Amended in Senate June 23, 2014

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 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 beerbegin delete and wineend delete 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 beerbegin delete and wineend delete 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:

P2    1

SECTION 1.  

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

3

25600.3.  

(a) A beer manufacturer or a beerbegin delete and wineend delete
4 wholesaler 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 beerbegin delete and wineend delete 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.

begin insert

16(2) “Beer wholesaler” means a holder of a beer and wine
17wholesaler license when selling beer, malt beverages, cider, or
18perry.

end insert
begin delete

16 19(2)

end delete

20begin insert(3)end insert “Cider” has the same meaning set forth in Section 4.21(e)(5)
21of the Code of Federal Regulations.

begin delete

18 22(3)

end delete

23begin insert(4)end insert “Coupon” means any method by which a consumer receives
24an instant discount at the time of a purchase that is funded,
25produced, sponsored, promoted, or furnished, either directly or
P3    1indirectly, by a beer manufacturer or beer and wine wholesaler,
2including, but not limited to, a paper coupon, a digital coupon, an
3instant redeemable coupon (IRC), or an electronic coupon
4commonly referred to as a scan or scanback. “Coupon” does not
5include:

6(A) A mail-in rebate by which the consumer purchases an item
7and submits required information in order to receive a rebate or
8discount from the beer manufacturer.

9(B) A coupon that is offered and funded by a distilled spirits
10manufacturer, distilled spirits importer general, distilled spirits
11importer, or distilled spirits wholesaler that offers a discount on
12the purchase of a distilled spirits product if beer, malt beverages,
13cider, or perry are not advertised in connection with the coupon.

14(C) A coupon offered and funded by a winegrower, a wine
15rectifier, a wine blender, a beer and wine wholesaler, a beer and
16wine importer, abegin delete beer andend delete wine importer general, or a wine broker
17that offers a discount on the purchase of a wine product if beer,
18malt beverages, cider, or perry are not advertised in connection
19with the coupon.

20(D) A discount that is offered and funded by a beer manufacturer
21on the purchase of beer, malt beverages, cider, or perry at the
22licensed premises of production or other licensed premises owned
23and operated by the beer manufacturer.

begin delete

19 24(4)

end delete

25begin insert(5)end insert “Perry” has the same meaning set forth in Section 4.21(e)(5)
26of the Code of Federal Regulations.

begin insert

27(6) “Wine wholesaler” means a holder of a beer and wine
28wholesaler license when selling wine.

end insert
29

SEC. 2.  

No reimbursement is required by this act pursuant to
30Section 6 of Article XIII B of the California Constitution because
31the only costs that may be incurred by a local agency or school
32district will be incurred because this act creates a new crime or
33infraction, eliminates a crime or infraction, or changes the penalty
34for a crime or infraction, within the meaning of Section 17556 of
35the Government Code, or changes the definition of a crime within
36the meaning of Section 6 of Article XIII B of the California
37Constitution.



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