California CodesBusiness and Professions Code - BPCDivision 9 — Alcoholic BeveragesChapter 5 — Restrictions on Issuance of LicensesArticle 1 — In GeneralSection 23779
No wholesale license shall be issued to any person who does not in good faith actually carry on or intend to carry on a bona fide wholesale business by sale to retail licensees of the alcoholic beverage designated in the wholesale license, and the department may revoke any wholesale license when the licensee fails for a period of 45 days actively and in good faith to engage in the wholesale business and shall revoke any distilled spirits wholesaler’s license held by any person who fails to comply with applicable provisions of Sections 23378, 23379, 23776, 23777, and 23778. Sale by a wholesale licensee to himself as a retail licensee is not the transaction of a bona fide wholesale business.
Notes
Prohibits issuance of a wholesale license unless the applicant actually conducts or genuinely intends a bona fide wholesale business selling the licensed beverage to retail licensees. Allows revocation after 45 days without active good-faith wholesale business and requires distilled-spirits wholesaler revocation for specified noncompliance; a wholesaler sale to itself as retailer does not count as bona fide wholesale business.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 23779 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-9/chapter-5/article-1/section-23779