BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  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