Bill Text: CA AB1320 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Alcoholic beverages: tied-house restrictions: advertising.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-10-06 - Chaptered by Secretary of State - Chapter 527, Statutes of 2015. [AB1320 Detail]

Download: California-2015-AB1320-Amended.html

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BILL NUMBER: AB 1320	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 28, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Maienschein

                        FEBRUARY 27, 2015

    An act to amend Section 25503.6 of the Business and
Professions Code, relating to alcoholic beverages.   An
act to add Section 25503.36 to the Business and Profess  
ions Code, relating to alcoholic beverages. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1320, as amended, Maienschein.  Alcoholic beverages:
tied-house restrictions: fairgrounds.   Alcoholic
beverages: tied-house restrictions: advertising.  
    Existing law generally restricts certain alcoholic beverage
licensees, including manufacturers and winegrowers, from paying,
crediting, or compensating a retailer for advertising in connection
with the advertising and sale of alcoholic beverages. Existing law
expressly authorizes a beer manufacturer, holder of a winegrower's
license, winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifier's general license, or a distilled spirits manufacturer's
agent to sponsor events promoted by or purchase advertising space and
time from, or on behalf of, a live entertainment marketing company
that is a wholly owned subsidiary of a live entertainment company
that has its principal place of business in the County of Los
Angeles, as provided.  
   This bill would expressly authorize a beer manufacturer, holder of
a winegrower's license, winegrower's agent, holder of an importer's
general license, as described, distilled spirits manufacturer, holder
of a distilled spirits rectifier's general license, or a distilled
spirits manufacturer's agent to sponsor events promoted by or
purchase advertising space and time from, or on behalf of, a live
entertainment marketing company that conducts entertainment events
solely at the San Diego County Fairgrounds, under specified
conditions. The bill would also make a beer manufacturer, holder of a
winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifier's general license, or a distilled spirits
manufacturer's agent who, through coercion or other illegal means,
induces the holder of a wholesaler's license to fulfill those
contractual obligations entered into pursuant to these provisions
guilty of a misdemeanor. The bill would additionally make an on-sale
retail licensee, as described, who solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, holder of a
winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifier's general license, or a distilled spirits
manufacturer's agent to purchase advertising time or space pursuant
to these provisions guilty of a misdemeanor. The bill would make a
related statement of findings.  
   By creating new crimes this bill would impose a state-mandated
local program.  
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the County of San Diego. 

   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
    Existing law generally restricts certain alcoholic beverage
licensees, including manufacturers and winegrowers, from paying,
crediting, or compensating a retailer for advertising in connection
with the advertising and sale of alcoholic beverages. Existing law
expressly authorizes a beer manufacturer, holder of a winegrower's
license, winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifiers general license, or a distilled spirits manufacturer's
agent to sponsor events promoted by or purchase advertising space and
time from, or on behalf of, specified entities, including certain
parks, entertainment complexes, and outdoor stadiums, as provided.
 
   This bill would expressly authorize a beer manufacturer, holder of
a winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent to sponsor events promoted by or own, sponsor,
conduct, or purchase advertising space and time from, or on behalf
of, an on-sale retail licensee that is the owner, manager, agent of
the owner, assignee of the owner's advertising rights, or major
tenant of a state- or county-owned fairground, under specified
conditions. The bill would also make a beer manufacturer, holder of a
winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent who, through coercion or other illegal means,
induces the holder of a wholesaler's license to fulfill those
contractual obligations entered into pursuant to these provisions
guilty of a misdemeanor. The bill would additionally make an on-sale
retail licensee, as described, who solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, holder of a
winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent to purchase advertising time or space pursuant
to these provisions guilty of a misdemeanor.  
   By creating new crimes, this bill would impose a state-mandated
local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25503.36 is added to the 
 Business and Professions Code   , to read:  
   25503.36.  (a) Notwithstanding any other law, a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license that does not also hold a wholesale or
retail license as an additional license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent may sponsor
events promoted by, and may purchase advertising space and time from,
or on behalf of, a live entertainment marketing company subject to
all of the following conditions:
   (1) The live entertainment marketing company operates and promotes
live artistic, musical, sports, or cultural entertainment events
only.
   (2) All of the live artistic, musical, sports, or cultural
entertainment events are conducted at the San Diego County
Fairgrounds, located in the City of Del Mar in the County of San
Diego, and the events will typically occur over a period of three or
more consecutive days during which approximately 100 acts will
perform before approximately 20,000 or more patrons. The live
entertainment marketing company shall not conduct more than three of
these types of events within a calendar year.
   (3) The live entertainment marketing company is a Delaware limited
liability company that is under common ownership, management, or
control by a private equity firm that may also have common ownership,
management, or control of a licensed California winery, provided the
winery represents not more than 25 percent of the assets under
common ownership, management, or control by the private equity firm
or its subsidiaries, and the live entertainment marketing company
exercises no control over the operations of the winery.
   (4) Any on-sale licensee operating at a venue where live artistic,
musical, sports, or cultural entertainment events are performed
pursuant to a sponsorship described in this section or where
advertising is purchased as described in this section shall serve
other brands of beer, distilled spirits, and wine distributed by a
competing wholesaler in addition to any brand manufactured or
distributed by the owning, sponsoring, or advertising beer
manufacturer, holder of a winegrower's license, winegrower's agent,
holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent.
   (5) An agreement for the sponsorship of, or for the purchase of
advertising space and time during, a live artistic, musical, sports,
or cultural entertainment event shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the owning,
advertising, or sponsoring beer manufacturer, holder of a winegrower'
s license, winegrower's agent, holder of an importer's general
license, distilled spirits manufacturer, holder of a distilled
spirits rectifier's general license, or a distilled spirits
manufacturer's agent by the live entertainment company described in
this section.
   (b) Any sponsorship of events or purchase of advertising space or
time conducted pursuant to subdivision (a) shall be conducted
pursuant to a written contract entered into by the beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifier's general license, or a distilled
spirits manufacturer's agent and the live entertainment marketing
company.
   (c) Any beer manufacturer, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifier's general license, or a distilled spirits manufacturer's
agent who, through coercion or other illegal means, induces, directly
or indirectly, a holder of a wholesaler's license to fulfill those
contractual obligations entered into pursuant to subdivision (a)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license suspension or revocation
pursuant to Section 24200.
   (d) Any on-sale retail licensee who, directly or indirectly,
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, winegrower's
agent, holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent to purchase
advertising time or space pursuant to subdivision (a) shall be guilty
of a misdemeanor and shall be punished by imprisonment in the county
jail not exceeding six months, or by a fine in an amount equal to
the entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license suspension or revocation pursuant to Section 24200.
   (e) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
   (f) Nothing in this section shall authorize the purchasing of
advertising space or time directly from, or on behalf of, any on-sale
licensee except as expressly authorized by this section or any other
provision of this division.
   (g) Nothing in this section shall authorize a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifier's general license, or a distilled
spirits manufacturer's agent to furnish, give, or lend anything of
value to an on-sale retail licensee described in subdivision (a)
except as expressly authorized by this section or any other provision
of this division.
   (h) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exception
established by this section to the general prohibition against tied
interests must be limited to its expressed terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly. 
   SEC. 2.    The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique conditions located in
the County of San Diego. 
   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 25503.6 of the Business and
Professions Code is amended to read:
   25503.6.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, an on-sale retail licensee subject
to all of the following conditions:
   (1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
   (A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
   (B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
   (C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
   (D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
   (E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
   (F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
   (G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.
   (H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
   (I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located within San
Bernardino County.
   (J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
   (K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within the City of Carson in Los Angeles County.
   (L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.
   (M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
   (N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.
   (O) A state- or county-owned fairground.
   (ii) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, a major tenant of an outdoor stadium
described in clause (i), provided the major tenant does not hold a
retail license, and the advertising may include the placement of
advertising in an on-sale licensed premises operated at the outdoor
stadium.
   (2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
   (3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park.
   (4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
   (b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee, or with respect to clause (ii) of subparagraph (N)
of paragraph (1) of subdivision (a), the major tenant of the outdoor
stadium.
   (c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
   (e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.  
  SEC. 2.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.