AB 527, as introduced, Dodd. Alcoholic beverage control: tied-house restrictions: 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. Existing law expressly authorizes a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.
This bill would expressly authorize a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Napa, under specified conditions. This bill would also make a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent who, through coercion or other illegal means, induces the holder of a wholesaler’s license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. This bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesaler’s license to solicit a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.
By creating a new crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Napa.
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 25503.40 is added to the Business and
2Professions Code, to read:
(a) Notwithstanding any other law, a beer
4manufacturer, holder of a winegrower’s license, winegrower’s
5agent, holder of an importer’s general license, distilled spirits
6manufacturer, holder of a distilled spirits rectifiers general license,
7or a distilled spirits manufacturer’s agent may sponsor events
8promoted by, and may purchase advertising space and time from,
9or on behalf of, a live entertainment marketing company subject
10to all of the following conditions:
P3 1(1) The live entertainment marketing company is a wholly
2owned subsidiary of a live entertainment company that has its
3principal place of business in the County of Napa, that may also
4own interests, directly or indirectly, in retail licenses.
5(2) The sponsorship and the advertising space or time is
6purchased only in connection with the promotion of live artistic,
7musical, sports, food, beverage, culinary, lifestyle, or other cultural
8entertainment events at entertainment facilities, parks, fairgrounds,
9auditoriums, arenas, or other areas or venues that are designed for,
10or set up to be, lawfully used for live artistic, musical, sports, food,
11beverage, culinary, lifestyle, or other cultural entertainment events.
12(3) (A) Any on-sale licensee operating at a venue where live
13artistic, musical, sports, food, beverage, culinary, lifestyle, or other
14cultural entertainment events are performed pursuant to a
15sponsorship described in this section or where advertising is
16purchased as described in this section shall serve other brands of
17beer, distilled spirits, and wine in addition to any brand
18manufactured or
distributed by the sponsoring or advertising beer
19manufacturer, holder of a winegrower’s license, winegrower’s
20agent, holder of an importer’s general license, distilled spirits
21manufacturer, holder of a distilled spirits rectifiers general license,
22or a distilled spirits manufacturer’s agent. If, however, there is
23brand diversity by virtue of the existence of multiple sponsors
24within the same sponsorship category, this subparagraph shall not
25apply.
26(B) Any on-sale retail licensee owned by the live entertainment
27company described in paragraph (1) shall serve other brands of
28beer, distilled spirits, and wine in addition to any brand
29manufactured or distributed by the sponsoring or advertising beer
30manufacturer, holder of a winegrower’s license, winegrower’s
31agent, holder of an importer’s general license, distilled spirits
32manufacturer, holder of a distilled spirits rectifiers general license,
33or a distilled spirits manufacturer’s agent. If,
however, there is
34brand diversity by virtue of the existence of multiple sponsors
35within the same sponsorship category, this subparagraph shall not
36apply.
37(4) (A) Advertising space or time purchased pursuant to this
38section shall not be placed in any on-sale licensed premises where
39the on-sale retail licensee is owned by the live entertainment
40company, or any of its subsidiaries, described in paragraph (1).
P4 1(B) Sponsorship provided pursuant to this section shall not be
2allowed if the event or activity is held at or in any on-sale licensed
3premises where the on-sale retail licensee is owned by the live
4entertainment company, or any of its subsidiaries, described in
5paragraph (1).
6(5) An agreement for the sponsorship of, or for the purchase of
7advertising space and time during, a live artistic, musical, sports,
8food, beverage, culinary, lifestyle, or other cultural entertainment
9event shall not be conditioned directly or indirectly, in any way,
10on the purchase, sale, or distribution of any alcoholic beverage
11manufactured or distributed by the advertising or sponsoring beer
12manufacturer, holder of a winegrower’s license, winegrower’s
13agent, holder of an importer’s general license, distilled spirits
14manufacturer, holder of a distilled spirits rectifiers general license,
15or a distilled spirits manufacturer’s agent by the live entertainment
16company described in paragraph (1) or by any on-sale retail
17licensee that is owned by the live entertainment company.
18(b) Any sponsorship of events or purchase of advertising space
19or time conducted pursuant to subdivision (a) shall be conducted
20pursuant to a written
contract entered into by the beer manufacturer,
21holder of a winegrower’s license, winegrower’s agent, holder of
22an importer’s general license, distilled spirits manufacturer, holder
23of a distilled spirits rectifiers general license, or a distilled spirits
24manufacturer’s agent and the live entertainment marketing
25company.
26(c) Any beer manufacturer, holder of a winegrower’s license,
27winegrower’s agent, holder of an importer’s general license,
28distilled spirits manufacturer, holder of a distilled spirits rectifiers
29general license, or a distilled spirits manufacturer’s agent who,
30through coercion or other illegal means, induces, directly or
31indirectly, a holder of a wholesaler’s license to fulfill those
32contractual obligations entered into pursuant to subdivision (a)
33shall be guilty of a misdemeanor and shall be punished by
34imprisonment in the county jail not exceeding six months,
or by
35a fine in an amount equal to the entire value of the advertising
36space or time involved in the contract, whichever is greater, plus
37ten thousand dollars ($10,000), or by both imprisonment and fine.
38The person shall also be subject to license revocation pursuant to
39Section 24200.
P5 1(d) Any on-sale retail licensee who, directly or indirectly, solicits
2or coerces a holder of a wholesaler’s license to solicit a beer
3manufacturer, holder of a winegrower’s license, winegrower’s
4agent, holder of an importer’s general license, distilled spirits
5manufacturer, holder of a distilled spirits rectifiers general license,
6or a distilled spirits manufacturer’s agent to purchase advertising
7time or space pursuant to subdivision (a) shall be guilty of a
8misdemeanor and shall be punished by imprisonment in the county
9jail not exceeding six months, or by a fine in an amount equal to
10the entire
value of the advertising space or time involved in the
11contract, whichever is greater, plus ten thousand dollars ($10,000),
12or by both imprisonment and fine. The person shall also be subject
13to license revocation pursuant to Section 24200.
14(e) For purposes of this section, “beer manufacturer” includes
15a holder of a beer manufacturer’s license, a holder of an out-of-state
16beer manufacturer’s certificate, a holder of a beer and wine
17wholesaler’s license, or a holder of a beer and wine importer’s
18general license.
19(f) Nothing in this section shall authorize the purchasing of
20advertising space or time directly from, or on behalf of, any on-sale
21licensee.
22(g) Nothing in this section shall
authorize a beer manufacturer,
23holder of a winegrower’s license, winegrower’s agent, holder of
24an importer’s general license, distilled spirits manufacturer, holder
25of a distilled spirits rectifiers general license, or a distilled spirits
26manufacturer’s agent to furnish, give, or lend anything of value to
27an on-sale retail licensee described in subdivision (a) except as
28expressly authorized by this section or any other provision of this
29division.
The Legislature finds and declares that a special law
31is necessary and that a general law cannot be made applicable
32within the meaning of Section 16 of Article IV of the California
33Constitution because of the unique conditions located in the County
34of Napa.
No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P6 1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.
O
99