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 a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. Existing law provides certain exceptions to this prohibition if specified requirements are met.

Existing law authorizes certain licensees or their representatives to conduct or participate in certain instruction or instructional events, as specified, if specified conditions are met. In this regard, specified information, pictures, illustrations, and depictions of the retailers premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted.

This bill would make changes to the provisions related to advertising for the events described in the above paragraph, including, among other things, authorizing the advertisement to include videos of the retailers premises, personnel, and customers and contain or consist of pictures, illustrations, videos, and graphical depictions. The bill would prohibit videos of the retailers premises, personnel, and customers from being longer than 60 seconds in duration. The bill would remove the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes specified information of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises to be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill would also authorize the advertisement to include pictures, illustrations, videos, and depictions of the winegrower, wine importer, or winegrowers agent licensee and would authorize the advertisement to contain or consist of pictures, illustrations, videos, or graphical depictions.

Existing law authorizes a licenseholder or on-sale retail licensee to advertise an instructional tasting event to the general public, and specifies that permitted advertisements include flyers, newspaper ads, internet communications, and interior signage.

This bill would instead authorize a licenseholder or on-sale retail licensee to advertise an instructional tasting event, and would remove the provision that specifies what advertisements are permitted.

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 a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. Existing law provides certain exceptions to this prohibition if specified requirements are met.

Existing law authorizes certain licensees or their representatives to conduct or participate in certain instruction or instructional events, as specified, if specified conditions are met. In this regard, specified information, pictures, illustrations, and depictions of the retailers premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted.

This bill would make changes to the provisions related to advertising for the events described in the above paragraph, including, among other things, authorizing the advertisement to include videos of the retailers premises, personnel, and customers and contain or consist of pictures, illustrations, videos, and graphical depictions. The bill would prohibit videos of the retailers premises, personnel, and customers from being longer than 60 seconds in duration. The bill would remove the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes specified information of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises to be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill would also authorize the advertisement to include pictures, illustrations, videos, and depictions of the winegrower, wine importer, or winegrowers agent licensee and would authorize the advertisement to contain or consist of pictures, illustrations, videos, or graphical depictions.

Existing law authorizes a licenseholder or on-sale retail licensee to advertise an instructional tasting event to the general public, and specifies that permitted advertisements include flyers, newspaper ads, internet communications, and interior signage.

This bill would instead authorize a licenseholder or on-sale retail licensee to advertise an instructional tasting event, and would remove the provision that specifies what advertisements are permitted.

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 a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. Existing law provides certain exceptions to this prohibition if specified requirements are met.

Existing law authorizes certain licensees or their representatives to conduct or participate in certain instruction or instructional events, as specified, if specified conditions are met. In this regard, specified information, pictures, illustrations, and depictions of the retailers premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted.

This bill would make changes to the provisions related to advertising for the events described in the above paragraph, including, among other things, authorizing the advertisement to contain include videos up to 60 seconds long. of the retailers premises, personnel, and customers and contain or consist of pictures, illustrations, videos, and graphical depictions. The bill would prohibit videos of the retailers premises, personnel, and customers from being longer than 60 seconds in duration. The bill would remove the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes specified information of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises to be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill would also authorize the advertisement to include pictures, illustrations, videos, and depictions of the winegrower, wine importer, or winegrowers agent licensee and would authorize the advertisement to contain or consist of pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers agent. graphical depictions.

Existing law authorizes a licenseholder or on-sale retail licensee to advertise an instructional tasting event to the general public, and specifies that permitted advertisements include flyers, newspaper ads, internet communications, and interior signage.

This bill would instead authorize a licenseholder or on-sale retail licensee to advertise an instructional tasting event, and would remove the provision that specifies what advertisements are permitted.

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 a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The Existing law provides certain exceptions to this prohibition if specified requirements are met.

Existing law authorizes certain licensees or their representatives to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises in certain instruction or instructional events, as specified, if specified conditions are met. In this regard, specified information, pictures, illustrations, and depictions of the retailers premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted.

This bill would also allow make changes to the provisions related to advertising for the events described in the above paragraph, including, among other things, authorizing the advertisement to contain videos up to 60 seconds long. The bill would remove the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes specified information of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises to be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill would also authorize the advertisement to contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers agent.

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 a manufacturer, winegrower, manufacturers agent, rectifier, California winegrowers agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. The law provides certain exceptions to this prohibition if specified requirements are met.

Tied-house restrictions permit a winegrower, winegrowers agent, wine importer, or their director, partner, officer, agent, or representative to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailers premises if specified conditions are met. In this regard, specified information, pictures, illustrations, and depictions of the retailers premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted.

This bill would also allow the advertisement to contain videos up to 60 seconds long. The bill would remove the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole.

Tied-house restrictions permit specified information of a winegrower, wine importer, or winegrowers agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises to be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill would also authorize the advertisement to contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers agent.

 UNFINISHED BUSINESS 

Bill No: SB 1273

Author: Cabaldon (D), et al.

Amended: 8/18/26

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 3/24/26

AYES: Rubio, Valladares, Alvarado-Gil, Archuleta, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Ashby

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 40-0, 5/4/26

AYES: 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

ASSEMBLY FLOOR: 77-0, 8/25/26 - See last page for vote

SUBJECT: Alcoholic beverages: tied-house restrictions: instructional events and promotional lectures: advertisements

SOURCE: Napa Valley Vintners

DIGEST:

This bill expands existing provisions of the Alcoholic Beverage Control Act governing advertisements by authorized licensees for instructional events held on a retailer’s premises. Specifically, the bill permits advertisements for authorized instructional events to include videos of up to 60 seconds when published in advance of the event as described.

Assembly Amendments

clarify the provisions of this bill and make conforming changes other provisions in the Alcoholic Beverage Control (ABC) Act.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it the 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 in this state and the collection of license fees for this purpose.
2. Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). 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 marketplace; (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. 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.
3. Permits a winegrower, a winegrower’s agent, wine importer, or other specified parties to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer if specified conditions are met. In this regard, these licensees may list certain information in advertisements for the event, but those advertisements are prohibited from including any video.
4. Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
5. Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
6. Provides that the name, address, telephone number, email address, internet website address, and any other electronic media of a winegrower, wine importer, or winegrower’s agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at a retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill:

1. Expands on current provisions in the ABC Act related to advertisements by a winegrower, winegrower’s agent, or wine importer for instructional events for consumers held at a retailer’s premises by allowing that advertisement to contain videos that are up to 60 seconds long.
2. Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.
3. Provides that the advertisement may contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers’ agent and would authorize the advertisement to contain or consist of pictures, illustrations, videos, or graphical depictions.

Background

Author Statement. According to the author’s office, “SB 1273 provides a targeted modernization to California’s tied-house laws, building on the Legislature’s prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state.”

Tied-House Laws/Three-Tier System. Existing law, known as the “tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts: manufacturer/supplier (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. Generally, other than exemptions 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.

Current authorizations. Winegrowers, their agents, and wine importers may hold instructional consumer tastings at a retailer's location, but only under specific legal conditions. They may provide small, free samples, since giveaways are otherwise prohibited. Alcohol cannot be sold at the tasting, though they may take orders as long as the actual sale is completed later at their own licensed premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer's information overly prominent.

This bill expands on provisions in the Act related to advertisements by the wine industry for instructional events for consumers at a retailer's premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes certain licensees, or their representatives, to conduct or participate in defined instructional activities at a retailer's premises under specified conditions. Current law permits advertisements for these events to include limited information, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers only if those visuals are relatively inconspicuous within the overall advertisement, and it prohibits the use of video. This bill expands this authority by allowing advertisements to include pictures, illustrations, videos, and depictions of the retailer's premises, personnel, and customers, subject to specified limitations.

Current statute limits how designated and on-sale retail licensees may advertise instructional tasting events to the general public, restricting them to specific mediums like flyers, newspapers, and interior signage. This bill eliminates these channel restrictions, broadly authorizing licensees to advertise these events across various mediums. This bill seeks to modernize provisions governing how specified licensees advertise instructional events held at a retailer's premises, as specified. Major platforms including Instagram, Facebook, and TikTok have shifted their algorithms to prioritize video content, particularly short‑form videos. Proponents contend that this update offers a sensible modernization of tied‑house rules by permitting video in supplier advertising without weakening protections against undue retailer influence.

Related/Prior Legislation

AB 2452 (Aguiar-Curry, Chapter 705, Statutes of 2018) revised various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.

AB 1891 (Levine, Chapter 273, Statutes of 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met.

AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.

AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.

SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”

AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, minor and absorbable costs to ABC to provide education and enforcement of the revised advertising rules. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed expansion of advertising privileges is relatively minor in scope and maintains safeguards against undue promotion of a retailer."

SUPPORT: (Verified 8/25/26)

Napa Valley Vintners (Source)

OPPOSITION: (Verified 8/25/26)

None received

ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “SB 1273 further updates the changes to the Business & Professions Code that were made in 2018 through AB 2452 to allow for a winery event promotion using social media. The 2018 amendments represented a good-faith effort to align California’s tied-house advertising rules with the realities of social media promotion at that time by allowing for photos and social media handles to be used in promotions. However, the digital landscape has shifted dramatically in the intervening seven years in ways that the Legislature could not have fully anticipated. SB 1273 is a common-sense fix that modernizes tied-house restrictions to allow video content in supplier advertisements, while maintaining protections against undue retailer promotion.”

ASSEMBLY FLOOR: 77-0, 8/25/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: McKinnor, Sanchez

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

11/5/26 16:21:11

**** END ****

 UNFINISHED BUSINESS  

Bill No: SB 1273

Author: Cabaldon (D), et al.

Amended: 8/18/26

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 3/24/26

AYES: Rubio, Valladares, Alvarado-Gil, Archuleta, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Ashby

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 40-0, 5/4/26

AYES: 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

ASSEMBLY FLOOR: Passed, 8/25/26

SUBJECT: Alcoholic beverages: tied-house restrictions: wine instructional events and promotional lectures: video advertisements

SOURCE: Napa Valley Vintners

DIGEST:

This bill expands existing provisions of the Alcoholic Beverage Control Act governing advertisements by authorized licensees for instructional events held on a retailer’s premises. Specifically, the bill permits advertisements for authorized instructional events to include videos of up to 60 seconds when published in advance of the event as described.

Assembly Amendments

clarify the provisions of this bill and make conforming changes other provisions in the Alcoholic Beverage Control (ABC) Act.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it the 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 in this state and the collection of license fees for this purpose.
2. Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). 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 marketplace; (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. 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.
3. Permits a winegrower, a winegrower’s agent, wine importer, or other specified parties to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer if specified conditions are met. In this regard, these licensees may list certain information in advertisements for the event, but those advertisements are prohibited from including any video.
4. Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
5. Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
6. Provides that the name, address, telephone number, email address, internet website address, and any other electronic media of a winegrower, wine importer, or winegrower’s agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at a retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill:

1. Expands on current provisions in the ABC Act related to advertisements by a winegrower, winegrower’s agent, or wine importer for instructional events for consumers held at a retailer’s premises by allowing that advertisement to contain videos that are up to 60 seconds long.
2. Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.
3. Provides that the advertisement may contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers’ agent and would authorize the advertisement to contain or consist of pictures, illustrations, videos, or graphical depictions.

Background

Author Statement. According to the author’s office, “SB 1273 provides a targeted modernization to California’s tied-house laws, building on the Legislature’s prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state.”

Tied-House Laws/Three-Tier System. Existing law, known as the “tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts: manufacturer/supplier (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. Generally, other than exemptions 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.

Current authorizations. Winegrowers, their agents, and wine importers may hold instructional consumer tastings at a retailer's location, but only under specific legal conditions. They may provide small, free samples, since giveaways are otherwise prohibited. Alcohol cannot be sold at the tasting, though they may take orders as long as the actual sale is completed later at their own licensed premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer's information overly prominent.

This bill expands on provisions in the Act related to advertisements by the wine industry for instructional events for consumers at a retailer's premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes certain licensees, or their representatives, to conduct or participate in defined instructional activities at a retailer's premises under specified conditions. Current law permits advertisements for these events to include limited information, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers only if those visuals are relatively inconspicuous within the overall advertisement, and it prohibits the use of video. This bill expands this authority by allowing advertisements to include pictures, illustrations, videos, and depictions of the retailer's premises, personnel, and customers, subject to specified limitations.

Current statute limits how designated and on-sale retail licensees may advertise instructional tasting events to the general public, restricting them to specific mediums like flyers, newspapers, and interior signage. This bill eliminates these channel restrictions, broadly authorizing licensees to advertise these events across various mediums. This bill seeks to modernize provisions governing how specified licensees advertise instructional events held at a retailer's premises, as specified. Major platforms including Instagram, Facebook, and TikTok have shifted their algorithms to prioritize video content, particularly short‑form videos. Proponents contend that this update offers a sensible modernization of tied‑house rules by permitting video in supplier advertising without weakening protections against undue retailer influence.

Related/Prior Legislation

AB 2452 (Aguiar-Curry, Chapter 705, Statutes of 2018) revised various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.

AB 1891 (Levine, Chapter 273, Statutes of 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met.

AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.

AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.

SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”

AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, minor and absorbable costs to ABC to provide education and enforcement of the revised advertising rules. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed expansion of advertising privileges is relatively minor in scope and maintains safeguards against undue promotion of a retailer."

SUPPORT: (Verified 8/25/26)

Napa Valley Vintners (Source)

OPPOSITION: (Verified 8/25/26)

None received

ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “SB 1273 further updates the changes to the Business & Professions Code that were made in 2018 through AB 2452 to allow for a winery event promotion using social media. The 2018 amendments represented a good-faith effort to align California’s tied-house advertising rules with the realities of social media promotion at that time by allowing for photos and social media handles to be used in promotions. However, the digital landscape has shifted dramatically in the intervening seven years in ways that the Legislature could not have fully anticipated. SB 1273 is a common-sense fix that modernizes tied-house restrictions to allow video content in supplier advertisements, while maintaining protections against undue retailer promotion.”

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/25/26 15:29:03

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1273

Author:(Cabaldon)

As Amended Ver:August 18, 2026

Majority vote

SUMMARY

This bill revises advertising prohibitions for certain Department of Alcoholic Beverage Control (ABC) licensees related to instructional tasting events.

Major Provisions

1. Expands existing provisions of the Alcoholic Beverage Control Act (Act) governing advertisements by authorized licensees (including winegrowers, licensed beer manufacturers, distilled spirits manufacturers, etc. and their designated representatives) for instructional events held on a retailer's premises. Permits advertisements for authorized instructional events to include videos of up to 60 seconds in length when published in advance of the event, as described.
2. Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.
3. States an authorized licensee, or its designated representative in advance of an authorized instructional tastings event at a retailer's premises, as specified, may list or reference in an advertisement for the instructional event the name, address, telephone number, email address, internet website address, and any other electronic media and pictures, illustrations, videos, and depictions of the retail licensee, the names of the alcoholic beverages (brand names) being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, and the advertisement may contain pictures, illustrations, videos, and graphical depictions of the retailer's premises, personnel, and customers, subject to specified limitations.
4. Makes technical and clarifying changes.

COMMENTS

Background.

Tied-House Laws/Three-Tier System. Tied-house laws separate the alcoholic beverage industry into a three-tier license system (manufacturer, wholesaler, and retailer) and generally prohibit alcoholic beverage licensees from giving any gift in connection with the sale or distribution of an alcoholic beverage. The original policy rationale for this body of law was: 1) promote the state's interest in an orderly market; 2) prohibit the vertical integration and dominance by a single producer in the market place; 3) prohibit commercial bribery and to protect the public from predatory marketing practices; and, 4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit common ownership between suppliers and retailers and restrict alcoholic beverage suppliers from exerting control over retailers through direct or indirect means. Generally, and absent a statutory exemption enacted by the Legislature, a licensee holding one type of license may not operate as another type of licensee within the three-tier system. Over time, the Legislature has enacted limited exceptions to these restrictions in circumstances where it determined that the public interest would remain adequately protected.

Current authorizations. Winegrowers, their agents, and wine importers may hold instructional consumer tastings at a retailer's location, but only under specific legal conditions. They may provide small, free samples, since giveaways are otherwise prohibited. Alcohol cannot be sold at the tasting, though they may take orders as long as the actual sale is completed later at their own licensed premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer's information overly prominent.

This bill expands on provisions in the Act related to advertisements by the wine industry for instructional events for consumers at a retailer's premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes certain licensees, or their representatives, to conduct or participate in defined instructional activities at a retailer's premises under specified conditions. Current law permits advertisements for these events to include limited information, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers only if those visuals are relatively inconspicuous within the overall advertisement, and it prohibits the use of video. This bill would expand this authority by allowing advertisements to include pictures, illustrations, videos, and depictions of the retailer's premises, personnel, and customers, subject to specified limitations.

Current statute limits how designated and on-sale retail licensees may advertise instructional tasting events to the general public, restricting them to specific mediums like flyers, newspapers, and interior signage. This bill eliminates these channel restrictions, broadly authorizing licensees to advertise these events across various mediums. This bill seeks to modernize provisions governing how specified licensees advertise instructional events held at a retailer's premises, as specified. Major platforms including Instagram, Facebook, and TikTok have shifted their algorithms to prioritize video content, particularly short‑form videos. Proponents contend that this update offers a sensible modernization of tied‑house rules by permitting video in supplier advertising without weakening protections against undue retailer influence.

According to the Author

According to the author's office, "This bill provides a targeted modernization to California's tied-house laws, building on the Legislature's prior work in AB 2452 (Aguiar-Curry, Chapter 705, Statutes of 2018) and SB 788 (Committee on Governmental Organization) Chapter 257, Statutes of 2019, by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state."

Arguments in Support

This bill is supported by beer and wine associations, with the Napa Valley Vintners arguing, "a winery attempting to promote a legally permitted consumer event through static images and text is operating at a severe and growing disadvantage compared to what the platforms' own design rewards."

Arguments in Opposition

This bill is opposed by Alcohol Justice, which argues "allowing producers to create advertising on behalf of retailers would continue the process of cutting down those protections" essential for "limiting runaway marketing that ends up targeting the most vulnerable."

FISCAL COMMENTS

According to the Assembly Committee on Appropriations analysis, "Minor and absorbable costs to ABC to provide education and enforcement of the revised advertising rules. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed expansion of advertising privileges is relatively minor in scope and maintains safeguards against undue promotion of a retailer."

VOTES

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

ASM GOVERNMENTAL ORGANIZATION: 18-0-3

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Dixon, Fong, Gabriel, Gipson, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Solache, Soria, Ta, Wallis

ABS, ABST OR NV: Carrillo, Macedo, Valencia

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

ASSEMBLY FLOOR: 70-0-9

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Caloza, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie- Norris, Quirk-Silva, Ramos, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca  Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Bains, Bryan, Calderon, Chen, Elhawary, Ellis, Papan, Ransom, Sanchez

UPDATED

VERSION: August 18, 2026

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0003765

SENATE THIRD READING

STR Bill Id:SB 1273

Author:(Cabaldon)

As Amended Ver:May 28, 2026

Majority vote

SUMMARY

This bill revises advertising prohibitions for certain Department of Alcoholic Beverage Control (ABC) licensees related to instructional tasting events.

Major Provisions

1. Repeals the limitation that certain information about or images of a retailer's premises at which an instructional event for an ABC manufacturer or wholesaler licensee's consumers is being held be relatively inconspicuous in an advertisement for the event.
2. Repeals the prohibition on including video in such an advertisement and authorizes such an advertisement to contain a video, up to 60 seconds in duration, of the retailer's premises, personnel, and customers.
3. Prohibits such an advertisement from otherwise promoting a retailer beyond the retailer's participation in the event.

COMMENTS

Background.

Tied-House Laws/Three-Tier System. Tied-house laws separate the alcoholic beverage industry into a three-tier license system (manufacturer, wholesaler, and retailer) and generally prohibit alcoholic beverage licensees from giving any gift in connection with the sale or distribution of an alcoholic beverage. The original policy rationale for this body of law was: 1) promote the state's interest in an orderly market; 2) prohibit the vertical integration and dominance by a single producer in the market place; 3) prohibit commercial bribery and to protect the public from predatory marketing practices; and, 4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit common ownership between suppliers and retailers and restrict alcoholic beverage suppliers from exerting control over retailers through direct or indirect means. Generally, and absent a statutory exemption enacted by the Legislature, a licensee holding one type of license may not operate as another type of licensee within the three-tier system. Over time, the Legislature has enacted limited exceptions to these restrictions in circumstances where it determined that the public interest would remain adequately protected.

Current authorizations. Winegrowers, their agents, and wine importers may hold instructional consumer tastings at a retailer's location, but only under specific legal conditions. They may provide small, free samples, since giveaways are otherwise prohibited. Alcohol cannot be sold at the tasting, though they may take orders as long as the actual sale is completed later at their own licensed premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer's information overly prominent.

This bill expands on provisions in the Act related to advertisements by the wine industry for instructional events for consumers at a retailer's premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes certain licensees, or their representatives, to conduct or participate in defined instructional activities at a retailer's premises under specified conditions. Current law permits advertisements for these events to include limited information, pictures, illustrations, and depictions of the retailer's premises, personnel, and customers only if those visuals are relatively inconspicuous within the overall advertisement, and it prohibits the use of video. This bill would expand this authority by allowing advertisements to include pictures, illustrations, videos, and depictions of the retailer's premises, personnel, and customers, subject to specified limitations.

Current statute limits how designated and on-sale retail licensees may advertise instructional tasting events to the general public, restricting them to specific mediums like flyers, newspapers, and interior signage. This bill eliminates these channel restrictions, broadly authorizing licensees to advertise these events across various mediums. This bill seeks to modernize provisions governing how specified licensees advertise instructional events held at a retailer's premises, as specified. Major platforms including Instagram, Facebook, and TikTok have shifted their algorithms to prioritize video content, particularly short‑form videos. Proponents contend that this update offers a sensible modernization of tied‑house rules by permitting video in supplier advertising without weakening protections against undue retailer influence.

According to the Author

According to the author's office, "This bill provides a targeted modernization to California's tied-house laws, building on the Legislature's prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state."

Arguments in Support

This bill is supported by beer and wine associations, with the Napa Valley Vintners arguing, "a winery attempting to promote a legally permitted consumer event through static images and text is operating at a severe and growing disadvantage compared to what the platforms' own design rewards."

Arguments in Opposition

This bill is opposed by Alcohol Justice, which argues "allowing producers to create advertising on behalf of retailers would continue the process of cutting down those protections" essential for "limiting runaway marketing that ends up targeting the most vulnerable."

FISCAL COMMENTS

According to the Assembly Committee on Appropriations analysis, "Minor and absorbable costs to ABC to provide education and enforcement of the revised advertising rules. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed expansion of advertising privileges is relatively minor in scope and maintains safeguards against undue promotion of a retailer."

VOTES

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

ASM GOVERNMENTAL ORGANIZATION: 18-0-3

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Dixon, Fong, Gabriel, Gipson, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Solache, Soria, Ta, Wallis

ABS, ABST OR NV: Carrillo, Macedo, Valencia

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

ASSEMBLY FLOOR: 70-0-9

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Caloza, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Bains, Bryan, Calderon, Chen, Elhawary, Ellis, Papan, Ransom, Sanchez

UPDATED

VERSION: May 28, 2026

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0003710

Date of Hearing: June 24, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 1273

Author:(Cabaldon) – As Amended Ver:May 28, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill revises advertising prohibitions for certain Department of Alcoholic Beverage Control (ABC) licensees related to instructional tasting events.

Specifically, this bill:

1. Repeals the limitation that certain information about or images of a retailer’s premises at which an instructional event for an ABC manufacturer or wholesaler licensee’s consumers is being held be relatively inconspicuous in an advertisement for the event.
2. Repeals the prohibition on including video in such an advertisement and authorizes such an advertisement to contain a video, up to 60 seconds in duration, of the retailer’s premises, personnel, and customers.
3. Prohibits such an advertisement from otherwise promoting a retailer beyond the retailer’s participation in the event.

FISCAL EFFECT:

Minor and absorbable costs to ABC to provide education and enforcement of the revised advertising rules.

This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed expansion of advertising privileges is relatively minor in scope and maintains safeguards against undue promotion of a retailer.

COMMENTS:

1. Purpose. According to the author:

This bill provides a targeted modernization to California’s tied-house laws…by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers.

1. Background. Tied-house Law. California’s tied-house law prevents the vertical integration of the alcohol industry by keeping the manufacturer, wholesaler, and retailer separated. Generally, one type of license holder is not permitted to do business as another type of licensee, and licensees are prohibited from directly or indirectly giving away anything of value, such as free goods, services, or advertising, in connection with the sale or distribution of an alcoholic beverage. Over the years, numerous exceptions to this tied-house prohibition have been enacted to authorize licensees to undertake otherwise prohibited activities.

Instructional Events. Existing law authorizes certain ABC manufacturer and wholesale licensees to conduct certain instructional activities, including tastings, regarding the licensee’s alcoholic beverages at a licensed retailer’s premises. Existing law authorizes an advertisement for such an event to include limited information and images of the host retailer’s premises, personnel, and customers if the content is relatively inconspicuous within an overall advertisement and prohibits the use of video in such an advertisement. This bill repeals these limitations and authorizes such an advertisement to include a 60-second video.

1. Support and Opposition. This bill is supported by beer and wine associations, with the Napa Valley Vintners arguing, “a winery attempting to promote a legally permitted consumer event through static images and text is operating at a severe and growing disadvantage compared to what the platforms’ own design rewards.”

This bill is opposed by Alcohol Justice, which argues “allowing producers to create advertising on behalf of retailers would continue the process of cutting down those protections” essential for “limiting runaway marketing that ends up targeting the most vulnerable.”

1. Related Legislation. AB 1991 (Aguiar-Curry) authorizes certain ABC licensees to furnish tastes of alcoholic beverages as part of a bona fide market research study undertaken by the licensee to measure consumer perceptions of the licensee’s alcoholic beverage. AB 1991 is pending hearing in the Senate Governmental Organization Committee.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 10, 2026

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

SBPCA Bill Id:SB 1273

Author:(Cabaldon) – As Amended Ver:May 28, 2026

SENATE VOTE: 40-0

SUBJECT: Alcoholic beverages: tied-house restrictions: instructional events and promotional lectures: video advertisements

SUMMARY: This bill would revise various advertising prohibitions for specified alcohol licensees when conducting instructional tastings events at a retailer's location, to, among other things, to include videos of up to 60 seconds and removes the requirement that the specified information and any pictures, illustrations, or depictions in the advertisement be relatively inconspicuous in relation to the advertisement as a whole. Specifically, this bill:

1) Expands existing provisions of the Alcoholic Beverage Control Act (Act) governing advertisements by authorized licensees (including winegrowers, licensed beer manufacturers, distilled spirits manufacturers, etc. and their designated representatives) for instructional events held on a retailer’s premises. Permits advertisements for authorized instructional events to include videos of up to 60 seconds in length when published in advance of the event.

2) Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

3) States an authorized licensee, or its designated representative in advance of an authorized instructional tastings event at a retailer’s premises, as specified, may list or reference in an advertisement for the instructional event the name, address, telephone number, email address, internet website address, and any other electronic media of the retail licensee, the names of the alcoholic beverages (brand names) being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, and the advertisement may contain pictures, illustrations, videos, and depictions of the retailer’s premises, personnel, and customers, subject to specified limitations.

4) Makes technical and clarifying changes.

EXISTING LAW:

1) The enactment of the 21st Amendment to the U.S. Constitution in 1933 repealed the 18th

Amendment and ended the era of Prohibition. Accordingly, states were granted the authority to

establish alcoholic beverage laws and administrative structures to regulate the sale and

distribution of alcoholic beverages.

2) Establishes 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 in this

state and the collection of license fees for this purpose.

3) Permits winegrowers, winegrower’s agents, and wine importers to conduct and/or participate in instructional consumer tastings at a retailer’s premises, subject to a number of conditions. No premium, gift, free goods, or other things of value may be given away in connection with the instructional event, and no alcoholic beverages may be given away except for limited samples. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer’s information overly prominent.

4) Allows a licensed beer manufacturer or a holder of a beer and wine importer’s general license, or other defined designee, to conduct an instructional event for consumers held at an on-sale retail licensee’s premises featuring beer. The listing of the retailer’s name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailer’s premises and laudatory references to the retailer in these advertisements are not authorized. Orders for the sale of beer may be accepted by the beer manufacturer conducting an instructional event if the sales transaction is completed at the beer manufacturer’s licensed premises.

5) Provides an authorized licensee, or a designated representative, as specified, may conduct, on the area, as defined, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, as specified. Advertisements for the instruction may include the licenseholder’s contact information (name, address, phone number, email, website, and other electronic media), but this information must remain relatively inconspicuous, as defined. Any images used must be still pictures or illustrations (videos are not allowed). Reposting social media content, including a retailer’s own posts, is permitted as long as all advertising requirements are met.

6) Allows an authorized licensee, or its designated representative, to instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. An authorized licensee (or their representative) may include specified information in public advertisements for an instructional tasting event. In this regard, specified information, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers may be listed in advertisements for the event if the pictures, illustrations, or depictions are relatively inconspicuous in relation to the advertisement as a whole and video is not permitted. This is allowed in addition to any standard point‑of‑sale advertising.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

Purpose of the bill. According to the author’s office, “This bill provides a targeted modernization to California’s tied-house laws, building on the Legislature’s prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state.”

Recent amendments further modernize tied‑house restrictions for specified license holders and on‑sale retail licensees by permitting the use of video content in supplier advertisements to promote an instructional tasting event, while preserving safeguards against undue retailer promotion.

Background.

Tied-House Laws/Three-Tier System. Tied-house laws separate the alcoholic beverage industry into a three-tier license system (manufacturer, wholesaler, and retailer) and generally prohibit alcoholic beverage licensees from giving any gift in connection with the sale or distribution of an alcoholic beverage. The original policy rationale for this body of law was: 1) promote the state's interest in an orderly market; 2) prohibit the vertical integration and dominance by a single producer in the market place; 3) prohibit commercial bribery and to protect the public from predatory marketing practices; and, 4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit common ownership between suppliers and retailers and restrict alcoholic beverage suppliers from exerting control over retailers through direct or indirect means. Generally, and absent a statutory exemption enacted by the Legislature, a licensee holding one type of license may not operate as another type of licensee within the three-tier system. Over time, the Legislature has enacted limited exceptions to these restrictions in circumstances where it determined that the public interest would remain adequately protected.

Current authorizations. Winegrowers, their agents, and wine importers may hold instructional consumer tastings at a retailer’s location, but only under specific legal conditions. They may provide small, free samples, since giveaways are otherwise prohibited. Alcohol cannot be sold at the tasting, though they may take orders as long as the actual sale is completed later at their own licensed premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer’s information overly prominent.

SB 1273 expands on provisions in the Act related to advertisements by the wine industry for instructional events for consumers at a retailer’s premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

Existing law authorizes certain licensees, or their representatives, to conduct or participate in defined instructional activities at a retailer’s premises under specified conditions. Current law permits advertisements for these events to include limited information, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers only if those visuals are relatively inconspicuous within the overall advertisement, and it prohibits the use of video. SB 1273 would expand this authority by allowing advertisements to include pictures, illustrations, videos, and depictions of the retailer’s premises, personnel, and customers, subject to specified limitations.

Current statute limits how designated and on-sale retail licensees may advertise instructional tasting events to the general public, restricting them to specific mediums like flyers, newspapers, and interior signage. SB 1273 eliminates these channel restrictions, broadly authorizing licensees to advertise these events across various mediums. This bill seeks to modernize provisions governing how specified licensees advertise instructional events held at a retailer’s premises, as specified. Major platforms including Instagram, Facebook, and TikTok have shifted their algorithms to prioritize video content, particularly short‑form videos. Proponents contend that this update offers a sensible modernization of tied‑house rules by permitting video in supplier advertising without weakening protections against undue retailer influence.

In support. According to the Napa Valley Vintners, “This bill further amends the changes made to the Business and Professions Code through AB 2452 (2018) by permitting wineries to promote events through social media. That measure represented a good-faith effort to align California’s tied-house advertising rules with the realities of social media promotion at that time by allowing for photos and social media handles to be used in promotions. However, the digital landscape has shifted dramatically in the intervening seven years in ways that the Legislature could not have fully anticipated. SB 1273 is a common-sense fix that modernizes tied-house restrictions to allow video content in supplier advertisements, while maintaining protections against undue retailer promotion.”

The California Craft Brewers Association writes, “SB 1273 will ensure full compliance with State and Federal tied-house laws by establishing conditions that prohibit laudatory references or promotion of a retail licensee beyond its specific participation in the event. Any pictures, illustrations, videos, or depictions of the retail licensee’s premise where the beer or wine event is to occur will not constitute a commercial for the retail licensee, only inform the viewer of the date, only inform the viewer of the date, time, location, and expectations of the event. Our members frequently use social media platforms like Instagram, Facebook, and TikTok to promote their products and businesses. This bill will modernize the Act while upholding full compliance with the intent of California’s tied-house laws.”

Prior legislation. AB 2452 (Aguiar-Curry), Chapter 705, Statutes of 2018. Revised various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.

AB 1891 (Levine), Chapter 273, Statutes of 2018. Permitted a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met.

AB 780 (Williams), Chapter 408, Statutes of 2015. Made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.

AB 636 (Hall), Chapter 329, Statutes of 2013. Permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.

SB 1101 (Wolk), Chapter 177, Statutes of 2010. Clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”

AB 605 (Portantino), Chapter 230, Statutes of 2010. Added new provisions to the Act authorizing the ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” (Type 86) for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.

REGISTERED SUPPORT / OPPOSITION:

Support

Napa Valley Vintners (Sponsor)

California Craft Brewers Association

Family Winemakers of California

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

 THIRD READING  

Bill No: SB 1273

Author: Cabaldon (D), et al.

Introduced: 2/20/26

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 3/24/26

AYES: Rubio, Valladares, Alvarado-Gil, Archuleta, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Ashby

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Alcoholic beverages: tied-house restrictions: wine instructional events and promotional lectures: video advertisements

SOURCE: Napa Valley Vintners

DIGEST: This bill expands on provisions in the Alcoholic Beverage Control Act (Act) related to advertisements for instructional events for consumers at a retailer’s premises. This bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

ANALYSIS:

Existing law:

1. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the 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 in this state and the collection of license fees for this purpose.
2. Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). 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 marketplace; (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. 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.
3. Permits a winegrower, a winegrower’s agent, wine importer, or other specified parties to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer if specified conditions are met. In this regard, these licensees may list certain information in advertisements for the event, but those advertisements are prohibited from including any video.
4. Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
5. Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
6. Provides that the name, address, telephone number, email address, internet website address, and any other electronic media of a winegrower, wine importer, or winegrower’s agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at a retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill:

1. Expands on current provisions in the ABC Act related to advertisements by a winegrower, winegrower’s agent, or wine importer for instructional events for consumers held at a retailer’s premises by allowing that advertisement to contain videos that are up to 60 seconds long.
2. Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.
3. Provides that the advertisement may contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers’ agent.

Background

Author Statement. According to the author’s office, “SB 1273 provides a targeted modernization to California’s tied-house laws, building on the Legislature’s prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state.”

Tied-House Laws/Three-Tier System. Existing law, known as the “tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts: manufacturer/supplier (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. Generally, other than exemptions 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.

Current Authorization. Current law authorizes winegrowers, winegrower’s agents, and wine importers to conduct and/or participate in instructional consumer tastings at a retailer’s premises, subject to a number of conditions. Specifically, current law is clear that no premium, gift, free goods, or other things of value may be given away in connection with the instructional event, and no alcoholic beverages may be given away except for limited samples. Limited samples include minimal amounts of wine, taken from barrels or tanks and up to three one-ounce tastes per consumer from bottles of wine provided by the licensee.

Alcohol cannot be sold at the event itself, though licensees may taker orders if the sale is completed at their own premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer’s information overly prominent.

This bill allows the advertisement to contain videos up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole. This bill would also authorize the advertisement to contain pictures, illustrations, videos, or depictions of the winegrower, wine importer or winegrower’s agent.

These changes all seek to modernize these provisions of the ABC Act when it comes to advertisements by specified licensees for instructional events held a retailer’s premises. According to the author’s office, “platforms like Instagram, Facebook, and TikTok have restructured their algorithms to heavily prioritize video content particularly short-term video. Research indicates that social video generates approximately 1,200% more shares than text and images combined. For practical purposes, this means that a winery attempting to promote a legally permitted consumer event through static images and text is operating at a severe and growing disadvantage compared to what the platforms' own design rewards.”

Related/Prior Legislation

AB 2452 (Aguiar-Curry, Chapter 705, Statutes of 2018) revised various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.

AB 1891 (Levine, Chapter 273, Statutes of 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met.

AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.

AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.

SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”

AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, staff notes that the Department of ABC’s activities are funded by regulatory and license fees and generally the department does not receive support from the General Fund. New legislative mandates, although modest in scope, may in totality create new cost pressures and impact the department’s operating costs and future budget requests.

SUPPORT: (Verified 4/13/26)

Napa Valley Vintners (Source)

OPPOSITION: (Verified 4/13/26)

None received

ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “SB 1273 further updates the changes to the Business & Professions Code that were made in 2018 through AB 2452 to allow for a winery event promotion using social media. The 2018 amendments represented a good-faith effort to align California’s tied-house advertising rules with the realities of social media promotion at that time by allowing for photos and social media handles to be used in promotions. However, the digital landscape has shifted dramatically in the intervening seven years in ways that the Legislature could not have fully anticipated. SB 1273 is a common-sense fix that modernizes tied-house restrictions to allow video content in supplier advertisements, while maintaining protections against undue retailer promotion.”

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

4/14/26 16:16:12

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Susan Rubio

Chair

2025 - 2026 Regular

Bill No: Hearing Date: 03/24/2026

SUBJECT:

DIGEST: This bill expands on provisions in the Alcoholic Beverage Control Act (Act) related to advertisements for instructional events for consumers at a retailer’s premises. Specifically, the bill allows for the advertisements to contain videos that are up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.

ANALYSIS:

Existing law:

1. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it the 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 in this state and the collection of license fees for this purpose.
2. Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). 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 marketplace; (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. 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.
3. Permits a winegrower, a winegrower’s agent, wine importer, or other specified parties to conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer if specified conditions are met. In this regard, these licensees may list certain information in advertisements for the event, but those advertisements are prohibited from including any video.
4. Prohibits a premium, gift, free goods, or anything of value from being given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized.
5. Provides that no alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
6. Provides that the name, address, telephone number, email address, internet website address, and any other electronic media of a winegrower, wine importer, or winegrower’s agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at a retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.

This bill:

1. Expands on current provisions in the ABC Act related to advertisements by a winegrower, winegrower’s agent, or wine importer for instructional events for consumers held at a retailer’s premises by allowing that advertisement to contain videos that are up to 60 seconds long.
2. Removes the requirement that the specified information and any pictures, illustrations, or depictions in that advertisement be relatively inconspicuous in relation to the advertisement as a whole.
3. Provides that the advertisement may contain pictures, illustrations, videos, or depictions of the winegrower, wine importer, or winegrowers’ agent.

Background

Author Statement. According to the author’s office, “SB 1273 provides a targeted modernization to California’s tied-house laws, building on the Legislature’s prior work in AB 2452 (2018) and SB 788 (2019) by allowing winegrowers and wine importers to use short-term video in advertisements promoting legally permitted consumer events like winemaker dinners and tastings. Social media has changed dramatically since the Legislature last addressed this issue, and platforms like Instagram, TikTok, and Facebook now overwhelmingly favor video content, leaving California vintners at a growing disadvantage in reaching their own customers. At a time when the industry is facing serious headwinds, with well-known wineries downsizing or closing in recent months, this bill gives vintners a more authentic way to meet consumers where they are, at no cost to the state.”

Tied-House Laws/Three-Tier System. Existing law, known as the “tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts: manufacturer/supplier (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.

Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. Generally, other than exemptions 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.

Current Authorization. Current law authorizes winegrowers, winegrower’s agents, and wine importers to conduct and/or participate in instructional consumer tastings at a retailer’s premises, subject to a number of conditions. Specifically, current law is clear that no premium, gift, free goods, or other things of value may be given away in connection with the instructional event, and no alcoholic beverages may be given away except for limited samples. Limited samples include minimal amounts of wine, taken from barrels or tanks and up to three one-ounce tastes per consumer from bottles of wine provided by the licensee.

Alcohol cannot be sold at the event itself, though licensees may taker orders if the sale is completed at their own premises. Current law also allows limited advertising of the event by the licensee, including basic identifying information and still images, but prohibits listing retail prices, making laudatory references to the retailer, using video, or making the retailer’s information overly prominent.

This bill allows the advertisement to contain videos up to 60 seconds long and removes the requirement that the specified information and any pictures, illustrations, or depictions be relatively inconspicuous in relation to the advertisement as a whole. The bill would also authorize the advertisement to contain pictures, illustrations, videos, or depictions of the winegrower, wine importer or winegrower’s agent.

These changes all seek to modernize these provisions of the ABC Act when it comes to advertisements by specified licensees for instructional events held a retailer’s premises. According to the author’s office, “platforms like Instagram, Facebook, and TikTok have restructured their algorithms to heavily prioritize video content particularly short-term video. Research indicates that social video generates approximately 1,200% more shares than text and images combined. For practical purposes, this means that a winery attempting to promote a legally permitted consumer event through static images and text is operating at a severe and growing disadvantage compared to what the platforms' own design rewards.”

Prior/Related Legislation

AB 2452 (Aguiar-Curry, Chapter 705, Statutes of 2018) revised various advertising prohibitions for alcohol licensees when conducting instructional events at a retailer’s location to, among other things, allow for pictures, illustrations, and depictions of the retailer’s premises and for the name, address, telephone number, email address, Internet Web site address, and any other electronic media of the licensee upon whose licensed premises the event will be held.

AB 1891 (Levine, Chapter 273, Statutes of 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met

AB 780 (Williams, Chapter 408, Statutes of 2015) made clarifying and conforming changes relating to the listing of on-sale and off-sale retailers as a thing of value in order to enable licensees to connect with each other for normal commercial purposes.

AB 636 (Hall, Chapter 329, Statutes of 2013) permitted a winegrower, California winegrower’s agent, importer, or other specified parties appearing at an instructional event, as specified, to provide autographs to consumers or consumer advertising specialties given by the person to a consumer or on any item provided by a consumer; and prohibited a requirement of the purchase of any alcoholic beverage in connection with such autographing.

AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new tied-house exception in the Act that authorizes, until January 1, 2016, wine, beer and spirits producers to participate in promotional events held at an off-sale retail licensed location for the purpose of providing autographs on bottles or other items to consumers.

SB 1101 (Wolk, Chapter 177, Statutes of 2010) clarified that winemakers who participate in instructional events or “meet the winemaker dinners,” held at a retailer’s licensed premises for consumers, may offer minimal samples, no more than three one-ounce tastes, of wine from “bottles.”

AB 605 (Portantino, Chapter 230, Statutes of 2010) added new provisions to the Act authorizing the Department of ABC to issue to the holder of an “off-sale” retail license an “instructional tasting license” for the purpose of furnishing tastings of alcoholic beverages to consumers, subject to certain limitations.

AB 2134 (Chesbro, Chapter 149, Statutes of 2010) created a new tied-house exception in the Act that allows licensed brewers to conduct and participate in events called “Beer Maker Dinners” for consumers held at an on-sale retail licensed premise.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Napa Valley Vintners (Source)

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Napa Valley Vintners, “SB 1273 further updates the changes to the Business & Professions Code that were made in 2018 through AB 2452 to allow for a winery event promotion using social media. The 2018 amendments represented a good-faith effort to align California’s tied-house advertising rules with the realities of social media promotion at that time by allowing for photos and social media handles to be used in promotions. However, the digital landscape has shifted dramatically in the intervening seven years in ways that the Legislature could not have fully anticipated. SB 1273 is a common-sense fix that modernizes tied-house restrictions to allow video content in supplier advertisements, while maintaining protections against undue retailer promotion.”