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California Alcoholic Beverage Legislative Update

With the close of the 2017 legislative session, Governor Brown signed several new alcoholic beverage bills into law, which will become effective on January 1, 2018. Two of the more controversial bills failed to make it through the legislative process – SB 254 would have further regulated alcohol delivery services and SB 384 (renamed) would have allowed on-sale licensees to apply to the ABC to extend hours of sale and service to 4 am. While dead in the water at the close of this session, these closely watched bills are expected to surface again in upcoming legislative sessions.

Joint Tasting Room for Beer and Wine Manufacturers

AB 997 provides an exception to the restriction that prohibits a licensee from having alcoholic beverages on its licensed premises other than the type that the licensee is authorized to sell. Business and Professions Code Section 25607 is amended to allow a licensed winegrower (Type 02) and a licensed small beer manufacturer (Type 23) to share a joint tasting room, so long as it is adjacent to the area where both of the licensees hold production licenses. The privilege is not extended to holders of large beer manufacturer licenses (Type 01), nor does it apply to branch office locations (duplicate licenses).

Mandatory Server Training

AB 1221 establishes the Responsible Beverage Service (RBS) Training Program Act of 2017 and requires the ABC to “develop, implement, and administer a curriculum for an RBS training program” by January 1, 2020. Beginning July 1, 2021, all alcohol servers will be required to complete an RBS training program. Alcohol servers include employees of on-sale licensees who serve alcoholic beverages, any person who supervises or manages such an employee, and a designee for alcoholic beverage sales and service pursuant to a temporary license. The training will include instruction on state laws and regulations relating to alcoholic beverage control and driving under the influence, the social and physical impacts of alcohol, and intervention techniques to prevent sales to underage and intoxicated persons. Training may be provided by the ABC for a maximum fee of $15 or through an accredited agency as approved by the ABC. The provisions of the RBS Training Program will be found in newly added Business and Professions Code Sections 25680 – 25686.

Beer Manufacturers May Provide Free or Discounted Rides

AB 711 amends Business and Professions Code Section 25600 to allow beer manufacturers to provide free or discounted rides to consumers for the purposes of furthering public safety. Such free or discounted rides, so long as not conditioned on the purchase of an alcoholic beverage, provide an exception to the prohibition on giving any premium, gift or free goods in connection with
the sale or distribution of alcoholic beverages. Beer and wine wholesalers are prohibited from participating and beer manufacturers are prohibited from providing a gift or anything of value directly or indirectly to a licensed retailer.

For more information about the recent changes to California’s alcohol laws, contact an attorney at Strike & Techel.


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