The Overview

Starting Jan. 1, bars, restaurants and stores in California will have less time to pay for the beer, wine and liquor they stock before late charges kick in. Gov. Gavin Newsom (D) signed Assembly Bill 2375 on Sunday, Sept. 20. The law also spells out that beer can be brewed from grains other than barley. ​

The payment changes build on a 2024 law that required retailers to pay alcohol wholesalers electronically starting Jan. 1, 2026. Assemblymember Blanca Rubio (D-Baldwin Park), who wrote the bill, said the beer update recognizes the wide range of ingredients brewers already use and brings state law in line with federal rules, according to an Assembly committee analysis.

What the Law Does

Suppliers that sell beer, wine and spirits to retailers can add a 1% charge to a bill still unpaid after 30 days, down from 42 days, plus another 1% for every 30 days it stays unpaid. They can also make retailers who are behind on their bills pay in advance.

The law also updates the electronic payment rules:

  • A wholesaler’s invoice now counts as the start of a required electronic payment.
  • Retailers can agree to automatic withdrawals and cancel them with 72 hours’ written notice.
  • Each side pays only for the payment services it uses.
  • If the two sides don’t agree on a payment company, the law sets which one they use.

The new beer definition allows brewing with other grains and requires fermentation in drinkable water. Beer aged in used wine or spirits barrels still counts as beer. As with other parts of California’s alcohol law, breaking these rules is a misdemeanor.

Legislative Status

Rubio, who chairs the Assembly committee that handles alcohol laws, was the bill’s only author. The Assembly passed it 68-0 on April 16. The Senate passed an amended version 40-0 on Aug. 27, and the Assembly agreed to the Senate’s changes 78-0 the next day, according to the FastDemocracy vote record.

The payment rules were added in the Senate. The version the Assembly first passed dealt only with the beer definition. California Family Beer Distributors and the California Restaurant Association supported the final bill, and no opposition was on file, according to Digital Democracy.

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