SB 1426 “Held Over” in GO Committee – CCBA Remains OPPOSED

SB 1426 (Hall), sponsored by the global alcohol company, DIAGEO, was introduced to resolve a licensing issue for major celebrities who want to maintain investments in on-sale licensed restaurants while simultaneously working for alcohol beverage suppliers as paid spokespeople for their alcohol products. This is a tied-house violation under current ABC regulations.

The California Craft Brewers Association (CCBA) is strongly opposed to the bill. In its current form, SB 1426 would allow an alcohol beverage manufacturer to pay money to a retail licensee, legalizing pay-to-play practices for the first time in California. The CCBA has worked with other stakeholders to develop language that would solve this licensing issue without sacrificing our state’s tied-house laws and destroying the level playing field that over 700 craft breweries in California rely on to ensure equal access to market.

As the bill was headed to a key vote before the Committee on Governmental Organization (GO) last week, the CCBA issued an “Action Alert” to its members within GO committee member districts to contact their representative and demand a “NO” vote on SB 1426. Following an outpouring of responses from craft brewers, the GO committee held the bill over until August for further review.

SB 1426 remains an “active” bill and will likely be voted on in committee the first or second week in August.