Alcoholic beverages: tied-house restrictions.
The introduction of AB 981 is significant as it includes distilled spirits wholesalers in the regulation that protects retailers from being coerced into buying products from manufacturers conducting market research. The measure is expected to reduce the potential for undue influence from retailers while allowing for more robust data collection practices for producers. As a result, it may lead to improved sales strategies based on consumer behavior insights derived from the gathered data.
Assembly Bill 981, introduced by Assembly Member Gray, seeks to amend Section 25503.24 of the Business and Professions Code concerning the Alcoholic Beverage Control Act. The bill allows manufacturers, winegrowers, rectifiers, distillers, and distilled spirits wholesalers to conduct market research whereby they can purchase sales data from licensed off-sale retailers regarding alcoholic beverage products at standard market rates. Notably, the bill ensures that no licensed retailer is mandated to sell or purchase alcoholic products from the researching entities. This measure aims to enhance market research practices while safeguarding retail autonomy.
One area of contention surrounding AB 981 lies in its enforcement mechanisms and implications for local governance. The bill classifies violations of the Alcoholic Beverage Control Act as misdemeanors, which raises concerns about the enforcement burden on local agencies. While the California Constitution stipulates that the state must reimburse local agencies for costs incurred due to unfunded mandates, this bill specifically states that no reimbursement is necessary due to its classification of creating a new crime or altering penalties. This aspect is likely to be debated among legislators, as it balances regulatory oversight with potential local agency liabilities.