23100. Any person in possession of a stock of lawfully acquired
alcoholic beverages following the revocation of, suspension of,
voluntary surrender of, or failure to renew, the license may sell the
stock, under supervision of the department in the manner as the
department by rule provides, to licensees authorized to sell the
alcoholic beverages.
23101. Any bank, trust company, or financial institution owning or
possessing alcoholic beverages or warehouse receipts therefor as
security for an obligation or as a result of enforcement of a
security interest may, after permission has been given by the
department, sell the alcoholic beverages or warehouse receipts to a
licensee authorized to sell for resale such alcoholic beverages or
such warehouse receipts.
23102. (a) On the death, insolvency or incompetency to act of a
natural person who is a licensee, the privileges of the license may
be exercised by a competent surviving colicensee for thirty (30) days
or until an administrator, executor, guardian, conservator,
receiver, trustee or assignee for the benefit of creditors of the
estate of the deceased, incompetent or insolvent licensee has been
appointed, whichever first occurs. If there is no competent surviving
colicensee, the privileges of the license may be exercised by any
person acting on behalf of the deceased or incompetent licensee or
his estate.
(b) At the end of the period permitted by subsection (a) of this
section the privileges of the license may be exercised for sixty (60)
days without transfer and thereafter upon transfer by the
administrator, executor, guardian, conservator, receiver, trustee or
assignee for the benefit of creditors of the estate of the deceased,
incompetent or insolvent licensee, acting jointly with any competent
surviving colicensee if such joint action is required by law. The
sixty (60) day period provided for in this subsection may be extended
by the department for good cause.
(c) If prior to the expiration of the period permitted by
subsection (b) and any extension thereof there has been filed and is
pending an application to transfer the license pursuant to Section
24071 or otherwise, the persons exercising the privilege of the
license under subsection (b) may continue to do so until such
application is finally granted or denied.
(d) If the license was issued to a taxpayer as defined in Section
32005 of the Revenue and Taxation Code, the person exercising the
privileges of the license hereunder shall be deemed to be a taxpayer
and shall file an appropriate bond for the purposes of Part 14
(commencing at Section 32001) of Division 2 of the Revenue and
Taxation Code.
23104. Any insurer may, or any common carrier acting as an insurer
for losses to persons shipping alcoholic beverages may, after
permission has been granted by the department, take possession of and
sell any alcoholic beverages the containers of which have been
damaged by fire or otherwise to licensees who are authorized to sell
the alcoholic beverages. Any licensee so qualified may purchase and
accept delivery of the alcoholic beverages from the insurer or common
carrier so authorized to sell. This permission extends only to
alcoholic beverages owned by a licensee and insured against loss or
damage by the insurer or common carrier applying for the permission.
Alcoholic beverages so sold shall be labeled or otherwise identified,
prior to and at the time of sale, as distress merchandise, salvaged
from fire, wreck, or similar catastrophe, and such label or other
identification shall be affixed over the regular label of the
merchandise, and shall provide thereon that it was not affixed by the
manufacturer.
23104.1. A retailer may return wine to the seller or to the
successor of the seller and the seller or his or her successor may
accept the return thereof, except that the seller or his or her
successor may not sell wine to the retailer for a period of one year
after the date the returned wine is accepted or received unless any
of the following exists:
(a) The wine is returned in exchange for the identical quantity,
brand, and item of wine.
(b) The wine is returned pursuant to court order.
(c) The returned wine is a brand or item of wine that has been
discontinued by the seller or his or her successor, and the wine is
exchanged for the identical quantity of a brand or item of similar
quality.
(d) The wine delivered was other than that ordered by a retailer
or was in a quantity other than that ordered. In these cases, the
retailer may, within 15 days after delivery, return the wine to the
seller or his or her successor for exchange for the wine actually
ordered, or may return the wine delivered in excess of the wine
actually ordered. Returns under this subdivision may also be made
after 15 days from the date of delivery upon written approval of the
department.
(e) The wine has deteriorated in quality or the container thereof
has been damaged, or the label or container for the wine has been
changed, and the wine is returned and exchanged for the identical
quantity of the same brand and type of wine and size of container.
For the purpose of this subdivision, "wines of the same type" means
wines that are within the same class as provided in Article 14
(commencing with Section 17001) of Title 17 of the California Code of
Regulations and bear the same rate of state wine excise tax.
If wine or the container thereof is damaged or deteriorated, and
the seller thereof has ceased to carry on a business licensed under
this division and there is no successor to the business, the wine may
be returned by a retailer to a winegrower or wholesaler who handles
the same brand or item of wine, upon the same terms and conditions
provided in this section for the return of wine to a seller or his or
her successor, after receiving approval from the department.
The approval of the department shall be required only for returns
made after 15 days from the date of delivery under the provisions of
subdivision (d), or returns made under the provisions of the
immediately preceding paragraph.
(f) As used in subdivisions (a), (c), and (e), the term "identical
quantity" includes wine in metric measure containers and wine in
United States standard measure containers that contain substantially
the same amount of wine.
(g) Notwithstanding the above provisions, a seller may accept the
return of wine from a seasonal or temporary licensee if, at the
termination of the period of the license, the seasonal or temporary
licensee has wine remaining unsold, or from an annual licensee
operating on a temporary basis if, at the termination of the
temporary period, the annual licensee has wine remaining unsold.
23104.2. (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer. No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto. If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
(b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:
(1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
(B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers. Temporary status shall be
deemed terminated when operations cease for 15 days or more. No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
(2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer. For purposes
of this subparagraph, "seasonal brand of beer" means a brand of
beer, as defined in Section 23006, that is brewed by a manufacturer
to commemorate a specific holiday season and is so identified by
appropriate product packaging and labeling.
(B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place. A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
(c) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler or manufacturer, or any successor thereto, by
the holder of a retail license following the revocation of,
suspension of, voluntary surrender of, or failure to renew the retail
license.
(d) A wholesaler or manufacturer, or any successor thereto, may
credit the account of the retailer identified in subdivision (c) in
an amount not to exceed the original sales price to the retailer of
the returned beer, provided that the beer has been paid for in full.
(e) Notwithstanding the 15-day time limit for the return of beer
described in subdivision (a), beer that is recalled for health or
safety issues may be accepted for return at anytime from a retailer
and be picked up by the seller of beer. The seller of beer may
exchange the returned beer for identical product, if safe inventory
is available, issue a deferred exchange memorandum showing the beer
was picked up and is to be replaced when inventory is available, or
issue a credit memorandum to the retailer for the returned beer.
23104.3. A retail licensee may make a return of distilled spirits
to the wholesaler, rectifier or manufacturer from whom he purchased
the distilled spirits or to the successor of such wholesaler,
rectifier or manufacturer, or in the event that such wholesaler,
rectifier or manufacturer has ceased carrying on a business licensed
under this division and there is no successor to such business, the
return may be made to some other wholesaler, rectifier or
manufacturer after the retail licensee has obtained from the
department approval to make such return. A retail licensee may
exchange a package of distilled spirits for a similar package of the
same brand with any manufacturer, rectifier or wholesaler whether or
not the retail licensee had purchased the package from the
manufacturer, rectifier or wholesaler with whom he is exchanging it
for a similar package of the same brand.
23104.4. An executor or administrator of the estate of a deceased
person who was not a licensee at the time of his death but in whose
estate there is included an inventory of alcoholic beverages, or the
guardian or conservator of the estate of an incompetent person in
whose estate there is included an inventory of alcoholic beverages,
is authorized to sell such alcoholic beverages to a licensee
authorized to sell the same in accordance with regulations prescribed
by the department. Nothing in this division prevents or restricts
the sale to a nonlicensee of bottled wine included among such
inventory of alcoholic beverages by such executor, administrator,
guardian, conservator, or an auctioneer acting as an agent of any of
the foregoing when the sale is in compliance with Section 24045.8.
23104.5. A sheriff or any other person appointed by a court of
competent jurisdiction may sell alcoholic beverages pursuant to a
writ of execution to satisfy a judgment, or to execute a court order,
to licensees authorized to sell such alcoholic beverages. Nothing in
this division prevents or restricts the sale to a nonlicensee of
bottled wine included among such alcoholic beverages by such sheriff
or court appointee, when such sale is in compliance with Section
24045.8.
23104.6. (a) Any nonlicensed person owning bottled vintage wine
purchased by that person at retail, is authorized to sell that wine
to a licensee authorized to sell that wine if each bottle has a
permanently affixed label stating that the wine was acquired from a
private collection.
(b) "Vintage wine," as used in this section, means bottled white,
rose, or sparkling wine which is not less than five years old or
bottled red wine which is not less than 10 years old.
23105. In accordance with rules prescribed by the department, a
warehouseman may sell alcoholic beverages to enforce the lien
provided for by the Warehouse Receipts Act only to licensees
authorized to sell the alcoholic beverages. Notice of the time and
place of the sale shall be given to the department prior to the sale.
23106. (a) Wine stored in a winery or wine cellar bonded under the
internal revenue laws of the United States and brandy in bulk stored
in an internal revenue bonded warehouse may be stored by or for any
licensee without the necessity of any license by the person
furnishing or providing the storage space.
(b) Beer and wine upon which excise taxes have been paid to the
state at the rate fixed under Part 14 of Division 2 of the Revenue
and Taxation Code may be stored by or for any licensee in any private
or public warehouse or elsewhere in this state without the necessity
of any license by the person furnishing or providing the storage
space or any special additional license by the licensee.
(c) Any other alcoholic beverage may, without the necessity of any
additional license, be stored by or for a licensee in private
warehouses approved by the department, if within the limits of the
county in which the licensee's licensed premises are located, or in a
public warehouse within that county, or may be stored in bond in a
public warehouse outside that county if the public warehouse is also
a United States customs bonded warehouse, a United States internal
revenue bonded warehouse, or a United States bonded wine cellar. An
application for the approval of a private warehouse shall be
accompanied by a fee of fifty dollars ($50).
23107. Any person may, in accordance with rules and regulations to
be prescribed by the department, purchase and take delivery of
alcoholic beverages within this State for delivery or use without the
State and may, without obtaining any license in this State, export
the same from this State within 90 days from the date of such
purchase.
23108. Licensees of other states may purchase bulk brandy produced
in this State and stored in an internal revenue bonded warehouse in
this State or may purchase warehouse receipts covering the brandy for
storage in this State, and may subsequently, without obtaining any
license therefor in this State, export the brandy in accordance with
the rules prescribed by the department. The sale of brandy or
warehouse receipts pursuant to this section by a taxpayer to the
purchasing licensee of another state shall be exempt from the excise
tax levied by Section 32201 of the Revenue and Taxation Code.
23109. Alcoholic beverages in continuous transit through this State
are exempt from the provisions of this division only while in
continuous transit through this State in the possession or custody of
common carriers. The department may require affidavits of any person
on forms prescribed by the department and may require any such
shipments to be checked in and checked out at the boundaries of the
State. Any person refusing to make the affidavits required or
refusing to check in or check out the alcoholic beverages is guilty
of a misdemeanor.
23110. This division does not apply to the manufacture, sale, or
use of completely denatured ethyl alcohol or special denatured ethyl
alcohol, as these substances are defined in the various statutes and
regulations of the United States Government relating thereto.
23111. Nothing in this division prevents or restricts the use of
tax-free ethyl alcohol under regulation of the Treasury Department of
the United States Government by any governmental agency, state or
federal, or by any scientific university or college of learning or
any laboratory for use exclusively in scientific research, or by any
hospital or sanitarium.
23112. Nothing in this division prevents or restricts the use of
tax-free alcohol or of industrial alcohol or other distilled spirits
or wine under regulation of the United States Government in the
manufacture of any of the following products, if the products are
unfit for beverage use:
(a) Medicinal, pharmaceutical, or antiseptic products, including
prescriptions compounded by registered pharmacists.
(b) Toilet products.
(c) Flavoring extracts.
(d) Sirups.
(e) Food products.
(f) Scientific, chemical, or industrial products.
23113. Alcohol sold for the uses mentioned in Section 23111 may be
sold tax-free in packages of not less than one-half pint capacity.
Alcohol sold to a registered pharmacist for use in compounding
prescriptions as provided in Section 23112 may be sold to the
pharmacist in packages of not less than one-half pint capacity if the
distilled spirits excise tax is reported and paid by the licensee
selling the alcohol to the pharmacist.
The sales of alcohol authorized to be made by this section may be
made by those licensees who are authorized to sell alcohol for use in
the trades, professions, or industries.
23100. Any person in possession of a stock of lawfully acquired
alcoholic beverages following the revocation of, suspension of,
voluntary surrender of, or failure to renew, the license may sell the
stock, under supervision of the department in the manner as the
department by rule provides, to licensees authorized to sell the
alcoholic beverages.
23101. Any bank, trust company, or financial institution owning or
possessing alcoholic beverages or warehouse receipts therefor as
security for an obligation or as a result of enforcement of a
security interest may, after permission has been given by the
department, sell the alcoholic beverages or warehouse receipts to a
licensee authorized to sell for resale such alcoholic beverages or
such warehouse receipts.
23102. (a) On the death, insolvency or incompetency to act of a
natural person who is a licensee, the privileges of the license may
be exercised by a competent surviving colicensee for thirty (30) days
or until an administrator, executor, guardian, conservator,
receiver, trustee or assignee for the benefit of creditors of the
estate of the deceased, incompetent or insolvent licensee has been
appointed, whichever first occurs. If there is no competent surviving
colicensee, the privileges of the license may be exercised by any
person acting on behalf of the deceased or incompetent licensee or
his estate.
(b) At the end of the period permitted by subsection (a) of this
section the privileges of the license may be exercised for sixty (60)
days without transfer and thereafter upon transfer by the
administrator, executor, guardian, conservator, receiver, trustee or
assignee for the benefit of creditors of the estate of the deceased,
incompetent or insolvent licensee, acting jointly with any competent
surviving colicensee if such joint action is required by law. The
sixty (60) day period provided for in this subsection may be extended
by the department for good cause.
(c) If prior to the expiration of the period permitted by
subsection (b) and any extension thereof there has been filed and is
pending an application to transfer the license pursuant to Section
24071 or otherwise, the persons exercising the privilege of the
license under subsection (b) may continue to do so until such
application is finally granted or denied.
(d) If the license was issued to a taxpayer as defined in Section
32005 of the Revenue and Taxation Code, the person exercising the
privileges of the license hereunder shall be deemed to be a taxpayer
and shall file an appropriate bond for the purposes of Part 14
(commencing at Section 32001) of Division 2 of the Revenue and
Taxation Code.
23104. Any insurer may, or any common carrier acting as an insurer
for losses to persons shipping alcoholic beverages may, after
permission has been granted by the department, take possession of and
sell any alcoholic beverages the containers of which have been
damaged by fire or otherwise to licensees who are authorized to sell
the alcoholic beverages. Any licensee so qualified may purchase and
accept delivery of the alcoholic beverages from the insurer or common
carrier so authorized to sell. This permission extends only to
alcoholic beverages owned by a licensee and insured against loss or
damage by the insurer or common carrier applying for the permission.
Alcoholic beverages so sold shall be labeled or otherwise identified,
prior to and at the time of sale, as distress merchandise, salvaged
from fire, wreck, or similar catastrophe, and such label or other
identification shall be affixed over the regular label of the
merchandise, and shall provide thereon that it was not affixed by the
manufacturer.
23104.1. A retailer may return wine to the seller or to the
successor of the seller and the seller or his or her successor may
accept the return thereof, except that the seller or his or her
successor may not sell wine to the retailer for a period of one year
after the date the returned wine is accepted or received unless any
of the following exists:
(a) The wine is returned in exchange for the identical quantity,
brand, and item of wine.
(b) The wine is returned pursuant to court order.
(c) The returned wine is a brand or item of wine that has been
discontinued by the seller or his or her successor, and the wine is
exchanged for the identical quantity of a brand or item of similar
quality.
(d) The wine delivered was other than that ordered by a retailer
or was in a quantity other than that ordered. In these cases, the
retailer may, within 15 days after delivery, return the wine to the
seller or his or her successor for exchange for the wine actually
ordered, or may return the wine delivered in excess of the wine
actually ordered. Returns under this subdivision may also be made
after 15 days from the date of delivery upon written approval of the
department.
(e) The wine has deteriorated in quality or the container thereof
has been damaged, or the label or container for the wine has been
changed, and the wine is returned and exchanged for the identical
quantity of the same brand and type of wine and size of container.
For the purpose of this subdivision, "wines of the same type" means
wines that are within the same class as provided in Article 14
(commencing with Section 17001) of Title 17 of the California Code of
Regulations and bear the same rate of state wine excise tax.
If wine or the container thereof is damaged or deteriorated, and
the seller thereof has ceased to carry on a business licensed under
this division and there is no successor to the business, the wine may
be returned by a retailer to a winegrower or wholesaler who handles
the same brand or item of wine, upon the same terms and conditions
provided in this section for the return of wine to a seller or his or
her successor, after receiving approval from the department.
The approval of the department shall be required only for returns
made after 15 days from the date of delivery under the provisions of
subdivision (d), or returns made under the provisions of the
immediately preceding paragraph.
(f) As used in subdivisions (a), (c), and (e), the term "identical
quantity" includes wine in metric measure containers and wine in
United States standard measure containers that contain substantially
the same amount of wine.
(g) Notwithstanding the above provisions, a seller may accept the
return of wine from a seasonal or temporary licensee if, at the
termination of the period of the license, the seasonal or temporary
licensee has wine remaining unsold, or from an annual licensee
operating on a temporary basis if, at the termination of the
temporary period, the annual licensee has wine remaining unsold.
23104.2. (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer. No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto. If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
(b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:
(1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
(B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers. Temporary status shall be
deemed terminated when operations cease for 15 days or more. No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
(2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer. For purposes
of this subparagraph, "seasonal brand of beer" means a brand of
beer, as defined in Section 23006, that is brewed by a manufacturer
to commemorate a specific holiday season and is so identified by
appropriate product packaging and labeling.
(B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place. A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
(c) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler or manufacturer, or any successor thereto, by
the holder of a retail license following the revocation of,
suspension of, voluntary surrender of, or failure to renew the retail
license.
(d) A wholesaler or manufacturer, or any successor thereto, may
credit the account of the retailer identified in subdivision (c) in
an amount not to exceed the original sales price to the retailer of
the returned beer, provided that the beer has been paid for in full.
(e) Notwithstanding the 15-day time limit for the return of beer
described in subdivision (a), beer that is recalled for health or
safety issues may be accepted for return at anytime from a retailer
and be picked up by the seller of beer. The seller of beer may
exchange the returned beer for identical product, if safe inventory
is available, issue a deferred exchange memorandum showing the beer
was picked up and is to be replaced when inventory is available, or
issue a credit memorandum to the retailer for the returned beer.
23104.3. A retail licensee may make a return of distilled spirits
to the wholesaler, rectifier or manufacturer from whom he purchased
the distilled spirits or to the successor of such wholesaler,
rectifier or manufacturer, or in the event that such wholesaler,
rectifier or manufacturer has ceased carrying on a business licensed
under this division and there is no successor to such business, the
return may be made to some other wholesaler, rectifier or
manufacturer after the retail licensee has obtained from the
department approval to make such return. A retail licensee may
exchange a package of distilled spirits for a similar package of the
same brand with any manufacturer, rectifier or wholesaler whether or
not the retail licensee had purchased the package from the
manufacturer, rectifier or wholesaler with whom he is exchanging it
for a similar package of the same brand.
23104.4. An executor or administrator of the estate of a deceased
person who was not a licensee at the time of his death but in whose
estate there is included an inventory of alcoholic beverages, or the
guardian or conservator of the estate of an incompetent person in
whose estate there is included an inventory of alcoholic beverages,
is authorized to sell such alcoholic beverages to a licensee
authorized to sell the same in accordance with regulations prescribed
by the department. Nothing in this division prevents or restricts
the sale to a nonlicensee of bottled wine included among such
inventory of alcoholic beverages by such executor, administrator,
guardian, conservator, or an auctioneer acting as an agent of any of
the foregoing when the sale is in compliance with Section 24045.8.
23104.5. A sheriff or any other person appointed by a court of
competent jurisdiction may sell alcoholic beverages pursuant to a
writ of execution to satisfy a judgment, or to execute a court order,
to licensees authorized to sell such alcoholic beverages. Nothing in
this division prevents or restricts the sale to a nonlicensee of
bottled wine included among such alcoholic beverages by such sheriff
or court appointee, when such sale is in compliance with Section
24045.8.
23104.6. (a) Any nonlicensed person owning bottled vintage wine
purchased by that person at retail, is authorized to sell that wine
to a licensee authorized to sell that wine if each bottle has a
permanently affixed label stating that the wine was acquired from a
private collection.
(b) "Vintage wine," as used in this section, means bottled white,
rose, or sparkling wine which is not less than five years old or
bottled red wine which is not less than 10 years old.
23105. In accordance with rules prescribed by the department, a
warehouseman may sell alcoholic beverages to enforce the lien
provided for by the Warehouse Receipts Act only to licensees
authorized to sell the alcoholic beverages. Notice of the time and
place of the sale shall be given to the department prior to the sale.
23106. (a) Wine stored in a winery or wine cellar bonded under the
internal revenue laws of the United States and brandy in bulk stored
in an internal revenue bonded warehouse may be stored by or for any
licensee without the necessity of any license by the person
furnishing or providing the storage space.
(b) Beer and wine upon which excise taxes have been paid to the
state at the rate fixed under Part 14 of Division 2 of the Revenue
and Taxation Code may be stored by or for any licensee in any private
or public warehouse or elsewhere in this state without the necessity
of any license by the person furnishing or providing the storage
space or any special additional license by the licensee.
(c) Any other alcoholic beverage may, without the necessity of any
additional license, be stored by or for a licensee in private
warehouses approved by the department, if within the limits of the
county in which the licensee's licensed premises are located, or in a
public warehouse within that county, or may be stored in bond in a
public warehouse outside that county if the public warehouse is also
a United States customs bonded warehouse, a United States internal
revenue bonded warehouse, or a United States bonded wine cellar. An
application for the approval of a private warehouse shall be
accompanied by a fee of fifty dollars ($50).
23107. Any person may, in accordance with rules and regulations to
be prescribed by the department, purchase and take delivery of
alcoholic beverages within this State for delivery or use without the
State and may, without obtaining any license in this State, export
the same from this State within 90 days from the date of such
purchase.
23108. Licensees of other states may purchase bulk brandy produced
in this State and stored in an internal revenue bonded warehouse in
this State or may purchase warehouse receipts covering the brandy for
storage in this State, and may subsequently, without obtaining any
license therefor in this State, export the brandy in accordance with
the rules prescribed by the department. The sale of brandy or
warehouse receipts pursuant to this section by a taxpayer to the
purchasing licensee of another state shall be exempt from the excise
tax levied by Section 32201 of the Revenue and Taxation Code.
23109. Alcoholic beverages in continuous transit through this State
are exempt from the provisions of this division only while in
continuous transit through this State in the possession or custody of
common carriers. The department may require affidavits of any person
on forms prescribed by the department and may require any such
shipments to be checked in and checked out at the boundaries of the
State. Any person refusing to make the affidavits required or
refusing to check in or check out the alcoholic beverages is guilty
of a misdemeanor.
23110. This division does not apply to the manufacture, sale, or
use of completely denatured ethyl alcohol or special denatured ethyl
alcohol, as these substances are defined in the various statutes and
regulations of the United States Government relating thereto.
23111. Nothing in this division prevents or restricts the use of
tax-free ethyl alcohol under regulation of the Treasury Department of
the United States Government by any governmental agency, state or
federal, or by any scientific university or college of learning or
any laboratory for use exclusively in scientific research, or by any
hospital or sanitarium.
23112. Nothing in this division prevents or restricts the use of
tax-free alcohol or of industrial alcohol or other distilled spirits
or wine under regulation of the United States Government in the
manufacture of any of the following products, if the products are
unfit for beverage use:
(a) Medicinal, pharmaceutical, or antiseptic products, including
prescriptions compounded by registered pharmacists.
(b) Toilet products.
(c) Flavoring extracts.
(d) Sirups.
(e) Food products.
(f) Scientific, chemical, or industrial products.
23113. Alcohol sold for the uses mentioned in Section 23111 may be
sold tax-free in packages of not less than one-half pint capacity.
Alcohol sold to a registered pharmacist for use in compounding
prescriptions as provided in Section 23112 may be sold to the
pharmacist in packages of not less than one-half pint capacity if the
distilled spirits excise tax is reported and paid by the licensee
selling the alcohol to the pharmacist.
The sales of alcohol authorized to be made by this section may be
made by those licensees who are authorized to sell alcohol for use in
the trades, professions, or industries.
23100. Any person in possession of a stock of lawfully acquired
alcoholic beverages following the revocation of, suspension of,
voluntary surrender of, or failure to renew, the license may sell the
stock, under supervision of the department in the manner as the
department by rule provides, to licensees authorized to sell the
alcoholic beverages.
23101. Any bank, trust company, or financial institution owning or
possessing alcoholic beverages or warehouse receipts therefor as
security for an obligation or as a result of enforcement of a
security interest may, after permission has been given by the
department, sell the alcoholic beverages or warehouse receipts to a
licensee authorized to sell for resale such alcoholic beverages or
such warehouse receipts.
23102. (a) On the death, insolvency or incompetency to act of a
natural person who is a licensee, the privileges of the license may
be exercised by a competent surviving colicensee for thirty (30) days
or until an administrator, executor, guardian, conservator,
receiver, trustee or assignee for the benefit of creditors of the
estate of the deceased, incompetent or insolvent licensee has been
appointed, whichever first occurs. If there is no competent surviving
colicensee, the privileges of the license may be exercised by any
person acting on behalf of the deceased or incompetent licensee or
his estate.
(b) At the end of the period permitted by subsection (a) of this
section the privileges of the license may be exercised for sixty (60)
days without transfer and thereafter upon transfer by the
administrator, executor, guardian, conservator, receiver, trustee or
assignee for the benefit of creditors of the estate of the deceased,
incompetent or insolvent licensee, acting jointly with any competent
surviving colicensee if such joint action is required by law. The
sixty (60) day period provided for in this subsection may be extended
by the department for good cause.
(c) If prior to the expiration of the period permitted by
subsection (b) and any extension thereof there has been filed and is
pending an application to transfer the license pursuant to Section
24071 or otherwise, the persons exercising the privilege of the
license under subsection (b) may continue to do so until such
application is finally granted or denied.
(d) If the license was issued to a taxpayer as defined in Section
32005 of the Revenue and Taxation Code, the person exercising the
privileges of the license hereunder shall be deemed to be a taxpayer
and shall file an appropriate bond for the purposes of Part 14
(commencing at Section 32001) of Division 2 of the Revenue and
Taxation Code.
23104. Any insurer may, or any common carrier acting as an insurer
for losses to persons shipping alcoholic beverages may, after
permission has been granted by the department, take possession of and
sell any alcoholic beverages the containers of which have been
damaged by fire or otherwise to licensees who are authorized to sell
the alcoholic beverages. Any licensee so qualified may purchase and
accept delivery of the alcoholic beverages from the insurer or common
carrier so authorized to sell. This permission extends only to
alcoholic beverages owned by a licensee and insured against loss or
damage by the insurer or common carrier applying for the permission.
Alcoholic beverages so sold shall be labeled or otherwise identified,
prior to and at the time of sale, as distress merchandise, salvaged
from fire, wreck, or similar catastrophe, and such label or other
identification shall be affixed over the regular label of the
merchandise, and shall provide thereon that it was not affixed by the
manufacturer.
23104.1. A retailer may return wine to the seller or to the
successor of the seller and the seller or his or her successor may
accept the return thereof, except that the seller or his or her
successor may not sell wine to the retailer for a period of one year
after the date the returned wine is accepted or received unless any
of the following exists:
(a) The wine is returned in exchange for the identical quantity,
brand, and item of wine.
(b) The wine is returned pursuant to court order.
(c) The returned wine is a brand or item of wine that has been
discontinued by the seller or his or her successor, and the wine is
exchanged for the identical quantity of a brand or item of similar
quality.
(d) The wine delivered was other than that ordered by a retailer
or was in a quantity other than that ordered. In these cases, the
retailer may, within 15 days after delivery, return the wine to the
seller or his or her successor for exchange for the wine actually
ordered, or may return the wine delivered in excess of the wine
actually ordered. Returns under this subdivision may also be made
after 15 days from the date of delivery upon written approval of the
department.
(e) The wine has deteriorated in quality or the container thereof
has been damaged, or the label or container for the wine has been
changed, and the wine is returned and exchanged for the identical
quantity of the same brand and type of wine and size of container.
For the purpose of this subdivision, "wines of the same type" means
wines that are within the same class as provided in Article 14
(commencing with Section 17001) of Title 17 of the California Code of
Regulations and bear the same rate of state wine excise tax.
If wine or the container thereof is damaged or deteriorated, and
the seller thereof has ceased to carry on a business licensed under
this division and there is no successor to the business, the wine may
be returned by a retailer to a winegrower or wholesaler who handles
the same brand or item of wine, upon the same terms and conditions
provided in this section for the return of wine to a seller or his or
her successor, after receiving approval from the department.
The approval of the department shall be required only for returns
made after 15 days from the date of delivery under the provisions of
subdivision (d), or returns made under the provisions of the
immediately preceding paragraph.
(f) As used in subdivisions (a), (c), and (e), the term "identical
quantity" includes wine in metric measure containers and wine in
United States standard measure containers that contain substantially
the same amount of wine.
(g) Notwithstanding the above provisions, a seller may accept the
return of wine from a seasonal or temporary licensee if, at the
termination of the period of the license, the seasonal or temporary
licensee has wine remaining unsold, or from an annual licensee
operating on a temporary basis if, at the termination of the
temporary period, the annual licensee has wine remaining unsold.
23104.2. (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer. No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto. If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
(b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:
(1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
(B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers. Temporary status shall be
deemed terminated when operations cease for 15 days or more. No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
(2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer. For purposes
of this subparagraph, "seasonal brand of beer" means a brand of
beer, as defined in Section 23006, that is brewed by a manufacturer
to commemorate a specific holiday season and is so identified by
appropriate product packaging and labeling.
(B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place. A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
(c) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler or manufacturer, or any successor thereto, by
the holder of a retail license following the revocation of,
suspension of, voluntary surrender of, or failure to renew the retail
license.
(d) A wholesaler or manufacturer, or any successor thereto, may
credit the account of the retailer identified in subdivision (c) in
an amount not to exceed the original sales price to the retailer of
the returned beer, provided that the beer has been paid for in full.
(e) Notwithstanding the 15-day time limit for the return of beer
described in subdivision (a), beer that is recalled for health or
safety issues may be accepted for return at anytime from a retailer
and be picked up by the seller of beer. The seller of beer may
exchange the returned beer for identical product, if safe inventory
is available, issue a deferred exchange memorandum showing the beer
was picked up and is to be replaced when inventory is available, or
issue a credit memorandum to the retailer for the returned beer.
23104.3. A retail licensee may make a return of distilled spirits
to the wholesaler, rectifier or manufacturer from whom he purchased
the distilled spirits or to the successor of such wholesaler,
rectifier or manufacturer, or in the event that such wholesaler,
rectifier or manufacturer has ceased carrying on a business licensed
under this division and there is no successor to such business, the
return may be made to some other wholesaler, rectifier or
manufacturer after the retail licensee has obtained from the
department approval to make such return. A retail licensee may
exchange a package of distilled spirits for a similar package of the
same brand with any manufacturer, rectifier or wholesaler whether or
not the retail licensee had purchased the package from the
manufacturer, rectifier or wholesaler with whom he is exchanging it
for a similar package of the same brand.
23104.4. An executor or administrator of the estate of a deceased
person who was not a licensee at the time of his death but in whose
estate there is included an inventory of alcoholic beverages, or the
guardian or conservator of the estate of an incompetent person in
whose estate there is included an inventory of alcoholic beverages,
is authorized to sell such alcoholic beverages to a licensee
authorized to sell the same in accordance with regulations prescribed
by the department. Nothing in this division prevents or restricts
the sale to a nonlicensee of bottled wine included among such
inventory of alcoholic beverages by such executor, administrator,
guardian, conservator, or an auctioneer acting as an agent of any of
the foregoing when the sale is in compliance with Section 24045.8.
23104.5. A sheriff or any other person appointed by a court of
competent jurisdiction may sell alcoholic beverages pursuant to a
writ of execution to satisfy a judgment, or to execute a court order,
to licensees authorized to sell such alcoholic beverages. Nothing in
this division prevents or restricts the sale to a nonlicensee of
bottled wine included among such alcoholic beverages by such sheriff
or court appointee, when such sale is in compliance with Section
24045.8.
23104.6. (a) Any nonlicensed person owning bottled vintage wine
purchased by that person at retail, is authorized to sell that wine
to a licensee authorized to sell that wine if each bottle has a
permanently affixed label stating that the wine was acquired from a
private collection.
(b) "Vintage wine," as used in this section, means bottled white,
rose, or sparkling wine which is not less than five years old or
bottled red wine which is not less than 10 years old.
23105. In accordance with rules prescribed by the department, a
warehouseman may sell alcoholic beverages to enforce the lien
provided for by the Warehouse Receipts Act only to licensees
authorized to sell the alcoholic beverages. Notice of the time and
place of the sale shall be given to the department prior to the sale.
23106. (a) Wine stored in a winery or wine cellar bonded under the
internal revenue laws of the United States and brandy in bulk stored
in an internal revenue bonded warehouse may be stored by or for any
licensee without the necessity of any license by the person
furnishing or providing the storage space.
(b) Beer and wine upon which excise taxes have been paid to the
state at the rate fixed under Part 14 of Division 2 of the Revenue
and Taxation Code may be stored by or for any licensee in any private
or public warehouse or elsewhere in this state without the necessity
of any license by the person furnishing or providing the storage
space or any special additional license by the licensee.
(c) Any other alcoholic beverage may, without the necessity of any
additional license, be stored by or for a licensee in private
warehouses approved by the department, if within the limits of the
county in which the licensee's licensed premises are located, or in a
public warehouse within that county, or may be stored in bond in a
public warehouse outside that county if the public warehouse is also
a United States customs bonded warehouse, a United States internal
revenue bonded warehouse, or a United States bonded wine cellar. An
application for the approval of a private warehouse shall be
accompanied by a fee of fifty dollars ($50).
23107. Any person may, in accordance with rules and regulations to
be prescribed by the department, purchase and take delivery of
alcoholic beverages within this State for delivery or use without the
State and may, without obtaining any license in this State, export
the same from this State within 90 days from the date of such
purchase.
23108. Licensees of other states may purchase bulk brandy produced
in this State and stored in an internal revenue bonded warehouse in
this State or may purchase warehouse receipts covering the brandy for
storage in this State, and may subsequently, without obtaining any
license therefor in this State, export the brandy in accordance with
the rules prescribed by the department. The sale of brandy or
warehouse receipts pursuant to this section by a taxpayer to the
purchasing licensee of another state shall be exempt from the excise
tax levied by Section 32201 of the Revenue and Taxation Code.
23109. Alcoholic beverages in continuous transit through this State
are exempt from the provisions of this division only while in
continuous transit through this State in the possession or custody of
common carriers. The department may require affidavits of any person
on forms prescribed by the department and may require any such
shipments to be checked in and checked out at the boundaries of the
State. Any person refusing to make the affidavits required or
refusing to check in or check out the alcoholic beverages is guilty
of a misdemeanor.
23110. This division does not apply to the manufacture, sale, or
use of completely denatured ethyl alcohol or special denatured ethyl
alcohol, as these substances are defined in the various statutes and
regulations of the United States Government relating thereto.
23111. Nothing in this division prevents or restricts the use of
tax-free ethyl alcohol under regulation of the Treasury Department of
the United States Government by any governmental agency, state or
federal, or by any scientific university or college of learning or
any laboratory for use exclusively in scientific research, or by any
hospital or sanitarium.
23112. Nothing in this division prevents or restricts the use of
tax-free alcohol or of industrial alcohol or other distilled spirits
or wine under regulation of the United States Government in the
manufacture of any of the following products, if the products are
unfit for beverage use:
(a) Medicinal, pharmaceutical, or antiseptic products, including
prescriptions compounded by registered pharmacists.
(b) Toilet products.
(c) Flavoring extracts.
(d) Sirups.
(e) Food products.
(f) Scientific, chemical, or industrial products.
23113. Alcohol sold for the uses mentioned in Section 23111 may be
sold tax-free in packages of not less than one-half pint capacity.
Alcohol sold to a registered pharmacist for use in compounding
prescriptions as provided in Section 23112 may be sold to the
pharmacist in packages of not less than one-half pint capacity if the
distilled spirits excise tax is reported and paid by the licensee
selling the alcohol to the pharmacist.
The sales of alcohol authorized to be made by this section may be
made by those licensees who are authorized to sell alcohol for use in
the trades, professions, or industries.
