BILL NUMBER: AB 1928	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 4, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  MARCH 26, 2014

INTRODUCED BY   Assembly Member Bocanegra

                        FEBRUARY 19, 2014

   An act to add Section 25600.3 to  the  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:

  SECTION 1.  Section 25600.3 is added to the Business and
Professions Code, to read:
   25600.3.  (a) A beer manufacturer or a beer and wine wholesaler
shall not offer, fund, produce, sponsor, promote, furnish, or redeem
any type of coupon.
   (b) A licensee authorized to sell alcoholic beverages at retail
shall not accept, redeem, possess, or utilize any type of coupon that
is funded, produced, sponsored, promoted, or furnished by a beer
manufacturer or beer and wine wholesaler.
   (c) For purposes of this section:
   (1) "Beer manufacturer" means a holder of a beer manufacturer's
license, a holder of an out-of-state beer manufacturer's certificate,
a holder of a beer and wine importer's general license when selling
beer, malt beverages, cider, or perry, or a winegrower that is a
wholly owned subsidiary of a beer manufacturer.
   (2) "Cider" has the same meaning set forth in Section 4.21(e)(5)
of the Code of Federal Regulations.
   (3) "Coupon" means any method by which a consumer receives an
instant discount at the time of a purchase that is funded, produced,
sponsored, promoted, or furnished, either directly or indirectly, by
a beer manufacturer or beer and wine wholesaler, including, but not
limited to, a paper coupon, a digital coupon, an instant redeemable
coupon (IRC), or an electronic coupon commonly referred to as a scan
or scanback. "Coupon" does not include:
   (A) A mail-in rebate by which the consumer purchases an item and
submits required information in order to receive a rebate or discount
from the beer manufacturer.
   (B) A coupon that is offered and funded by a distilled spirits
manufacturer, distilled spirits importer general, distilled spirits
importer, or distilled spirits wholesaler that offers a discount on
the purchase of a distilled spirits product if beer, malt beverages,
cider, or perry are not advertised in connection with the coupon.
   (C) A coupon offered and funded by a winegrower, a wine rectifier,
a wine blender,  a beer and wine wholesaler,  a beer and
wine importer, a beer and wine importer general, or a wine broker
that offers a discount on the purchase of a wine product if beer,
malt beverages, cider, or perry are not advertised in connection with
the coupon.
   (D) A discount that is offered and funded by a beer manufacturer
on the purchase of beer, malt beverages, cider, or perry at the
licensed premises of production or other licensed premises owned and
operated by the beer manufacturer.
   (4) "Perry" has the same meaning set forth in Section 4.21(e)(5)
of the Code of Federal Regulations.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.