CA SB1426

Authorizes manufacturers and wholesalers of alcoholic beverages to compensate persons with ownership interests in on-sale retail licenses for promotional and marketing services, subject to specified conditions, until January 1, 2022.

Limits such compensation agreements to a maximum of five persons per authorized licensee at any given time, with all compensation based solely on promotional activities and not on sales volumes.

Prohibits the compensated person from being involved in the retail licensee's purchasing decisions, engaging in promotional activities on the premises of their own establishment, or personally serving alcoholic beverages at that location.

Creates misdemeanor penalties of up to six months jail time and/or $10,000 fines for unauthorized licensees who compensate under this section, for coercion to obtain compensation, or for violations of the section's conditions.

Requires on-sale retail establishments where compensated persons have ownership interests to offer competing brands and prohibits the use of the establishment's name or image in advertising, except for event-specific promotions where the compensated person does not provide services.