2016 LEGISLATIVE UPDATES: Part I

By Rebecca Stamey-White and Erin Kelleher

In 2016, we’ll see a lot of changes to California’s laws regulating alcoholic beverages. As the state’s legal experts on alcohol, we’ve been answering a lot of questions from clients about how they can comply with these new laws and take advantage of the new exceptions, so we decided to compile our analysis of the legislative changes into a series of blog posts to ensure your compliance is off to a great start in the new year.

 In order to help our readers digest the information and understand the changes, we’ve grouped our legislative discussion into four courses:

  • First Course: Promotional Activities

Pairing Suggestion: an H&C big bottle of wine; best served with your sweepstakes dinner prize.

  • Second Course: Advertising, Events and Things of Value

Pairing Suggestion: Renwood 2014 Old Vine Zin, to be enjoyed while you check-in at our restaurant on social media.

  • Third Course: Licensing, Qualification and Tied House Ownership

Pairing Suggestion: White Russian with craft coffee liqueur and locally-sourced vodka, because you can soon enjoy a cocktail when you visit your favorite craft distillery.

  • Fourth Course: The Medical Marijuana Regulation and Safety Act from an alcohol industry perspective.

Pairing Suggestion: Cannabis-infused wine… as soon as we can legally get our hands on some! Rebecca will also be speaking on some of these issues at the Women Grow Bay Area chapter meeting this Thursday in Oakland if you can’t wait for this course.

If you get heartburn from any of these courses, please reach out to us for a legal remedy.  

FIRST COURSE: PROMOTIONAL ACTIVITIES

Alcohol may now be part of a prize for contests & sweepstakes (SB 796: 25600.1 & 25600.2)

In big news for a state that only rejoined the rest of the country in 2013 by even permitting alcohol supplier-sponsored sweepstakes and contests, alcohol may now also be given away as a prize in connection with a contest or sweepstakes, provided that it is an “incidental part of a prize package.”

This is a marked departure from California’s previous position of being strictly against the potentially "overly aggressive marketing" of alcoholic beverages in the form of sweepstakes and contests. The state now blazes a trail by permitting the beverages themselves to be a prize (but not without a gray area to interpret!).

What “incidental” means exactly is not clear. While it is still the case that alcohol cannot be the sole prize that is given away in a contest or sweepstakes, it is less clear how marginal the alcohol prize must be and whether it can be specifically advertised or highlighted in the official rules. In our view, while “incidental” likely includes alcohol poured in connection with trips to supplier premises or at hosted dinners that may involve pairing with the supplier’s products, it likely would not include things like prized bottles of wine or a free bottle of wine every month for a year in addition to such trips.

Bottle signing events are here to stay (SB 796: 25502.2)

The sunset provision of this statute was deleted, allowing celebrity bottle signings to occur indefinitely (click here for a link to the previous Booze Rules post on this topic, outlining the requirements).

Still hungry? Good, because there are three more courses to go…

 

  1. National Conference of State Liquor Administrators – The Alcohol Industry gathers in Hawaii to figure out how to enforce the US “Highly Archaic Regulatory Scheme.”
  2. Founder John Hinman Honored with the Raphael House Community Impact Award
  3. ROUTE TO MARKET AND MARKETING RESTRICTIONS - NAVIGATING REGULATORY SYSTEM CONSTRAINTS
  4. Alcohol and Cannabis Ventures: Top 5 Legal Considerations
  5. ATF and TTB: Is Another Divorce on the Horizon? What’s Going on with the Agency?
  6. STRIKE 3 - YOU REALLY ARE OUT! THE ABC'S STRICT APPLICATION OF PENALTIES FOR SALES TO MINORS
  7. TTB Temporarily Fixes Problem with Fulfillment Warehouse Tax Credits - an “Alternate Procedure” for Paying Taxes & Reporting
  8. CUSTOMERS WHO HAVE HAD ONE TOO MANY - THE FREE TRANSPORTATION DILEMMA
  9. The Renaissance of Federal Unfair Trade Practices - Current Issues and Strategies
  10. ‘Twas the week before New Year’s and the ABC is out in Force – Alerts for the Last Week of 2017, including the Limits on Free Rides
  11. Big Bottles, Caviar and a CA Wine Strong Silent Auction for the Holidays!
  12. The FDA and the Wine and Spirits Industry – Surprise inspections anyone?
  13. NORTHERN CALIFORNIA WILDFIRES: UPDATED REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  14. NORTHERN CALIFORNIA WILDFIRES: REGULATORY AGENCY DISASTER RELIEF RESOURCES AT A GLANCE
  15. Soon to come to your Local Supermarket– Instant Redeemable Coupons of the digital age!
  16. The License Piggyback Dilemma – If it Sounds Too Good to be True, it Probably is
  17. A timely message from our Florida colleagues on the tied house laws, the three-tier system and the need for reform
  18. ABC Declaratory Rulings – A Modest Proposal Whose Time has Come
  19. More on FDA Inspections - Breweries, Distilleries and Questions
  20. WHY THE FDA IS INSPECTING WINERIES
  21. Senate Bill 378—The Proposed Demise of Due Process for Alcohol Licensees
  22. ABC Enforcement - Trends and Predictions
  23. The Corruption Chronicles – Volume One: A New Hope
  24. New Alcohol Delivery Oversight on the Horizon
  25. Michigan: Canary in the DtC Coal Mine?
  26. California ABC and Federal Credit Laws – Active Enforcement and Lots of Questions!
  27. Big Bottles For The Holidays - The Highest Calling Of The Winemaker's Art
  28. FINAL COMMENTS TO TTB NOTICE 160 DUE ON WEDNESDAY DECEMBER 7TH – WE ARE ASKING THE TTB TO EXTEND THE COMMENT PERIOD AGAIN TO ALLOW FOR INDUSTRY NEGOTIATION AND ALIGNMENT OF INTERESTS
  29. SONOMA COUNTY WINERY USE PERMITS, EVENT RESTICTIONS AND DTC
  30. New TTB Labeling Requirement Regulations: Out-of-State Bottling Is Not Created Equal and Consumers Right to Know Where the Grapes in their Wine Come from is Compromised
  31. Isn't A Written Agreement With A Distributor Worthless In A Franchise State?
  32. Crowd Funding for Alcohol Producers and Retailers – Down the Rabbit Hole with the Tied House laws
  33. Everything you ever wanted to know about the BPA Warning Statement but were afraid to ask
  34. AB 2082 - A Hunting License for Police and a Lethal Weapon for Politicians that Deprives Licensees of Currently Available Due Process Rights
  35. “Better Late Than Never”-- Judge in Illinois Dismisses 201 Sales Tax Cases against Retailers
  36. The Day the Music Almost Died: The Story of the BottleRock ABC Accusations, the ABC Appeals Board and a Victory for a Common Sense Interpretation of the Tied House Laws
  37. The Arsenic in Wine Class Action Dismissal – what it means
  38. Counterfeit or Artisanal Mexican Spirits? Pick your Poison, or your lime wedge
  39. Warning - CA ABC enforcement teams are on the prowl this weekend!
  40. RELIEF AT LAST! ILLINOIS MOVES TO FIX THE SALES TAX LAWSUITS AGAINST OUT-OF-STATE SELLERS BUT PROPOSES TO PENALIZE WINERIES AND RETAILERS THAT SHIP WITHOUT PERMITS
  41. The TTB Speaks on Category Management or, be Careful What you Ask for Because you might Get it!
  42. Hinman & Carmichael LLP Announces the Addition of Jeremy Siegel to its team of top beverage law lawyers
  43. 2016 LEGISLATIVE UPDATES: Part IV
  44. 2016 LEGISLATIVE UPDATES: Part III
  45. 2016 LEGISLATIVE UPDATES: Part II
  46. 2016 LEGISLATIVE UPDATES: Part I
  47. Hinman & Carmichael LLP is Hiring!
  48. John Hinman Presents NBI Webinar on Basics of Alcohol Beverage Law
  49. ABC DISMISSES SAVE MART GRAPE ESCAPE ACCUSATION BUT REFUSES TO ADOPT JUDGE’S DECISION FINDING NO STRICT LIABILITY FOR ABC VIOLATIONS
  50. Speakeasies are still with us, and proliferating!
  51. The War for the Soul of Sonoma County – the Winery Working Group Battle
  52. Santa Claus isn’t the only one coming to town this Christmas!
  53. Arizona's Direct to Consumer Shipping Rules - An Exercise in Complexity
  54. AB 780 - Social Media and the ABC: The California Legislative “Fix” that Fails
  55. Illinois Finally Offers Certainty and Relief for Victims of Sales Tax Lawsuits, but Prompt Action is Required in Pending Cases
  56. A Modest Proposal – Adopt the federal rule on Tied-House liability in California
  57. The Grapes Escaped - Why the First Amendment Matters
  58. Appellate Court Ruling Strikes Blow Against State’s Arbitrary Beer Label Ban
  59. Illinois Attorney General's Office Announces Intention to Dismiss False Claims Act Against Liquor Retailers
  60. Commercial Speech And Alcoholic Beverages - Part III
  61. Commercial Speech And Alcoholic Beverages - Part II
  62. Craft Beverages: Social Media Marketing the Effective and Compliant Way
  63. Commercial Speech And Alcoholic Beverages - Part I
  64. A LAYPERSON LOOKS AT ARSENIC IN WINE
  65. The Biggest Retailer in the World vs. the TABC
  66. Rebecca Stamey-White presents Emerging Issues in Wine Law
  67. Top Beverage Alcohol Law Firm Adds and Elevates Partners
  68. Illinois Qui Tam Lawsuits—Private Enforcement Of a State Claim: A Bonanza For A Plaintiff’s Lawyer And A Rip-Off Of Retailers
  69. BOOZE RULES OF SOCIAL MEDIA: The Retailer Right to Pay Exception
  70. LIONS AND TIGERS AND TWEETS, OH MY!
  71. AB 2004: Brewer's Incremental Parity with Wine Makers
  72. Expanding, Proud Of It, and Wanting to Tell the World
  73. DC Weighs in Strongly on Third Party Marketer Delivery Services
  74. “Visual Links” between Beer, Wine and Spirits Labels and Retailers Ruled Unlawful in California — the tied house laws run amok
  75. Hard Cider Legislative Update
  76. New Marketing Model for New York – Lot 18 and the NYSLA
  77. Sweeping Changes in Proposed NYSLA Bill Include Expansion for Craft
  78. Minimum Resale Price Policies - How to Control Price-Cutters
  79. AB 2130 – Gloves Off?
  80. “Gluten-Free” Labels for Wine, Beer and Distilled Spirits. We’re Still Waiting.
  81. AB 1252: Sanitation Overkill?
  82. Growlers: Not Just for Beer Anymore
  83. California Legislative Roundup 2014
  84. Build It and They Will Come: Craft Products Get New Privileges in CA and TX
  85. AB 1128: Veto of the “Serve a Minor” Felony Penalty Bill, or How to Lose a Winery in One Sale
  86. California Grocers Association v. ABC, Part 2: California Appeals Court Vacates ABC’s Adoption of a Trade Advisory That Correctly Guided Licensee Conduct
  87. California Grocers Association v. ABC, Part 1: California Appeals Court Prohibits Alcohol Sales at Self-Check Out Stands
  88. AB 1128: The “Serve a Minor” Felony Penalty Bill, or How to Lose a Winery in One Sale
  89. The New York SLA and Online Wine Sales: A Work in Progress
  90. California SB 635: What the 4am Bill Really Means for California Communities
  91. Electronic Invoices in California: Welcome to the 19th Century
  92. The History of Amazon and Wine: What Has Changed?
  93. Third Party Marketing Checklist
  94. BOOZE RULES – PROMOTIONAL APPEARANCES AND AUTOGRAPHS
  95. Washington State: Down the Rabbit Hole of the Tied-House Laws