BILL NUMBER: AB 775	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Galgiani
   (Principal coauthor: Senator Berryhill)
   (Coauthors: Assembly Members Bill Berryhill, Cook, and Jeffries)
   (Coauthors: Senators Calderon and Strickland)

                        FEBRUARY 17, 2011

   An act to add Section 25503.34 to the Business and Professions
Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 775, as introduced, Galgiani. 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, the
holder of a winegrower's license, a California winegrower's agent, a
distilled spirits rectifier, a distilled spirits manufacturer, and a
distilled spirits manufacturer's agent to provide sponsorship funds,
purchase advertising space or time, or furnish, give, lend, rent, or
sell specified items to a live entertainment company that is
affiliated with an off-sale licensee for live entertainment events in
the Counties of San Joaquin, San Luis Obispo, and Stanislaus.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the counties described above.
   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.
   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 25503.34 is added to the Business and
Professions Code, to read:
   25503.34.  (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, and a distilled spirits manufacturer'
s agent may do the following in connection with a live entertainment
company that is affiliated with a holder of an off-sale license if
the conditions of subdivisions (b), (c), and (d) are all met:
   (1) Provide sponsorship funds to, for, or on behalf of, a live
entertainment company that is affiliated with a holder of an off-sale
license.
   (2) Purchase advertising space and time from, or on behalf of, a
live entertainment company that is affiliated with a holder of an
off-sale license.
   (3) Furnish, lend, rent, or sell equipment, fixtures, supplies,
decorations, paintings, or signs to, for, or on behalf of, a live
entertainment company that is affiliated with a holder of an off-sale
license.
   (b) The live entertainment company must have as its majority owner
a private retail grocery chain of not less than 15 and not more than
65 California store units with an off-sale license and must be
managed independently from the grocery chain's alcohol purchasing
activities.
   (c) The activities described in paragraphs (1), (2), and (3) of
subdivision (a) must be for, or on behalf of, live entertainment
events at venues with a fixed seating capacity of under 27,000 seats
located in the Counties of San Joaquin, San Luis Obispo, and
Stanislaus.
   (d) Any provision of sponsorship funds, purchase of advertising
space or time, or the furnishing, giving, lending, renting, or
selling of equipment, fixtures, supplies, decorations, or signs
pursuant to this section shall be conducted pursuant to a written
contract with the live entertainment company.
  SEC. 2.  Due to the unique circumstances concerning the Counties of
San Joaquin, San Luis Obispo, and Stanislaus the Legislature finds
and declares that a general statute cannot be made applicable within
the meaning of Section 16 of Article IV of the California
Constitution. Therefore, this act is necessarily applicable only to
the Counties of San Joaquin, San Luis Obispo, and Stanislaus.
  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.