Amended in Senate June 4, 2014

Amended in Assembly April 21, 2014

Amended in Assembly March 26, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1928


Introduced by Assembly Member Bocanegra

February 19, 2014


An act to add Section 25600.3 tobegin insert theend insert Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1928, as amended, Bocanegra. Alcoholic beverages: coupons: beer.

(1) The Alcoholic Beverage Control Act prohibits any licensee from giving any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as specifically authorized. The act provides that a violation of any of its provisions for which another penalty or punishment is not specifically provided is a misdemeanor.

This bill would prohibit a beer manufacturer or a beer and wine wholesaler from offering, funding, producing, sponsoring, promoting, furnishing, or redeeming any type of coupon. The bill would also prohibit a licensee authorized to sell alcoholic beverages at retail from accepting, redeeming, possessing, or utilizing any type of coupon that is funded, produced, sponsored, promoted, or furnished by a beer manufacturer or beer and wine wholesaler. The bill would define beer manufacturer and coupon for these purposes and would except from the definition of coupon certain rebates, coupons, and discounts. By expanding the definition of a crime by imposing additional duties on a licensee under the act, the bill would impose a state-mandated local program.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 25600.3 is added to the Business and
2Professions Code
, to read:

3

25600.3.  

(a) A beer manufacturer or a beer and wine
4wholesaler shall not offer, fund, produce, sponsor, promote, furnish,
5or redeem any type of coupon.

6(b) A licensee authorized to sell alcoholic beverages at retail
7shall not accept, redeem, possess, or utilize any type of coupon
8that is funded, produced, sponsored, promoted, or furnished by a
9beer manufacturer or beer and wine wholesaler.

10(c) For purposes of this section:

11(1) “Beer manufacturer” means a holder of a beer manufacturer’s
12license, a holder of an out-of-state beer manufacturer’s certificate,
13a holder of a beer and wine importer’s general license when selling
14beer, malt beverages, cider, or perry, or a winegrower that is a
15wholly owned subsidiary of a beer manufacturer.

16(2) “Cider” has the same meaning set forth in Section 4.21(e)(5)
17of the Code of Federal Regulations.

18(3) “Coupon” means any method by which a consumer receives
19an instant discount at the time of a purchase that is funded,
20produced, sponsored, promoted, or furnished, either directly or
21indirectly, by a beer manufacturer or beer and wine wholesaler,
22including, but not limited to, a paper coupon, a digital coupon, an
23instant redeemable coupon (IRC), or an electronic coupon
24commonly referred to as a scan or scanback. “Coupon” does not
25include:

P3    1(A) A mail-in rebate by which the consumer purchases an item
2and submits required information in order to receive a rebate or
3discount from the beer manufacturer.

4(B) A coupon that is offered and funded by a distilled spirits
5manufacturer, distilled spirits importer general, distilled spirits
6importer, or distilled spirits wholesaler that offers a discount on
7the purchase of a distilled spirits product if beer, malt beverages,
8cider, or perry are not advertised in connection with the coupon.

9(C) A coupon offered and funded by a winegrower, a wine
10rectifier, a wine blender,begin insert a beer and wine wholesaler,end insert a beer and
11wine importer, a beer and wine importer general, or a wine broker
12that offers a discount on the purchase of a wine product if beer,
13malt beverages, cider, or perry are not advertised in connection
14with the coupon.

15(D) A discount that is offered and funded by a beer manufacturer
16on the purchase of beer, malt beverages, cider, or perry at the
17licensed premises of production or other licensed premises owned
18and operated by the beer manufacturer.

19(4) “Perry” has the same meaning set forth in Section 4.21(e)(5)
20of the Code of Federal Regulations.

21

SEC. 2.  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution because
23the only costs that may be incurred by a local agency or school
24district will be incurred because this act creates a new crime or
25infraction, eliminates a crime or infraction, or changes the penalty
26for a crime or infraction, within the meaning of Section 17556 of
27the Government Code, or changes the definition of a crime within
28the meaning of Section 6 of Article XIII B of the California
29Constitution.



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