NonProfits and Alcohol

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Non-Profits and Alcohol

• The ABCs of Licensing
• and Selling Alcoholic Beverages
• Presented by
• Matthew D. Botting
• Special Counsel, Trade
  Enforcement Unit
  
• Michael Mann
• District Administrator, Santa Rosa
• Cal. Dept. of Alcoholic Beverage Control

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Background

• Tied-house laws.
• Separation of manufacturers, distributors and
  retailers of alcoholic beverages.
  
• Purpose is to maintain orderly market and prevent
  over-aggressive promotion of alcohol that can
  lead to intemperance.
  
• Non-profit holding a temporary (one-day) license
  is a retailer.

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The Law--Overview

• Section 23300 Not allowed to exercise privileges
  of a license without holding a license.
  
• Section 23355 Licensee only allowed to exercise
  privileges specified and no others.
  
• Sections 24045.1 to 24045.16 Daily or special
  licenses (non-profit licenses).
  
• Section 25503.9 Donations.
• Rule 53 Wine tasting.

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Recent Issues

• Wine tasting at unlicensed events.
• 17/20s (beer and wine wholesalers/off-sale beer
  and wine retailers) participating in non-profit
  wine tasting events.
  
• Non-profits not purchasing wine or accepting
  donations of wine.

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Basic Rules

• Donations and sales of alcoholic beverages
  governed by the ABC Act (Business and Professions
  Code).
  
• License required to sell alcohol.
• Non-profits can accept donations of alcohol but
  not all licensees are allowed to donate.
  
• Only winegrowers are authorized to assist the
  non-profit in conducting a wine tasting.

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Licenses and Privileges

• 02s (wineries), 09s and 10s (importers) may
  donate wine to non-profits.
  
• 17s (beer and wine wholesalers) and 17/20s
  (beer and wine wholesalers/off-sale beer and wine
  retailers) may not donate wine to non-profits.
  
• Only 02s may assist non-profits in conducting
  wine tasting.
  

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Accepting Donations
This is the only special permit (or one-day
license) issued to non-profit organizations
generally that permits any licensee to donate
wine to the non-profit for on-sale purposes.
However Still does not permit licensees other
than 02s (wineries) to assist in conducting
winetasting.
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But I Dont Want The 100 License!!

• Only wineries (02) and importers (09, 10) can
  donate wine.
  
• Any other licensee must sell the wine (no
  regulation of retail price).
  
• Only wineries may assist the non-profit in
  conducting winetasting.
  
• Assist includes standing there and talking
  about wine.

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How To Get License

• Start early.
• Complete form ABC-221.
• Submit to local office of ABC.
• Pay the fee.
• Work with local ABC office.

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Whose Wine Is It?

• Non-profit is selling the wine.
• May accept donations or must purchase the wine.
• Title to wine must transfer to the non-profit.
• Department does not object to return of unused
  wine.

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• QUESTIONS?
• ABC HQ [phone]
• ABC Santa Rosa [phone]