As usual, the new year brings new alcohol laws—this time including both new requirements and new opportunities for California licensees. Eight important new laws become effective on January 1, 2025. Here is what you need to know.
1. New Requirement for Bars & Nightclubs to Offer & Advertise Lids.
Starting January 1, 2025, type 48 bar and nightclub licensees must provide a lid with a customer’s drink if they ask for it. The new law defines a lid as a removable cover that attaches to a beverage’s rim. Licensees don’t need to supply lids for all container sizes in which they serve alcoholic beverages, but they must provide lids for at least one container size. Businesses can offer lids for free, or they can charge a reasonable fee.
Type 48 bar and nightclub licensees also need to update their signage about drug testing kits so that signs reference lids. Signs must read:
Don’t get roofied!
Drink lids and drink spiking drug test kits available here.
Ask a staff member for details.
These requirements expire on January 1, 2027.
Cal. Business & Professions Code §§ 25624(c), 25625.
2. New Requirement for Bars & Nightclubs to Report Drink Spiking.
A new law imposes reporting requirements on type 48 bar and nightclub licensees who become aware of potential drink spiking. Bars and nightclubs must contact law enforcement or emergency medical services (EMS) if a customer notifies them that they or another customer believe they have been the victim of drink spiking. Licensees must provide the following information (if they have it) to law enforcement and/or EMS personnel:
A positive test result from a drug testing device.
Observation of someone tampering with a customer’s drink.
Verbal communication to staff that a customer has been drugged.
Observation of symptoms associated with the effects of drink spiking or the controlled substances used for drink spiking.
After contacting law enforcement or EMS, bar and nightclub staff must, to the best of their ability, follow instructions provided by law enforcement or EMS. Licensees are responsible for monitoring the customer until law enforcement or EMS arrive. For purposes of these laws, drink spiking includes, but is not limited to, adding a controlled substance OR alcohol to a person’s drink without their knowledge or consent.
Cal. Business & Professions Code § 25624.5.
3. One Year Extension of Time for Craft Distillers' Direct Shipping Privilege.
California extended the time for its temporary direct-to-consumer shipping privileges for California craft distillers from January 1, 2025, until January 1, 2026. All the other existing requirements still apply.
Cal. Business & Professions Code § 23504.5.
4. New Sales Opportunity for Beer Manufacturers—Type 91 Beer Catering Permits.
Beer manufacturers can now apply for new Type 91 beer catering permits. The new permits authorize beer manufacturers to sell their beer (beer made by or for them only) for consumption at conventions, sporting events, trade exhibits, picnics, social gatherings, community events, and similar events approved by ABC. Alcohol sales and consumption must be limited to a defined area at the event only; consumers cannot take alcohol outside of designated areas. Permittees can sell up to 124 gallons of beer at each event, and they can cater up to 36 events per year.
Like with other catering permits, even after manufacturers acquire a Type 91 beer catering permit, they still need to obtain ABC approval for each event they want to cater. ABC will approve up to two beer caterers per day per event. Permittees need to comply with Responsible Beverage Service training requirements.
ABC charges a $275 annual fee for Type 91 beer catering permits. ABC also charges a separate fee for each catering event, which ranges from $100-1,000 based on the number of people expected to attend.
Cal. Business & Professions Code §§ 23320(b)(82), 23399.01.
5. New Return Option for Discontinued & Seasonal Beer from Out-of-Business Manufacturers.
When wholesalers accept returns of discontinued or seasonal brands of beer from out-of-business manufacturers, they can now provide retailers with beer produced by a different manufacturer. They used to be limited to providing beer from original manufacturers only. The exchanged beer must be of similar quality, and the replacement beer cannot have a value higher than the original beer. Wholesalers still must obtain ABC approval for the exchange.
Cal. Business & Professions Code § 23104.2(b).
6. New Licensing Privilege for Spirits of Wine.
Under current law, winegrowers can sell their spirits of wine to Type 19 industrial alcohol dealers (such as hand sanitizer manufacturers) and type 04 distilled spirits manufacturers. Beginning January 1, 2025, winegrowers can also sell spirits of wine to Type 07 and Type 24 distilled spirits rectifiers and Type 74 craft distillers.
Cal. Business & Professions Code §§ 23358(a)(6), 23502.
7. Five Year Extension of Time for Manufacturers' Donation Privilege.
California extended the time for its temporary donation privilege for alcohol manufacturers by five years, from January 1, 2025, until January 1, 2030. The privilege allows certain alcohol manufacturers to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization if they satisfy legal requirements. Eligible licensees include winegrowers, beer manufacturers, distilled spirits manufacturers, craft distillers, brandy manufacturers, rectifiers, and wine rectifiers.
Cal. Business & Professions Code § 25600(a)(3).
8. New Opportunity for Sales of Open Containers of Alcohol within Designated Entertainment Zones.
California cities and counties have new opportunities to allow alcohol sales in designated entertainment zones. The Legislature extended entertainment zone provisions that previously applied solely to San Francisco. It also expanded privileges in certain public areas of entertainment zones so that alcohol can be consumed regardless of whether a special licensed event is occurring.
Beer manufacturers, winegrowers, and on-sale retailers in designated entertainment zones can sell alcohol (as allowed by their license and local ordinance) for consumption on their premises or elsewhere within the entertainment zone. They can permit consumers to leave their premises with open alcoholic beverages (not in metal or glass containers) and consume them on sidewalks or streets inside the designated zone. Special rules apply—licensed businesses within entertainment zones should consult an alcohol lawyer.
Cal. Business & Professions Code §§ 23039.5, 23357(a)(4)(A), 23358(a)(5)(A), 23396(b)(1), 25690, 25691, 25692.
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