AB 1722: Alcoholic beverage licensees: restrictions: coupons.

The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law prohibits the issuance of a license, other than an on-sale beer license, for premises situated more than one mile outside the limits of an incorporated city and within 2 miles of any camp or establishment of men or women, numbering 25 or more, engaged upon or in connection with the construction, repair, or operation of any work, improvement, or utility of a public or quasi-public character.

This bill would repeal that prohibition, thus authorizing the department to issue any type of license for premises situated in the above-described location.

The Alcoholic Beverage Control Act prohibits 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. Existing law defines coupon, for the above purposes, as 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, as provided. Existing law provides that a coupon does not include various rebates and discounts, including a discount that is offered and funded by specified licensees, 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. The Alcoholic Beverage Control Act makes a violation of any of its provisions, for which another penalty or punishment is not specifically provided, a misdemeanor.

This bill would revise the definition of coupon for the above purposes to remove the requirement that the discount be instantly provided and that an alcoholic beverage be purchased, and would include a mail-in rebate or mail-in discount as a coupon. The bill would revise the coupon exception for mail-in rebates, include electronic or digital rebates in this exception, revise the definition of nonretail licensee for purposes of this exception, and would make various revisions to some of the discount exceptions to the definition of a coupon. 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.