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AB-2573 Beer: premiums, gifts, and free goods.(2017-2018)

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Date Published: 08/24/2018 04:00 AM
AB2573:v93#DOCUMENT

Enrolled  August 23, 2018
Passed  IN  Senate  August 21, 2018
Passed  IN  Assembly  May 31, 2018
Amended  IN  Assembly  May 29, 2018
Amended  IN  Assembly  May 02, 2018
Amended  IN  Assembly  April 25, 2018
Amended  IN  Assembly  April 12, 2018
Amended  IN  Assembly  April 02, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2573


Introduced by Assembly Member Low

February 15, 2018


An act to add Section 25600.05 to the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


AB 2573, Low. Beer: premiums, gifts, and free goods.
The Alcoholic Beverage Control Act generally prohibits any licensee from giving any premiums, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as permitted by rule adopted by the Department of Alcoholic Beverage Control. The act prohibits the department from adopting a rule that permits a licensee to give any premium, gift, or free good of greater than inconsequential value, in connection with the sale or distribution of beer, except as specified. The act provides, with respect to beer, that premiums, gifts, or free goods, including specified advertising specialties, are deemed to have greater than inconsequential value if they cost more than $0.25 per unit, or cost more than $15 in the aggregate for all those items given by a single supplier to a single retail premises per calendar year.
This bill would authorize a beer manufacturer, without direct or indirect charge, to give up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year for use at the licensed location. The bill would permit an on-sale retail licensee to accept, without direct or indirect charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year for use at the licensed location. The bill would prohibit the on-sale retail licensee from selling the glassware, giving it away, or returning it to a manufacturer for cash, credit, or replacement, would prohibit the on-sale retail licensee from conditioning the purchase of a beer manufacturer’s product or products on the giving of retail advertising glassware by that beer manufacturer, and would prohibit a beer wholesaler from contributing to specified costs associated with the glassware or serving as the agent of the beer manufacturer to deliver, stock, or store glassware for an on-sale retailer. The bill would prescribe definitions in this regard.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25600.05 is added to the Business and Professions Code, to read:

25600.05.
 (a) For purposes of this section:
(1) “Beer manufacturer” has the same meaning as that term is defined in subparagraph (B) of paragraph (2) of subdivision (b) of Section 25600.
(2) “Case” means a box containing up to 24 pieces of glassware.
(3) “Glassware” means a single-service glass container or nonglass container capable of holding no more than 23 ounces of liquid volume.
(4) “Retail advertising glassware” means glassware that bears conspicuous advertising required of a sign.
(b) Notwithstanding Section 25600 or any other law to the contrary:
(1) A beer manufacturer, without direct or indirect charge, may give up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year for use at the licensed location. The giving of retail advertising glassware shall not be conditioned upon the purchase of the beer manufacturer’s product.
(2) An on-sale retail licensee may accept, without direct or indirect charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year for use at the licensed location. The on-sale retail licensee shall not sell the retail advertising glassware, give it away, or return it to a manufacturer for cash, credit, or replacement. The on-sale retail licensee shall not condition the purchase of a beer manufacturer’s product or products on the giving of retail advertising glassware by that beer manufacturer.
(c) Except as provided in paragraph (1) of subdivision (b) of Section 25600, a beer wholesaler shall not directly or indirectly underwrite, share in, or contribute to the costs of glassware or any costs of transportation or shipping or serve as the agent of the beer manufacturer to deliver, stock, or store glassware for an on-sale retailer.
(d) A licensee authorized to give glassware pursuant to this section shall not be precluded from doing so on the basis of having an interest in any other type of alcoholic beverage license within or outside of the state.
(e) A beer manufacturer and an on-sale retail licensee shall keep and maintain records for a three-year period of all glassware given or received pursuant to this section.