a certified farmers’ market at any place in the state approved by the department. The licensee may only sell wine that is produced entirely from grapes or other agricultural products grown by the winegrower and that is bottled by the winegrower. In addition, the permit will allow an instructional tasting event by the licensee on the subject of wine at a certified farmers’ market. 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)

1. An instructional tasting event is subject to the authorization and managerial control of the operator of the certified farmers’ market. The licensee, a member of the licensee’s family, or an employee of the licensee may conduct an instructional tasting event for consumers on the subject of wine at a certified farmers’ market.
2. 1. At all times during an instructional tasting event, the instructional tasting event area shall be separated from the remainder of the market by a wall, rope, cable, cord, chain, fence, or other permanent or temporary barrier. Only one licensee may conduct an instructional tasting event during the operational hours of any one certified farmers’ market.
   2. The licensee shall not permit any consumer to leave the instructional tasting area with an open container of wine.

(c)The licensee shall not pour more than three ounces of wine per person per day.

(d) 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.

(e) Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by the licensee, a member of the licensee’s family, or an employee of the licensee in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine.

(f) The fee for any permit issued pursuant to this section shall be the annual fee as specified in subdivision (b) of Section 23320.

(Amended by Stats. 2019, Ch. 29, Sec. 27. (SB 82) Effective June 27, 2019.)

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§ 23399.45. Certified farmers’ market beer sales permit; Requirements and restrictions.

(a) For the purposes of this section:

1. “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.
2. “Community event” means an event as defined by Section 113755 of the Health and Safety Code.

(b)

1. A licensed beer manufacturer may apply to the department for a certified farmers’ market beer sales permit. Subject to the requirements of Chapter 10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code, and to the discretion and managerial control of a certified farmers’ market or community event operator, respectively, a certified farmers’ market beer sales permit shall authorize the licensee, a member of the licensee’s family who is 21 years of age or older, or an employee of the licensee to sell packaged beer that has been manufactured by a beer manufacturer applying for the permit at a certified farmers’ market, including any permitted community event area adjacent to, and operated in conjunction with, a certified farmers’ market, located within the county or an adjacent county of the physical location of the licensed beer manufacturer.
2. 1. A certified farmers’ market beer sales permit shall also authorize an instructional tasting event on the subject of beer at a certified farmers’ market, including any permitted community event area adjacent to, and operated in conjunction with, a certified farmers’ market, located within the county or an adjacent county of the physical location of the licensed beer manufacturer.
   2. An instructional tasting event is subject to the authorization and managerial control of the applicable operator of the certified farmers’ market or community event. The licensee, a member of the licensee’s family who is 21 years of age or older, or an employee of the licensee may conduct the instructional tasting event.
   3. At all times during an instructional tasting event, the instructional tasting event area shall be separated from the remainder of the market or community event by a wall, rope, cable, cord, chain, fence, or other permanent or temporary barrier.
   4. Only one licensed beer manufacturer may conduct an instructional tasting event during the operational hours of any one certified farmers’ market or community event. The licensee shall not pour more than eight ounces of beer per person per day.
   5. The licensee shall not permit any consumer to leave the instructional tasting area with an open container of beer.

(c) Sales under the certified farmers’ market beer sales permit shall only occur at a certified farmers’ market or within a permitted community event area adjacent to, and operated in conjunction with, the certified farmers’ market that is located within the same county or adjacent county of the location of the licensed beer manufacturer’s manufacturing facility. 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 or community event location. A beer manufacturer may hold more than one permit. The department shall notify the city, county, or city and county and the applicable law enforcement agency where the certified farmers’ market or permitted community event is to be held of the issuance of the permit.

(d) The licensed beer manufacturer eligible for the certified farmers’ market beer sales permit shall not sell more than 5,000 gallons of beer annually pursuant to all certified farmers’ market beer sales permits held by any single beer manufacturer. The licensed beer manufacturer shall maintain records of annual beer sales made pursuant to all certified farmers’ market beer sales permits issued.

(Amended by Stats. 2019, Ch. 29, Sec. 28. (SB 82) Effective June 27, 2019.)

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§ 23399.5. Service of alcoholic beverages in limousines, hot air balloons, beauty salons, and barber shops.

(a)

1. A license or permit is not 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.
2. 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)

1. A license or permit is not 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.
2. 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.

(c) A license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the State Board of Barbering and Cosmetology under the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3) if the following requirements are met:

1. There is no extra charge or fee for the beer or wine. For purposes of this paragraph, there is no extra charge or fee for the beer or wine if the fee charged for the service is the same regardless of whether beer or wine is served.
2. The license of the establishment providing the service is in good standing with the State Board of Barbering and Cosmetology.
3. No more than 12 ounces of beer or six ounces of wine by the glass is offered to a client.
4. The beer or wine is provided only during business hours and in no case later than 10 p.m.
5. Nothing in this subdivision shall be construed to limit the authority of a city or city and county to restrict or limit the consumption of alcoholic beverages, as described in this subdivision, pursuant to Section 23791.

(Amended by Stats. 2023, Ch. 212, Sec. 1. (SB 247) Effective January 1, 2024.)

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§ 23399.52. Licenses for facilities located in Placer County and Washoe County, Nevada.

(a) The department may create and issue a special on-sale general license to a person who owns or operates a facility that is partially located in the County of Placer and partially located in the County of Washoe, State of Nevada, subject to the following:

1. The licensed premises is located on a single contiguous property of not less than three acres, and not more than seven acres, in the County of Placer and of at least eight acres in the County of Washoe, State of Nevada, where the gross floor area of structures in the County of Placer is no greater than 20 percent of the total gross floor area of all structures located in both counties.
2. The facility consists of at least a restaurant, casino, conference center, and hotel.
3. The licensed premises is operated as an integral part of the facility.
4. The license shall not be transferable except from person to person.

(b) Notwithstanding any other provision of this division, and subject only to Section 25658, the sale, furnishing, or delivery of alcoholic beverages by the licensee within the facility shall be deemed to be a sale in the State of Nevada.

(c) Notwithstanding Section 23661, and any related provision of this division, persons may import alcoholic beverages into California from the State of Nevada only within the facility for personal use and not for resale.

(d) Notwithstanding Section 23402, and any related provision of this division, the licensee shall not be authorized to purchase alcoholic beverages from California licensees.

(e) Notwithstanding Sections 23405, 23405.1, 23405.2, and 25752, and any related provision of this division, the licensee shall not be required to maintain records on the licensed premises. However, records shall be maintained at the facility and the licensee shall provide any such records to the department promptly upon demand.

(f)

1. The licensee shall not be subject to any restrictions set forth in Chapter 15 (commencing with Section 25500), in its entirety, at the facility.
2. The licensee shall not be subject to any restrictions set forth in Sections 25600, 25600.1, 25600.2, 25600.3, 25600.5, 25611.1, 25611.2, 25611.3, 25612, 25612.5, and 25613, and any related provision of this division, except to the extent the prohibited conduct substantially occurs in California.

(g) The facility shall not be subject to Sections 25631, 25632, and 25633, and any related provision of this division.

(h) In all other respects, the licensee shall comply with and be subject to the provisions of this division.

(i) The fee for a special on-sale general license shall be the same as that specified in subparagraph (B) of paragraph (2) of subdivision (a) of Section 23320 for an original on-sale general license. The annual fee for the special on-sale general license shall be the same as that for an on-sale general license. The special on-sale general license authorized by this section shall not be included in the number of on-sale general licenses available pursuant to, or otherwise subject to the requirements of, Section 23816. All money collected as fees pursuant to this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761.

(j) The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the premises located in both the County of Placer and the State of Nevada.

(Amended by Stats. 2022, Ch. 296, Sec. 2. (AB 2971) Effective January 1, 2023.)

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§ 23399.6. Wine sales event permit.

(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 the entire duration of the event. 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)  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.

(h) The department may adopt any regulations as it determines to be necessary for the administration of this section.

(Amended by Stats. 2019, Ch. 29, Sec. 29. (SB 82) Effective June 27, 2019.)

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§ 23399.65. Brewery event permit.

(a) A licensed beer manufacturer may apply to the department for a brewery event permit. A brewery event permit shall authorize the sale of beer produced by the licensee pursuant to Section 23357 for consumption on property contiguous and adjacent to the licensed premises owned or under the control of the licensee. The property shall be secured and controlled by the licensee.

(b)

1. The annual fee for a brewery event permit for a licensed beer manufacturer shall be the same as the event permit fee specified in subdivision (b) of Section 23320. The permit may be renewed annually at the same time as the licensee’s license. A brewery event permit shall be transferable as a part of the license.
2. For each brewery event, consent for the sale of beer pursuant to subdivision (a) at the brewery event shall be first obtained by the licensee from the department in the form of an event authorization issued by the department. An event authorization shall be subject to approval by the appropriate local law enforcement agency. The fee for each event authorization shall be the same as the event authorization fee specified in Section 23399. The number of events authorized by a brewery event permit shall not exceed four in any calendar year.
3. All moneys 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.

(c) 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.

(d) The department may adopt any regulations it determines to be necessary for the administration of this section.

(Amended by Stats. 2019, Ch. 29, Sec. 30. (SB 82) Effective June 27, 2019.)

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§ 23399.7. Sales of alcoholic beverages from golf cart.

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.

(Added by Stats. 1997, Ch. 21, Sec. 1. Effective June 6, 1997.)

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§ 23400. On–sale general license; Purchase and possession of distilled spirits in packages.

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.

(Amended by Stats. 1975, Ch. 167.)

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§ 23401. On–sale general license; Exercise of rights and privileges granted by off–sale beer and wine license.

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.

(Amended by Stats. 1969, Ch. 1123.)

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§ 23401.5. On–sale license for a bona fide public eating place; Exercise of rights and privileges granted by off sale beer and wine license [Repealed effective December 31, 2026]

(a) Notwithstanding any other law to the contrary, the holder of an on-sale license for a bona fide public eating place that has off-sale privileges, or a licensed beer manufacturer, licensed wine manufacturer, or licensed craft distiller that operates a bona fide public eating place at its premises of production, may exercise the following rights and privileges subject to the requirements of this section:

1. The licensee may sell the distilled spirits for off-sale consumption for which their license permits on-sale consumption provided the beverages are in manufacturer-prepackaged containers and ordered and picked up by the consumer in compliance with subdivision (b).
2. In addition to the privilege provided by paragraph (1), the licensee may sell the alcoholic beverages, except beer, for off-sale consumption for which their license permits on-sale consumption when the beverages are not in manufacturer prepackaged containers if the following conditions are met:
   1. The alcoholic beverages are packaged in a container with a secure lid or cap sealed in a manner designed to prevent consumption without removal of the lid or cap by breaking the seal.
   2. Wine is sold only in single-serve containers. For purposes of this subparagraph, “single-serve containers” means containers that have a standard of fill between 187 milliliters and 355 milliliters that is authorized for wine under Section 4.72 of Title 27 of the Code of Federal Regulations.
   3. Mixed drinks and cocktails sold for off-sale consumption pursuant to the authorization granted by this section shall not exceed four and one-half ounces of distilled spirits.
   4. Alcoholic beverages sold pursuant to this paragraph shall be sold in conjunction with a bona fide meal, and shall be limited to two such drinks per bona fide meal. For purposes of this requirement, a “bona fide meal” shall conform to the guidance issued by the department on July 5, 2020, entitled “What is required to be considered a ‘meal’?,” available on the department’s internet website.
   5. The container is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.
   6. 1. The following warning sign is posted in a manner that notifies consumers of restrictions regarding open container laws: “Alcoholic beverages that are packaged by this establishment are open containers and shall not be transported in a motor vehicle except in the vehicle’s trunk or, if there is no trunk, the containers shall be kept in some other area of the vehicle that is not normally occupied by the driver or passengers. This does not include a utility compartment or glove compartment (See Vehicle Code Section 23225). Additionally, these beverages shall not be consumed in public or in any other area where open containers are prohibited by law.”
      2. For purposes of this subparagraph, “post” means to prominently display on the premises, post online, or present in whatever manner is necessary to ensure that the consumer purchasing the beverages to which this section applies is given notice of this warning.
   7. The alcoholic beverages are ordered and picked up by the consumer in compliance with subdivision (b).
3. Nothing in this section shall require a licensee to sell alcoholic beverages for off-sale consumption whether or not the alcoholic beverage is in a manufacturer-sealed prepackaged container or otherwise.

(b) An alcoholic beverage sold pursuant to subdivision (a) shall meet both of the following conditions:

1. The alcoholic beverage shall be ordered by the consumer online, over the telephone, or in person, for pickup by the consumer.
2. The consumer who places the order for an alcoholic beverage shall pick up the order directly from the licensee and shall present a bona fide identification card for purposes of confirming the age and identity of the consumer who placed the order. The alcoholic beverage shall not be ordered or picked up for delivery.

(c) Prior to exercising the privileges authorized in paragraph (2) of subdivision (a), the licensee shall notify the department in writing of its intent to do so.

(d) Notwithstanding any law to the contrary, the department may at any time impose conditions on a license restricting or prohibiting the licensee from selling or furnishing any alcoholic beverage pursuant to this Section.

1. Any conditions imposed pursuant to this subdivision shall be based upon a showing of good cause. Good cause includes, but is not limited to, a written request, including the reason for the restriction or prohibition, from a local law enforcement agency or local governing body, or its designated subordinate officer or agency.
2. A licensee may petition the department to modify or remove a condition within 10 days following imposition of the condition.
   1. A petition under this paragraph shall be subject to the same fee as provided in Section 23803.
   2. If the department denies the licensee’s petition, the licensee may request a hearing, which shall be conducted in the same manner as provided in Section 23805.
   3. In any hearing pursuant to this paragraph, the licensee shall have the burden to establish that the condition is unreasonable or that no good cause exists for its imposition. The condition shall remain in effect during any appeal of its imposition.

(e) Nothing in this section shall preclude privileges authorized pursuant to Sections 23401 and 23661.3.

(f) This section shall be operative until December 31, 2026, and as of that date is repealed.

(Added by Stats. 2021, Ch. 657, Sec. 1. (SB 389) Effective January 1, 2022. Repealed as of December 31, 2026.)

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§ 23402. Retailers to purchase from licensees only.

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.

(Amended by Stats. 1969, Ch. 1123.)

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§ 23402.5. Sale of beer purchased from beer manufacturer at the manufacturer’s premises by retailers.

(a) A retail licensee shall not sell or offer for sale any beer that is purchased from a beer manufacturer at the beer manufacturer’s licensed premises under any of the following circumstances:

1. The beer manufacturer from which the beer is purchased has not filed a price schedule pursuant to Chapter 12 (commencing with Section 25000) for the sale of that beer in the county in which the retail licensee’s premises at which the beer is being sold or offered for sale is located.
2. The price at which the retailer purchases the beer is different from the price in the price schedule filed by the beer manufacturer pursuant to Chapter 12 (commencing with Section 25000) from which the beer is purchased.
3. The beer container contains the statement or is marked “Not Packaged for Resale”.

(b) Nothing in this section creates any exception to the requirements of Chapter 12 (commencing with Section 25000).

(Added by Stats. 2015, Ch. 519, Sec. 3. (AB 776) Effective January 1, 2016.)

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§ 23403. Possession of certain undenatured alcohol by retailers forbidden; Penalty.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23404. Salesmen forbidden to abet violations.

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.

(Added by Stats. 1953, Ch. 152.)

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§ 23405. Corporations holding license under division.

(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.

(Amended by Stats. 1998, Ch. 639, Sec. 4. Effective January 1, 1999.)

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§ 23405.1. Limited partnership.

(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.

(Amended by Stats. 1998, Ch. 639, Sec. 5. Effective January 1, 1999.)

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§ 23405.2. Limited liability company; Record of members; Required reports; Ownership interests; Documents to be on file.

(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 California Revised Uniform Limited Liability Company Act (Title 2.6 (commencing with Section 17701.01) of the Corporations Code).

(Amended by Stats. 2012, Ch. 419, Sec. 3. (SB 323) Effective January 1, 2013. Operative January 1, 2014, by Sec. 32 of Ch. 419.)

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§ 23405.3. Report of change in ownership, management or control of corporation, limited partnership, or limited liability company.

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.

(Added by Stats. 2008, Ch. 508, Sec. 5. Effective January 1, 2009.)

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§ 23405.4. Qualification of investor in private equity fund that holds interest in license; Affidavit of compliance.

(a) The department is not required to qualify for a license a person who is an investor in a private equity fund that holds an interest in a license, provided all of the following conditions are satisfied:

1. The private equity fund’s interest in the license is limited to a passive investment, so that neither the private equity fund nor any manager, employee, or agent of the private equity fund has any involvement in, or control over, the management of the licensed business or of the licensee.
2. The private equity fund advisers are registered under the federal Investment Advisers Act of 1940, and the private equity fund advisers are subject to, and comply with, Section 275.204(b)-1 of Title 17 of the Code of Federal Regulations.
3. An investor shall not, directly or indirectly, hold more than 10-percent interest in the private equity fund.
4. An investor in the private equity fund shall not have any control, directly or indirectly, over the investment decisions of the private equity fund.

(b) For purposes of this section, private equity fund means an investment company that makes investments in equity or debt securities of another company that does not provide investors with redemption rights in the ordinary course. A private equity fund does not include a hedge fund, liquidity fund, real estate fund, securitized asset fund, or venture capital fund.

(c) The department may require the manager of the private equity fund to execute an affidavit confirming compliance with the requirements of this section. If the manager does not have personal knowledge of any of the facts necessary to execute the affidavit, the manager shall make a diligent inquiry and may thereafter execute the affidavit upon information and belief. The manager of the private equity fund shall promptly notify the department in writing if any of the facts attested to change.

(d) This section is not intended to allow a person, by reason of the person’s investment in a private equity fund, to hold an interest in a license issued by the department if that interest is not otherwise permitted under this division.

(Amended by Stats. 2022, Ch. 617, Sec. 1. (SB 1202) Effective January 1, 2023.)

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