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

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-Enrolled.html

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BILL NUMBER: AB 1320	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 9, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2015
	AMENDED IN SENATE  SEPTEMBER 4, 2015
	AMENDED IN SENATE  AUGUST 18, 2015
	AMENDED IN ASSEMBLY  MAY 13, 2015
	AMENDED IN ASSEMBLY  APRIL 28, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Maienschein

                        FEBRUARY 27, 2015

   An act to add Section 25503.36 to the Business and Professions
Code, relating to alcoholic beverages, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1320, Maienschein. 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 an authorized licensee, as
defined, to sponsor events promoted by or purchase advertising space
and time from, or on behalf of, a live entertainment marketing
company in connection with events organized and conducted by the live
entertainment marketing company at the San Diego County Fairgrounds,
under specified conditions. The bill would also make an authorized
licensee 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 an authorized licensee 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.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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 provision of this
division, an authorized licensee may sponsor events promoted by, and
may purchase advertising space and time from, or on behalf of, a live
entertainment marketing company in connection with events organized
and conducted by the live entertainment marketing company on the
premises of a permanent retail licensee located at the San Diego
County Fairgrounds, located in the City of Del Mar in the County of
San Diego, 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)  The events will take place over a period of no more than four
consecutive days during which approximately 100 acts will perform
before approximately 20,000 or more patrons.
   (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. Any
authorized licensee sponsoring an event or purchasing advertising
space or time, pursuant to this section, shall obtain written
verification of compliance with this subdivision prior to such
sponsorship or the purchase of advertising space or time.
   (4) Any on-sale licensee operating at the San Diego County
Fairgrounds shall serve other brands of beer, distilled spirits, and
wine distributed by a competing wholesaler or manufacturer in
addition to any brand manufactured, distributed, or owned by the
authorized licensee sponsoring an event or purchasing advertising
space or time pursuant to this section.
   (5) An agreement pursuant to this section shall not be conditioned
directly or indirectly on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by any authorized
licensee sponsoring or purchasing advertising space or time pursuant
to 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 authorized
licensee and the live entertainment marketing company.
   (c) Any authorized licensee 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 an
authorized licensee 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) 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.
   (f) Nothing in this section shall authorize an authorized licensee
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.
   (g) For purposes of this section, the following definitions shall
apply:
   (1) "Authorized licensee" means the following licensees: beer
manufacturer, out-of-state beer manufacturer's certificate,
winegrower, winegrower's agent, importer, rectifier, distilled
spirits manufacturer, distilled spirits rectifier general, distilled
spirits manufacturer's agent.
   (2) Except for a licensee that holds only a beer and wine importer
general license or a distilled spirits importer general license,
"importer" does not include the holder of any importer license that
does not also hold at least one other license specified as an
authorized licensee.
   (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.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to allow for the sponsoring of events within the County
of San Diego as soon as possible, it is necessary that this act take
effect immediately.