AB 1940: Alcoholic beverages: beer returns.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-09-12
Current Status:
Passed
(2024-09-12: Chaptered by Secretary of State - Chapter 218, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets beer wholesalers or manufacturers accept returns of seasonal beer from retailers and exchange the returned beer for other beer of similar quality, not just the identical brand, and allows using another maker’s brand if the original maker has gone out of business. The replacement beer must have a value no greater than the original sale price paid by the retailer.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, allows a wholesaler or manufacturer of beer to accept the return of a beer from a retail licensee under specified conditions. In this regard, existing law allows, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of a brand produced or sold by the same manufacturer with a value no greater than the original sales price to the retail licensee of the returned beer.
This bill would instead allow, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, allows a wholesaler or manufacturer of beer to accept the return of a beer from a retail licensee under specified conditions. In this regard, existing law allows, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of a brand produced or sold by the same manufacturer with a value no greater than the original sales price to the retail licensee of the returned beer.
This bill would instead allow, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, allows a wholesaler or manufacturer of beer to accept the return of a beer from a retail licensee under specified conditions. In this regard, existing law allows, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of a brand produced or sold by the same manufacturer with a value no greater than the original sales price to the retail licensee of the returned beer.
This bill would instead allow, with department approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
(a)Subject to the exceptions specified in subdivision (b), a retail licensee may return beer to the wholesaler or manufacturer from whom the retail licensee purchased the beer, or any successor thereto, and the wholesaler, manufacturer, or successor thereto may accept that return if the beer is returned in exchange for the identical quantity and brand of beer. A wholesaler or manufacturer, or any successor thereto, shall not accept the return of any beer from a retail licensee except when the beer delivered was not the brand or size container ordered by the retail licensee or the amount delivered was other than the amount ordered, in which case the order may be corrected by the wholesaler or manufacturer who sold the beer, or any successor thereto. If a package had been broken or otherwise damaged prior to or at the time of actual delivery, a credit memorandum may be issued for the returned package by the wholesaler or manufacturer who sold the beer, or any successor thereto, in lieu of exchange for an identical package when the return and corrections are completed within 15 days from the date the beer was delivered to the retail licensee.
(b)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler, manufacturer, or successor thereto, as follows:
(1)(A)From a seasonal or temporary licensee if at the termination of the period of the license the seasonal or temporary licensee has beer remaining unsold, or from an annual licensee operating on a temporary basis if at the termination of the temporary period the annual licensee has beer remaining unsold.
(B)For purposes of subparagraph (A), an annual licensee shall be considered to be operating on a temporary basis if the licensee operates at seasonal resorts, including summer and winter resorts, or at sporting or entertainment facilities, including racetracks, arenas, concert halls, and convention centers. Temporary status shall be deemed terminated when operations cease for 15 days or more. No wholesaler or manufacturer, or successor thereto, shall accept the return of beer from an annual licensee considered to be operating on a temporary basis unless the licensee notifies that wholesaler or manufacturer, or successor thereto, within 15 days of the date the licensees operations ceased.
(2)(A)Subject to subparagraph (B), a wholesaler or manufacturer, or any successor thereto, may, with department approval, accept the return of a brand of beer discontinued in a California market area or a seasonal brand of beer from a retail licensee, provided that the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer. For purposes of this subparagraph, seasonal brand of beer means a brand of beer, as defined in Section 23006, that is brewed by a manufacturer to recognize a season or a holiday and is so identified by appropriate product packaging and labeling.
(B)A discontinued brand of beer may not be reintroduced for a period of 12 months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place. A seasonal brand of beer may not be reintroduced for a period of six months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place.
(c)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler or manufacturer, or any successor thereto, by the holder of a retail license following the revocation of, suspension of, voluntary surrender of, or failure to renew the retail license.
(d)A wholesaler or manufacturer, or any successor thereto, may credit the account of the retailer identified in subdivision (c) in an amount not to exceed the original sales price to the retailer of the returned beer, provided that the beer has been paid for in full.
(e)(1)Notwithstanding the 15-day time limit for the return of beer described in subdivision (a), beer that is recalled or that is considered by a manufacturer, importer, or governmental entity to present health, safety, or product quality issues if distributed, offered for sale, or sold in the state may be accepted for return at anytime from a retailer and be picked up by the seller of beer. The seller of beer may exchange the returned beer for identical product, if safe inventory or quality-controlled product inventory is available, issue a deferred exchange memorandum showing the beer was picked up and is to be replaced when inventory is available, or issue a credit memorandum to the retailer for the returned beer. The seller of beer may exchange with the manufacturer or importer the returned beer and the seller of beers inventory that was recalled or considered to present health, safety, or product quality issues. The returned beer may be exchanged for identical product, if safe inventory or quality-controlled product inventory is available, or the seller of beer may elect to receive either a refund from or be issued a credit memorandum by the manufacturer or importer for the returned beer and seller of beers inventory that was recalled or considered to present health, safety, or product quality issues.
(2)Returns for manufacturer or importer product quality issues pursuant to this subdivision are subject to department approval, and shall not include the return of beer due to the aging of beer.
(f)Notwithstanding subdivision (a), a licensee may accept the return of unsold and unopened beer from an organization that obtained a temporary license pursuant to Section 24045 or 24045.1. The licensee may credit the account of the organization in an amount not to exceed the original sales price of the returned beer, provided that the beer has been paid for in full.
(g)(1)Notwithstanding subdivision (a), an on-sale retail licensee that purchases beer for sale at an event for which a catering authorization is issued by the department pursuant to Section 23399 may return the unused and unopened beer to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization, provided the beer was purchased for use or sale only at that event and the on-sale retail licensee does not also provide any beer for use or sale at the event from its permanent licensed premises. The on-sale retail licensee holding the catering authorization shall record and maintain a record of the inventory of all unused and unopened beer to be returned at the conclusion of the catering event. The original selling licensee shall prepare an invoice to reflect the returned beer that shall reference the original sales invoice and shall provide the on-sale retail licensee holding the catering authorization with a copy of the invoice.
(2)Any beer returned pursuant to this subdivision must be returned to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization. The original selling licensee may credit the account of the on-sale retail licensee in an amount not to exceed the original sales price of the returned beer, provided the beer has been paid for in full.
(a)Subject to the exceptions specified in subdivision (b), a retail licensee may return beer to the wholesaler or manufacturer from whom the retail licensee purchased the beer, or any successor thereto, and the wholesaler, manufacturer, or successor thereto may accept that return if the beer is returned in exchange for the identical quantity and brand of beer. A wholesaler or manufacturer, or any successor thereto, shall not accept the return of any beer from a retail licensee except when the beer delivered was not the brand or size container ordered by the retail licensee or the amount delivered was other than the amount ordered, in which case the order may be corrected by the wholesaler or manufacturer who sold the beer, or any successor thereto. If a package had been broken or otherwise damaged prior to or at the time of actual delivery, a credit memorandum may be issued for the returned package by the wholesaler or manufacturer who sold the beer, or any successor thereto, in lieu of exchange for an identical package when the return and corrections are completed within 15 days from the date the beer was delivered to the retail licensee.
(b)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler, manufacturer, or successor thereto, as follows:
(1)(A)From a seasonal or temporary licensee if at the termination of the period of the license the seasonal or temporary licensee has beer remaining unsold, or from an annual licensee operating on a temporary basis if at the termination of the temporary period the annual licensee has beer remaining unsold.
(B)For purposes of subparagraph (A), an annual licensee shall be considered to be operating on a temporary basis if the licensee operates at seasonal resorts, including summer and winter resorts, or at sporting or entertainment facilities, including racetracks, arenas, concert halls, and convention centers. Temporary status shall be deemed terminated when operations cease for 15 days or more. No wholesaler or manufacturer, or successor thereto, shall accept the return of beer from an annual licensee considered to be operating on a temporary basis unless the licensee notifies that wholesaler or manufacturer, or successor thereto, within 15 days of the date the licensees operations ceased.
(2)(A)Subject to subparagraph (B), a wholesaler or manufacturer, or any successor thereto, may, with department approval, accept the return of a brand of beer discontinued in a California market area or a seasonal brand of beer from a retail licensee, provided that the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer. For purposes of this subparagraph, seasonal brand of beer means a brand of beer, as defined in Section 23006, that is brewed by a manufacturer to recognize a season or a holiday and is so identified by appropriate product packaging and labeling.
(B)A discontinued brand of beer may not be reintroduced for a period of 12 months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place. A seasonal brand of beer may not be reintroduced for a period of six months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place.
(c)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler or manufacturer, or any successor thereto, by the holder of a retail license following the revocation of, suspension of, voluntary surrender of, or failure to renew the retail license.
(d)A wholesaler or manufacturer, or any successor thereto, may credit the account of the retailer identified in subdivision (c) in an amount not to exceed the original sales price to the retailer of the returned beer, provided that the beer has been paid for in full.
(e)(1)Notwithstanding the 15-day time limit for the return of beer described in subdivision (a), beer that is recalled or that is considered by a manufacturer, importer, or governmental entity to present health, safety, or product quality issues if distributed, offered for sale, or sold in the state may be accepted for return at anytime from a retailer and be picked up by the seller of beer. The seller of beer may exchange the returned beer for identical product, if safe inventory or quality-controlled product inventory is available, issue a deferred exchange memorandum showing the beer was picked up and is to be replaced when inventory is available, or issue a credit memorandum to the retailer for the returned beer. The seller of beer may exchange with the manufacturer or importer the returned beer and the seller of beers inventory that was recalled or considered to present health, safety, or product quality issues. The returned beer may be exchanged for identical product, if safe inventory or quality-controlled product inventory is available, or the seller of beer may elect to receive either a refund from or be issued a credit memorandum by the manufacturer or importer for the returned beer and seller of beers inventory that was recalled or considered to present health, safety, or product quality issues.
(2)Returns for manufacturer or importer product quality issues pursuant to this subdivision are subject to department approval, and shall not include the return of beer due to the aging of beer.
(f)Notwithstanding subdivision (a), a licensee may accept the return of unsold and unopened beer from an organization that obtained a temporary license pursuant to Section 24045 or 24045.1. The licensee may credit the account of the organization in an amount not to exceed the original sales price of the returned beer, provided that the beer has been paid for in full.
(g)(1)Notwithstanding subdivision (a), an on-sale retail licensee that purchases beer for sale at an event for which a catering authorization is issued by the department pursuant to Section 23399 may return the unused and unopened beer to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization, provided the beer was purchased for use or sale only at that event and the on-sale retail licensee does not also provide any beer for use or sale at the event from its permanent licensed premises. The on-sale retail licensee holding the catering authorization shall record and maintain a record of the inventory of all unused and unopened beer to be returned at the conclusion of the catering event. The original selling licensee shall prepare an invoice to reflect the returned beer that shall reference the original sales invoice and shall provide the on-sale retail licensee holding the catering authorization with a copy of the invoice.
(2)Any beer returned pursuant to this subdivision must be returned to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization. The original selling licensee may credit the account of the on-sale retail licensee in an amount not to exceed the original sales price of the returned beer, provided the beer has been paid for in full.
(a)Subject to the exceptions specified in subdivision (b), a retail licensee may return beer to the wholesaler or manufacturer from whom the retail licensee purchased the beer, or any successor thereto, and the wholesaler, manufacturer, or successor thereto may accept that return if the beer is returned in exchange for the identical quantity and brand of beer. A wholesaler or manufacturer, or any successor thereto, shall not accept the return of any beer from a retail licensee except when the beer delivered was not the brand or size container ordered by the retail licensee or the amount delivered was other than the amount ordered, in which case the order may be corrected by the wholesaler or manufacturer who sold the beer, or any successor thereto. If a package had been broken or otherwise damaged prior to or at the time of actual delivery, a credit memorandum may be issued for the returned package by the wholesaler or manufacturer who sold the beer, or any successor thereto, in lieu of exchange for an identical package when the return and corrections are completed within 15 days from the date the beer was delivered to the retail licensee.
(b)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler, manufacturer, or successor thereto, as follows:
(1)(A)From a seasonal or temporary licensee if at the termination of the period of the license the seasonal or temporary licensee has beer remaining unsold, or from an annual licensee operating on a temporary basis if at the termination of the temporary period the annual licensee has beer remaining unsold.
(B)For purposes of subparagraph (A), an annual licensee shall be considered to be operating on a temporary basis if the licensee operates at seasonal resorts, including summer and winter resorts, or at sporting or entertainment facilities, including racetracks, arenas, concert halls, and convention centers. Temporary status shall be deemed terminated when operations cease for 15 days or more. No wholesaler or manufacturer, or successor thereto, shall accept the return of beer from an annual licensee considered to be operating on a temporary basis unless the licensee notifies that wholesaler or manufacturer, or successor thereto, within 15 days of the date the licensees operations ceased.
(2)(A)Subject to subparagraph (B), a wholesaler or manufacturer, or any successor thereto, may, with department approval, accept the return of a brand of beer discontinued in a California market area or a seasonal brand of beer from a retail licensee, provided that the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer. For purposes of this subparagraph, seasonal brand of beer means a brand of beer, as defined in Section 23006, that is brewed by a manufacturer to recognize a season or a holiday and is so identified by appropriate product packaging and labeling.
(B)A discontinued brand of beer may not be reintroduced for a period of 12 months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place. A seasonal brand of beer may not be reintroduced for a period of six months in the same California market area in which a return and exchange of that beer as described in subparagraph (A) has taken place.
(c)Notwithstanding subdivision (a), a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler or manufacturer, or any successor thereto, by the holder of a retail license following the revocation of, suspension of, voluntary surrender of, or failure to renew the retail license.
(d)A wholesaler or manufacturer, or any successor thereto, may credit the account of the retailer identified in subdivision (c) in an amount not to exceed the original sales price to the retailer of the returned beer, provided that the beer has been paid for in full.
(e)(1)Notwithstanding the 15-day time limit for the return of beer described in subdivision (a), beer that is recalled or that is considered by a manufacturer, importer, or governmental entity to present health, safety, or product quality issues if distributed, offered for sale, or sold in the state may be accepted for return at anytime from a retailer and be picked up by the seller of beer. The seller of beer may exchange the returned beer for identical product, if safe inventory or quality-controlled product inventory is available, issue a deferred exchange memorandum showing the beer was picked up and is to be replaced when inventory is available, or issue a credit memorandum to the retailer for the returned beer. The seller of beer may exchange with the manufacturer or importer the returned beer and the seller of beers inventory that was recalled or considered to present health, safety, or product quality issues. The returned beer may be exchanged for identical product, if safe inventory or quality-controlled product inventory is available, or the seller of beer may elect to receive either a refund from or be issued a credit memorandum by the manufacturer or importer for the returned beer and seller of beers inventory that was recalled or considered to present health, safety, or product quality issues.
(2)Returns for manufacturer or importer product quality issues pursuant to this subdivision are subject to department approval, and shall not include the return of beer due to the aging of beer.
(f)Notwithstanding subdivision (a), a licensee may accept the return of unsold and unopened beer from an organization that obtained a temporary license pursuant to Section 24045 or 24045.1. The licensee may credit the account of the organization in an amount not to exceed the original sales price of the returned beer, provided that the beer has been paid for in full.
(g)(1)Notwithstanding subdivision (a), an on-sale retail licensee that purchases beer for sale at an event for which a catering authorization is issued by the department pursuant to Section 23399 may return the unused and unopened beer to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization, provided the beer was purchased for use or sale only at that event and the on-sale retail licensee does not also provide any beer for use or sale at the event from its permanent licensed premises. The on-sale retail licensee holding the catering authorization shall record and maintain a record of the inventory of all unused and unopened beer to be returned at the conclusion of the catering event. The original selling licensee shall prepare an invoice to reflect the returned beer that shall reference the original sales invoice and shall provide the on-sale retail licensee holding the catering authorization with a copy of the invoice.
(2)Any beer returned pursuant to this subdivision must be returned to the original selling licensee at the conclusion of the catered event or upon expiration of the catering authorization. The original selling licensee may credit the account of the on-sale retail licensee in an amount not to exceed the original sales price of the returned beer, provided the beer has been paid for in full.
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Date
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Status
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|---|---|
| Sep 12, 2024 | Chaptered by Secretary of State - Chapter 218, Statutes of 2024. |
| Sep 12, 2024 | Approved by the Governor. |
| Sep 3, 2024 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 26, 2024 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 26, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Jun 13, 2024 | Ordered to third reading. |
| Jun 13, 2024 | From Consent Calendar. |
| Jun 11, 2024 | Read second time. Ordered to Consent Calendar. |
| Jun 10, 2024 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| May 28, 2024 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (May 28). Re-referred to Com. on APPR. |
| May 8, 2024 | Referred to Com. on G.O. |
| Apr 25, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 25, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 4996.) |
| Apr 18, 2024 | Read second time. Ordered to Consent Calendar. |
| Apr 17, 2024 | From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (April 17). |
| Apr 4, 2024 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 21. Noes 0.) (April 3). Re-referred to Com. on APPR. |
| Feb 12, 2024 | Referred to Com. on G.O. |
| Jan 30, 2024 | From printer. May be heard in committee February 29. |
| Jan 29, 2024 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 26, 2024 | Assembly 3rd Reading AB1940 Villapudua By Dodd | Senate Floor |
Passed |
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| May 28, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
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| Apr 25, 2024 | AB 1940 Villapudua Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 17, 2024 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 3, 2024 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Beer and Beverage Distributors | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1940 |
THIRD READING
Bill No: AB 1940
Author: Villapudua (D)
Introduced: 1/29/24
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 5/28/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Glazer, Jones, Nguyen, Padilla, Portantino, Roth, Seyarto, Smallwood-Cuevas
NO VOTE RECORDED: Ashby, Bradford, Ochoa Bogh, Rubio
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 75-0, 4/25/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverages: beer returns
SOURCE: California Beer and Beverage Distributors
DIGEST: This bill allows a wholesaler or manufacturer to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality, if the original manufacturer has ceased doing business.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Creates various exceptions to tied-house restrictions, including permitting a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. Existing law limits this exception by not authorizing removal of brands, except for beer.
- Creates a tied-house restriction exception for rearranging brands, including on floor displays, among other actions, as specified, but limits this exception by not authorizing stocking permanent shelves and fixtures for regular inventory replacement, except beer.
- Creates the beer and wine wholesaler license, which allows the licensee to acquire beer and wine from suppliers and sell to other wholesalers and to retailers.
- Allows, with the Department of ABC’s approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer that is brewed by a manufacturer to commemorate a specific holiday.
- Defines “seasonal brand of beer” to mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday and is so identified by appropriate product packaging and labeling.
This bill allows, with approval of the Department of ABC, a wholesaler or manufacturer, or successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer similar to quality or a brand produced or sold by the same manufacturer, or another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
Background
Author Statement. According to the author’s office, “current law does not have a remedy for the exchange of a discontinued or seasonal brand of beer where the original beer manufacturer has ceased doing business. AB 1940 will allow the exchange of a discontinued or seasonal brand beer for a beer of similar quality of the brand produced or sold by the same beer manufacturer or of another manufacturer if the original beer manufacturer has ceased doing business.”
Beer Returns. Existing law generally prohibits manufacturers, winegrowers, and distributors from providing anything of value, including services to retail licensees. However, current law does allow a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. In addition, existing law creates a tied-house exception for rearranging brands, including on floor displays, among other actions with the licensee’s permission.
Additionally, existing law permits a wholesaler or manufacturer to seek the Department of ABC’s approval to accept the returns of a discontinued or seasonal brand of beer from a retail licensee, if the beer is exchanged for a quantity and brand of beer of no greater value produced or sold by the same manufacturer. This bill addresses how a discontinued or seasonal brand of beer can be returned if the original beer manufacturer has ceased doing business.
Related/Prior Legislation
SB 844 (Jones, Chapter 295, Statutes of 2023) expanded, among other things, the definition of “seasonal brand of beer,” to also mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday, as specified.
AB 1149 (Villapudua, Chapter 271, Statutes of 2023) allowed specified manufacturers and wholesalers to merchandise single-serve containers of wine and distilled spirits at off-sale retail licensed premises.
SB 1393 (Mcleod, Chapter 163, Statutes of 2012) allowed licensees to accept the return of unsold and unopened beer from organizations that obtain a particular license, as specified, and allowed the return of beer that is recalled or that is considered to present a health and safety issue by the manufacturer, importer, or governmental entity if distributed, offered for sale, or sold in the state.
AB 1445 (Plescia, 2008) would have expanded the permitted services relating to the rotating, restocking, and rearranging of alcoholic beverages within licensed premises of the off-sale retail licensee. (Never heard in the Assembly Governmental Organization Committee)
AB 1407 (Wesson, Chapter 699, Statutes of 1999) modified existing provisions in the ABC Act relating to wine auction sales, event permits, and the manner by which a manufacturer or distributor may stock or rotate their products at off-sale establishments.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/10/24)
California Beer and Beverage Distributors (source)
OPPOSITION: (Verified 6/10/24)
None received
ARGUMENTS IN SUPPORT: According to the California Beer and Beverage Distributors, “AB 1940 ensures that beer enthusiasts have the freshest and latest selection of beers available at their local grocery stores, bars, restaurants and convenience stores as beer distributors work with their brewer partners to bring new innovative beers to market for consumers to enjoy.”
ASSEMBLY FLOOR: 75-0, 4/25/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Boerner, Megan Dahle, Gallagher, Hart, Mathis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
6/14/24 10:40:16
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SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1940 |
CONSENT
Bill No: AB 1940
Author: Villapudua (D)
Introduced: 1/29/24
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 5/28/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Glazer, Jones, Nguyen, Padilla, Portantino, Roth, Seyarto, Smallwood-Cuevas
NO VOTE RECORDED: Ashby, Bradford, Ochoa Bogh, Rubio
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 75-0, 4/25/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverages: beer returns
SOURCE: California Beer and Beverage Distributors
DIGEST: This bill allows a wholesaler or manufacturer to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality, if the original manufacturer has ceased doing business.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Creates various exceptions to tied-house restrictions, including permitting a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. Existing law limits this exception by not authorizing removal of brands, except for beer.
- Creates a tied-house restriction exception for rearranging brands, including on floor displays, among other actions, as specified, but limits this exception by not authorizing stocking permanent shelves and fixtures for regular inventory replacement, except beer.
- Creates the beer and wine wholesaler license, which allows the licensee to acquire beer and wine from suppliers and sell to other wholesalers and to retailers.
- Allows, with the Department of ABC’s approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer that is brewed by a manufacturer to commemorate a specific holiday.
- Defines “seasonal brand of beer” to mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday and is so identified by appropriate product packaging and labeling.
This bill allows, with approval of the Department of ABC, a wholesaler or manufacturer, or successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer similar to quality or a brand produced or sold by the same manufacturer, or another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
Background
Author Statement. According to the author’s office, “current law does not have a remedy for the exchange of a discontinued or seasonal brand of beer where the original beer manufacturer has ceased doing business. AB 1940 will allow the exchange of a discontinued or seasonal brand beer for a beer of similar quality of the brand produced or sold by the same beer manufacturer or of another manufacturer if the original beer manufacturer has ceased doing business.”
Beer Returns. Existing law generally prohibits manufacturers, winegrowers, and distributors from providing anything of value, including services to retail licensees. However, current law does allow a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. In addition, existing law creates a tied-house exception for rearranging brands, including on floor displays, among other actions with the licensee’s permission.
Additionally, existing law permits a wholesaler or manufacturer to seek the Department of ABC’s approval to accept the returns of a discontinued or seasonal brand of beer from a retail licensee, if the beer is exchanged for a quantity and brand of beer of no greater value produced or sold by the same manufacturer. This bill addresses how a discontinued or seasonal brand of beer can be returned if the original beer manufacturer has ceased doing business.
Related/Prior Legislation
SB 844 (Jones, Chapter 295, Statutes of 2023) expanded, among other things, the definition of “seasonal brand of beer,” to also mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday, as specified.
AB 1149 (Villapudua, Chapter 271, Statutes of 2023) allowed specified manufacturers and wholesalers to merchandise single-serve containers of wine and distilled spirits at off-sale retail licensed premises.
SB 1393 (Mcleod, Chapter 163, Statutes of 2012) allowed licensees to accept the return of unsold and unopened beer from organizations that obtain a particular license, as specified, and allowed the return of beer that is recalled or that is considered to present a health and safety issue by the manufacturer, importer, or governmental entity if distributed, offered for sale, or sold in the state.
AB 1445 (Plescia, 2008) would have expanded the permitted services relating to the rotating, restocking, and rearranging of alcoholic beverages within licensed premises of the off-sale retail licensee. (Never heard in the Assembly Governmental Organization Committee)
AB 1407 (Wesson, Chapter 699, Statutes of 1999) modified existing provisions in the ABC Act relating to wine auction sales, event permits, and the manner by which a manufacturer or distributor may stock or rotate their products at off-sale establishments.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/10/24)
California Beer and Beverage Distributors (Source)
OPPOSITION: (Verified 6/10/24)
None received
ARGUMENTS IN SUPPORT: According to the California Beer and Beverage Distributors, “AB 1940 ensures that beer enthusiasts have the freshest and latest selection of beers available at their local grocery stores, bars, restaurants and convenience stores as beer distributors work with their brewer partners to bring new innovative beers to market for consumers to enjoy.”
ASSEMBLY FLOOR: 75-0, 4/25/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Boerner, Megan Dahle, Gallagher, Hart, Mathis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
6/11/24 13:14:11
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SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2023 - 2024 Regular
Bill No: AB Hearing Date: 5/28/2024
Author: | Villapudua | ||
Version: | Introduced | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill allows a wholesaler or manufacturer to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality, if the original manufacturer has ceased doing business.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Creates various exceptions to tied-house restrictions, including permitting a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. Existing law limits this exception by not authorizing removal of brands, except for beer.
- Creates a tied-house restriction exception for rearranging brands, including on floor displays, among other actions, as specified, but limits this exception by not authorizing stocking permanent shelves and fixtures for regular inventory replacement, except beer.
- Creates the beer and wine wholesaler license, which allows the licensee to acquire beer and wine from suppliers and sell to other wholesalers and to retailers.
- Allows, with the Department of ABC’s approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer that is brewed by a manufacturer to commemorate a specific holiday.
- Defines “seasonal brand of beer” to mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday and is so identified by appropriate product packaging and labeling.
This bill allows, with approval of the Department of ABC, a wholesaler or manufacturer, or successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer similar to quality or a brand produced or sold by the same manufacturer, or another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
Background
Author Statement. According to the author’s office, “current law does not have a remedy for the exchange of a discontinued or seasonal brand of beer where the original beer manufacturer has ceased doing business. AB 1940 will allow the exchange of a discontinued or seasonal brand beer for a beer of similar quality of the brand produced or sold by the same beer manufacturer or of another manufacturer if the original beer manufacturer has ceased doing business.”
Tied-House Laws. State and federal law prohibit certain relations between those engaged in the production, distribution, and retail sale of alcoholic beverages. The term “tied-house” is derived from a common practice in England whereby a bar or public house was “tied” - by ownership, contractual obligations, or other influences - to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption, as retailers would offer to manufacturers generous favors, such as expensive business meals and gifts, which added costs that needed be recouped through aggressive product promotion. Tied houses were also subject to undue influence from manufacturers, who sometimes used their influence to force tied houses to sell their products and exclude other manufacturers’ products.
As a result, after the repeal of prohibition in 1933, California’s current “three-tier” system was introduced. The original policy rationale for this body of law was to: a) promote the state’s interest in an orderly market; b) prohibit the vertical integration and dominance by a single producer in the market place; c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, d) discourage and/or prevent the intemperate use of alcoholic beverages.
Beer Returns. Existing law generally prohibits manufacturers, winegrowers, and distributors from providing anything of value, including services to retail licensees. However, current law does allow a licensee to perform services for off-sale licensees by rotating the brand or brands that are owned or sold by the licensee performing the service on shelves and in refrigerated boxes, as specified. In addition, existing law creates a tied-house exception for rearranging brands, including on floor displays, among other actions with the licensee’s permission.
Additionally, existing law permits a wholesaler or manufacturer to seek the Department of ABC’s approval to accept the returns of a discontinued or seasonal brand of beer from a retail licensee, if the beer is exchanged for a quantity and brand of beer of no greater value produced or sold by the same manufacturer. This bill addresses how a discontinued or seasonal brand of beer can be returned if the original beer manufacturer has ceased doing business.
Prior/Related Legislation
SB 844 (Jones, Chapter 295, Statutes of 2023) expands, among other things, the definition of “seasonal brand of beer,” to also mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday, as specified.
AB 1149 (Villapudua, Chapter 271, Statutes of 2023) allows specified manufacturers and wholesalers to merchandise single-serve containers of wine and distilled spirits at off-sale retail licensed premises.
SB 1393 (Mcleod, Chapter 163, Statutes of 2012) allows licensees to accept the return of unsold and unopened beer from organizations that obtain a particular license, as specified, and allowed the return of beer that is recalled or that is considered to present a health and safety issue by the manufacturer, importer, or governmental entity if distributed, offered for sale, or sold in the state.
AB 1445 (Plescia, 2008) would have expanded the permitted services relating to the rotating, restocking, and rearranging of alcoholic beverages within licensed premises of the off-sale retail licensee. (Never heard in the Assembly Governmental Organization Committee)
AB 1407 (Wesson, Chapter 699, Statutes of 1999) modified existing provisions in the ABC Act relating to wine auction sales, event permits, and the manner by which a manufacturer or distributor may stock or rotate their products at off-sale establishments.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
California Beer and Beverage Distributors (Source)
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the California Beer and Beverage Distributors, “AB 1940 ensures that beer enthusiasts have the freshest and latest selection of beers available at their local grocery stores, bars, restaurants and convenience stores as beer distributors work with their brewer partners to bring new innovative beers to market for consumers to enjoy.”
Date of Hearing: April 17, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 1940
Author:(Villapudua) – As Introduced Ver:January 29, 2024
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises when a wholesaler or manufacturer may accept the return of a brand of beer to allow an exchange for a quantity of similar-quality beer by another manufacturer if the original manufacturer has ceased doing business.
FISCAL EFFECT:
Minor and absorbable costs to the Department of Alcoholic Beverage Control (ABC) to approve additional beer returns. Since existing law already allows beer returns under specified circumstances, ABC does not anticipate a significant increase in workload or related enforcement.
COMMENTS:
- Purpose. According to the author:
Current law does not have a remedy for the exchange of a discontinued or seasonal brand beer where the original beer manufacturer has ceased doing business. AB 1940 will allow the exchange of a discontinued or seasonal brand beer for a beer of similar quality of the brand produced or sold by the same beer manufacturer or of another manufacturer if the original beer manufacturer has ceased doing business.
This bill is supported by the California Beer and Beverage Distributors.
- Beer Returns. Existing law permits a wholesaler or manufacturer to seek ABC approval to accept the return of a discontinued or seasonal brand of beer from a retail licensee, if the beer is exchanged for a quantity and brand of beer of no greater value produced or sold by the same manufacturer. This bill addresses how a discontinued or seasonal brand of beer can be returned if the original beer manufacturer has ceased doing business.
- Related Legislation. SB 844 (Jones), Chapter 295, Statutes of 2023, expanded the definition of “seasonal brand of beer” that can be returned to a wholesaler or manufacturer.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: April 3, 2024
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Blanca Rubio, Chair
ABPCA Bill Id:AB 1940 (
Author:Villapudua) – As Introduced Ver:January 29, 2024
SUBJECT: Alcoholic beverages: beer returns
SUMMARY: This bill would allow a wholesaler or beer manufacturer, or a successor, to accept the return of discontinued beer or a seasonal brand of beer from a retail licensee, if the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer provided the original manufacturer has ceased doing business, as specified. Specifically, this bill:
1) Provides a wholesaler or beer manufacturer, or any successor thereto, may, with Department Alcoholic Beverage Control (ABC) approval, accept the return of a brand of beer discontinued in a California market area or a seasonal brand of beer from a retail licensee, provided that the beer is exchanged for a quantity of beer of similar quality of a brand produced or sold by the same manufacturer, or of another manufacturer if the original manufacturer has ceased doing business, with a value no greater than the original sales price to the retail licensee of the returned beer.
EXISTING LAW:
1) Establishes ABC and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for this purpose.
2) Allows a wholesaler or manufacturer of beer to accept the return of a beer from a retail licensee under specified conditions. In this regard, existing law allows, with ABC approval, a wholesaler or manufacturer, or a successor, to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of a brand produced or sold by the same manufacturer with a value no greater than the original sales price to the retail licensee of the returned beer.
3) Defines “seasonal brand of beer” in part, as a brand of beer that is brewed by a manufacturer to recognize a season or a holiday and is so identified by appropriate product packaging and labeling.
4) Provides a wholesaler or manufacturer, or any successor thereto, may accept the return of beer purchased from that wholesaler or manufacturer, or any successor thereto, by the holder of a retail license following the revocation of, suspension of, voluntary surrender of, or failure to renew the retail license.
5) Permits permanent retail license holders to return beer for credit if a package has been broken or otherwise damaged before or at the time of actual delivery.
6) Permits an on-sale retail licensee that obtained a caterer’s permit to return unused and unopened beer, purchased for sale at the catered event, to the original selling licensee, as specified.
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.
COMMENTS:
Purpose of the bill. According to the author’s office, "Current law does not have a remedy for the exchange of a discontinued or seasonal brand beer where the original beer manufacturer has ceased doing business. AB 1940 will allow the exchange of a discontinued or seasonal brand beer for a beer of similar quality of the brand produced or sold by the same beer manufacturer or of another manufacturer if the original beer manufacturer has ceased doing business.”
Background.
The beer market is a dynamic one that constantly sees the development of new, cutting-edge products. To stay competitive, these new beers must be introduced into the market; frequently, to take the place of other brands that are discontinued, seasonal, or whose original maker has closed for business.
Currently, with ABC approval, a wholesaler or beer manufacturer, or a successor, may accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of a brand produced or sold by the same manufacturer with a value no greater than the original sales price to the retail licensee of the returned beer. A discontinued beer may not be reintroduced into the same California market area for a period of 12 months. A seasonal beer may not be reintroduced into the same California market area for a period of six months in a market area in which a return and exchange of that beer has taken place.
AB 1940 encourages investment by reducing the risk faced by retailers. This bill will allow a retail licensee to return beer for discontinued or seasonal brand beer where the original beer manufacturer has ceased doing business in the state.
Declining Beer Market. Beer companies have suffered from a declining market. “Americans are currently drinking the lowest amount of beer since the 1990s, according to the latest data from the Beer Marketers’ Insight report. The report reveals that beer shipments have fallen by 5% in the first three quarters of 2023, and were on track to fall below 200 million barrels for the whole year. As a result, this would be the lowest level of beer consumption in the USA since 1999, and against a 23% population growth since the turn of the Millennium.”
Prior legislation. SB 844 (Jones), Chapter 295, Statutes of 2023. Expanded the definition of “seasonal brand of beer”, which governs the allowance for wholesalers or manufacturers to accept returns of beer from retailers and is currently limited to only those commemorating a specific holiday season, so that it includes those that recognize either a season or a holiday.
AB 1149 (Villapudua), Chapter 271, Statutes of 2021. Allowed specified manufacturers and wholesalers to merchandise (e.g., stock and arrange products on shelves, etc.) single-serve containers of wine and distilled spirits, similar to as currently authorized for beer, at off-sale retail licensed premises.
AB 1133 (Low), Chapter 623, Statutes of 2019. Allowed a beer manufacturer to give up to five cases of retail advertising glassware to each on-sale retail licensee and allowed an on-sale retail licensee to accept, up to 10 cases of retail advertising glassware, per year per licensed premises, from any licensed beer manufacturers.
SB 1246 (Negrete McLeod), Chapter 395, Statutes of 2008. Allowed a beer wholesaler to sell or rent exterior signs advertising beer for use at any on-sale or off-sale retail premises at no less than "cost," as defined in existing law.
REGISTERED SUPPORT / OPPOSITION:
Support
California Beer and Beverage Distributors
Opposition
None on file
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Bill Author
Bill Co-Author(s):