Senate Bill No. 1032

Introduced by Senator Galgiani

February 12, 2016

An act to amend Section 25600.3 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

SB 1032, as introduced, Galgiani. Alcoholic beverages: coupons.

Existing law, the Alcoholic Beverage Control Act, prohibits a beer manufacturer or a beer wholesaler from offering, funding, producing, sponsoring, promoting, furnishing, or redeeming any type of coupon and 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 wholesaler. Existing law makes a violation of any of its provisions, for which another penalty or punishment is not specifically provided, a misdemeanor.

This bill would expand this provision to prohibit a nonretail licensee, as defined, from offering, funding, producing, sponsoring, promoting, furnishing, or redeeming any type of coupon and 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 nonretail licensee. The bill would revise the definition of “coupon” for these purposes. By imposing additional duties on a licensee under the act, and, thereby, expanding the definition of an existing crime, the bill would impose a state-mandated local program.

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 of the Business and Professions
Code is amended to read:

25600.3.  

(a) A begin delete beer manufacturer or a beer wholesaler end delete
begin insert nonretail licensee end insert 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
begin delete beer manufacturer or beer wholesaler. end delete begin insert nonretail licensee. end insert

(c) For purposes of this section:

(1)  begin delete “Beer manufacturer” end delete begin insert “Nonretail licensee” end insert means a
begin insert manufacturer, winegrower, wine blender, manufacturer’s agent,
rectifier, bottler, broker, importer, wholesaler, or end insert holder of begin delete a end delete begin insert an
out-of-state end insert beer manufacturer’s begin delete 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. end delete begin insert certificate, or any beer manufacturer or
winegrower located without the state, or any officer, director,
agent, or affiliate of such person. end insert

begin delete

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

end delete begin delete

(3)

end delete

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

begin insert

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

end insert

(4) “Coupon” means any method by which a consumer receives
an instant discount at the time of a purchase begin insert of any item if an
alcoholic beverage purchase is required in connection with such
purchase end insert that is funded, produced, sponsored, promoted, or
furnished, either directly or indirectly, by a begin delete beer manufacturer or
beer and wine wholesaler, end delete begin insert nonretail licensee, end insert 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 begin delete beer manufacturer. end delete begin insert nonretail licensee. end insert

(B) A begin delete coupon end delete begin insert discount end insert that is offered and funded by a distilled
spirits manufacturer, begin insert distilled manufacturer’s agent, brandy
manufacturer, end insert distilled spirits importer general, distilled spirits
importer, begin delete or end delete begin insert rectifier, brandy wholesaler, end insert distilled spirits begin delete wholesaler end delete
begin insert wholesaler, or a holder of a craft distiller’s license, regardless of
other licenses held, end insert that offers a discount on the purchase of a
distilled spirits product if beer, malt beverages, begin delete cider, or perry end delete begin insert or
wine products end insert are not advertised in connection with the coupon.

begin delete

(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 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.

end delete begin delete

(D)

end delete

begin insert (C) end insert  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.

begin insert

(D) A discount that is offered and funded by a winegrower on
the purchase of wine at the licensed premises of production or
other licensed premises owned and operated by the winegrower.

end insert begin insert

(E) A discount offered and funded by a beer and wine
wholesaler, a beer and wine importer, a wine importer general,
or a wine broker that offers a discount on the purchase of a
nonalcoholic beverage item if beer, malt beverages, or wine
products are not advertised in connection with the discount.

end insert begin insert

(F) A discount, refund, or rebate funded, produced, sponsored,
promoted, and furnished exclusively by a licensee authorized to
sell alcoholic beverages at retail.

end insert begin delete

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

end delete begin delete

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

end delete

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.