§ 25600.3. — 25600.3. (Amended by Stats. 2017, Ch. 419, Sec. 2.)

(a)
A nonretail licensee shall not offer, fund, produce, sponsor, promote, furnish, or redeem any type of coupon.
(b)
A licensee authorized to sell alcoholic beverages at retail shall not accept, redeem, possess, or utilize any type of coupon that is funded, produced, sponsored, promoted, or furnished by a nonretail licensee.
(c)
For purposes of this section:
(1)
“Nonretail licensee” means any person who own or holds any interest, directly or indirectly, in any license, authorization, or permit issued pursuant to this division that authorizes the manufacture, production, rectification, importation, or wholesaling of alcoholic beverages,
except for a brewpub restaurant license issued pursuant to Section 23396.3.
(2)
“Cider” has the same meaning set forth in Section 4.21(e)(5) of the Code of Federal Regulations.
(3)
“Perry” has the same meaning set forth in Section 4.21(e)(5) of the Code of Federal Regulations.
(4)
“Coupon” means any method by which a consumer receives a discount on the purchase of any item that is funded, produced, sponsored, promoted, or furnished, either directly or indirectly, by a nonretail licensee, including, but not limited to, a paper coupon, a digital coupon, an instant redeemable coupon (IRC), or a mail-in rebate or mail-in discount, except as otherwise provided, or an electronic coupon commonly referred to as a scan or scanback. “Coupon” does not include:
(A)
(i)
A mail-in rebate or electronic or digital rebate where all of the following apply:
(I)
The consumer must submit a request for the rebate to the nonretail licensee or its vendor after the purchase of a qualifying product.
(II)
The rebate is paid to the consumer after the purchase of the qualifying product and receipt of the consumer’s request with any required information.
(III)
The rebate is paid and funded by the nonretail licensee.
(ii)
A retail licensee shall not act as the vendor or intermediary for the nonretail licensee or the consumer.
(iii)
For purposes of this subparagraph, “nonretail license” and “vendor” shall not include an importer or
wholesaler that holds only wholesaler or importer licenses, or both, that primarily sells beer, nonalcoholic beer, malt beverages, cider, or perry to retail licensees.
(B)
A discount or rebate that is offered, funded, produced, sponsored, promoted, or furnished by a distilled spirits manufacturer, distilled manufacturer’s agent, brandy manufacturer, brandy importer, distilled spirits rectifier general, holder of an out-of-state distilled spirits shipper certificate, distilled spirits importer general, distilled spirits importer, rectifier, brandy wholesaler, distilled spirits wholesaler, or a holder of a craft distiller’s license, regardless of other licenses held, that offers a discount or rebate on the purchase of any item so long as no nonalcoholic beer, beer, malt beverages, or wine products are advertised or promoted by these licensees in connection with the discount or rebate.
(C)
A discount that is offered and funded by a beer manufacturer on the purchase of beer, malt beverages, cider, or perry at the licensed premises of production or other licensed premises owned or leased and operated by the beer manufacturer.
(D)
A discount that is offered and funded by a winegrower on the purchase of wine sold directly by the winegrower to a consumer at or from the licensed premises of production or other licensed premises owned or leased and operated by the winegrower or through the Internet where a consumer buys directly from a winegrower.
(d)
Nothing in this section is intended to preclude or prevent or otherwise restrict an on-sale or off-sale retail licensee that is not also a nonretail licensee from offering, funding, producing, sponsoring, promoting, furnishing, or redeeming a discount to consumers on the purchase of alcoholic beverages that
is not otherwise prohibited by this section or any other provision of law.

Legislative History

Amended by Stats. 2017, Ch. 419, Sec. 2. (AB 1722) Effective January 1, 2018.