BILL NUMBER: AB 813 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 10, 2009
AMENDED IN SENATE SEPTEMBER 2, 2009
AMENDED IN ASSEMBLY MAY 5, 2009
AMENDED IN ASSEMBLY APRIL 20, 2009
INTRODUCED BY Assembly Member John A. Perez
(Principal coauthor: Assembly Member Hall)
(Principal coauthor: Senator Cedillo)
(Coauthor: Assembly Member Audra Strickland)
(Coauthors: Senators Calderon, Florez, Oropeza, Padilla,
Strickland, and Wright)
FEBRUARY 26, 2009
An act to add Section 25503.42 to the Business and Professions
Code, relating to alcoholic beverages, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 813, as amended, John A. Perez. Alcoholic beverages:
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.
This bill would expressly authorize a beer manufacturer, holder of
a winegrower's license, California winegrower's agent, distilled
spirits manufacturer, holder of a distilled spirits rectifiers
general license, or a distilled spirits manufacturer's agent to
purchase advertising space or time from specified fully enclosed
venues located in Los Angeles County, as described, under specified
conditions. This bill would require a venue owner who
that enters into a written agreement pursuant to
this authorization to obtain an annual certificate from the
Department of Alcoholic Beverage Control and to pay an
initial and annual certification fee of $750 . This bill
would additionally require the department to, in its annual report to
the Legislature, include specified information and
recommendations to the Legislature with regard to this
authorization. This bill would also make a beer manufacturer, holder
of a winegrower's license, winegrower's agent, distilled spirits
manufacturer, holder of a distilled spirits rectifiers general
license, or a distilled spirits manufacturer's agent who, through
coercion or other means, induces the holder of a wholesaler's license
to fulfill those contractual obligations guilty of a misdemeanor.
This 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, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent to purchase advertising time or space guilty of
a misdemeanor. The bill thus imposes a state-mandated local program
by creating new crimes.
This bill would make findings regarding the need for special
legislation.
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.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.42 is added to the Business and
Professions Code, to read:
25503.42. (a) Notwithstanding any other provision of this
chapter, a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a holder of a distilled spirits
rectifiers general license, a distilled spirits manufacturer, or a
distilled spirits manufacturer's agent may purchase indoor
advertising space or time at a fully enclosed venue with box office
sales and attendance by the public on a ticketed basis only, with a
patronage capacity in excess of 2,000, 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, where the
owner of the venue is not the on-sale retail licensee. The purchase
of the indoor advertising space or time shall be subject to all of
the following conditions:
(1) The indoor advertising space or time is purchased only at the
venue specified in this subdivision.
(2) The purchase of indoor advertising space or time shall be
conducted pursuant to a written agreement entered into by the beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, holder of a distilled spirits rectifiers general license,
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent and the owner of the venue described in this subdivision. A
holder of a wholesale license shall not be a party to the written
agreement or otherwise be a beneficiary or obligor under the
written agreement have any direct or
indirect obligations under the agreement, including an obligation to
share in the costs or contribute to the costs of the indoor
advertising space or time purchased pursuant to this section .
(3) An agreement for the purchase of indoor advertising space or
time pursuant to this section 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 advertising
beer manufacturer, holder of a winegrower's license, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent by any on-sale retail licensee.
(4) An on-sale licensee operating at a venue described in this
subdivision where indoor advertising space or time is purchased shall
serve other brands of beer distributed by a competing beer
wholesaler in addition to the brand brands
manufactured or marketed by the advertising beer manufacturer,
other brands of wine distributed by a competing wine wholesaler in
addition to the brand brands produced
or marketed by the advertising winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the
brand brands manufactured or marketed by the
advertising distilled spirits manufacturer or
, the distilled spirits manufacturer's agent , or a
holder of a distilled spirits rectifiers general license .
(5) The total gross sales by the on-sale licensee of wine and
distilled spirits brands owned or distributed by the holder of a
winegrower's license, California winegrower's agent, distilled
spirits manufacturer, holder of a distilled spirits rectifiers
general license, or a distilled spirits manufacturer's agent that has
purchased indoor advertising space or time shall not exceed 15
percent of the on-sale licensee's gross sales of all alcoholic
beverages during the period within which the licensee has purchased
indoor advertising time or space. The on-sale licensee shall at all
times maintain records that reflect separately the gross sales of
brands owned or distributed by the holder of a winegrower's license,
California winegrower's agent, distilled spirits manufacturer, holder
of a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent that has purchased indoor advertising
time or space and the on-sale licensee's gross sales of all alcoholic
beverages during the period within which the on-sale licensee has
purchased indoor advertising time or space. The on-sale licensee
shall maintain these records no less frequently than on a quarterly
basis and shall make these records available to the department on
demand.
(5) No more than 15 percent of the retail licensee's purchases of
distilled spirits and wine for sale on its licensed premises shall be
manufactured, produced, or distributed by the holder of a winegrower'
s license, California winegrower's agent, distilled spirits
manufacturer, holder of a distilled spirits rectifiers general
license, or a distilled spirits manufacturer's agent that has
purchased indoor advertising space.
(b) A beer manufacturer, holder of a winegrower's license,
California winegrower's agent, holder of a distilled spirits
rectifiers general license, distilled spirits manufacturer, 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 equal to the greater of an amount
equal to the entire value of the advertising space or time involved
in the contract or ten thousand dollars ($10,000), or by both
imprisonment and fine. The person shall also be subject to license
revocation pursuant to Section 24200.
(c) An 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, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent to purchase indoor 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 equal to the greater of an amount equal to
the entire value of the advertising space or time involved in the
contract or 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) 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.
(e) Nothing in this section shall authorize the purchasing of
indoor advertising space or time pursuant to subdivision (a) by any
beer manufacturer, holder of a winegrower's license, a California
winegrower's agent, a distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent directly or indirectly from any on-sale
licensee.
(f) A venue owner that meets the description provided in
subdivision (a) and that enters into a written agreement pursuant to
this section shall obtain an annual certificate from the department
and pay an initial certification fee of seven hundred fifty
dollars ($750) and thereafter pay an annual certification renewal fee
of seven hundred fifty dollars ($750) . The director shall
prepare, as part of the annual report required by Section 23055 for
submission to the Legislature, a listing of the number of
certifications and payments made pursuant to this
section or the absence of any certifications and payments
. Where there have been no certifications and
payments made pursuant to this section for two consecutive
years, a recommendation of repeal of this section
this information shall be included in the report'
s recommendations for legislation to improve the ability of the
department to expeditiously and effectively administer this division.
report.
(g) The Legislature finds that it is necessary and proper to
require a separation between 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 exception
established by this section to the general prohibition against
tied interests must shall be limited to
their its express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
SEC. 2. The Legislature hereby finds and declares, with respect to
Section 1 of this act, that a special statute is necessary and that
a statute of general applicability cannot be enacted within the
meaning of Section 16 of Article IV of the California Constitution,
because of unique circumstances and concerns applicable to certain
facilities in Los Angeles County.
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 continue to aid in the economic recovery and
stimulation of the County of Los Angeles, and maintain the economic
viability of the arenas and venues that are a vital component of the
revitalization of the downtown Los Angeles area, it is necessary that
this act take immediate effect.