California CodesBusiness and Professions Code - BPCDivision 9 — Alcoholic BeveragesChapter 5 — Restrictions on Issuance of LicensesArticle 1 — In GeneralSection 23776

A wholesaler’s license shall not be issued or renewed to any on-sale or off-sale licensee, except that:

(1) A wholesaler’s license restricted to sales to on-sale licensees may be issued or renewed to an on-sale licensee in counties not to exceed 15,000 population, or

(2) If restricted to the wholesaler’s sale of wine, a beer and wine wholesaler’s license may be renewed for the holder of an off-sale beer and wine licensee who on December 31, 1987, held an off-sale beer and wine license and a beer and wine wholesaler’s license, provided that the beer and wine wholesaler’s license restricted to the wholesaler’s sale of wine can only be transferred to the holder of a beer and wine wholesaler’s license restricted to the wholesaler’s sale of wine on the date of transfer.