Bill Text: CA AB2913 | 2015-2016 | Regular Session | Introduced

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

---

Bill Title: Alcoholic beverages: licensees: craft distillers: tied-house restrictions.

Spectrum: Slight Partisan Bill (Democrat 12-4)

Status: (Passed) 2016-09-21 - Chaptered by Secretary of State - Chapter 423, Statutes of 2016. [AB2913 Detail]

Download: California-2015-AB2913-Introduced.html

---

BILL NUMBER: AB 2913	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Governmental Organization (Assembly
Members Gray (Chair), Bigelow (Vice Chair), Alejo, Bonta, Campos,
Cooley, Cooper, Daly, Gallagher, Gipson, Jones-Sawyer, Levine,
Linder, Maienschein, Salas, and Wilk)

                        MARCH 17, 2016

   An act to amend Section 23355.3 of the Business and Professions
Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2913, as introduced, Committee on Governmental Organization.
Alcoholic beverages: licensees.
   The Alcoholic Beverage Control Act regulates the application for,
the issuance of, the suspension of, and the conditions imposed upon,
various alcoholic beverage licenses pursuant to which the licensees
may exercise specified privileges in the state. The act authorizes
licensees to sponsor or otherwise participate in an event conducted
by, and for the benefit of, a nonprofit organization in which retail
and nonretail licensees are involved as sponsors or participants,
subject to specified conditions.
   The act authorizes a nonretail licensee to advertise or
communicate sponsorship or participation in the event and provides
that advertising or communication may include, but is not limited to,
initiating, sharing, reposting, or otherwise forwarding a social
media post by a permanent retail licensee or a nonretail licensee, as
specified.
   This bill would delete the word "initiating" from that provision.
   The act also prohibits a retail licensee from receiving any
advertising, sale, or promotional benefit from any permanent retail
licensee in connection with the sponsorship or participation.
   This bill instead would prohibit a nonretail licensee from
receiving that advertising, sale, or promotional benefit.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 23355.3 of the Business and Professions Code is
amended to read:
   23355.3.  (a) A licensee may sponsor or otherwise participate in
an event conducted by, and for the benefit of, a nonprofit
organization in which retail and nonretail licensees are involved as
sponsors or participants, subject to all of the following conditions:

   (1) Except as otherwise provided in this section, any payment of
money or other consideration for sponsorship or participation in the
event shall be made only to the nonprofit organization conducting the
event.
   (2) Except as otherwise provided in this section, a nonretail
licensee shall not, directly or indirectly, pay money or provide any
other thing of value to a permanent retail licensee that is also a
sponsor of, or participant in, the event.
   (3) A nonretail licensee may donate alcoholic beverages to a
nonprofit only as otherwise authorized by Section 25503.9.
   (4) Except as otherwise provided by this division, a retail
licensee shall not give, sell, or furnish any alcoholic beverages to
the temporary licensee.
   (5) A nonretail or retail licensee may choose to participate in
any level of sponsorship, including at the name or principal sponsor
level. A nonprofit organization may choose to have one, or multiple,
name or principal sponsors.
   (6) (A) A nonretail licensee may advertise or communicate
sponsorship or participation in the event. This advertising or
communication may include, but is not limited to, 
initiating, sharing, reposting, or otherwise forwarding a
social media post by a permanent retail licensee or a nonretail
licensee if the advertisement or communication does not contain the
retail price of any alcoholic beverage or otherwise promotes a retail
licensee beyond its sponsorship or participation in the event.
   (B) A nonretail licensee shall not pay or reimburse a permanent
licensee, directly or indirectly, for any advertising services,
including by way of social media. Except as otherwise permitted by
this section, a permanent retail licensee shall not accept any
payment or reimbursement, directly or indirectly, for any advertising
services offered by a nonretail licensee.
   (C) For the purposes of this subdivision, "social media" means a
service, platform, application, or site where users communicate and
share media, such as pictures, videos, music, and blogs, with other
users.
   (7) A nonretail licensee shall not require, directly or
indirectly, as a condition of sponsorship or participation in any
event under this section, that its products be sold or served
exclusively at the event. A  retail   nonretail
 licensee shall not receive, directly or indirectly, any
advertising, sale, or promotional benefit from any permanent retail
licensee in connection with the sponsorship or participation. A
permanent retail licensee shall not offer or provide a nonretail
licensee any advertising, sale, or promotional benefit in connection
with the sponsorship or participation.
   (b) This section does not authorize a nonretail licensee to pay,
in whole or in part, any costs, including the cost of sponsorship, of
any retail licensee that is sponsoring or participating in a
nonprofit event.
   (c) A licensee that sponsors or participates in a nonprofit event
under this section shall keep detailed records of its sponsorship or
participation and shall maintain those records for a period of at
least three years. These records shall be provided to the department
upon request.
   (d) Nothing in this section shall be deemed to exempt the
nonprofit organization from obtaining any licenses or permits as may
be required to conduct the event.