Bill Text: CA AB2047 | 2011-2012 | Regular Session | Introduced
Bill Title: Alcoholic beverages: tied-house restrictions:
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-03-08 - Referred to Com. on G.O. [AB2047 Detail]
Download: California-2011-AB2047-Introduced.html
BILL NUMBER: AB 2047 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Beall
(Principal coauthor: Senator Alquist)
FEBRUARY 23, 2012
An act to amend Section 25503.6 of the Business and Professions
Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2047, as introduced, Beall. Alcoholic beverages: tied-house
restrictions: advertising.
Existing law generally prohibits a manufacturer of alcoholic
beverages and a winegrower from paying, crediting, or compensating a
retailer for advertising or paying or giving anything of value for
the privilege of placing a sign or advertisement with a retail
licensee. It authorizes, as an exception, the holder of a winegrower'
s license, a beer manufacturer, a distilled spirits manufacturer, or
a distilled spirits manufacturer's agent, to purchase advertising
space and time from, or on behalf of, an on-sale retail licensee,
under certain conditions, if the on-sale retail licensee is the
owner, manager, agent of the owner, assignee of the owner's
advertising rights, or major tenant of specified facilities.
This bill would expand the exceptions to existing law to allow
beer manufacturers, winegrowers, distilled spirits rectifiers,
distilled spirits manufacturers, or distilled spirits manufacturer's
agents to purchase advertising space and time from, or on behalf of,
on-sale retail licensees at specified facilities located in the City
of San Jose, subject to additional requirements, as provided.
The Alcoholic Beverage Control Act provides that a violation of
any of its provisions for which another penalty or punishment is not
specifically provided is a misdemeanor. This bill would expand
existing crimes by imposing additional requirements on a licensee
under the act, thus, the 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 City of San Jose.
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 25503.6 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 convention center with more than 130,000 square feet of
exhibit space located in, and owned by, the City of San Jose.
(N) An auditorium with a fixed seating capacity in excess of 2,500
seats located in, and owned by, the City of San Jose.
(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) In the case of a convention center described in subparagraph
(N) and an auditorium described in subparagraph (M) of paragraph (1),
the advertising space or time purchased is limited to interior
advertising in connection with events conducted within that facility.
(4)
( 5) 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) (1) 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.
(2) In the case of a convention center described in subparagraph
(M) of paragraph (1) of subdivision (a) and an auditorium described
in subparagraph (N) of paragraph (1) of subdivision (a), if the
on-sale licensee is not the owner of that facility, then the on-sale
licensee shall also enter into a written contract with the owner
regarding the purchase of advertising space or time pursuant to this
section.
(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.
(f) The Legislature finds that it is necessary and proper to
require a separation among 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 shall be limited to its express 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 circumstances and concerns applicable to
certain facilities in the City of San Jose.
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.
