Amended in Senate April 5, 2016

Senate BillNo. 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 amended, 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 andbegin insert aend insert 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:

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SECTION 1.  

Section 25600.3 of the Business and Professions
2Code
is amended to read:

3

25600.3.  

(a) A nonretail licensee shall not offer, fund, produce,
4sponsor, promote, furnish, or redeem any type of coupon.

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

9(c) For purposes of this section:

10(1)  “Nonretail licensee” means a manufacturer, winegrower,
11wine blender, manufacturer’s agent, rectifier, bottler, broker,
12importer, wholesaler, or holder of an out-of-state beer
13manufacturer’s certificate, or any beer manufacturer or winegrower
14located without the state, or any officer, director, agent, or affiliate
15of suchbegin delete person.end deletebegin insert person, or a beer and wine wholesaler that also
16holds an off-sale beer and wine retail license and only sells wine.end insert

17(2) “Cider” has the same meaning set forth in Section 4.21(e)(5)
18of the Code of Federal Regulations.

19(3) “Perry” has the same meaning set forth in Section 4.21(e)(5)
20of the Code of Federal Regulations.

21(4) “Coupon” means any method by which a consumer receives
22an instant discount at the time of a purchase of any item if an
23alcoholic beverage purchase is required in connection with such
24purchase that is funded, produced, sponsored, promoted, or
25furnished, either directly or indirectly, by a nonretail licensee,
26including, but not limited to, a paper coupon, a digital coupon, an
27instant redeemable coupon (IRC), or an electronic coupon
28commonly referred to as a scan or scanback. “Coupon” does not
29include:

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 nonretail licensee.

4(B) A discount that is offered and funded by a distilled spirits
5manufacturer, distilled manufacturer’s agent, brandy manufacturer,
6begin insert brandy importer, distilled spirits rectifier general, holder of an
7out-of-state distilled spirits shipper certificate,end insert
distilled spirits
8importer general, distilled spirits importer, rectifier, brandy
9wholesaler, distilled spirits wholesaler, or a holder of a craft
10distiller’s license, regardless of other licenses held, that offers a
11discount on the purchase of a distilled spirits product if beer, malt
12beverages, or wine products are not advertised in connection with
13the coupon.

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

18(D) A discount that is offered and funded by a winegrower on
19the purchase of winebegin delete atend deletebegin insert sold directly by the winegrower to a
20consumer at or fromend insert
the licensed premises of production or other
21licensed premises ownedbegin insert or leasedend insert and operated by the
22
begin delete winegrower.end deletebegin insert winegrower or through the Internet where a consumer
23buys directly from a winegrower.end insert

24(E) A discount offered and funded by a beer and wine
25wholesaler, a beer and wine importer, a wine importer general, or
26a wine broker that offers a discount on the purchase of a
27nonalcoholic beverage item if beer, malt beverages, or wine
28products are not advertised in connection with the discount.

29(F) A discount, refund, or rebate funded, produced, sponsored,
30promoted, and furnished exclusively bybegin delete aend deletebegin insert an off-saleend insert licensee
31authorized to sell alcoholic beverages at retail.

begin insert

32
(d) A nonretail licensee may offer, fund, produce, sponsor,
33promote, or furnish a coupon until December 31, 2016.

end insert
begin insert

34
(e) A nonretail licensee may redeem a coupon submitted by an
35off-sale licensee authorized to sell alcoholic beverages at retail
36prior to March 31, 2017.

end insert
37

SEC. 2.  

No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P4    1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.



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