BILL NUMBER: SB 937 CHAPTERED
BILL TEXT
CHAPTER 327
FILED WITH SECRETARY OF STATE SEPTEMBER 14, 2012
APPROVED BY GOVERNOR SEPTEMBER 14, 2012
PASSED THE SENATE AUGUST 22, 2012
PASSED THE ASSEMBLY AUGUST 20, 2012
AMENDED IN ASSEMBLY AUGUST 16, 2012
AMENDED IN ASSEMBLY JUNE 13, 2012
AMENDED IN ASSEMBLY FEBRUARY 7, 2012
AMENDED IN ASSEMBLY JULY 7, 2011
INTRODUCED BY Committee on Governmental Organization (Senators
Wright (Chair), Anderson, Berryhill, Calderon, Cannella, Corbett, De
León, Evans, Hernandez, Padilla, Strickland, Wyland, and Yee)
MARCH 21, 2011
An act to amend Sections 494.5, 23083.5, 23393.5, 23396.6, 23800,
23817.5, 23958.4, 24045.11, 24300, 25503.29, 25503.37, and 25503.42
of, to repeal Sections 24016 and 24210 of, and to repeal and add
Sections 23320 and 24079 of, the Business and Professions Code,
relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 937, Committee on Governmental Organization. Alcoholic
beverages.
(1) The Alcoholic Beverage Control Act requires the Alcoholic
Beverage Control Appeals Board to establish a surcharge of up to 3
percent of the annual license fees imposed under the act to pay for
the board's administrative costs.
This bill would provide that the Department of Alcoholic Beverage
Control is required to collect a surcharge of 3 percent of the annual
license fees for the Alcoholic Beverage Control Appeals Board's
administrative costs.
(2) The Alcoholic Beverage Control Act provides for the issuance
of licenses for which various annual fees are charged depending upon
the type of license issued. That law authorizes an annual adjustment
of the fees, as provided, commencing with the 2010 calendar year.
This bill would revise the license fee schedule to set forth the
fee amounts as of the 2010 calendar year.
(3) Existing law requires a retail off-sale beer and wine
replacement license to be issued upon application when specified
conditions exist.
This bill would instead authorize a retail off-sale beer and wine
replacement license to be issued under specified circumstances. This
bill would also prohibit the issuance of a replacement license under
specified circumstances.
(4) The Alcoholic Beverage Control Act prohibits the transfer of
an original on-sale or off-sale general license for one year if a fee
in excess of $12,000 has been paid and for 2 years if a fee of
$12,000 has been paid.
This bill would revise the provision to prohibit the transfer of
an original on-sale or off-sale license for more than the original
purchase price for a period of 2 years.
(5) This bill would also make technical and conforming changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 494.5 of the Business and Professions Code is
amended to read:
494.5. (a) (1) Except as provided in paragraphs (2), (3), and
(4), a state governmental licensing entity shall refuse to issue,
reactivate, reinstate, or renew a license and shall suspend a license
if a licensee's name is included on a certified list.
(2) The Department of Motor Vehicles shall suspend a license if a
licensee's name is included on a certified list. Any reference in
this section to the issuance, reactivation, reinstatement, renewal,
or denial of a license shall not apply to the Department of Motor
Vehicles.
(3) The State Bar of California may recommend to refuse to issue,
reactivate, reinstate, or renew a license and may recommend to
suspend a license if a licensee's name is included on a certified
list. The word "may" shall be substituted for the word "shall"
relating to the issuance of a temporary license, refusal to issue,
reactivate, reinstate, renew, or suspend a license in this section
for licenses under the jurisdiction of the California Supreme Court.
(4) The Department of Alcoholic Beverage Control may refuse to
issue, reactivate, reinstate, or renew a license, and may suspend a
license, if a licensee's name is included on a certified list.
(b) For purposes of this section:
(1) "Certified list" means either the list provided by the State
Board of Equalization or the list provided by the Franchise Tax Board
of persons whose names appear on the lists of the 500 largest tax
delinquencies pursuant to Section 7063 or 19195 of the Revenue and
Taxation Code, as applicable.
(2) "License" includes a certificate, registration, or any other
authorization to engage in a profession or occupation issued by a
state governmental licensing entity. "License" includes a driver's
license issued pursuant to Chapter 1 (commencing with Section 12500)
of Division 6 of the Vehicle Code. "License" excludes a vehicle
registration issued pursuant to Division 3 (commencing with Section
4000) of the Vehicle Code.
(3) "Licensee" means an individual authorized by a license to
drive a motor vehicle or authorized by a license, certificate,
registration, or other authorization to engage in a profession or
occupation issued by a state governmental licensing entity.
(4) "State governmental licensing entity" means any entity listed
in Section 101, 1000, or 19420, the office of the Attorney General,
the Department of Insurance, the Department of Motor Vehicles, the
State Bar of California, the Department of Real Estate, and any other
state agency, board, or commission that issues a license,
certificate, or registration authorizing an individual to engage in a
profession or occupation, including any certificate, business or
occupational license, or permit or license issued by the Department
of Motor Vehicles or the Department of the California Highway Patrol.
"State governmental licensing entity" shall not include the
Contractors' State License Board.
(c) The State Board of Equalization and the Franchise Tax Board
shall each submit its respective certified list to every state
governmental licensing entity. The certified lists shall include the
name, social security number or taxpayer identification number, and
the last known address of the persons identified on the certified
lists.
(d) Notwithstanding any other law, each state governmental
licensing entity shall collect the social security number or the
federal taxpayer identification number from all applicants for the
purposes of matching the names of the certified lists provided by the
State Board of Equalization and the Franchise Tax Board to
applicants and licensees.
(e) (1) Each state governmental licensing entity shall determine
whether an applicant or licensee is on the most recent certified list
provided by the State Board of Equalization and the Franchise Tax
Board.
(2) If an applicant or licensee is on either of the certified
lists, the state governmental licensing entity shall immediately
provide a preliminary notice to the applicant or licensee of the
entity's intent to suspend or withhold issuance or renewal of the
license. The preliminary notice shall be delivered personally or by
mail to the applicant's or licensee's last known mailing address on
file with the state governmental licensing entity within 30 days of
receipt of the certified list. Service by mail shall be completed in
accordance with Section 1013 of the Code of Civil Procedure.
(A) The state governmental licensing entity shall issue a
temporary license valid for a period of 90 days to any applicant
whose name is on a certified list if the applicant is otherwise
eligible for a license.
(B) The 90-day time period for a temporary license shall not be
extended. Only one temporary license shall be issued during a regular
license term and the term of the temporary license shall coincide
with the first 90 days of the regular license term. A license for the
full term or the remainder of the license term may be issued or
renewed only upon compliance with this section.
(C) In the event that a license is suspended or an application for
a license or the renewal of a license is denied pursuant to this
section, any funds paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity.
(f) (1) A state governmental licensing entity shall refuse to
issue or shall suspend a license pursuant to this section no sooner
than 90 days and no later than 120 days of the mailing of the
preliminary notice described in paragraph (2) of subdivision (e),
unless the state governmental licensing entity has received a release
pursuant to subdivision (h). The procedures in the administrative
adjudication provisions of the Administrative Procedure Act (Chapter
4.5 (commencing with Section 11400) and Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the denial or suspension of, or refusal to
renew, a license or the issuance of a temporary license pursuant to
this section.
(2) Notwithstanding any other law, if a board, bureau, or
commission listed in Section 101, other than the Contractors' State
License Board, fails to take action in accordance with this section,
the Department of Consumer Affairs shall issue a temporary license or
suspend or refuse to issue, reactivate, reinstate, or renew a
license, as appropriate.
(g) Notices shall be developed by each state governmental
licensing entity. For an applicant or licensee on the State Board of
Equalization's certified list, the notice shall include the address
and telephone number of the State Board of Equalization, and shall
emphasize the necessity of obtaining a release from the State Board
of Equalization as a condition for the issuance, renewal, or
continued valid status of a license or licenses. For an applicant or
licensee on the Franchise Tax Board's certified list, the notice
shall include the address and telephone number of the Franchise Tax
Board, and shall emphasize the necessity of obtaining a release from
the Franchise Tax Board as a condition for the issuance, renewal, or
continued valid status of a license or licenses.
(1) The notice shall inform the applicant that the state
governmental licensing entity shall issue a temporary license, as
provided in subparagraph (A) of paragraph (2) of subdivision (e), for
90 calendar days if the applicant is otherwise eligible and that
upon expiration of that time period, the license will be denied
unless the state governmental licensing entity has received a release
from the State Board of Equalization or the Franchise Tax Board,
whichever is applicable.
(2) The notice shall inform the licensee that any license
suspended under this section will remain suspended until the state
governmental licensing entity receives a release along with
applications and fees, if applicable, to reinstate the license.
(3) The notice shall also inform the applicant or licensee that if
an application is denied or a license is suspended pursuant to this
section, any moneys paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity. The state
governmental licensing entity shall also develop a form that the
applicant or licensee shall use to request a release by the State
Board of Equalization or the Franchise Tax Board. A copy of this form
shall be included with every notice sent pursuant to this
subdivision.
(h) If the applicant or licensee wishes to challenge the
submission of his or her name on a certified list, the applicant or
licensee shall make a timely written request for release to the State
Board of Equalization or the Franchise Tax Board, whichever is
applicable. The State Board of Equalization or the Franchise Tax
Board shall immediately send a release to the appropriate state
governmental licensing entity and the applicant or licensee, if any
of the following conditions are met:
(1) The applicant or licensee has complied with the tax
obligation, either by payment of the unpaid taxes or entry into an
installment payment agreement, as described in Section 6832 or 19008
of the Revenue and Taxation Code, to satisfy the unpaid taxes.
(2) The applicant or licensee has submitted a request for release
not later than 45 days after the applicant's or licensee's receipt of
a preliminary notice described in paragraph (2) of subdivision (e),
but the State Board of Equalization or the Franchise Tax Board,
whichever is applicable, will be unable to complete the release
review and send notice of its findings to the applicant or licensee
and state governmental licensing entity within 45 days after the
State Board of Equalization's or the Franchise Tax Board's receipt of
the applicant's or licensee's request for release. Whenever a
release is granted under this paragraph, and, notwithstanding that
release, the applicable license or licenses have been suspended
erroneously, the state governmental licensing entity shall reinstate
the applicable licenses with retroactive effect back to the date of
the erroneous suspension and that suspension shall not be reflected
on any license record.
(3) The applicant or licensee is unable to pay the outstanding tax
obligation due to a current financial hardship. "Financial hardship"
means financial hardship as determined by the State Board of
Equalization or the Franchise Tax Board, whichever is applicable,
where the applicant or licensee is unable to pay any part of the
outstanding liability and the applicant or licensee is unable to
qualify for an installment payment arrangement as provided for by
Section 6832 or Section 19008 of the Revenue and Taxation Code. In
order to establish the existence of a financial hardship, the
applicant or licensee shall submit any information, including
information related to reasonable business and personal expenses,
requested by the State Board of Equalization or the Franchise Tax
Board, whichever is applicable, for purposes of making that
determination.
(i) An applicant or licensee is required to act with diligence in
responding to notices from the state governmental licensing entity
and the State Board of Equalization or the Franchise Tax Board with
the recognition that the temporary license will lapse or the license
suspension will go into effect after 90 days and that the State Board
of Equalization or the Franchise Tax Board must have time to act
within that period. An applicant's or licensee's delay in acting,
without good cause, which directly results in the inability of the
State Board of Equalization or the Franchise Tax Board, whichever is
applicable, to complete a review of the applicant's or licensee's
request for release shall not constitute the diligence required under
this section which would justify the issuance of a release. An
applicant or licensee shall have the burden of establishing that he
or she diligently responded to notices from the state governmental
licensing entity or the State Board of Equalization or the Franchise
Tax Board and that any delay was not without good cause.
(j) The State Board of Equalization or the Franchise Tax Board
shall create release forms for use pursuant to this section. When the
applicant or licensee has complied with the tax obligation by
payment of the unpaid taxes, or entry into an installment payment
agreement, or establishing the existence of a current financial
hardship as defined in paragraph (3) of subdivision (h), the State
Board of Equalization or the Franchise Tax Board, whichever is
applicable, shall mail a release form to the applicant or licensee
and provide a release to the appropriate state governmental licensing
entity. Any state governmental licensing entity that has received a
release from the State Board of Equalization and the Franchise Tax
Board pursuant to this subdivision shall process the release within
five business days of its receipt. If the State Board of Equalization
or the Franchise Tax Board determines subsequent to the issuance of
a release that the licensee has not complied with their installment
payment agreement, the State Board of Equalization or the Franchise
Tax Board, whichever is applicable, shall notify the state
governmental licensing entity and the licensee in a format prescribed
by the State Board of Equalization or the Franchise Tax Board,
whichever is applicable, that the licensee is not in compliance and
the release shall be rescinded. The State Board of Equalization and
the Franchise Tax Board may, when it is economically feasible for the
state governmental licensing entity to develop an automated process
for complying with this subdivision, notify the state governmental
licensing entity in a manner prescribed by the State Board of
Equalization or the Franchise Tax Board, whichever is applicable,
that the licensee has not complied with the installment payment
agreement. Upon receipt of this notice, the state governmental
licensing entity shall immediately notify the licensee on a form
prescribed by the state governmental licensing entity that the
licensee's license will be suspended on a specific date, and this
date shall be no longer than 30 days from the date the form is
mailed. The licensee shall be further notified that the license will
remain suspended until a new release is issued in accordance with
this subdivision.
(k) The State Board of Equalization and the Franchise Tax Board
may enter into interagency agreements with the state governmental
licensing entities necessary to implement this section.
(l) Notwithstanding any other law, a state governmental licensing
entity, with the approval of the appropriate department director or
governing body, may impose a fee on a licensee whose license has been
suspended pursuant to this section. The fee shall not exceed the
amount necessary for the state governmental licensing entity to cover
its costs in carrying out the provisions of this section. Fees
imposed pursuant to this section shall be deposited in the fund in
which other fees imposed by the state governmental licensing entity
are deposited and shall be available to that entity upon
appropriation in the annual Budget Act.
(m) The process described in subdivision (h) shall constitute the
sole administrative remedy for contesting the issuance of a temporary
license or the denial or suspension of a license under this section.
(n) Any state governmental licensing entity receiving an inquiry
as to the licensed status of an applicant or licensee who has had a
license denied or suspended under this section or who has been
granted a temporary license under this section shall respond that the
license was denied or suspended or the temporary license was issued
only because the licensee appeared on a list of the 500 largest tax
delinquencies pursuant to Section 7063 or 19195 of the Revenue and
Taxation Code. Information collected pursuant to this section by any
state agency, board, or department shall be subject to the
Information Practices Act of 1977 (Chapter 1 (commencing with Section
1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). Any
state governmental licensing entity that discloses on its Internet
Web site or other publication that the licensee has had a license
denied or suspended under this section or has been granted a
temporary license under this section shall prominently disclose, in
bold and adjacent to the information regarding the status of the
license, that the only reason the license was denied, suspended, or
temporarily issued is because the licensee failed to pay taxes.
(o) Any rules and regulations issued pursuant to this section by
any state agency, board, or department may be adopted as emergency
regulations in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
The adoption of these regulations shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
and safety, or general welfare. The regulations shall become
effective immediately upon filing with the Secretary of State.
(p) The State Board of Equalization, the Franchise Tax Board, and
state governmental licensing entities, as appropriate, shall adopt
regulations as necessary to implement this section.
(q) (1) Neither the state governmental licensing entity, nor any
officer, employee, or agent, or former officer, employee, or agent of
a state governmental licensing entity, may disclose or use any
information obtained from the State Board of Equalization or the
Franchise Tax Board, pursuant to this section, except to inform the
public of the denial, refusal to renew, or suspension of a license or
the issuance of a temporary license pursuant to this section. The
release or other use of information received by a state governmental
licensing entity pursuant to this section, except as authorized by
this section, is punishable as a misdemeanor. This subdivision may
not be interpreted to prevent the State Bar of California from filing
a request with the Supreme Court of California to suspend a member
of the bar pursuant to this section.
(2) A suspension of, or refusal to renew, a license or issuance of
a temporary license pursuant to this section does not constitute
denial or discipline of a licensee for purposes of any reporting
requirements to the National Practitioner Data Bank and shall not be
reported to the National Practitioner Data Bank or the Healthcare
Integrity and Protection Data Bank.
(3) Upon release from the certified list, the suspension or
revocation of the applicant's or licensee's license shall be purged
from the state governmental licensing entity's Internet Web site or
other publication within three business days. This paragraph shall
not apply to the State Bar of California.
(r) If any provision of this section or the application thereof to
any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of this section that can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
(s) All rights to review afforded by this section to an applicant
shall also be afforded to a licensee.
(t) Unless otherwise provided in this section, the policies,
practices, and procedures of a state governmental licensing entity
with respect to license suspensions under this section shall be the
same as those applicable with respect to suspensions pursuant to
Section 17520 of the Family Code.
(u) No provision of this section shall be interpreted to allow a
court to review and prevent the collection of taxes prior to the
payment of those taxes in violation of the California Constitution.
(v) This section shall apply to any licensee whose name appears on
a list of the 500 largest tax delinquencies pursuant to Section 7063
or 19195 of the Revenue and Taxation Code on or after July 1, 2012.
SEC. 2. Section 23083.5 of the Business and Professions Code is
amended to read:
23083.5. (a) The department shall collect a 3-percent surcharge
on the annual fees provided for in Section 23320 on behalf of the
appeals board at the same time the department makes its regular
collections of annual fees pursuant to Section 23320. The surcharge
shall be rounded to the nearest whole dollar and pay the costs of the
appeals board in carrying out its duties.
(b) All surcharges collected by the department on behalf of the
appeals board pursuant to this section shall be deposited in the
Alcoholic Beverage Control Appeals Fund, which is hereby created. All
moneys in the Alcoholic Beverage Control Appeals Fund shall be
available to the appeals board, upon appropriation by the
Legislature, to pay the actual costs of the appeals board in carrying
out its duties under this chapter.
SEC. 3. Section 23320 of the Business and Professions Code is
repealed.
SEC. 4. Section 23320 is added to the Business and Professions
Code, to read:
23320. (a) The following are the types of licenses and the annual
fees to be charged therefor:
+------------------------+------------------------+
|Name & License Type | Fee Effective |
|Number: | 01/01/10 |
+------------------------+------------------------+
|(1) Beer manufacturer: | |
|(a) Beer manufacturers | |
|that produce 60,000 | |
|barrels or less a year | |
|(Type 23)...............| $161.00|
|(b) All other beer | |
|manufacturers | |
|(Type 1)................| $1334.00|
|(c) Branch Office | |
|--Small Beer | |
|Manufacturers | |
|(Type 23D)..............| $85.00|
|--Beer Manufacturers | |
|(Type 1D)...............| $85.00|
+------------------------+------------------------+
|(2) Winegrower or wine | |
|blender (to be | |
|computed only on the | |
|gallonage produced | |
|or blended) (Type 2 & | |
|Type 22): | |
|--5,000 gallons or | |
|less....................| $62.00|
|--Over 5,000 gallons | |
|to 20,000 gallons per | |
|year....................| $115.00|
|--Over 20,000 to 100,000| |
|gallons per year........| $208.00|
|--Over 100,000 to | |
|200,000 gallons per | |
|year....................| $274.00|
|--Over 200,000 gallons | |
|to 1,000,000 gallons | |
|per year................| $406.00|
|--For each 1,000,000 | |
|gallons or fraction | |
|thereof over 1,000,000 | |
|gallons an additional...| $265.00|
|Winegrower (Branch | |
|Office) - (Type 2D).....| $85.00|
+------------------------+------------------------+
|(3) Brandy manufacturer | |
|(Type 3)................| $271.00|
|Brandy manufacturer | |
|(Branch Office) | |
|(Type 3D)...............| $248.00|
+------------------------+------------------------+
|(4) Distilled spirits | |
|manufacturer (Type 4)...| $444.00|
+------------------------+------------------------+
|(5) Distilled spirits | |
|manufacturer's agent | |
|(Type 5)................| $444.00|
+------------------------+------------------------+
|(5a) California | |
|winegrower's | $444.00|
|agent (Type 27).........| |
+------------------------+------------------------+
|(6) Still (Type 6)......| $67.00|
+------------------------+------------------------+
|(7) Rectifier (Type 7)..| $444.00|
+------------------------+------------------------+
|(7a) Distilled spirits | |
|rectifier's general | |
|license | $444.00|
|(Type 24)...............| |
+------------------------+------------------------+
|(8) Wine rectifier | |
|(Type 8)................| $444.00|
+------------------------+------------------------+
|(9) Beer & wine importer| |
|(Type 9)................| $67.00|
+------------------------+------------------------+
|(10) Beer & wine | |
|importer's | |
|general license (Type | $296.00|
|10) | |
+------------------------+------------------------+
|(11) Brandy importer | |
|(Type 11)...............| $67.00|
+------------------------+------------------------+
|(12) Distilled spirits | |
|importer (Type 12)......| $67.00|
+------------------------+------------------------+
|(13) Distilled spirits | |
|importer's general | |
|license | $444.00|
|(Type 13)...............| |
+------------------------+------------------------+
|(14) Public warehouse | |
|(Type 14)...............| $67.00|
+------------------------+------------------------+
|(15) Customs broker | |
|(Type 15)...............| $67.00|
+------------------------+------------------------+
|(16) Wine broker (Type | $90.00|
|16).....................| |
+------------------------+------------------------+
|(17) Beer & wine | |
|wholesaler | $296.00|
|(Type 17)...............| |
+------------------------+------------------------+
|(18) Distilled spirits | |
|wholesaler (Type 18)....| $444.00|
+------------------------+------------------------+
|(18a) California brandy | |
|wholesaler (Type 25)....| $444.00|
+------------------------+------------------------+
|(19) Industrial alcohol | |
|dealer (Type 19)........| $90.00|
+------------------------+------------------------+
|(20) Retail package off-| |
|sale | $242.00|
|beer & wine (Type 20)...| |
+------------------------+------------------------+
|(21) Retail package off-| |
|sale | |
|general license (Type | |
|21) | |
|and controlled | |
|access | $537.00|
|cabinet permit (Type | |
|66).....................| |
+------------------------+------------------------+
|(22) On-sale beer (Type | |
|40 & Type 61); On-sale | |
|beer & wine (Type 42); | |
|Special on-sale beer & | |
|wine (Theater) (Type | |
|69); | |
|and Special on-sale | |
|beer & wine (Symphony) | |
|cabinet permit (Type | $248.00|
|66).....................| |
+------------------------+------------------------+
|(23) On-sale beer & wine| |
|eating place (Type 41)..| $335.00|
+------------------------+------------------------+
|(24) On-sale beer & wine| |
|license for trains (per | |
|train) (Type 43)........| $100.00|
+------------------------+------------------------+
|(25) On-sale beer | |
|license for | |
|fishing party boats (per| $100.00|
|boat) (Type 44).........| |
+------------------------+------------------------+
|(26) On-sale beer & wine| |
|license for boats (per | |
|boat) (Type 45).........| $100.00|
+------------------------+------------------------+
|(27) On-sale beer & wine| |
|license for airplanes | |
|(per | |
|scheduled flight) | $100.00|
|(Type 46)...............| |
+------------------------+------------------------+
|(28) On-sale general | |
|license | |
|(Types 47, 48, 57, 70, | |
|75, | |
|78, 78D (for 78D see | |
|Section 23396.2)) and | |
|club caterer's permit | |
|(Type 58): | |
|--In cities of 40,000 | |
|population or | $846.00|
|over....................| |
|--In cities of less than| |
|40,000 but more | |
|than 20,000 | $620.00|
|population..............| |
|--In all other | $551.00|
|localities..............| |
|Duplicate on-sale | |
|general | |
|license (Types 47D, 48D,| |
|57D) and portable bar | |
|license (Type 68): | $609.00|
|--In cities of 40,000 | |
|population or over......| |
|--In cities of less than| $360.00|
|40,000 but more than | |
|20,000 population.......| $284.00|
|--In all other | |
|localities..............| |
+------------------------+------------------------+
|(29) On-sale general | |
|license | |
|for seasonal | |
|business | |
|(Type 49): | |
|--In cities of 40,000 | |
|population or over (per | |
|quarter)................| $215.00|
|--In cities of less than| |
|40,000 but more than | |
|20,000 population (per | |
|quarter)................| $153.00|
|--In all other | |
|localities | $134.00|
|(per quarter)...........| |
|Duplicate on-sale | |
|general | |
|license for seasonal | |
|business (Type 49D): | |
|--In cities of 40,000 | $153.00|
|population or over (per | |
|quarter)................| |
|--In cities of less than| |
|40,000 but more than | $90.00|
|20,000 population (per | |
|quarter)................| $71.00|
|--In all other | |
|localities | |
|(per quarter)...........| |
+------------------------+------------------------+
|(30) (a) On-sale general| |
|license for bona fide | |
|clubs, (b) Club license | |
|(issued under Article 4 | |
|of | |
|this chapter), or | |
|(c) Veterans' club | |
|license | |
|(issued under Article 5 | |
|(commencing with | |
|Section 23450) of this | |
|chapter) (Types 50, 51, | |
|52, & 64): | |
|--In cities of | $488.00|
|40,000 | |
|population or over......| |
|--In cities of less than| $366.00|
|40,000 but more than | |
|20,000 population.......| $325.00|
|--In all other | |
|localities..............| |
+------------------------+------------------------+
|(31) On-sale general | |
|license | |
|for trains and sleeping | $189.00|
|cars (Type 53)..........| |
|--Duplicate on-sale | |
|general license for | |
|trains and sleeping car | |
|companies | $67.00|
|(Type 53D)..............| |
+------------------------+------------------------+
|(32) On-sale general | |
|license | $491.00|
|for boats (Type 54).....| |
+------------------------+------------------------+
|(33) On-sale general | |
|license | $491.00|
|for airplanes (Type 55).| |
|--Duplicate on-sale | |
|general license for air | |
|common carriers | $67.00|
|(Type 55D)..............| |
+------------------------+------------------------+
|(34) On-sale general | |
|license | |
|for vessels of more than| |
|1,000 tons burden (Type | |
|56) and for Maritime | $189.00|
|Museum (Type 76)........| |
|--Duplicate on-sale | |
|general license for | |
|vessels of more than | |
|1,000 tons burden | |
|(Type 56D) and for | |
|Maritime Museum | $67.00|
|(Type 76D)..............| |
+------------------------+------------------------+
|(35) On-sale general | |
|bona | |
|fide public eating place| |
|intermittent dockside | |
|license for vessels of | |
|more than 7,000 tons | $531.00|
|displacement (Type 62)..| |
+------------------------+------------------------+
|(36) On-sale special | |
|beer & | |
|wine license for | |
|hospitals, | |
|convalescent homes, and | $83.00|
|rest homes (Type 63)....| |
+------------------------+------------------------+
|(37) On-sale beer & wine| |
|seasonal (Type 59) and | |
|on-sale beer seasonal | |
|(Type 60) | |
|--Operating period | |
|3-9 months..............| $208.00|
|--Operating period | |
|3-6 months..............| $141.00|
+------------------------+------------------------+
(b) Beginning January 1, 2013, and each January 1 thereafter, the
department may adjust each of the fees specified in this section by
increasing each fee by an amount not to exceed the percentage that
the Consumer Price Index (United States Bureau of Labor Statistics,
West Region, All Urban Consumers, All Items, Base Period 1982-84
=100) for the preceding April 2011, and each April annually
thereafter, has increased under the same index over the month of
April 2010, which shall be the base period. No fee shall be decreased
pursuant to this adjustment below the fee currently in effect on
each December 31. In the event that this index is discontinued, the
department shall consult with the Department of Finance to convert
the increase calculations to an index then available. When approved
by the Department of Finance, the new index shall replace the
discontinued index.
(c) The department shall calculate the percentage increase as
specified in subdivision (b) and shall apply this increase to each
fee. The increase to each fee shall be rounded to the nearest whole
dollar. The adjusted fee list shall be published by the department
and transmitted to the Legislature for approval as part of the
department's budget submission for the fiscal year in which the
adjusted fees would be implemented. This adjustment of fees and
publication of the adjusted fee list is not subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
SEC. 5. Section 23393.5 of the Business and Professions Code is
amended to read:
23393.5. (a) The department may issue a limited off-sale retail
wine license which authorizes the sale of wine by the licensee if all
of the following conditions are met:
(1) Sales are restricted to those solicited and accepted via
direct mail, telephone, or the Internet.
(2) Sales are not conducted from a retail premises open to the
public.
(3) The licensee takes possession of and title to all wine sold by
the licensee.
(4) All wine sold by the licensee is delivered to the purchaser
from the licensee's licensed premises or from a licensed public
warehouse.
(b) The sale of wine shall only be to consumers and not for
resale, in packages or quantities of 52 gallons or less per sale, for
consumption off the premises where sold.
(c) The licensee shall comply with Section 23985, but is exempted
from Sections 23985.5 and 23986.
(d) The department may impose reasonable conditions upon the
licensee as may be needed in the interest of public health, safety,
and welfare.
(e) The application for the license shall be accompanied by an
original fee in an amount equivalent to that of an original off-sale
beer and wine license pursuant to Section 23954.5. The annual fee for
the license shall be an amount equivalent to that of a retail
package off-sale beer and wine license pursuant to Section 23320. All
moneys collected from the fees shall be deposited in the Alcohol
Beverage Control Fund, pursuant to Section 25761.
SEC. 6. Section 23396.6 of the Business and Professions Code is
amended to read:
23396.6. (a) The department may issue to the holder of an
off-sale retail license an instructional tasting license at the
premises of the off-sale retail license. An instructional tasting
license shall not be issued to any of the following:
(1) Off-sale licensees at locations where motor vehicle fuel is
sold, unless the licensee operates a fully enclosed off-sale retail
area encompassing at least 10,000 square feet.
(2) Off-sale licensees at locations with a total of less than
5,000 square feet of interior retail space, unless the calendar
quarterly gross sales of alcoholic beverages at the licensed location
comprise at least 75 percent of the total gross sales of all
products sold at the licensed premises. A licenseholder that is
issued an instructional tasting license pursuant to this paragraph
shall maintain records that separately reflect the gross sales of
alcoholic beverages and the gross sales of all other products sold on
the licensed premises.
(b) The provisions of Article 2 (commencing with Section 23815) of
Chapter 5 and Section 23958.4 shall not apply to the issuance of an
instructional tasting license, except that the department may
expressly deny the issuance of an instructional tasting license for
any premises located in an area of undue concentration of licenses as
defined in paragraph (1) of subdivision (a) of Section 23958.4.
Notwithstanding paragraph (3) of subdivision (c), the provisions of
Article 2 (commencing with Section 23985) and Article 3 (commencing
with Section 24011) of Chapter 6 shall apply to the issuance of an
instructional tasting license.
(c) Notwithstanding subdivision (a) of Section 23386 and paragraph
(3) of subdivision (c) of Section 25612.5, an instructional tasting
license authorizes the licenseholder to allow an authorized licensee
or the designated representative of an authorized licensee, to
conduct an instructional tasting event at which tastes of alcoholic
beverages may be served to consumers subject to the following
limitations, and the limitations set forth in Section 25503.56:
(1) (A) At all times during an instructional tasting event, the
instructional tasting event area shall be separated from the
remainder of the off-sale licensed premises by a wall, rope, cable,
cord, chain, fence, or other permanent or temporary barrier. The
licenseholder shall prominently display signage prohibiting persons
under 21 years of age from entering the instructional tasting event
area.
(B) A licenseholder that permits a person under 21 years of age to
enter and remain in the instructional tasting event area during an
instructional tasting event is guilty of a misdemeanor. Any person
under 21 years of age who enters and remains in the instructional
tasting event area during an instructional tasting event is guilty of
a misdemeanor and shall be punished by a fine of not less than two
hundred dollars ($200), no part of which shall be suspended.
(C) The licenseholder shall not permit any consumer to leave the
instructional tasting area with an open container of alcohol.
(2) The instructional tasting license shall not authorize the
licenseholder to conduct any on-sale retail sales to consumers
attending the instructional tasting event.
(3) Unless otherwise restricted, an instructional tasting event
may take place between the hours of 10 a.m. and 9 p.m.
(d) Unless the context otherwise requires, the definitions set
forth in Section 25503.56 govern the construction of this section.
(e) An applicant for an instructional tasting license under this
section shall, at the time of filing the application for the license,
accompany the application with a fee of three hundred dollars
($300). The annual renewal fee for a license issued pursuant to this
section shall be two hundred sixty-one dollars ($261) and shall be
subject to subdivisions (b) and (c) of Section 23320. Fees collected
pursuant to this section shall be deposited in the Alcohol Beverage
Control Fund.
SEC. 7. Section 23800 of the Business and Professions Code is
amended to read:
23800. The department may place reasonable conditions upon retail
licensees or upon any licensee in the exercise of retail privileges
in the following situations:
(a) If grounds exist for the denial of an application for a
license or where a protest against the issuance of a license is filed
and if the department finds that those grounds may be removed by the
imposition of those conditions.
(b) Where findings are made by the department which would justify
a suspension or revocation of a license, and where the imposition of
a condition is reasonably related to those findings. In the case of a
suspension, the conditions may be in lieu of or in addition to the
suspension.
(c) Where the department issues an order suspending or revoking
only a portion of the privileges to be exercised under the license.
(d) Where findings are made by the department that the licensee
has failed to correct objectionable conditions within a reasonable
time after receipt of notice to make corrections given pursuant to
subdivision (e) of Section 24200, or subdivision (a) or (b) of
Section 24200.1.
(e) (1) At the time of transfer of a license pursuant to Section
24070, 24071.1, or 24071.2, and upon written notice to the licensee,
the department may adopt conditions that the department determines
are reasonable pursuant to its investigation or that are requested by
the local governing body, or its designated subordinate officer or
agency, in whose jurisdiction the license is located. The request for
conditions shall be supported by substantial evidence that the
problems either on the premises or in the immediate vicinity
identified by the local governing body or its designated subordinate
officer or agency will be mitigated by the conditions. Upon receipt
of the request for conditions, the department shall either adopt the
conditions requested or notify the local governing body, or its
designated subordinate officer or agency, in writing of its
determination that there is not substantial evidence that the problem
exists or that the conditions would not mitigate the problems
identified. The department may adopt conditions only when the request
is filed. Any request for conditions from the local governing body
or its designated subordinate officer or agency pursuant to this
provision shall be filed with the department within the time
authorized for a local law enforcement agency to file a protest or
proposed conditions pursuant to Section 23987.
(2) If the license to be transferred subject to paragraph (1) is
located in an area of undue concentration as defined in Section
23958.4, the period within which the local governing body or its
designated subordinate officer or agency may submit a written request
for conditions shall be 40 days after the mailing of the notices
required by Section 23987. For purposes of this provision only, undue
concentration shall be established when the requirements of both
paragraph (1) of subdivision (a) and either paragraph (2) or
paragraph (3) of subdivision (a) of Section 23958.4 exist. Pursuant
to Section 23987, the department may extend the 40-day period for a
period not to exceed an additional 20 days upon the written request
of any local law enforcement agency or local government entity with
jurisdiction. Nothing in this paragraph is intended to reduce the
burden of the local governing body or its designated subordinate
officer or agency to support any request for conditions as required
by paragraph (1). Notwithstanding Section 23987, the department may
not transfer any license subject to this paragraph until after the
time period permitted to request conditions as specified in this
paragraph.
(f) At the time of a transfer of a license pursuant to Article 5
(commencing with Section 24070) of Chapter 6.
SEC. 8. Section 23817.5 of the Business and Professions Code is
amended to read:
23817.5. (a) (1) The number of premises for which an off-sale
beer and wine license is issued shall be limited to one for each
2,500, or fraction thereof, inhabitants of the city or county in
which the premises are situated. No additional off-sale beer and wine
license, other than a renewal or transfer or as permitted by Section
23821, shall be issued in any city or county where the number of
premises for which all off-sale beer and wine licenses are issued is
more than one for each 2,500, or fraction thereof, inhabitants of the
city or county.
(2) The number of premises for which an off-sale beer and wine
license is issued in a city and county, in combination with the
number of premises for which an off-sale general license is issued in
a city and county, shall be limited to one for each 1,250, or
fraction thereof, inhabitants of the city and county in which the
premises are situated. No additional off-sale beer and wine license,
other than a renewal or transfer or as permitted by Section 23821,
shall be issued in any city and county where the number of premises
for which all off-sale beer and wine licenses in combination with
off-sale general licenses are issued is more than one for each 1,250,
or fraction thereof, inhabitants of the city and county.
(b) (1) Notwithstanding subdivision (a), a retail off-sale beer
and wine replacement license may be issued at a premises that was
operated under an existing off-sale beer and wine license no less
than 90 days prior to the date of application for the replacement
license, provided that the existing licensee is subject to a
bankruptcy proceeding and the existing licensee has no right to
operate at the premises, or has abandoned the premises of that
license.
(2) A replacement license shall not be issued if the existing
license has been, or is in the process of being, transferred, or if
the existing license has been canceled by the licensee or surrendered
by the licensee pursuant to department rule.
(3) An application for a replacement license shall be accompanied
by a fee of one hundred dollars ($100) and all conditions imposed
upon the existing off-sale beer and wine license at the premises
shall be imposed upon the replacement license.
(4) Upon issuance of the replacement license, the off-sale beer
and wine license existing at the premises shall be canceled by
operation of law. A replacement license shall not be transferred to
another premises.
SEC. 9. Section 23958.4 of the Business and Professions Code is
amended to read:
23958.4. (a) For purposes of Section 23958, "undue concentration"
means the case in which the applicant premises for an original or
premises-to-premises transfer of any retail license are located in an
area where any of the following conditions exist:
(1) The applicant premises are located in a crime reporting
district that has a 20 percent greater number of reported crimes, as
defined in subdivision (c), than the average number of reported
crimes as determined from all crime reporting districts within the
jurisdiction of the local law enforcement agency.
(2) As to on-sale retail license applications, the ratio of
on-sale retail licenses to population in the census tract or census
division in which the applicant premises are located exceeds the
ratio of on-sale retail licenses to population in the county in which
the applicant premises are located.
(3) As to off-sale retail license applications, the ratio of
off-sale retail licenses to population in the census tract or census
division in which the applicant premises are located exceeds the
ratio of off-sale retail licenses to population in the county in
which the applicant premises are located.
(b) Notwithstanding Section 23958, the department may issue a
license as follows:
(1) With respect to a nonretail license, a retail on-sale bona
fide eating place license, a retail license issued for a hotel,
motel, or other lodging establishment, as defined in subdivision (b)
of Section 25503.16, a retail license issued in conjunction with a
beer manufacturer's license, or a winegrower's license, if the
applicant shows that public convenience or necessity would be served
by the issuance.
(2) With respect to any other license, if the local governing body
of the area in which the applicant premises are located, or its
designated subordinate officer or body, determines within 90 days of
notification of a completed application that public convenience or
necessity would be served by the issuance. The 90-day period shall
commence upon receipt by the local governing body of (A) notification
by the department of an application for licensure, or (B) a
completed application according to local requirements, if any,
whichever is later.
If the local governing body, or its designated subordinate officer
or body, does not make a determination within the 90-day period,
then the department may issue a license if the applicant shows the
department that public convenience or necessity would be served by
the issuance. In making its determination, the department shall not
attribute any weight to the failure of the local governing body, or
its designated subordinate officer or body, to make a determination
regarding public convenience or necessity within the 90-day period.
(c) For purposes of this section, the following definitions shall
apply:
(1) "Reporting districts" means geographical areas within the
boundaries of a single governmental entity (city or the
unincorporated area of a county) that are identified by the local law
enforcement agency in the compilation and maintenance of statistical
information on reported
crimes and arrests.
(2) "Reported crimes" means the most recent yearly compilation by
the local law enforcement agency of reported offenses of criminal
homicide, forcible rape, robbery, aggravated assault, burglary,
larceny theft, and motor vehicle theft, combined with all arrests for
other crimes, both felonies and misdemeanors, except traffic
citations.
(3) "Population within the census tract or census division" means
the population as determined by the most recent United States
decennial or special census. The population determination shall not
operate to prevent an applicant from establishing that an increase of
resident population has occurred within the census tract or census
division.
(4) "Population in the county" shall be determined by the annual
population estimate for California counties published by the
Population Research Unit of the Department of Finance.
(5) "Retail licenses" shall include the following:
(A) Off-sale retail licenses: Type 20 (off-sale beer and wine) and
Type 21 (off-sale general).
(B) On-sale retail licenses: All retail on-sale licenses, except
Type 43 (on-sale beer and wine for train), Type 44 (on-sale beer and
wine for fishing party boat), Type 45 (on-sale beer and wine for
boat), Type 46 (on-sale beer and wine for airplane), Type 53 (on-sale
general for train and sleeping car), Type 54 (on-sale general for
boat), Type 55 (on-sale general for airplane), Type 56 (on-sale
general for vessels of more than 1,000 tons burden), and Type 62
(on-sale general bona fide public eating place intermittent dockside
license for vessels of more than 15,000 tons displacement).
(6) A "premises to premises transfer" refers to each license being
separate and distinct, and transferable upon approval of the
department.
(d) For purposes of this section, the number of retail licenses in
the county shall be established by the department on an annual
basis.
(e) The enactment of this section shall not affect any existing
rights of any holder of a retail license issued prior to April 29,
1992, whose premises were destroyed or rendered unusable as a result
of the civil disturbances occurring in Los Angeles from April 29 to
May 2, 1992, to reopen and operate those licensed premises.
(f) This section shall not apply if the premises have been
licensed and operated with the same type license within 90 days of
the application.
SEC. 10. Section 24016 of the Business and Professions Code is
repealed.
SEC. 11. Section 24045.11 of the Business and Professions Code is
amended to read:
24045.11. The department may issue a special on-sale wine license
to an establishment licensed to do business as a bed and breakfast
inn.
"Bed and breakfast inn," as used in this section, means an
establishment of 20 guestrooms or less, which provides overnight
transient occupancy accommodations, which serves food only to its
registered guests, which serves only a breakfast or similar early
morning meal, and with respect to which the price of the food is
included in the price of the overnight transient occupancy
accommodation. For purposes of this section, "bed and breakfast inn"
refers to an establishment as to which the predominant relationship
between the occupants thereof and the owner or operator of the
establishment is that of innkeeper and guest. For purposes of this
section, the existence of some other legal relationships as between
some occupants and the owner or operator is immaterial.
An establishment holding a license under this section is
authorized to serve wine purchased from a licensed winegrower or wine
wholesaler only to registered guests of the establishment. Wine
shall not be given away to guests but the price of the wine shall be
included in the price of the overnight transient occupancy
accommodation. Guests shall not be permitted to remove wine served in
the establishment from the grounds.
The applicant for a license shall accompany the application with
an original fee of fifty dollars ($50) and shall pay an annual
renewal fee of six dollars ($6) for each guestroom in the
establishment until December 31, 2004, and for each year thereafter
the annual fee shall be calculated pursuant to subdivisions (b) and
(c) of Section 23320.
SEC. 12. Section 24079 of the Business and Professions Code is
repealed.
SEC. 13. Section 24079 is added to the Business and Professions
Code, to read:
24079. (a) An on-sale general license or off-sale general license
shall not be transferred for a purchase price or consideration in
excess of the original fee paid for that license pursuant to
subdivision (b) of Section 23954.4 for a period of two years
following the original issuance of that license.
(b) On and after the two-year period following the original
issuance of an on-sale general license or off-sale general license,
there shall not be a restriction as to the purchase price or
consideration paid by a transferee or received by a transferor for an
on-sale general license or off-sale general license.
SEC. 14. Section 24210 of the Business and Professions Code is
repealed.
SEC. 15. Section 24300 of the Business and Professions Code is
amended to read:
24300. (a) Any hearings held on a protest, accusation, or
petition for a license shall be held in the county in which the
premises or licensee is located; provided, that hearings before the
department itself on reconsideration or under subdivision (c) of
Section 11517 of the Government Code may be held at any place in the
state where the department is meeting. Except as provided in Section
24203 and in this section, the proceedings shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code, and in all cases the
department shall have all the powers granted therein. The
department, in its exclusive discretion, shall consider scheduling
the hearing at a time, including evening hours, and at a place
convenient to all parties to a proceeding, including those witnesses
required to be present, and the public affected.
(b) Notwithstanding the provisions of subdivision (a), if a
protest is filed against an application for a license and the
proposed premises are located within a city, the department may, in
its discretion, hold the hearing within that city, unless the protest
is filed by the governing body of the city, in which case the
department shall hold the hearing within that city.
(c) For any hearing held pursuant to this division, the department
may delegate the power to hear and decide to an administrative law
judge appointed by the director. Any hearing before an administrative
law judge shall be pursuant to the procedures, rules, and
limitations prescribed in Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 16. Section 25503.29 of the Business and Professions Code is
amended to read:
25503.29. (a) Nothing in this division shall prohibit the
issuance, transfer, or renewal of any retail on-sale license to any
person with respect to premises that are either an integral part of,
or adjacent to, the operations of a motion picture or television
production facility or an affiliated motion picture or television
theme park, which premises are owned by, or operated by or on behalf
of, the licensee, notwithstanding that a manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler has any interest,
directly or indirectly, in the premises, in the retail license, or in
the retail licensee, if all of the following conditions are met:
(1) No more than 10 percent of the total gross annual revenues of
the motion picture or television production facility and any
affiliated theme park is derived from the sale of alcoholic
beverages.
(2) The retail licensee shall purchase no beer, wine, or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages for
sale in this state from any wholesale licensee that has any interest,
directly or indirectly, in the premises, in the retail licensee, or
in the retail license.
(3) The retail licensee serves other brands of beer, wine, and
distilled spirits in addition to the brands manufactured or
distributed by the beer or distilled spirits manufacturer or produced
or distributed by the winegrower which has any interest, directly or
indirectly, in the premises, in the retail licensee, or in the
retail license.
(4) No more than 15 percent of the retail licensee's monetary
expenditures for alcoholic beverages for sale on its licensed
premises in a calendar year shall be for products manufactured or
distributed by the beer or distilled spirits manufacturer or produced
or distributed by the winegrower which has any interest, directly or
indirectly, in the premises, in the retail licensee, or in the
retail license.
(b) For purposes of this section:
(1) "Motion picture or television production facility" means an
establishment where motion pictures or television programs are
produced.
(2) "Motion picture or television theme park" means an
establishment with not less than 25 contiguous acres, located in Los
Angeles County, the predominant purpose of which is the entertainment
of the public through activities related to motion pictures and
television programs, that has an annual paid attendance of at least
three million people.
(3) "Adjacent to" means located on commonly owned property, or
contiguous to, or in close proximity.
(c) The Legislature finds that it is necessary and proper to
require a separation between 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 must be limited to its express terms so as not to undermine
the general prohibition, and intends that this section shall be
construed accordingly.
SEC. 17. Section 25503.37 of the Business and Professions Code is
amended to read:
25503.37. (a) Nothing in this division shall prohibit the
issuance, transfer, or renewal of any retail on-sale license to any
person with respect to premises that are an integral part of an
interactive entertainment facility and are owned directly or
indirectly, in whole or in part, by, or operated by or on behalf of,
the licensee, notwithstanding that a manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler has any interest,
directly or indirectly, in the premises, in the retail license, or in
the retail licensee, if all of the following conditions are met:
(1) The principal business conducted within the facility is
providing interactive entertainment, not the sale of alcoholic
beverages.
(2) Other than as permitted in Sections 23358 and 23360 with
respect to wine and brandy, the retail licensee shall purchase no
beer, wine, or distilled spirits for sale in this state other than
from a wholesale licensee, and the retail licensee shall purchase no
alcoholic beverages for sale in this state from any wholesale
licensee that has any interest, directly or indirectly, in the
premises, in the retail licensee, or in the retail license.
(3) The retail licensee shall serve other brands of beer, wine,
and distilled spirits in addition to the brands manufactured,
produced, or distributed by any manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler which has any interest,
directly or indirectly, in the premises, in the retail licensee, or
in the retail license.
(4) No more than 15 percent of the retail licensee's monetary
expenditures for alcoholic beverages for sale on its licensed
premises in a calendar year shall be for products manufactured,
produced, or distributed by any manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler which has any interest,
directly or indirectly, in the premises, in the retail licensee, or
in the retail license.
(b) For purposes of this section, "interactive entertainment
facility" means premises which feature interactive computer and video
entertainment attractions, themed merchandise, and food and
beverages.
(c) The Legislature finds that it is necessary and proper to
require a separation between 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. Notwithstanding the foregoing, having considered the
public welfare, the economic impact on the state, and the entirety of
the circumstances involved, the Legislature further finds that the
purpose and intent of the general prohibition against tied interests
is not violated by granting the exception established by this
section.
SEC. 18. 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
rectifier's 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 rectifier's 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 rectifier's 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 rectifier's general license.
(5) No more than 15 percent of the retail licensee's 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 rectifier's 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
rectifier's 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 a county jail for not more
than 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 that
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 rectifier's 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 a county jail for not more than
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 that
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 rectifier's 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.