CA AB2738

Amends existing prohibitions on powdered alcohol to allow bona fide manufacturers and public or private research institutions to possess, manufacture, and distribute powdered alcohol exclusively for manufacturing, research, or development purposes (not for retail sale).

Permits retail sale of products containing powdered alcohol as an ingredient in a mixture printed on a substrate, provided the mixture cannot be reasonably converted to a loose, powdered form.

Classifies products containing powdered alcohol as an ingredient in a printed mixture on a substrate as alcoholic beverages under Section 23004, whether consumed alone or mixed with water or other liquids.

Maintains infraction penalties: up to $500 fine for selling, offering for sale, manufacturing, or distributing powdered alcohol; $125 fine for purchasing, possessing, or using powdered alcohol.