Bill Text: CA SB1105 | 2015-2016 | Regular Session | Amended
Bill Title: Alcoholic beverage licensees: sports entertainment facilities.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1105 Detail]
Download: California-2015-SB1105-Amended.html
BILL NUMBER: SB 1105 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2016
INTRODUCED BY Senator Mendoza
FEBRUARY 17, 2016
An act to repeal Section 23792 of amend
Sections 25503.6 and 25503.8 of, and to add Article 7 (commencing
with Section 23550) to Chapter 3 of Division 9 of, the Business
and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 1105, as amended, Mendoza. Alcoholic beverage licensees:
restrictions. sports entertainment facilities.
The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of,
and the conditions imposed upon alcoholic beverage licenses by the
Department of Alcoholic Beverage Control. Existing law provides for
various annual fees for the issuance of alcoholic beverage licenses,
depending upon the type of license issued. Existing law additionally
authorizes specified alcoholic beverage licensees 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 authorize the Department of Alcoholic Beverage
Control to issue an on-sale general for sports entertainment facility
bona fide public eating place license (SEF-BFPEP license) that would
allow the licensee to sell beer, wine, and distilled spirits at
retail for consumption on the premises in a sports entertainment
facility, as defined. The bill would impose an original fee and an
annual renewal fee for the license, which would be deposited in the
Alcohol Beverage Control Fund. The bill would also make the
above-described provisions relating to the purchase of advertising
time and space inoperative as of December 31, 2022, and instead
provide for those purchases with revised parameters, including that
the parties submit a declaration to the department relating to the
agreement to purchase advertising time and space.
The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of,
and the conditions imposed upon, alcoholic beverage licenses by the
Department of Alcoholic Beverage Control. Existing law prohibits the
issuance of a license, other than an on-sale beer license, for
premises situated more than one mile outside the limits of an
incorporated city and within 2 miles of any camp or establishment of
men, numbering 25 or more, engaged upon or in connection with the
construction, repair, or operation of any work, improvement, or
utility of a public or quasi-public character.
This bill would repeal that prohibition, thus authorizing the
department to issue any type of license for premises situated in the
above-described location.
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. Article 7 (commencing with Section
23550) is added to Chapter 3 of Division 9 of the Business
and Professions Code , to read:
Article 7. Sports Entertainment Facility Bona Fide Public
Eating Place License
23550. For purposes of this article:
(a) "Agreement" includes any amendment, modification, other
revision, or extensions to the agreement if it relates in any manner
to the purchase of advertising space and time at the sports
entertainment facility from the owner or major tenant of the
facility.
(b) "Authorized licensee" means a winegrower, rectifier,
California winegrower's agent, beer manufacturer, holder of an
out-of-state beer manufacturer's certificate, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, distilled spirits manufacturer's agent, brandy manufacturer,
holder of an out-of-state distilled spirits shipper's certificate,
holder of a distilled spirits importer's general license, craft
distiller, or holder of a beer and wine importer's general license.
(c) "On-sale licensee" means a person holding an on-sale general
SEF-BFPEP license to serve alcoholic beverages on the premises of a
sports entertainment facility.
(d) "SEF-BFPEP license" means an on-sale general for sports
entertainment facility bona fide public eating place license issued
pursuant to this article.
(e) "Sports entertainment facility" means a publicly or privately
owned stadium, coliseum, motor speedway, or an enclosed arena with a
spectator capacity exceeding 10,000 people where sporting or
entertainment events are presented for a price of admission. The
facility does not have to be used exclusively for sporting or
entertainment events. A "sports entertainment facility" also means
any facility described in Section 25503.6 or 25503.8 as those
sections read on December 31, 2016, even if those sections are later
repealed.
23552. (a) In addition to the licenses specified in Section
23320, the department may issue an SEF-BFPEP license to sell beer,
wine, and distilled spirits at retail for consumption upon the
premises only.
(b) The SEF-BFPEP license may be issued to the person providing
alcoholic beverage and food service at the sports entertainment
facility. Except as provided in this section, only licensees with an
SEF-BFPEP license are authorized to sell beer, wine, and distilled
spirits at retail for consumption upon the premises of the sports
entertainment facility. The license shall only be transferable from
person to person at the same premises. An SEF-BFPEP license shall not
be transferred for a purchase price or consideration in excess of
the original fee paid for that license.
(c) The original fee for an SEF-BFPEP license shall be thirteen
thousand eight hundred dollars ($13,800) to cover the reasonable
administrative costs of the department. The annual license fee shall
be consistent with the on-sale general bona fide public eating place
license and shall be adjusted pursuant to subdivisions (b) and (c) of
Section 23320.
(d) (1) Issuance of the license shall be subject to the provisions
of Section 23958.4.
(2) Issuance of the license shall not be subject to the provisions
of Section 23816.
(e) (1) Any person providing alcoholic beverage and food service
at a sports entertainment facility pursuant to another type of
on-sale license as of the effective date of this section shall obtain
an SEF-BFPEP license within 12 months of the effective date of this
section if that person provides alcoholic beverage and food service
at the facility on or after January 1, 2017. The person may elect to
surrender that existing license in exchange for an SEF-BFPEP license
or may transfer that license pursuant to applicable law. If, after a
license surrender and exchange, the on-sale licensee that surrendered
and exchanged its license for an SEF-BFPEP license no longer
provides alcoholic beverage and food service at that facility, the
on-sale licensee may surrender and exchange the SEF-BFPEP license for
the licensee's original license, subject to any applicable
provisions of this division.
(2) The department may modify its rules regarding the surrender of
licenses to implement this subdivision.
23553. The SEF-BFPEP license is subject to all of the following
conditions:
(a) Except as otherwise provided in this chapter, a person holding
an SEF-BFPEP license shall not enter into any agreement with any
authorized licensee for the purchase of advertising space and time at
the sports entertainment facility, including the premises of the
on-sale licensee.
(b) (1) For any sports entertainment facility at which an
authorized licensee has entered into an agreement with the owner or
major tenant of the facility for the purchase of advertising space
and time at the facility, any on-sale licensee shall serve other
brands of beer distributed by a competing wholesaler that are not the
brands of beer sold, manufactured, or marketed by an authorized
licensee, other brands of wine distributed by a competing wholesaler
that are not the brands of wine sold, manufactured, or marketed by an
authorized licensee, and other brands of distilled spirits
distributed by a competing wholesaler that are not the brands sold,
manufactured, or marketed by an authorized licensee that purchased
the advertising space and time. An on-sale licensee may also serve
brands of beer that are manufactured and provided by an unaffiliated,
competing licensed beer manufacturer that are not the brands of beer
sold, manufactured, or marketed by an authorized licensee that
purchased the advertising space and time.
(2) For the purpose of this subdivision, brands of an authorized
licensee purchasing the advertising space and time shall mean brands
of beer, wine, or distilled spirits that are sold, manufactured, or
marketed by the authorized licensee or sold, manufactured, or
marketed by any subsidiary or other business entity of the authorized
licensee that the authorized licensee owns, manages, or controls.
(c) (1) An owner or major tenant of any sports entertainment
facility described in Section 25503.6 or 25503.8, as those sections
read on December 31, 2016, that is also the retail licensee for that
facility as of December 31, 2016, is exempt from subdivisions (a) and
(b) and Section 23554, but shall be subject to the provisions of
Section 25503.6 or 25503.8 as they read on December 31, 2016,
regardless if either or both of those sections are repealed, if there
is an agreement existing on December 31, 2016, for the purchase of
advertising space and time at the facility. An owner or major tenant
that continues as the retail licensee for the facility on or after
the effective date of this section shall comply with subdivision (e)
of Section 23552.
(2) When an agreement existing on December 31, 2016, for the
purchase of advertising space and time at the facility is modified,
renewed, or extended, or a new agreement is entered into, on or after
the effective date of this section, the owner or major tenant shall
be subject to subdivisions (a) and (b), and to the provisions of
subdivisions (a) to (f), inclusive, of Section 23554.
(3) A sports entertainment facility owner or major tenant which is
also the retail licensee for that facility as of December 31, 2016,
that seeks an exemption pursuant to this subdivision shall submit to
the department, by January 31, 2017, a declaration stating that the
sports entertainment facility is subject to an agreement for the
purchase of advertising space and time at the facility that was in
effect on December 31, 2016, and continues in effect on or after
January 1, 2017. The declaration shall further state the name and
address of the sports entertainment facility, the names of the
parties to the agreement, and the time period that agreement will
continue in effect. The licensee shall notify the department within
15 days of any amendment, extension, modification, or renewal of that
agreement, or of any new agreement, entered into on or after the
effective date of this section. The declaration shall not be under
penalty of perjury.
(d) A violation of any provision of this section or the filing of
a false declaration shall be subject to license suspension by the
department.
23554. Notwithstanding any other provision of this division, and
except as provided in subdivision (f), an authorized licensee may
purchase advertising space and time at a sports entertainment
facility from the owner or major tenant of the facility who is not a
licensee under this article, subject to the following conditions:
(a) The purchase of advertising space and time shall be conducted
pursuant to a written agreement entered into by the authorized
licensee and the owner or major tenant of the facility containing all
the terms and conditions of such purchase.
(b) (1) The authorized licensee shall submit to the department
within 15 days of execution of the agreement a declaration stating
that the authorized licensee has entered into a written agreement for
the purchase of advertising space and time at a sports entertainment
facility pursuant to and in compliance with the provisions of this
section, along with a fee of two thousand five hundred dollars
($2,500) to cover the reasonable administrative costs of the
department. The declaration shall further state the name and address
of the sports entertainment facility, the names of the parties to the
agreement, and the time period that agreement will continue in
effect. The authorized licensee shall notify the department within 15
days of any amendment, extension, modification, or renewal of that
agreement or of any new agreement.
(2) The declaration shall also state that there is no financial
arrangement or agreement, written or oral, between the authorized
licensee and the owner or major tenant of the facility or with any
on-sale licensee that provides for the on-sale licensee to receive a
share of the revenues, or anything of value, directly or indirectly,
from the advertising agreement.
(3) The declaration required by this subdivision shall not be
under penalty of perjury. Failure to comply with this subdivision or
the filing of a false declaration shall be subject to license
suspension by the department.
(c) The agreement shall not contain any of the following terms or
conditions:
(1) The agreement is conditioned on the purchase or sale of the
authorized licensee's brands of alcoholic beverages by the on-sale
licensee or limits the purchase and sale of competing brands of
alcoholic beverages manufactured, distributed, sold, or marketed by
other authorized licensees at the facility by the on-sale licensee.
(2) The agreement provides for anything of value to be furnished,
directly or indirectly, to the on-sale licensee.
(3) Any term or condition that violates any provision of this
division.
(d) In monitoring the impacts of any agreements authorized by this
article, the department may conduct audits to determine compliance
with this section. Audits may include, but are not limited to, brand
selection at the sports entertainment facility, purchase patterns of
the on-sale licensee, and review of any agreement or amendments to an
agreement or any other contractual or financial arrangement, written
or oral, between or among the parties to the agreement and the
on-sale licensee, including any affiliated business of the on-sale
licensee or any affiliated business of the authorized licensee.
(e) The department shall penalize a violation of any provision of
this section by the suspension of the authorized licensee's license
or by a fine equal to the contract value of the agreement for
advertising.
(f) (1) Any sports entertainment facility described in Section
25503.6 or 25503.8 as those sections read on December 31, 2016, shall
be exempt from the provisions of this section if there is an
agreement existing on December 31, 2016, for the purchase of
advertising space and time at the facility, but shall for the
duration of its exemption be subject to the provisions in those
sections as they read on December 31, 2016, regardless if the section
is later repealed. When an agreement existing on December 31, 2016,
for the purchase of advertising space and time at the facility is
modified, renewed, or extended, or a new agreement entered into, on
or after the effective date of this section, the facility shall be
subject to this section.
(2) An authorized licensee seeking an exemption pursuant to this
subdivision shall submit to the department by January 31, 2017, a
declaration stating the sports entertainment facility is subject to
an agreement for the purchase of advertising space and time at the
facility that was in effect on December 31, 2016, and continues in
effect on or after January 1, 2017. That declaration shall further
state the name of the sports entertainment facility, the names of the
parties to the agreement, and the time period the agreement will
continue in effect. The authorized licensee shall notify the
department within 15 days of any amendment, extension, modification,
or renewal of that agreement, or any new agreement, entered into on
or after the effective date of this section. The declaration shall
not be under penalty of perjury. Failure to comply with this
paragraph or the filing of a false declaration shall be subject to
license suspension by the department.
23555. The Legislature finds and declares all of the following:
(a) Statutes to implement a three-tier system, which requires a
separation between manufacturing interests, wholesale interests, and
retail interests in the production, distribution, and sale of
alcoholic beverages, are as proper and necessary to the public
welfare in the 21st Century as they were when first enacted following
the enactment of the 21st Amendment to the United States
Constitution and the repeal of prohibition; that the three-tier
system by requiring economic separation between the tiers contributes
to a fair, open, and competitive market resulting in interbrand and
other competition within each tier, thereby broadening consumer
choices; and that it also prevents disorderly market conditions
arising from the domination of local markets through vertical
integration leading to excessive sales of alcoholic beverages and
consumption produced by overly aggressive marketing techniques,
including, but not limited to, the domination of local markets and
the undue economic influence of one tier over another. The
Legislature further affirms that temperance is achieved, consistent
with the structural regulation that promotes a competitive and
orderly market, by controlled access to, and responsible use and
consumption of, alcoholic beverages by persons of legal drinking age.
(b) The enactment of tied-house restrictions are necessary
economic regulations that serve important public interests, and the
restrictions prohibiting a manufacturer or wholesaler from
furnishing, giving, or lending any money or other thing of value to a
retail licensee, or from paying or compensating a retailer for
advertising as provided in Section 25503, are necessary to promote
and maintain an orderly competitive market that is open and
accessible to all brands and to prevent manufacturers from dominating
local markets through payment of incentives and compensation to
retailers. The Legislature further finds and declares that limited
exceptions have been made to this general prohibition to promote an
identifiable public purpose and interest for the exception, which
have been limited to the express terms of the exception so as to not
undermine the general prohibition.
(c) Because this system of prohibition with limited, specific
exceptions may be incorrectly construed to undermine the general
prohibition despite legislative directives to the contrary, this
section is necessary to clarify and reenforce the general prohibition
as provided in Section 25503.
(d) There may be instances where the community public interest and
welfare would benefit from the sports entertainment facility owner
or its major tenant being able to receive revenue for the
advertisement of alcoholic beverages on the premises of the facility.
Therefore, this article is enacted to authorize manufacturers of
alcoholic beverages to enter into agreements with the owner or major
tenant of a sports entertainment facility for the placement of brand
advertisements upon the premises of the facility where the alcoholic
beverage sales on the facility premises are conducted by a separate,
independent entity who is the on-sale general licensee and does not
share in the advertising revenue.
(e) The provisions of this article and other exceptions in this
division to the general prohibition against tied interests must be
narrowly construed and limited to the express terms of the exception
so as not to undermine the general prohibition. The Legislature
expressly intends that this article and division be construed in
accordance with these findings.
SEC. 2. 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
in 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 in 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, in 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 in 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.
(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.
(O) A complex of not more than 50 acres located on the campus of,
and owned by, Sonoma State University dedicated to presenting live
artistic, musical, sports, food, beverage, culinary, lifestyle, or
other cultural and entertainment events and performances with venues
that include a concert hall with a seating capacity of approximately
1,500 seats, a second concert hall with a seating capacity of up to
300 seats, an outdoor area with a seating capacity of up to 5,000
seats, and a further outdoor area with a seating capacity of up to
10,000 seats. With respect to this complex, advertising space and
time may also be purchased from or on behalf of the owner of the
complex, a long-term tenant or licensee of the venue, whether or not
the owner, long-term tenant, or licensee holds an on-sale license.
(P) A fairgrounds with a horse racetrack and equestrian and sports
facilities located in San Diego County.
(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. With respect to the complex described in
subparagraph (O) of paragraph (1), the advertising space or time
shall be purchased only in connection with live artistic, musical,
sports, food, beverage, culinary, lifestyle, or other cultural and
entertainment events and performances to be held on the premises of
the complex.
(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 any
of the following:
(1) The on-sale licensee.
(2) With respect to clause (ii) of subparagraph (N) of paragraph
(1) of subdivision (a), the major tenant of the outdoor stadium.
(3) With respect to subparagraph (O) of paragraph (1) of
subdivision (a), the owner, a long-term tenant of the complex, or
licensee of the complex, whether or not the owner, long-term tenant,
or licensee holds an on-sale license.
(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 exceptions
established by this section to the general prohibition against tied
interests shall be limited to their express terms so as not to
undermine the general prohibition and intends that this section be
construed accordingly.
(g) This section shall become inoperative on December 31, 2022.
SEC. 3. Section 25503.8 of the Business
and Professions Code is amended to read:
25503.8. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a distilled spirits rectifier, a
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent may purchase advertising space and time from, or on behalf of,
an on-sale retail licensee if all of the following conditions are
met:
(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
(B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
(C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
(D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance
by the public on a ticketed basis only, with a fixed seating
capacity in excess of 6,000 seats, located in Los Angeles County
within the area subject to the Los Angeles Sports and Entertainment
District Specific Plan adopted by the City of Los Angeles pursuant to
ordinance number 174225, as approved on September 6, 2001.
(F) A fully enclosed arena with a fixed seating capacity in excess
of 15,000 seats located in Santa Clara County. With respect to the
arena described in this subparagraph, advertising space may also be
purchased from, or on behalf of, a lessee or manager of the arena.
(2) The advertising space or time is purchased only in connection
with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
(B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
(C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
(D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
(E) In the case of the fully enclosed theater described in
subparagraph (E) of paragraph (1) of subdivision (a), in connection
with events conducted at the theater.
(F) In the case of a fully enclosed arena described in
subparagraph (F) of paragraph (1) of subdivision (a), interior
advertising in connection with events conducted within the arena.
(3) 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 or marketed by the winegrower or California winegrower's
agent, 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 manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Any 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, the holder of the winegrower's
license, the California winegrower's agent, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent, and the
on-sale licensee, which contract shall not in any way involve the
holder of a wholesaler's license.
(c) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower'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) 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.
(d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces, directly or indirectly, a holder of a
wholesaler's license to solicit a beer manufacturer, distilled
spirits manufacturer, or distilled spirits manufacturer's agent,
holder of a winegrower's license, or California winegrower'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) This section shall become inoperative on December 31, 2022.
SECTION 1. Section 23792 of the Business and
Professions Code is repealed.
