BILL NUMBER: AB 2793	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2010

INTRODUCED BY   Committee on Governmental Organization (Coto (Chair),
Bradford, Chesbro, Evans, Galgiani, Hall, Hill, Lieu, Mendoza, V.
Manuel Perez, and Portantino)

                        MARCH 17, 2010

   An act to  amend Section 25503.42 of, and to  add Section
23433.5 to  , the Business and Professions Code, relating
to alcoholic beverages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2793, as amended, Committee on Governmental Organization.
Alcoholic beverage control:  advertising:  club licenses.
   Existing law provides for the issuance of a club license for the
sale of alcoholic beverages to specified organizations.
   This bill would authorize the Department of Alcoholic Beverage
Control to issue a club license to nonprofit lawn bowls clubs, that
do not discriminate or restrict membership, as specified.
   The Alcoholic Beverage Control Act provides that a violation of
its provisions is a misdemeanor, unless otherwise specified.
   This bill, by including provisions that would be subject to those
existing criminal sanctions, would impose a state-mandated local
program. 
   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 but expressly
authorizes specified licensees to purchase advertising space or time
from specified fully enclosed venues located in Los Angeles County
that have a patronage capacity in excess of 2,000, as described,
under specified conditions.  
   This bill would limit the patronage capacity allowed in the
described venues to at least 2,000, but not more than 3,000. 
   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.
   AB 2793, as amended, Committee on Governmental Organization.
Alcoholic beverage control:  advertising:  club licenses.
   Existing law provides for the issuance of a club license for the
sale of alcoholic beverages to specified organizations.
   This bill would authorize the Department of Alcoholic Beverage
Control to issue a club license to nonprofit lawn bowls clubs, that
do not discriminate or restrict membership, as specified.
   The Alcoholic Beverage Control Act provides that a violation of
its provisions is a misdemeanor, unless otherwise specified.
   This bill, by including provisions that would be subject to those
existing criminal sanctions, would impose a state-mandated local
program. 
   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 but expressly
authorizes specified licensees to purchase advertising space or time
from specified fully enclosed venues located in Los Angeles County
that have a patronage capacity in excess of 2,000, as described,
under specified conditions.  
   This bill would limit the patronage capacity allowed in the
described venues to at least 2,000, but not more than 3,000. 
   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 23433.5 is added to the Business and
Professions Code, to read:
   23433.5.  (a) For the purposes of this article, "club" also means
any nonprofit lawn bowls club.
   (b) No license shall be issued to any nonprofit lawn bowls club
qualifying as a club pursuant to this section if the nonprofit lawn
bowls club in any manner restricts membership or the use of its
facilities on the basis of age or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.
   SEC. 2.    Section 25503.42 of the  
Business and Professions Code   is amended 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,  but not more than 3,000,
 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 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 brands manufactured or marketed by the
advertising beer manufacturer, other brands of wine distributed by a
competing wine wholesaler in addition to the 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 brands
manufactured or marketed by the advertising distilled spirits
manufacturer, the distilled spirits manufacturer's agent, or a holder
of a distilled spirits rectifiers general license.
   (5) No more than 15 percent of the retail licensee's 
purchases of   monetary expenditures for  distilled
spirits and wine for sale on its licensed premises  in any
calendar year  shall be  for products  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.
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 made pursuant to this section or the absence
of any certifications. Where there have been no certifications made
pursuant to this section for two consecutive years, this information
shall be included in the report.
   (g) 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.   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.

  SECTION 1.  Section 23433.5 is added to the Business and
Professions Code, to read:
   23433.5.  (a) For the purposes of this article, "club" also means
any nonprofit lawn bowls club.
   (b) No license shall be issued to any nonprofit lawn bowls club
qualifying as a club pursuant to this section if the nonprofit lawn
bowls club in any manner restricts membership or the use of its
facilities on the basis of age or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.
   SEC. 2.    Section 25503.42 of the  
Business and Professions Code   is amended 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,  but not more than 3,000,
 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 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 brands manufactured or marketed by the
advertising beer manufacturer, other brands of wine distributed by a
competing wine wholesaler in addition to the 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 brands
manufactured or marketed by the advertising distilled spirits
manufacturer, the distilled spirits manufacturer's agent, or a holder
of a distilled spirits rectifiers general license.
   (5) No more than 15 percent of the retail licensee's 
purchases of   monetary expenditures for  distilled
spirits and wine for sale on its licensed premises  in any
calendar year  shall be  for products  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.
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 made pursuant to this section or the absence
of any certifications. Where there have been no certifications made
pursuant to this section for two consecutive years, this information
shall be included in the report.
   (g) 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.   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.
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