Fiscal Summary

Increase State Expenditures - $3,700/FY20-21

Bill Summary

Subject to several exceptions, present law makes it a Class C misdemeanor offense for any retailer to advertise, offer to sell, or sell at retail, wine at less than the retailer's cost. One of the exceptions to the prohibition against selling wine below cost is closeout sales.



This bill adds to present law by defining "closeout" to mean a price reduction below the retailer's cost and requires that all of the following apply in order for a retailer to offer a closeout on wine:



(1) The closeout price must be above the cost of the basic cost of wine;

(2) The duration of the closeout must not exceed 90 days;

(3) At the conclusion of the 90 days, the price of the unsold inventory must revert to not less than the retailer's cost for at least one calendar year; and

(4) The retailer must not place new orders for inventory that was placed on closeout for a period of one calendar year from the date of the conclusion of the closeout.

