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New California law allows beer sellers to pay for drunken people’s taxi home

Bill passes unanimously in state Senate

Tom Embury-Dennis
Thursday 28 December 2017 12:40 EST
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The new law comes into effect on 1 January
The new law comes into effect on 1 January (Getty Images/iStockphoto)

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California is introducing a new law that allows beer manufacturers and licensed sellers to pay for drunken people’s taxis home.

The bill, which was supported by ride-sharing apps Uber and Lyft, passed unanimously in the state senate earlier this month and will come into effect on 1 January.

The rule change will mean manufacturers and sellers will be able to offer free or discounted lifts through taxi companies and services like Uber.

Companies will be allowed to give out codes or vouchers, but cannot use them as incentives to buy a brand’s product.

Under current California law, wine and liquor manufacturers can only provide free transportation for consumers at invitation-only events, such as concerts and parties.

The new state law relaxes these rules and is intended to keep drink-drivers off the road and improve public safety.

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Assembly Bill 711, which was introduced by Democrat Assemblyman Evan Low, reads: "Notwithstanding any other provision of this division, a beer manufacturer may provide directly to consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service for the purpose of furthering public safety.

"The free or discounted rides may be provided by vouchers, codes, or any other method to deliver the free or discounted ride. A free or discounted ride, or the provision of a voucher, code, or other method of delivery, shall not be conditioned upon the purchase of an alcoholic beverage.

"A beer and wine wholesaler shall not directly or indirectly underwrite, share in, or contribute to, the costs of free or discounted rides or serve as an agent of a beer manufacturer to provide free or discounted rides to consumers. Nothing in this provision authorizes a beer manufacturer to provide a gift or anything of value directly or indirectly to a retail licensee."

Proponents ot the law change said 44 other states already allow liquor manufacturers to pay for free or discounted rides, according to a legislative analysis.

Last year, Anheuser-Busch, an American brewing company, partnered with Lyft to offer more than 64,000 rides home to drinkers across the country.

Katja Zastrow, vice president of corporate social responsibility at Anheuser-Busch, told The Sacramento Bee: “Drunk driving is 100 per cent preventable and offering safe rides is one way that we can have a real impact on reducing (it).”

But the bill was opposed by Alcohol Justice, an industry watchdog that campaigns against what it describes as the “alcohol industry’s harmful practices”.

"While drunk driving is serious concern to public safety, and efforts to reduce it should generally be applauded, this bill implicitly allows for beer manufacturers to promote the overconsumption of alcohol,” it said on its website.

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