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AB 2375, Chapter 396, Statutes of 2026 · Sunday 20 September 2026

Alcoholic beverage control

California tightens alcohol-retailer payment deadlines and updates beer and electronic-payment rules.

Suppliers must impose late charges sooner and require advance payment from retailers that remain delinquent. The law also clarifies how wholesalers and retailers must handle electronic alcohol payments and payment-service fees.

What the law does

  • Expands the definition of beer to cover fermentation of other grains in drinkable water.
  • Requires suppliers to charge retailers 1% of an unpaid alcohol balance on the 32nd day after delivery, then another 1% every 30 days.
  • Requires suppliers to sell only for advance payment when a retailer has not fully paid within 30 days or has not paid a late charge when due.
  • Requires electronic funds transfers for retailer-to-wholesaler alcohol sales, subject to specified exceptions.
  • Defines wholesaler initiation of an electronic transfer as presenting an invoice requiring electronic payment.
  • Requires each party to pay its own electronic-payment service fees and bars either party from covering the other's fees.
  • Sets rules for choosing a third-party payment processor, including use of an eligible processor or bank payment service the retailer used as of July 1, 2025, when the parties cannot agree.

Who it affects

  • Licensed beer, wine, and distilled-spirit suppliers and wholesalers.
  • Licensed alcohol retailers.
  • Third-party electronic-payment processors and financial institutions offering payment-processing services.