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 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 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 25600.3 of the Business and Professions
2Code is amended to read:
(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 such person, or a beer and wine wholesaler that also holds an
16off-sale beer and wine retail license and only sells wine.
17
(1) “Nonretail licensee” means any person who own or holds
18any interest, directly or indirectly, in any license, authorization,
19or permit issued pursuant to this division that authorizes the
20manufacture, production, rectification, importation, or wholesaling
21of alcoholic beverages, except for a brewpub restaurant license
22issued pursuant to Section 23396.3.
23(2) “Cider” has the same meaning set forth in Section 4.21(e)(5)
24of the Code of Federal
Regulations.
25(3) “Perry” has the same meaning set forth in Section 4.21(e)(5)
26of the Code of Federal Regulations.
27(4) “Coupon” means any method by which a consumer receives
28an instant discount at the time of a purchase of any item if an
29alcoholic beverage purchase is required in connection with such
30purchase that is funded, produced, sponsored, promoted, or
P3 1furnished, either directly or indirectly, by a nonretail licensee,
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 nonretail licensee.
9(B) A discount that is offered and funded by a distilled spirits
10manufacturer, distilled manufacturer’s agent, brandy manufacturer,
11
brandy importer, distilled spirits rectifier general, holder of an
12out-of-state distilled spirits shipper certificate, distilled spirits
13importer general, distilled spirits importer, rectifier, brandy
14wholesaler, distilled spirits wholesaler, or a holder of a craft
15distiller’s license, regardless of other licenses held, that offers a
16discount on the purchase of a distilled spirits product if beer, malt
17beverages, or wine products are not advertised in connection with
18the coupon.
19(C) A discount that is offered and funded by a beer manufacturer
20on the purchase of beer, malt beverages, cider, or perry at the
21licensed premises of production or other licensed premises owned
22or leased and operated by the beer manufacturer.
23(D) A discount that is offered and funded by a
winegrower on
24the purchase of wine sold directly by the winegrower to a consumer
25at or from the licensed premises of production or other licensed
26premises owned or leased and operated by the winegrower or
27through the Internet where a consumer buys directly from a
28winegrower.
29(E) A discount offered and funded by a beer and wine
30wholesaler, a beer and wine importer, a wine importer general, or
31a wine broker that offers a discount on the purchase of a
32nonalcoholic beverage item if beer, malt beverages, or wine
33products are not advertised in connection with the discount.
34(F) A discount, refund, or rebate funded, produced, sponsored,
35promoted, and furnished exclusively by an off-sale licensee
36authorized to sell alcoholic beverages at retail.
37(d) A nonretail licensee may offer, fund, produce, sponsor,
38promote, or furnish a coupon until December 31, 2016.
P4 1(e) A nonretail licensee may redeem a coupon submitted by an
2off-sale licensee authorized to sell alcoholic beverages at retail
3prior to March 31, 2017.
4
(d) Until and including March 31, 2017, a nonretail licensee
5may reimburse a licensee authorized to sell alcoholic beverages
6at retail for any coupon providing a consumer with an instant
7discount at the time of purchase of wine, if beer, malt beverages,
8cider, or perry are not advertised in connection with such coupon,
9that is otherwise prohibited by this section, that was received,
10accepted, or possessed by such licensee authorized to sell alcoholic
11beverages at retail on or before December 31, 2016.
12
(e) Nothing in this section is intended to preclude or prevent or
13otherwise restrict an on-sale or off-sale retail licensee that is not
14also a nonretail licensee from
offering, funding, producing,
15sponsoring, promoting, furnishing, or redeeming a discount to
16consumers on the purchase of alcoholic beverages that is not
17otherwise prohibited by this section or any other provision of law.
No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.
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