Alcoholic beverage control.

The bill now amends three code sections (23006, 25509, and 25509.1) instead of just one (23006). It expands from a simple beer definition update to include payment terms and electronic funds transfer requirements for the entire alcohol distribution system.

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes' because the bill expands the scope of an existing crime by shortening payment deadlines.

The deadline for suppliers to begin charging 1% interest on unpaid balances was shortened from 42 days after delivery to 30 days after delivery. The first 1% charge now applies on day 31 instead of day 43, and additional 1% charges apply every 30 days thereafter.

The EFT requirement in Section 25509.1 was changed to apply to the 'sale' of alcoholic beverages rather than their 'delivery.' The EFT must occur by the end of the 30th day from the date of delivery.

A new provision allows licensed wholesalers to accept credit card payments, but the retailer must bear the transaction cost 'so as to mitigate the value of secondary benefits realized by the licensed retailer using the credit card.'

The processor selection rule was expanded. If parties cannot agree on a processor, they must use the processor used as of July 1, 2025, OR a payment processing service offered by a financial institution that held a deposit account of the retailer on that date. Only if neither applies does the wholesaler select the processor.

New definitions were added for 'supplier' (listing specific licensee types), 'initiate' (presenting an invoice requiring electronic payment), 'equitable manner' (fees match services received by the paying party), and 'electronic funds transfer' or 'EFT' (electronic transfer of money between bank accounts via computer-based systems).

Cost allocation for EFT services was changed. Previously, service fees were to be applied in an equitable manner. Now each party pays only its own costs, with explicit prohibitions: wholesalers cannot pay retailers' fees and retailers cannot pay wholesalers' fees.

A new prohibition was added: licensed retailers shall not accept a rebate, incentive, or other thing of value from a third-party payment processor selected by a licensed wholesaler for payments made under this section.

The operative date for Section 25509 was set to January 1, 2026. The EFT provisions in Section 25509.1 also commence January 1, 2026.

The 1 percent late-payment charge now begins on the 32nd day after delivery instead of the 31st day, giving retailers one additional day before the penalty applies.

The notice period a licensed retailer must provide to cancel a voluntary electronic funds transfer authorization increased from 24 hours to 72 hours before a scheduled withdrawal, making it harder for retailers to quickly stop automatic payments.

The EFT deadline language changed from 'the electronic funds transfer shall occur' to 'the electronic funds transfer shall be received by the licensed wholesaler,' clarifying that the 30-day deadline is measured by when the wholesaler actually receives the funds rather than when the transfer is initiated.

The deadline before a supplier must charge a 1 percent late fee on unpaid balances was shortened from 42 days to 30 days after delivery, and the fee now begins accruing on the 31st day instead of the 43rd day.

The notice period a licensed retailer must give before canceling authorization for a wholesaler to electronically withdraw funds from their bank account was increased from 24 hours to 72 hours.

The operative date of January 1, 2026 was removed from both Section 25509 and Section 25509.1, meaning the payment and EFT provisions will take effect immediately upon the bill becoming law rather than waiting until the start of the calendar year.

The fiscal committee designation changed from 'no' to 'yes' and the state-mandated local program designation changed from 'no' to 'yes,' indicating the bill now imposes costs on local agencies that trigger reimbursement obligations under the California Constitution.