AB 744: Alcoholic beverage control: tied-house restrictions: exceptions: off-sale retail services.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-18
Current Status:
Passed
(2026-09-18: Chaptered by Secretary of State - Chapter 265, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees from giving or lending money or a thing of value to a person operating, owning, or maintaining premises where alcoholic beverages are sold.
Existing law creates various exceptions to tied-house restrictions, including permitting a licensee to perform specified services for off-sale licensees including, among other things, rotating or rearranging the brand or brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.Existing law defines single-serve containers for this purpose to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters for distilled spirits and between 187 and 355 milliliters for wine, whether sold individually or in multiple container packaging, the contents of which are intended to be consumed without mixing with any other substance.
This bill would instead limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees from giving or lending money or a thing of value to a person operating, owning, or maintaining premises where alcoholic beverages are sold.
Existing law creates various exceptions to tied-house restrictions, including permitting a licensee to perform specified services for off-sale licensees including, among other things, rotating or rearranging the brand or brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.Existing law defines single-serve containers for this purpose to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters for distilled spirits and between 187 and 355 milliliters for wine, whether sold individually or in multiple container packaging, the contents of which are intended to be consumed without mixing with any other substance.
This bill would instead limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees from giving or lending money or a thing of value to a person operating, owning, or maintaining premises where alcoholic beverages are sold.
Existing law creates various exceptions to tied-house restrictions, including permitting a licensee to perform specified services for off-sale licensees including, among other things, rotating or rearranging the brand or brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.
Existing law defines single-serve containers for this purpose to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters for distilled spirits and between 187 and 355 milliliters for wine. wine, whether sold individually or in multiple container packaging, the contents of which are intended to be consumed without mixing with any other substance.
This bill would instead define single-serve containers to mean containers that have a standard fill of between 50 to 500 milliliters for distilled spirits and between 187 and 500 milliliters for wine. limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees from giving or lending money or a thing of value to a person operating, owning, or maintaining premises where alcoholic beverages are sold.
Existing law creates various exceptions to tied-house restrictions, including permitting a licensee to perform specified services for off-sale licensees including, among other things, rotating or rearranging the brand or brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.
Existing law defines single-serve containers for this purpose to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters for distilled spirits and between 187 and 355 milliliters for wine.
This bill would instead define single-serve containers to mean containers that have a standard fill of between 50 to 500 milliliters for distilled spirits and between 187 and 500 milliliters for wine.
Existing law requires any on-sale retail licensee that gives, sells, or otherwise dispenses draught beer to include specified information about the beer upon the faucet, spigot, or outlet from which the beer is drawn or in the place of service and consumption, as provided. This bill would exempt from these labeling requirements premises operated under a beer manufacturer license.Existing law requires any on-sale retail licensee that gives, sells, or otherwise dispenses draught beer to include specified information about the beer upon the faucet, spigot, or outlet from which the beer is drawn or in the place of service and consumption, as provided.
This bill would exempt from these labeling requirements premises operated under a beer manufacturer license.
(a)Notwithstanding any other provision in this division, any winegrower, wine blender, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, rectifier, distilled spirits wholesaler, and beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the following services for off-sale retail licensees at or on the licensed premises of the off-sale retail licensee where the licensee sells alcoholic beverages with the retail licensees permission:
(1)Stack or arrange cases of the brand or brands of alcoholic beverages owned or sold by the licensee performing the service in the storeroom or warehouse where the off-sale retail licensee stores the brand or brands.
(2)Rotate the brand or brands owned or sold by the licensee performing the service on shelves and in refrigerated boxes, and rearrange bottles or packages of the brand or brands by moving the bottles or packages horizontally or vertically from shelf to shelf in the space and shelves allocated to the brand or brands. This paragraph does not permit the removal of any brand or brands of alcoholic beverages, except beer, and brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance, which are owned or sold by the licensee performing the service, from the storeroom or other place belonging to an off-sale retailer for the purpose of replacing alcoholic beverages on or restocking shelves or refrigerated boxes.
(3)Take an inventory of an off-sale retailers stock of a brand or brands of alcoholic beverages which are owned or sold by the licensee performing the service and which are in the stockroom or other place belonging to the off-sale retailer.
(4)Service the brand or brands of alcoholic beverages owned or sold by the licensee performing the service which are on shelves, fixtures, or other display pieces at the off-sale retail premises, including, but not limited to, dusting bottles and shelves and refrigerated boxes allocated to the brand or brands at the retail premises. The licensees authorized to render services by this section and their agents and representatives shall not price-mark individual containers of the brand of alcoholic beverages, except beer, owned or sold by the licensee performing the service, except for individual bottles and packages used on floor displays.
(5)Rotate or rearrange the brand or brands of wine or distilled spirits owned or sold by the licensee on, in, or among permanent shelves, permanent fixtures, refrigerated boxes, or floor or other displays or display pieces; stock the brand or brands onto or into floor or other displays or display pieces; and stock the brand or brands onto or into permanent shelves, permanent fixtures, or refrigerated boxes for the sole purposes of the introduction of new products, the resetting or rearrangement of existing products, or the setting or arranging of new stores. Incidental touching or rearrangement of the brand or brands of another licensee by a licensee performing any of the services authorized by this paragraph for the sole purpose of accessing permanent shelves, permanent fixtures, and other spaces allocated to the licensee performing the service shall not be deemed to be a violation of any provision of this division provided the other licensees brands are not removed from spaces allocated to that licensee. Nothing in this paragraph permits stocking permanent shelves, permanent fixtures, or refrigerated boxes for regular inventory replenishment, except beer, and brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
(b)Notwithstanding any other provision in this division, any beer manufacturer or beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the services specified in paragraphs (1) to (4), inclusive, of subdivision (a), with respect to beer, for on-sale retail licensees at or on the premises of the on-sale retail licensee with the retail licensees permission.
(a)Notwithstanding any other provision in this division, any winegrower, wine blender, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, rectifier, distilled spirits wholesaler, and beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the following services for off-sale retail licensees at or on the licensed premises of the off-sale retail licensee where the licensee sells alcoholic beverages with the retail licensees permission:
(1)Stack or arrange cases of the brand or brands of alcoholic beverages owned or sold by the licensee performing the service in the storeroom or warehouse where the off-sale retail licensee stores the brand or brands.
(2)Rotate the brand or brands owned or sold by the licensee performing the service on shelves and in refrigerated boxes, and rearrange bottles or packages of the brand or brands by moving the bottles or packages horizontally or vertically from shelf to shelf in the space and shelves allocated to the brand or brands. This paragraph does not permit the removal of any brand or brands of alcoholic beverages, except beer, and brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance, which are owned or sold by the licensee performing the service, from the storeroom or other place belonging to an off-sale retailer for the purpose of replacing alcoholic beverages on or restocking shelves or refrigerated boxes.
(3)Take an inventory of an off-sale retailers stock of a brand or brands of alcoholic beverages which are owned or sold by the licensee performing the service and which are in the stockroom or other place belonging to the off-sale retailer.
(4)Service the brand or brands of alcoholic beverages owned or sold by the licensee performing the service which are on shelves, fixtures, or other display pieces at the off-sale retail premises, including, but not limited to, dusting bottles and shelves and refrigerated boxes allocated to the brand or brands at the retail premises. The licensees authorized to render services by this section and their agents and representatives shall not price-mark individual containers of the brand of alcoholic beverages, except beer, owned or sold by the licensee performing the service, except for individual bottles and packages used on floor displays.
(5)Rotate or rearrange the brand or brands of wine or distilled spirits owned or sold by the licensee on, in, or among permanent shelves, permanent fixtures, refrigerated boxes, or floor or other displays or display pieces; stock the brand or brands onto or into floor or other displays or display pieces; and stock the brand or brands onto or into permanent shelves, permanent fixtures, or refrigerated boxes for the sole purposes of the introduction of new products, the resetting or rearrangement of existing products, or the setting or arranging of new stores. Incidental touching or rearrangement of the brand or brands of another licensee by a licensee performing any of the services authorized by this paragraph for the sole purpose of accessing permanent shelves, permanent fixtures, and other spaces allocated to the licensee performing the service shall not be deemed to be a violation of any provision of this division provided the other licensees brands are not removed from spaces allocated to that licensee. Nothing in this paragraph permits stocking permanent shelves, permanent fixtures, or refrigerated boxes for regular inventory replenishment, except beer, and brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
(b)Notwithstanding any other provision in this division, any beer manufacturer or beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the services specified in paragraphs (1) to (4), inclusive, of subdivision (a), with respect to beer, for on-sale retail licensees at or on the premises of the on-sale retail licensee with the retail licensees permission.
(a)Notwithstanding any other provision in this division, any winegrower, wine blender, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, rectifier, distilled spirits wholesaler, and beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the following services for off-sale retail licensees at or on the licensed premises of the off-sale retail licensee where the licensee sells alcoholic beverages with the retail licensees permission:
(1)Stack or arrange cases of the brand or brands of alcoholic beverages owned or sold by the licensee performing the service in the storeroom or warehouse where the off-sale retail licensee stores the brand or brands.
(2)Rotate the brand or brands owned or sold by the licensee performing the service on shelves and in refrigerated boxes, and rearrange bottles or packages of the brand or brands by moving the bottles or packages horizontally or vertically from shelf to shelf in the space and shelves allocated to the brand or brands. This paragraph does not permit the removal of any brand or brands of alcoholic beverages, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers, or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance, which are owned or sold by the licensee performing the service, from the storeroom or other place belonging to an off-sale retailer for the purpose of replacing alcoholic beverages on or restocking shelves or refrigerated boxes.
(3)Take an inventory of an off-sale retailers stock of a brand or brands of alcoholic beverages which are owned or sold by the licensee performing the service and which are in the stockroom or other place belonging to the off-sale retailer.
(4)Service the brand or brands of alcoholic beverages owned or sold by the licensee performing the service which are on shelves, fixtures, or other display pieces at the off-sale retail premises, including, but not limited to, dusting bottles and shelves and refrigerated boxes allocated to the brand or brands at the retail premises. The licensees authorized to render services by this section and their agents and representatives shall not price-mark individual containers of the brand of alcoholic beverages, except beer, owned or sold by the licensee performing the service, except for individual bottles and packages used on floor displays.
(5)Rotate or rearrange the brand or brands of wine or distilled spirits owned or sold by the licensee on, in, or among permanent shelves, permanent fixtures, refrigerated boxes, or floor or other displays or display pieces; stock the brand or brands onto or into floor or other displays or display pieces; and stock the brand or brands onto or into permanent shelves, permanent fixtures, or refrigerated boxes for the sole purposes of the introduction of new products, the resetting or rearrangement of existing products, or the setting or arranging of new stores. Incidental touching or rearrangement of the brand or brands of another licensee by a licensee performing any of the services authorized by this paragraph for the sole purpose of accessing permanent shelves, permanent fixtures, and other spaces allocated to the licensee performing the service shall not be deemed to be a violation of any provision of this division provided the other licensees brands are not removed from spaces allocated to that licensee. Nothing in this paragraph permits stocking permanent shelves, permanent fixtures, or refrigerated boxes for regular inventory replenishment, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers. or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packaging, that are intended to be consumed without mixing with any other substance.
(b)Notwithstanding any other provision in this division, any beer manufacturer or beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the services specified in paragraphs (1) to (4), inclusive, of subdivision (a), with respect to beer, for on-sale retail licensees at or on the premises of the on-sale retail licensee with the retail licensees permission.
(c)For purposes of this section, single-serve containers means containers that have a standard of fill between 50 milliliters and 500 milliliters that is authorized for distilled spirits under Section 5.47a of Title 27 of the Code of Federal Regulations or a standard of fill between 187 milliliters and 500 milliliters that is authorized for wine under Section 4.72 of Title 27 of the Code of Federal Regulations, either individually or in multiple container packaging, and are intended to be consumed without mixing with any other substance.(a)Notwithstanding any other provision in this division, any winegrower, wine blender, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, rectifier, distilled spirits wholesaler, and beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the following services for off-sale retail licensees at or on the licensed premises of the off-sale retail licensee where the licensee sells alcoholic beverages with the retail licensees permission:
(1)Stack or arrange cases of the brand or brands of alcoholic beverages owned or sold by the licensee performing the service in the storeroom or warehouse where the off-sale retail licensee stores the brand or brands.
(2)Rotate the brand or brands owned or sold by the licensee performing the service on shelves and in refrigerated boxes, and rearrange bottles or packages of the brand or brands by moving the bottles or packages horizontally or vertically from shelf to shelf in the space and shelves allocated to the brand or brands. This paragraph does not permit the removal of any brand or brands of alcoholic beverages, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers, which are owned or sold by the licensee performing the service, from the storeroom or other place belonging to an off-sale retailer for the purpose of replacing alcoholic beverages on or restocking shelves or refrigerated boxes.
(3)Take an inventory of an off-sale retailers stock of a brand or brands of alcoholic beverages which are owned or sold by the licensee performing the service and which are in the stockroom or other place belonging to the off-sale retailer.
(4)Service the brand or brands of alcoholic beverages owned or sold by the licensee performing the service which are on shelves, fixtures, or other display pieces at the off-sale retail premises, including, but not limited to, dusting bottles and shelves and refrigerated boxes allocated to the brand or brands at the retail premises. The licensees authorized to render services by this section and their agents and representatives shall not price-mark individual containers of the brand of alcoholic beverages, except beer, owned or sold by the licensee performing the service, except for individual bottles and packages used on floor displays.
(5)Rotate or rearrange the brand or brands of wine or distilled spirits owned or sold by the licensee on, in, or among permanent shelves, permanent fixtures, refrigerated boxes, or floor or other displays or display pieces; stock the brand or brands onto or into floor or other displays or display pieces; and stock the brand or brands onto or into permanent shelves, permanent fixtures, or refrigerated boxes for the sole purposes of the introduction of new products, the resetting or rearrangement of existing products, or the setting or arranging of new stores. Incidental touching or rearrangement of the brand or brands of another licensee by a licensee performing any of the services authorized by this paragraph for the sole purpose of accessing permanent shelves, permanent fixtures, and other spaces allocated to the licensee performing the service shall not be deemed to be a violation of any provision of this division provided the other licensees brands are not removed from spaces allocated to that licensee. Nothing in this paragraph permits stocking permanent shelves, permanent fixtures, or refrigerated boxes for regular inventory replenishment, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.
(b)Notwithstanding any other provision in this division, any beer manufacturer or beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the services specified in paragraphs (1) to (4), inclusive, of subdivision (a), with respect to beer, for on-sale retail licensees at or on the premises of the on-sale retail licensee with the retail licensees permission.
(c)For purposes of this section, single-serve containers means containers that have a standard of fill between 50 milliliters and 355 500 milliliters that is authorized for distilled spirits under Section 5.47a of Title 27 of the Code of Federal Regulations or a standard of fill between 187 milliliters and 355 500 milliliters that is authorized for wine under Section 4.72 of Title 27 of the Code of Federal Regulations, either individually or in multiple container packaging, and are intended to be consumed without mixing with any other substance.
SECTION 1.Section 25613 of the Business and Professions Code is amended to read:25613.(a)Except as provided in subdivision (b), an on-sale retail licensee who gives, sells, or otherwise dispenses any draught beer shall, upon the faucet, spigot, or outlet from which the beer is drawn, attach and keep posted a clear and legible notice, placard, or marker which shall in the English language indicate and declare the name or brand adopted by the manufacturer of the draught beer so given, sold, or dispensed by the licensee. If the faucet, spigot, or other drawing device is in a location not within the room of the place of service and consumption of the beer, there shall also be kept posted a similar notice, placard, or marker in the place of service and consumption of the beer which shall truthfully state and indicate only the kinds and brands of draught beer actually on sale in the premises of the on-sale licensee.(b)This section shall not apply to premises operated under a beer manufacturer license.Every holder of an (a)Except as provided in subdivision (b), an on-sale retail license licensee who gives, sells, or otherwise dispenses any draught beer shall, upon the faucet, spigot, or outlet from which the beer is drawn, attach and keep posted a clear and legible notice, placard, or marker which shall in the English language indicate and declare the name or brand adopted by the manufacturer of the draught beer so given, sold, or dispensed by the licensee. If the faucet, spigot, or other drawing device is in a location not within the room of the place of service and consumption of the beer, there shall also be kept posted a similar notice, placard, or marker in the place of service and consumption of the beer which shall truthfully state and indicate only the kinds and brands of draught beer actually on sale in the premises of the on-sale licensee.
(b)This section shall not apply to premises operated under a beer manufacturer license.
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Date
|
Status
|
|---|---|
| Sep 18, 2026 | Chaptered by Secretary of State - Chapter 265, Statutes of 2026. |
| Sep 18, 2026 | Approved by the Governor. |
| Aug 31, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 25, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). |
| Aug 25, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 6460.). |
| Aug 24, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 24, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Aug 24, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 5696.). |
| Aug 13, 2026 | Read second time. Ordered to third reading. |
| Aug 12, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 6, 2026 | Ordered to third reading. |
| Aug 6, 2026 | From Consent Calendar. |
| Aug 4, 2026 | Read second time. Ordered to Consent Calendar. |
| Aug 3, 2026 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 23, 2026 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (June 23). Re-referred to Com. on APPR. |
| Jun 11, 2026 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O. |
| May 21, 2025 | Referred to Com. on G.O. |
| May 8, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 8, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1486.) |
| May 1, 2025 | Read second time. Ordered to Consent Calendar. |
| Apr 30, 2025 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 30). |
| Apr 3, 2025 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 21. Noes 0.) (April 2). Re-referred to Com. on APPR. |
| Mar 3, 2025 | Referred to Com. on G.O. |
| Feb 19, 2025 | From printer. May be heard in committee March 21. |
| Feb 18, 2025 | 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 25, 2026 | AB 744 Michelle Rodriguez Concurrence in Senate Amendments | Assembly Floor |
Passed |
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| Aug 24, 2026 | Assembly 3rd Reading AB744 Michelle Rodriguez By Blakespear | Senate Floor |
Passed |
|
| Jun 23, 2026 | 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 |
|
| May 8, 2025 | AB 744 Michelle Rodriguez Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 30, 2025 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 2, 2025 | 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
|
Date
|
|---|---|---|
| Anheuser-Busch | ** Support | |
| California Beer and Beverage Distributors | ** Support | |
| California Family Beer Distributors | ** Support | |
| Distilled Spirits Council Of The United States | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 744
Author:(Michelle Rodriguez)
As Amended Ver:August 12, 2026
Majority vote
SUMMARY
This bill would expand an exception in in Alcoholic Beverage Control Act (Act) to instead limit the current exception to beer and brands of distilled spirits or wine in containers not exceeding 500 milliliters of volume, as specified. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines ″single-serve containers″ to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
Senate Amendments
- Expand a current exception in the Act that allows licensees to perform specified services for off-sale licensees to instead limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packages, that are intended to be consumed without mixing with any other substance, as specified.
- Makes technical and clarifying changes.
COMMENTS
Background.
Tied-house Laws. Tied-house laws. State and federal laws generally prohibit certain relationships among those who produce, distribute, and sell 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. This was because retailers would offer manufacturers generous favors, such as expensive business meals and gifts. In order to recoup these costs, aggressive product promotion was needed. Manufacturers sometimes used their influence to force tied houses to sell their products and exclude products from other manufacturers.
As a result, after the repeal of prohibition in 1933, California′s current ″three-tier″ system was introduced. This body of law was initially created to: a) promote the state′s interest in an orderly market; b) prohibit vertical integration and dominance by a single producer in the market place; c) stop commercial bribery and safeguard the public from predatory marketing techniques; d) discourage and/or prevent intemperate drinking. These provisions prohibit a manufacturer from paying for advertising space at any facility where the facility is licensed to sell alcoholic beverages.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined ″single-serve containers″ to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
According to the Author
According to the author′s office, ″California′s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ′single serve′ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today′s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California′s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.″
Arguments in Support
According to the California Family Beer Distributors, ″California retailers today sell a growing variety of ready-to-drink wine and spirits products packaged in cans, cartons, and other innovative formats. Many of these products are packaged and marketed in formats comparable to products already covered under current law but fall outside the existing statutory threshold solely because of container size. As a result, suppliers may merchandise a qualifying 355 mL product but are prohibited from providing the same service for comparable products packaged in 375 mL or 500 mL containers (sizes that are authorized by state and federal law). This inconsistency creates unnecessary operational challenges for retailers and wholesalers without advancing any policy objective.″
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Committee on Appropriations, pursuant to Senate Rule 28.8, negligible state costs.
VOTES:
ASM GOVERNMENTAL ORGANIZATION: 21-0-1
YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, DeMaio, Dixon, Fong, Gabriel, Gipson, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis
ABS, ABST OR NV: Carrillo
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Solache, Ta, Alanis
ABS, ABST OR NV: Pellerin
ASSEMBLY FLOOR: 69-0-10
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
ABS, ABST OR NV: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
UPDATED
VERSION: August 12, 2026
CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0004049
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 744
Author:(Michelle Rodriguez)
As Amended Ver:August 12, 2026
Majority vote
SUMMARY
This bill would expand an exception in in Alcoholic Beverage Control Act (Act) to instead limit the current exception to beer and brands of distilled spirits or wine in containers not exceeding 500 milliliters of volume, as specified. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines ″single-serve containers″ to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
Senate Amendments
- Expand a current exception in the Act that allows licensees to perform specified services for off-sale licensees to instead limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packages, that are intended to be consumed without mixing with any other substance, as specified.
- Makes technical and clarifying changes.
COMMENTS
Background.
Tied-house Laws. Tied-house laws. State and federal laws generally prohibit certain relationships among those who produce, distribute, and sell 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. This was because retailers would offer manufacturers generous favors, such as expensive business meals and gifts. In order to recoup these costs, aggressive product promotion was needed. Manufacturers sometimes used their influence to force tied houses to sell their products and exclude products from other manufacturers.
As a result, after the repeal of prohibition in 1933, California′s current ″three-tier″ system was introduced. This body of law was initially created to: a) promote the state′s interest in an orderly market; b) prohibit vertical integration and dominance by a single producer in the market place; c) stop commercial bribery and safeguard the public from predatory marketing techniques; d) discourage and/or prevent intemperate drinking. These provisions prohibit a manufacturer from paying for advertising space at any facility where the facility is licensed to sell alcoholic beverages.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined ″single-serve containers″ to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
According to the Author
According to the author′s office, ″California′s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ′single serve′ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today′s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California′s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.″
Arguments in Support
According to the California Family Beer Distributors, ″California retailers today sell a growing variety of ready-to-drink wine and spirits products packaged in cans, cartons, and other innovative formats. Many of these products are packaged and marketed in formats comparable to products already covered under current law but fall outside the existing statutory threshold solely because of container size. As a result, suppliers may merchandise a qualifying 355 mL product but are prohibited from providing the same service for comparable products packaged in 375 mL or 500 mL containers (sizes that are authorized by state and federal law). This inconsistency creates unnecessary operational challenges for retailers and wholesalers without advancing any policy objective.″
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Committee on Appropriations, pursuant to Senate Rule 28.8, negligible state costs.
VOTES:
ASM GOVERNMENTAL ORGANIZATION: 21-0-1
YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, DeMaio, Dixon, Fong, Gabriel, Gipson, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis
ABS, ABST OR NV: Carrillo
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Solache, Ta, Alanis
ABS, ABST OR NV: Pellerin
ASSEMBLY FLOOR: 69-0-10
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
ABS, ABST OR NV: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
UPDATED
VERSION: August 12, 2026
CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0004049
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 744 |
THIRD READING
Bill No: AB 744
Author: Michelle Rodriguez (D)
Amended: 8/12/26 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26
AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson
NO VOTE RECORDED: Alvarado-Gil
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control: tied-house restrictions: exceptions: off-sale retail services
SOURCE: Author
DIGEST: This bill expands a current exception in law to instead limit the current exception to beer and brands of distilled spirits or wine in containers not exceeding 500 milliliters of volume, as specified. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines “single-serve containers” to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
Senate Floor Amendments of 8/12/26 are technical and non-substantive.
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.
- Creates a tied-house restriction exception which permits a licensee to perform specified services for off-sale licenses including, among other things, rotating or rearranging the brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single serve containers, and wine in single-serve containers. For these purposes, current law defines “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters (approximately 12 fluid ounces) for distilled spirits and between 187 and 355 milliliters for wine.
- 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.
This bill expands a current exception in law to instead limit the exception to beer and to brands of distilled spirits or wine in containers not exceeding 500 milliliters in volume, whether sold individually or in multiple container packages, that are intended to be consumed without mixing with any other substance.
Background
Author Statement. According to the author’s office, “California’s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ‘single-serve’ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today’s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California’s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.”
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 generous favors to manufacturers, 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.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271, Statutes of 2021) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
Related/Prior Legislation
AB 1149 (Villapudua, Chapter 271, Statutes of 2021) extends a tied-house exception to limitations provided for beer, to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets.
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 8/11/26)
Anheuser-Busch
California Beer and Beverage Distributors
California Family Beer Distributors
Distilled Spirits Council of the United States
OPPOSITION: (Verified 8/11/26)
None received
ARGUMENTS IN SUPPORT: According to the California Family Beer Distributors, “California retailers today sell a growing variety of ready-to-drink wine and spirits products packaged in cans, cartons, and other innovative formats. Many of these products are packaged and marketed in formats comparable to products already covered under current law but fall outside the existing statutory threshold solely because of container size. As a result, suppliers may merchandise a qualifying 355 mL product but are prohibited from providing the same service for comparable products packaged in 375 mL or 500 mL containers (sizes that are authorized by state and federal law). This inconsistency creates unnecessary operational challenges for retailers and wholesalers without advancing any policy objective.”
ASSEMBLY FLOOR: 69-0, 5/8/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/17/26 10:37:57
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 744 |
THIRD READING
Bill No: AB 744
Author: Michelle Rodriguez (D)
Amended: 6/11/26 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26
AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson
NO VOTE RECORDED: Alvarado-Gil
ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control: tied-house restrictions: exceptions: off-sale retail services
SOURCE: Author
DIGEST: This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines “single-serve containers” to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
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.
- Creates a tied-house restriction exception which permits a licensee to perform specified services for off-sale licenses including, among other things, rotating or rearranging the brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single serve containers, and wine in single-serve containers. For these purposes, current law defines “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters (approximately 12 fluid ounces) for distilled spirits and between 187 and 355 milliliters for wine.
- 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.
This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees.
Background
Author Statement. According to the author’s office, “California’s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ‘single-serve’ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today’s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California’s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.”
Furthermore, this bill modernizes California law by expanding the definition of a single-serve wine and spirits container from 355 milliliters to 500 milliliters. The measure does not expand alcohol sales, create new licenses, or alter tied-house protections. Instead, it updates an existing exception to reflect current consumer products and industry practices.”
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 generous favors to manufacturers, 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.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271, Statutes of 2021) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
This bill instead defines “single-serve containers” to mean containers that have a standard fill of between 50 to 500 milliliters (approximately 17 fluid ounces) for distilled spirits and between 187 and 500 milliliters for wine.
Related/Prior Legislation
AB 1149 (Villapudua, Chapter 271, Statutes of 2021) extends a tied-house exception to limitations provided for beer, to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets.
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 8/3/26)
Anheuser-Busch
California Beer and Beverage Distributors
California Family Beer Distributors
Distilled Spirits Council of the United States
OPPOSITION: (Verified 8/3/26)
None received
ARGUMENTS IN SUPPORT: According to the California Family Beer Distributors, “California retailers today sell a growing variety of ready-to-drink wine and spirits products packaged in cans, cartons, and other innovative formats. Many of these products are packaged and marketed in formats comparable to products already covered under current law but fall outside the existing statutory threshold solely because of container size. As a result, suppliers may merchandise a qualifying 355 mL product but are prohibited from providing the same service for comparable products packaged in 375 mL or 500 mL containers (sizes that are authorized by state and federal law). This inconsistency creates unnecessary operational challenges for retailers and wholesalers without advancing any policy objective.”
ASSEMBLY FLOOR: 69-0, 5/8/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/6/26 11:45:23
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 744 |
CONSENT
Bill No: AB 744
Author: Michelle Rodriguez (D)
Amended: 6/11/26 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26
AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson
NO VOTE RECORDED: Alvarado-Gil
ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control: tied-house restrictions: exceptions: off-sale retail services
SOURCE: Author
DIGEST: This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines “single-serve containers” to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
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.
- Creates a tied-house restriction exception which permits a licensee to perform specified services for off-sale licenses including, among other things, rotating or rearranging the brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single serve containers, and wine in single-serve containers. For these purposes, current law defines “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters (approximately 12 fluid ounces) for distilled spirits and between 187 and 355 milliliters for wine.
- 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.
This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees.
Background
Author Statement. According to the author’s office, “California’s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ‘single-serve’ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today’s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California’s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.”
Furthermore, this bill modernizes California law by expanding the definition of a single-serve wine and spirits container from 355 milliliters to 500 milliliters. The measure does not expand alcohol sales, create new licenses, or alter tied-house protections. Instead, it updates an existing exception to reflect current consumer products and industry practices.”
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 generous favors to manufacturers, 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.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271, Statutes of 2021) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
This bill instead defines “single-serve containers” to mean containers that have a standard fill of between 50 to 500 milliliters (approximately 17 fluid ounces) for distilled spirits and between 187 and 500 milliliters for wine.
Related/Prior Legislation
AB 1149 (Villapudua, Chapter 271, Statutes of 2021) extends a tied-house exception to limitations provided for beer, to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets.
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 8/3/26)
Anheuser-Busch
California Beer and Beverage Distributors
California Family Beer Distributors
Distilled Spirits Council of the United States
OPPOSITION: (Verified 8/3/26)
None received
ARGUMENTS IN SUPPORT: According to the California Family Beer Distributors, “California retailers today sell a growing variety of ready-to-drink wine and spirits products packaged in cans, cartons, and other innovative formats. Many of these products are packaged and marketed in formats comparable to products already covered under current law but fall outside the existing statutory threshold solely because of container size. As a result, suppliers may merchandise a qualifying 355 mL product but are prohibited from providing the same service for comparable products packaged in 375 mL or 500 mL containers (sizes that are authorized by state and federal law). This inconsistency creates unnecessary operational challenges for retailers and wholesalers without advancing any policy objective.”
ASSEMBLY FLOOR: 69-0, 5/8/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/5/26 14:57:33
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Susan Rubio
Chair
2025 - 2026 Regular
Bill No: Hearing Date: 6/23/2026
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees. Under current law, licensees are authorized to perform certain services for off-sale licensees, including rotating and rearranging brands of distilled spirits and wine in single-serve containers owned or sold by the licensee. For these purposes, current law defines “single-serve containers” to mean containers of distilled spirits and wine that have a standard fill of a maximum of 355 milliliters, or approximately 12 fluid ounces.
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.
- Creates a tied-house restriction exception which permits a licensee to perform specified services for off-sale licenses including, among other things, rotating or rearranging the brands owned or sold by the licensee, as specified. This exception is limited to beer, and brands of distilled spirits in single serve containers, and wine in single-serve containers. For these purposes, current law defines “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters (approximately 12 fluid ounces) for distilled spirits and between 187 and 355 milliliters for wine.
- 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.
This bill redefines the definition of “single-serve containers” to mean between 50 to 500 milliliters for distilled spirits and between 187 milliliters and 500 milliliters for wine for purposes of a current exception in law that allows licensees to perform specified services for off-sale licensees.
Background
Author Statement. According to the author’s office, “California’s alcohol beverage marketplace has evolved significantly in recent years, with consumers increasingly purchasing wine in alternative package formats designed for individual consumption. However, California law continues to define ‘single-serve’ wine and spirits containers as one containing between 187 milliliters and 355 milliliters, a standard that no longer reflects many products available in today’s market. As a result, wine and spirits products packaged in containers larger than 355 milliliters but intended for single-person consumption and that are ready to drink products are excluded from existing merchandising exceptions available under California’s tied-house laws. This creates unnecessary operational challenges for retailers and suppliers and treats substantially similar products differently based solely on package size.”
Furthermore, this bill modernizes California law by expanding the definition of a single-serve wine and spirits container from 355 milliliters to 500 milliliters. The measure does not expand alcohol sales, create new licenses, or alter tied-house protections. Instead, it updates an existing exception to reflect current consumer products and industry practices.”
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 generous favors to manufacturers, 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.
Current Exception. 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. In 2021, AB 1149 (Villapudua, Chapter 271, Statutes of 2021) was signed into law which expanded upon this exception to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets. The bill defined “single-serve containers” to mean containers that have a standard fill, as defined by federal law, of between 50 and 355 milliliters of distilled spirits and between 187 and 355 milliliters for wine.
This bill would instead define “single-serve containers” to mean containers that have a standard fill of between 50 to 500 milliliters (approximately 17 fluid ounces) for distilled spirits and between 187 and 500 milliliters for wine.
Prior/Related Legislation
AB 1149 (Villapudua, Chapter 271, Statutes of 2021) extends a tied-house exception to limitations provided for beer, to also apply to brands of distilled spirits and wine in single-serve containers for the purpose of stocking, rotating, displaying, and merchandising the product by specified distributor licensees at off-sale retail outlets.
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: Fiscal Com.: Local:
SUPPORT:
None received
OPPOSITION:
None received
Date of Hearing: April 30, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 744
Author:(Michelle Rodriguez) – As Introduced Ver:February 18, 2025
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
|
| ||
|
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill exempts draught beer drawn at a premises operated under a beer manufacturer license from labeling requirements otherwise applicable to an on-sale retail licensee.
FISCAL EFFECT:
Minor and absorbable costs to the Department of Alcoholic Beverage Control.
COMMENTS:
- Purpose. According to the author, it is unclear whether existing law requiring an on-sale retail licensee selling draught beer to label the tap applies to a brewery tasting room. The author contends that brewery tasting rooms do not mark their taps due to the high level of familiarity brewery workers have with the manufactured products, and intends this bill to clarify that the labeling requirement does not apply to a premises licensed as a beer manufacturer. This bill is supported by the California Beer and Beverage Distributors.
- Draught Beer Labeling. Existing law requires an on-sale retail licensee selling draught beer to label the tap with a clear and legible sign indicating the name or brand of the beer’s manufacturer. A sign must also be posted in the place of service and consumption of beer if the tap is located in a different room. This bill exempts a brewery tasting room licensed as a beer manufacturer from these labeling requirements.
- Related Legislation. AB 1287 (Fong) expands a different draught beer tap signage law to apply to all licensees, not just retail licensees, and exempts a license issued for the retail sale of beer on a temporary basis for special events from that signage law. AB 1287 is pending on the Assembly Consent Calendar.
- Prior Legislation. AB 2849 (Rubio), of the 2023-24 Legislative Session, was identical to this bill. AB 2849 was ordered to the Senate Inactive File.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: April 2, 2025
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Blanca Rubio, Chair
ABPCA Bill Id:AB 744 (
Author:Michelle Rodriguez) – As Introduced Ver:February 18, 2025
SUBJECT: Beer manufacturers: sale of draught beer
SUMMARY: This bill would exempt draught beer drawn at a premises operated under a beer manufacturer license from labeling requirements otherwise applicable to an on-sale retail license. Specifically, this bill:
1) Exempts a licensed premise operated under a beer manufacturer license from a current requirement in the Alcoholic Beverage Control Act (Act) that requires on-sale retail licensees that give, sell, or otherwise dispense draught beer to include specified information regarding the beer upon the faucet, spigot, or outlet from which the beer is drawn or in the place of service or consumption, as provided.
2) Makes technical and clarifying changes.
EXISTING LAW:
1) Establishes Department of Alcoholic Beverage Control (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.
2) Defines “Beer” to mean any alcoholic beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof in water, and includes ale, porter, brown, stout, lager beer, small beer, and strong beer, but does not include sake, known as Japanese rice wine. Beer may be produced using the following materials as adjuncts in fermentation: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials. Beer aged in an empty wooden barrel previously used to contain wine or distilled spirits shall be defined exclusively as “beer” and shall not be considered a dilution or mixture of any other alcoholic beverage. (Cal. Bus. & Prof. Code § 23006)
3) States that no retailer shall dispense any draught beer upon which the proper tap sign or draught beer sign is not displayed or the manufacturer or bottler of which has not complied with this article. The department may seize any draught beer displayed to the public in violation of this section and may dispose of the beer, as defined. (Cal. Bus. & Prof. Code § 25206)
4) Requires any on-sale retail licensee that gives, sells, or otherwise dispenses draught beer to include specified information about the beer upon the faucet, spigot, or outlet from which the beer is drawn or in the place of service and consumption, as provided. (Cal. Bus. & Prof. Code § 25613)
5) Allows the manufacture of beer for personal or family use, and not for sale by a person over the age of 21. The aggregate amount of beer with respect to any household shall not exceed 200 gallons or 100 gallons if only one adult resides in such household. (Cal. Bus. & Prof. Code § 23356.2)
6) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
FISCAL EFFECT: This bill has been keyed fiscal by Legislative Counsel.
COMMENTS:
Background.
For businesses operating in California, ABC issues and renews licenses, ensuring that all sales and service of beer (draft or otherwise) comply with state regulations, including those on serving minors, hours of service, and responsible alcohol service practices.
California has rules governing how beer is distributed from breweries or distributors to the retail location. These include requirements for labeling and reporting of alcohol transactions. California has specific regulations related to how draught beer taps must be supplied, installed and maintained, especially in terms of sanitation and cleanliness.
Generally, visitors to California’s breweries take a guided tour before the tasting portion occurs in the brewer’s taproom. Participants are shown the equipment and products that are used as well as an overview of the entire beer brewing process. This usually includes information such as why hops are used to make beer, and how the choice of grains and yeasts are integral to the finished product. Tours generally take 30-45 minutes, culminating with a guided beer tasting in the taproom where participants further learn about the different styles and processes while sampling specific draught beers. The tasting room of a licensed brewery often leaves its taps unmarked, as servers are typically well-acquainted with the variety of beers they produce and serve to the public.
What is draught beer? Draught beer, also referred to as draft beer or keg beer, is a type of beer that is served from a pressurized container or keg. This is in contrast to canned or bottled beer, which is kept under carbon dioxide pressure and sold in sealed containers. Draught beer is typically poured from a tap or spout, making it a popular choice for bars, restaurants, and other establishments. The process of serving draught beer involves several steps, including keeping the keg under carefully controlled conditions to maintain the optimal temperature, pressure, and carbonation levels. In short, draft beer is a pressurized beer that goes through a carbonation method that is not served as bottled beer or canned beer but is made the same manner.
The Middle Ages saw the first widespread popularity of draught beer in Europe, where it has been enjoyed for centuries. Different regions developed their own draught beer styles over time. Germany usually serves beer from a keg, but the most popular kind of draught beer in the United Kingdom is cask ale. Draught beer is typically served from a tap or keg in the United States.
Many beer enthusiasts believe that draft beer tastes richer and fresher than bottled beer due to the way it is stored and served. They argue that storing the beer in a steel cask or keg keeps light and carbon dioxide from degrading its freshness.
Purpose of the bill. In California, the Act requires on-sale retail licensees who sell draught beer shall, upon the faucet, spigot, or outlet from which the beer is drawn, attach and keep posted a clear and legible notice, placard, or marker which shall indicate and declare the name or brand adopted by the manufacturer of the beer. The author’s office states that this is to ensure consumers are aware of the brand/type of beer that is being sold by the retailer.
According to the author’s office, current law is unclear about whether this labeling requirement applies to a brewery tasting room. A brewery (also referred to as a beer manufacturer in this context) may offer beer for on-site consumption either as part of an on-site restaurant or beer tastings. The author states that brewery tasting rooms do not mark their taps due to the high level of familiarity and this measure is intended to clarify that the labeling requirement should not apply.
In support. The California Beer and Beverage Distributors writes, “Despite the fact that the brewery tasting room is operating under a “beer manufacturer” license there has been confusion about whether or not a brewery tasting room needs to comply with provisions in the Act that requires the posting of signs that clearly declare the name or brand of the beer manufacturer. AB 744 clarifies that the law only applies to an on-sale retail licensee and not licensed premises operated by a licensed beer manufacturer.”
Prior legislation. AB 2303 (Aguiar-Curry), Chapter 694, Statutes of 2022. Provided that only agave spirits produced entirely from agaves grown within California, without flavoring or coloring additives, may be labeled with the words “California agave spirts” or any combination of the words “California agave spirits,” California agave,” or substantially similar description.
REGISTERED SUPPORT / OPPOSITION:
Support
California Beer and Beverage Distributors
Opposition
None on file
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Discussed in Hearing
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Bill Author
Bill Co-Author(s):