Notice of Modification to Text of Proposed Regulations

Pursuant to the requirements of Government Code section 11346.8(c), and section 44 of Title 1 of the California Code of Regulations, the Department of Alcoholic Beverage Control is providing notice of changes that have been made to the text of the proposed addition of Title 4 of the California Code of Regulations Title 4 sections 105-105.2.

The proposal to update California Code of Regulations Title 4 sections 105-105.2 was originally noticed to the public on October 28, 2022. The proposed regulation had a 45-day comment period that ended at 5:00 pm on December 13, 2022. A public hearing was also held on December 13, 2022. Specifically, the Department of Alcoholic Beverage Control has made the following changes to the proposed regulations:

1. Clarifying the definition of “Package Configuration.”
2. Clarifying when the requirement of suppliers to post prices in a county or trading area occurs.
3. Clarifying that wholesalers retain discretion in choosing to participate in a price promotion program offered and the prices they choose to sell their products.
4. Changing the nature of the establishment of the parameters of a price promotion set by a supplier and allowing wholesalers to partially participate with them. This gives wholesalers more discretion for how they choose to participate and set their prices in participating.
5. Clarified that due to its nature as a joint action, both licensees are responsible for a price promotion program that does not comply with the requirements of the proposed regulation, and both may have administrative actions taken against them. Also clarified the exception to this joint liability if a supplier violates the section unknown to the wholesaler and a wholesaler complies in good faith and otherwise complies with the requirements of this section.
6. Changed the requirement that a request for reimbursement be in writing, and instead required the request be documented. Specifically allowed for automatic electronic requests.

The necessity of each of these changes will be explained in the Final Statement of Reasons to be submitted at the close of this rulemaking record and the Response to Comments attached.

A copy of the full text of the regulation with the proposed modified changes indicated is attached for your review. The original proposed language appears in italic underlined text and deletions in strikethrough. Modifications to the originally proposed language appear in bold double underlined text and deletions are shown in double strikethrough.

Any interested person may submit a written statement relating to the modified language during the public comment period from January 31, 2023 to February 16, 2023. The written comment period will close at 12:00 p.m. on February 16, 2023. Submit written comments to:

The Department of Alcoholic Beverage Control
3927 Lennane Drive, Suite 100
Sacramento, CA 95834

Attention: Law and Policy Unit

Comments may also be submitted by email to rpu@abc.ca.gov.

All written comments received by the Department of Alcoholic Beverage Control by 12:00 pm on February 16, 2023, which pertain to the indicated changes, will be reviewed and responded to by the Department’s staff as part of the compilation of the rulemaking file. Please limit your comments to the proposed modifications to the text which will appear in bold double underlined text or in double strikethough.

Inquiries concerning the proposed regulatory action may be directed to the agency representative Robert de Ruyter, Assistant General Counsel, (916) 419-8958, or (designated backup contact) Sarah Easter, Associate Governmental Program Analyst, Law and Policy Unit, (916) 823-1310 or via email at rpu@abc.ca.gov.