Bill Text: CA SB1032 | 2015-2016 | Regular Session | Chaptered

California Senate Bill 1032 (Prior Session Legislation)

Bill Title: Alcoholic beverages: coupons.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-08-25 - Chaptered by Secretary of State. Chapter 194, Statutes of 2016. [SB1032 Detail]

Download: California-2015-SB1032-Chaptered.html

BILL NUMBER: SB 1032	CHAPTERED
	BILL TEXT

	CHAPTER  194
	FILED WITH SECRETARY OF STATE  AUGUST 25, 2016
	APPROVED BY GOVERNOR  AUGUST 25, 2016
	PASSED THE SENATE  MAY 26, 2016
	PASSED THE ASSEMBLY  AUGUST 15, 2016
	AMENDED IN SENATE  MAY 19, 2016
	AMENDED IN SENATE  APRIL 5, 2016

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, 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.



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 nonretail licensee 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
nonretail licensee.
   (c) For purposes of this section:
   (1) "Nonretail licensee" means any person who own or holds any
interest, directly or indirectly, in any license, authorization, or
permit issued pursuant to this division that authorizes the
manufacture, production, rectification, importation, or wholesaling
of alcoholic beverages, except for a brewpub restaurant license
issued pursuant to Section 23396.3.
   (2) "Cider" has the same meaning set forth in Section 4.21(e)(5)
of the Code of Federal Regulations.
   (3) "Perry" has the same meaning set forth in Section 4.21(e)(5)
of the Code of Federal Regulations.
   (4) "Coupon" means any method by which a consumer receives an
instant discount at the time of a purchase of any item if an
alcoholic beverage purchase is required in connection with such
purchase that is funded, produced, sponsored, promoted, or furnished,
either directly or indirectly, by a nonretail licensee, 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 nonretail licensee.
   (B) A discount that is offered and funded by a distilled spirits
manufacturer, distilled manufacturer's agent, brandy manufacturer,
brandy importer, distilled spirits rectifier general, holder of an
out-of-state distilled spirits shipper certificate, distilled spirits
importer general, distilled spirits importer, rectifier, brandy
wholesaler, distilled spirits wholesaler, or a holder of a craft
distiller's license, regardless of other licenses held, that offers a
discount on the purchase of a distilled spirits product if beer,
malt beverages, or wine products are not advertised in connection
with the coupon.
   (C) 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 or
leased and operated by the beer manufacturer.
   (D) A discount that is offered and funded by a winegrower on the
purchase of wine sold directly by the winegrower to a consumer at or
from the licensed premises of production or other licensed premises
owned or leased and operated by the winegrower or through the
Internet where a consumer buys directly from a winegrower.
   (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.
   (d) Until and including March 31, 2017, a nonretail licensee may
reimburse a licensee authorized to sell alcoholic beverages at retail
for any coupon providing a consumer with an instant discount at the
time of purchase of wine, if beer, malt beverages, cider, or perry
are not advertised in connection with such coupon, that is otherwise
prohibited by this section, that was received, accepted, or possessed
by such licensee authorized to sell alcoholic beverages at retail on
or before December 31, 2016.
   (e) Nothing in this section is intended to preclude or prevent or
otherwise restrict an on-sale or off-sale retail licensee that is not
also a nonretail licensee from offering, funding, producing,
sponsoring, promoting, furnishing, or redeeming a discount to
consumers on the purchase of alcoholic beverages that is not
otherwise prohibited by this section or any other provision of law.
  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.