BILL ANALYSIS Ó AB 1928 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1928 (Bocanegra) - As Amended: April 21, 2014 Policy Committee: Governmental Organization Vote: 19-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill prohibits beer manufacturers (including out-of-state beer manufacturers) or beer and wine wholesalers from offering, funding, producing, sponsoring, promoting, furnishing, or redeeming any type of coupon when selling beer, malt beverages, cider, or perry. The bill also prohibits 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. FISCAL EFFECT Minor and absorbable enforcement costs to the Department of Alcoholic Beverage Control (ABC). COMMENTS Purpose. According to the author and the bill's supporters, which include Anheuser-Busch, MillerCoors, and the California Chamber of Commerce, beer manufacturer coupons easily lend themselves to fraudulent practices such as counterfeiting. The author and supporters assert that brewers and retailers are losing revenues and being exposed to unnecessary liability resulting from fake coupons, many of which are hard to distinguish from legitimate coupons produced by the manufacturers. ABC indicates this bill will likely reduce the number of complaints it receives regarding the use of coupons in claims of unfair business practices. AB 1928 Page 2 In addition, the author argues the bill will allow craft breweries to compete more effectively against the major breweries since most craft breweries are much smaller and cannot afford to offer their own beer coupons. Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081