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CA AB2991

Bill

Status

Passed

9/22/2024

Primary Sponsor

Avelino Valencia

Click for details

Origin

State Assembly

2023-2024 Session

AI Summary

  • Requires all payments from retailer licensees to wholesaler licensees for beer, wine, or distilled spirits to be made by electronic funds transfer (EFT) commencing January 1, 2026.

  • Wholesaler licensees are responsible for selecting and initiating the third-party payment processor for EFTs, with payment due by the 30th day from delivery date.

  • Permits cash, check, or money order payments only in limited circumstances: insufficient funds on prior EFT, interim/temporary permits, payment processor service interruptions, or within 30 days of license issuance.

  • Prohibits wholesalers from paying retailer EFT fees and retailers from paying wholesaler EFT fees; retailers cannot receive rebates or incentives from payment processors.

  • Modifies tied-house restrictions in Section 25509 by removing the "for cash or by receiving payment in advance" language, as retailers must now use EFT by default.

Legislative Description

Alcoholic beverage control: retailer payments: electronic funds transfers.

Last Action

Chaptered by Secretary of State - Chapter 426, Statutes of 2024.

9/22/2024

Committee Referrals

Appropriations6/25/2024
Governmental Organization5/29/2024
Rules5/22/2024
Appropriations4/4/2024
Governmental Organization3/11/2024

Full Bill Text

No bill text available