Amended in Senate March 30, 2016

Amended in Assembly May 28, 2015

Amended in Assembly April 13, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 866


Introduced by Assembly Member Eduardo Garcia

February 26, 2015


An act to amendbegin delete Sections 12096.3, 12098.3, and 12098.4 of the Government Code, relating to economic development.end deletebegin insert Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 866, as amended, Eduardo Garcia. begin deleteEconomic development: small business. end deletebegin insertAlcoholic beverages: advertising: San Diego.end insert

begin insert

Existing law generally prohibits various licenseholders from providing money or any other thing of value to a person owning or operating an on-sale premises where alcoholic beverages are served, subject to specified exceptions. Existing law authorizes the holder of a winegrower’s license, a beer manufacturer, a distilled spirits rectifier, a distilled spirits manufacturer, and a distilled spirits manufacturer’s agent, to purchase advertising space and time from, or on behalf of, an on-sale retail licensee, under certain conditions, if the on-sale retail licensee is the owner, manager, agent of the owner, assignee of the owner’s advertising rights, or major tenant of specified facilities. Existing law makes it a misdemeanor to coerce or solicit licensees in connection with these provisions, as specified.

end insert
begin insert

This bill would expand the facilities to which the exception described above would apply to include an outdoor stadium with a fixed seating capacity of at least 46,000 seats located in the City of San Diego. By expanding the scope of a crime, this bill would impose a state-mandated local program.

end insert
begin insert

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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Diego.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

Existing law establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.

end delete
begin delete

This bill would additionally authorize GO-Biz to support small businesses by providing information about technical assistance. The bill would expand the duties of the advocate to include sharing with a rulemaking agency the contact information for small business organizations, to the extent that information is available and requested. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regarding small businesses.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25503.6 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

25503.6.  

(a) Notwithstanding any other provision of this
4chapter, a beer manufacturer, the holder of a winegrower’s license,
5a distilled spirits rectifier, a distilled spirits manufacturer, or
6distilled spirits manufacturer’s agent may purchase advertising
7space and time from, or on behalf of, an on-sale retail licensee
8subject to all of the following conditions:

9(1) The on-sale licensee is the owner, manager, agent of the
10owner, assignee of the owner’s advertising rights, or the major
11tenant of the owner of any of the following:

12(A) An outdoor stadium or a fully enclosed arena with a fixed
13seating capacity in excess of 10,000 seats located in Sacramento
14County or Alameda County.

15(B) A fully enclosed arena with a fixed seating capacity in
16excess of 18,000 seats located in Orange County or Los Angeles
17County.

18(C) An outdoor stadium or fully enclosed arena with a fixed
19seating capacity in excess of 8,500 seats located in Kern County.

20(D) An exposition park of not less than 50 acres that includes
21an outdoor stadium with a fixed seating capacity in excess of 8,000
22seats and a fully enclosed arena with an attendance capacity in
23excess of 4,500 people, located in San Bernardino County.

24(E) An outdoor stadium with a fixed seating capacity in excess
25of 10,000 seats located in Yolo County.

26(F) An outdoor stadium and a fully enclosed arena with fixed
27seating capacities in excess of 10,000 seats located in Fresno
28County.

29(G) An athletic and entertainment complex of not less than 50
30acres that includes within its boundaries an outdoor stadium with
31a fixed seating capacity of at least 8,000 seats and a second outdoor
32stadium with a fixed seating capacity of at least 3,500 seats located
33in Riverside County.

P4    1(H) An outdoor stadium with a fixed seating capacity in excess
2of 1,500 seats located in Tulare County.

3(I) A motorsports entertainment complex of not less than 50
4acres that includes within its boundaries an outdoor speedway with
5a fixed seating capacity of at least 50,000 seats, located in San
6Bernardino County.

7(J) An exposition park, owned or operated by a bona fide
8nonprofit organization, of not less than 400 acres with facilities
9including a grandstand with a seating capacity of at least 8,000
10people, at least one exhibition hall greater than 100,000 square
11feet, and at least four exhibition halls, each greater than 30,000
12square feet, located in the City of Pomona or the City of La Verne
13in Los Angeles County.

14(K) An outdoor soccer stadium with a fixed seating capacity of
15at least 25,000 seats, an outdoor tennis stadium with a fixed
16capacity of at least 7,000 seats, an outdoor track and field facility
17with a fixed seating capacity of at least 7,000 seats, and an indoor
18velodrome with a fixed seating capacity of at least 2,000 seats, all
19located within a sports and athletic complex built before January
201, 2005, in the City of Carson in Los Angeles County.

21(L) An outdoor professional sports facility with a fixed seating
22capacity of at least 4,200 seats located in San Joaquin County.

23(M) A fully enclosed arena with a fixed seating capacity in
24excess of 13,000 seats in the City of Inglewood.

25(N) (i) An outdoor stadium with a fixed seating capacity of at
26least 68,000 seats located in the City of Santa Clara.

27(ii) A beer manufacturer, the holder of a winegrower’s license,
28a distilled spirits rectifier, a distilled spirits manufacturer, or
29distilled spirits manufacturer’s agent may purchase advertising
30space and time from, or on behalf of, a major tenant of an outdoor
31stadium described in clause (i), provided the major tenant does not
32hold a retail license, and the advertising may include the placement
33of advertising in an on-sale licensed premises operated at the
34outdoor stadium.

35(O) A complex of not more than 50 acres located on the campus
36of, and owned by, Sonoma State University dedicated to presenting
37live artistic, musical, sports, food, beverage, culinary, lifestyle, or
38other cultural and entertainment events and performances with
39venues that include a concert hall with a seating capacity of
40approximately 1,500 seats, a second concert hall with a seating
P5    1capacity of up to 300 seats, an outdoor area with a seating capacity
2of up to 5,000 seats, and a further outdoor area with a seating
3capacity of up to 10,000 seats. With respect to this complex,
4advertising space and time may also be purchased from or on behalf
5of the owner of the complex, a long-term tenant or licensee of the
6venue, whether or not the owner, long-term tenant, or licensee
7holds an on-sale license.

8(P) A fairgrounds with a horse racetrack and equestrian and
9sports facilities located in San Diego County.

begin insert

10
(Q) An outdoor stadium with a fixed seating capacity of at least
1143,000 seats located in the City of San Diego.

end insert

12(2) The outdoor stadium or fully enclosed arena described in
13paragraph (1) is not owned by a community college district.

14(3) The advertising space or time is purchased only in connection
15with the events to be held on the premises of the exposition park,
16stadium, or arena owned by the on-sale licensee. With respect to
17an exposition park as described in subparagraph (J) of paragraph
18(1) that includes at least one hotel, the advertising space or time
19shall not be displayed on or in any hotel located in the exposition
20park, or purchased in connection with the operation of any hotel
21located in the exposition park. With respect to the complex
22described in subparagraph (O) of paragraph (1), the advertising
23space or time shall be purchased only in connection with live
24artistic, musical, sports, food, beverage, culinary, lifestyle, or other
25cultural and entertainment events and performances to be held on
26the premises of the complex.

27(4) The on-sale licensee serves other brands of beer distributed
28by a competing beer wholesaler in addition to the brand
29manufactured or marketed by the beer manufacturer, other brands
30of wine distributed by a competing wine wholesaler in addition to
31the brand produced by the winegrower, and other brands of distilled
32spirits distributed by a competing distilled spirits wholesaler in
33addition to the brand manufactured or marketed by the distilled
34spirits rectifier, the distilled spirits manufacturer, or the distilled
35spirits manufacturer’s agent that purchased the advertising space
36or time.

37(b) Any purchase of advertising space or time pursuant to
38subdivision (a) shall be conducted pursuant to a written contract
39entered into by the beer manufacturer, the holder of the
40winegrower’s license, the distilled spirits rectifier, the distilled
P6    1spirits manufacturer, or the distilled spirits manufacturer’s agent
2and any of the following:

3(1) The on-sale licensee.

4(2) With respect to clause (ii) of subparagraph (N) of paragraph
5(1) of subdivision (a), the major tenant of the outdoor stadium.

6(3) With respect to subparagraph (O) of paragraph (1) of
7subdivision (a), the owner, a long-term tenant of the complex, or
8licensee of the complex, whether or not the owner, long-term
9tenant, or licensee holds an on-sale license.

10(c) Any beer manufacturer or holder of a winegrower’s license,
11any distilled spirits rectifier, any distilled spirits manufacturer, or
12any distilled spirits manufacturer’s agent who, through coercion
13or other illegal means, induces, directly or indirectly, a holder of
14a wholesaler’s license to fulfill all or part of those contractual
15obligations entered into pursuant to subdivision (a) or (b) shall be
16guilty of a misdemeanor and shall be punished by imprisonment
17in the county jail not exceeding six months, or by a fine in an
18amount equal to the entire value of the advertising space, time, or
19costs involved in the contract, whichever is greater, plus ten
20thousand dollars ($10,000), or by both imprisonment and fine. The
21person shall also be subject to license revocation pursuant to
22Section 24200.

23(d) Any on-sale retail licensee, as described in subdivision (a),
24who, directly or indirectly, solicits or coerces a holder of a
25wholesaler’s license to solicit a beer manufacturer, a holder of a
26winegrower’s license, a distilled spirits rectifier, a distilled spirits
27manufacturer, or a distilled spirits manufacturer’s agent to purchase
28advertising space or time pursuant to subdivision (a) or (b) shall
29be guilty of a misdemeanor and shall be punished by imprisonment
30in the county jail not exceeding six months, or by a fine in an
31amount equal to the entire value of the advertising space or time
32involved in the contract, whichever is greater, plus ten thousand
33dollars ($10,000), or by both imprisonment and fine. The person
34shall also be subject to license revocation pursuant to Section
3524200.

36(e) For the purposes of this section, “beer manufacturer” includes
37any holder of a beer manufacturer’s license, any holder of an
38out-of-state beer manufacturer’s certificate, or any holder of a beer
39and wine importer’s general license.

P7    1(f) The Legislature finds that it is necessary and proper to require
2a separation among manufacturing interests, wholesale interests,
3and retail interests in the production and distribution of alcoholic
4beverages in order to prevent suppliers from dominating local
5markets through vertical integration and to prevent excessive sales
6of alcoholic beverages produced by overly aggressive marketing
7techniques. The Legislature further finds that the exceptions
8established by this section to the general prohibition against tied
9interests shall be limited to their express terms so as not to
10undermine the general prohibition and intends that this section be
11construed accordingly.

12begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
13Section 6 of Article XIII B of the California Constitution because
14the only costs that may be incurred by a local agency or school
15district will be incurred because this act creates a new crime or
16infraction, eliminates a crime or infraction, or changes the penalty
17for a crime or infraction, within the meaning of Section 17556 of
18the Government Code, or changes the definition of a crime within
19the meaning of Section 6 of Article XIII B of the California
20Constitution.

end insert
21begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The Legislature finds and declares that a special law
22is necessary and that a general law cannot be made applicable
23within the meaning of Section 16 of Article IV of the California
24Constitution because of the unique conditions located in the City
25of San Diego.

end insert
26begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
27immediate preservation of the public peace, health, or safety within
28the meaning of Article IV of the Constitution and shall go into
29immediate effect. The facts constituting the necessity are:

end insert
begin insert

30
In order to ensure the fair and efficient application of the
31alcoholic beverage control licensing laws with respect to eligible
32facilities in the City of San Diego, it is necessary that this act take
33immediate effect.

end insert
begin delete
34

SECTION 1.  

This act shall be known as the Small Business
35Regulatory Enforcement Fairness Act of 2015.

36

SEC. 2.  

(a) The Legislature finds and declares all of the
37following:

38(1) A vibrant and growing small business sector is critical to
39creating jobs in a dynamic economy.

P8    1(2) In California, 62 percent of all firms have fewer than five
2employees and 98 percent of all firms have fewer than 100
3employees and account for 36 percent of all jobs in the state.

4(3) While California small businesses create jobs and anchor
5the state’s economy, research shows that they bear a
6disproportionate share of regulatory costs and burdens.

7(4) Changes are needed in the regulatory and enforcement
8culture of state agencies in order to help agencies be more
9responsive to the implementation challenges of small businesses
10without compromising statutory missions of the agencies.

11(b) The Legislature further declares that the purpose of this act
12is to do all of the following:

13(1) Encourage the effective participation of small businesses in
14the state regulatory process.

15(2) Develop more accessible sources of information on
16regulatory reporting requirements for small businesses.

17(3) Create a more cooperative regulatory environment among
18agencies and small businesses that is less punitive and more
19solution oriented.

20(4) Make state regulators more accountable for their enforcement
21actions by providing small businesses and nonprofit organizations
22with meaningful opportunities for redress of excessive enforcement
23activities.

24

SEC. 3.  

Section 12096.3 of the Government Code is amended
25to read:

26

12096.3.  

The office shall serve the Governor as the lead entity
27for economic strategy and the marketing of California on issues
28relating to business development, private sector investment, and
29economic growth. In this capacity, the office may:

30(a) Recommend to the Governor and the Legislature new state
31policies, programs, and actions, or amendments to existing
32programs, advance statewide economic goals and respond to
33emerging economic problems and opportunities, and ensure that
34all state policies and programs conform to the adopted state
35economic and business development goals.

36(b) Coordinate the development of policies and criteria to ensure
37that federal grants administered or directly expended by state
38government advance statewide economic goals and objectives.

39(c) Market the business and investment opportunities available
40in California by working in partnership with local, regional, federal,
P9    1and other state public and private institutions to encourage business
2development and investment in the state.

3(d) Provide, including, but not limited to, all of the following:

4(1) Economic and demographic data.

5(2) Financial information to help link businesses with state and
6local public and private programs.

7(3) Workforce information, including, but not limited to, labor
8availability, training, and education programs.

9(4) Transportation and infrastructure information.

10(5) Assistance in obtaining state and local permits.

11(6) Information on tax credits and other incentives.

12(7) Permitting, siting, and other regulatory information pertinent
13to business operations in the state.

14(e) Establish a well-advertised telephone number, an interactive
15Internet Web site, and an administrative structure that effectively
16supports the facilitation of business development and investment
17in the state.

18(f) Encourage collaboration among research institutions, startup
19companies, local governments, venture capitalists, and economic
20development agencies to promote innovation.

21(g) In cooperation with the federal government, foster
22relationships with overseas entities to improve the state’s image
23as a destination for business investment and expansion.

24(h) Conduct research on the state’s business climate, including,
25but not limited to, research on how the state can remain on the
26leading edge of innovation and emerging sectors.

27(i) Support small businesses by providing information about
28accessing capital, technical assistance, and complying with
29regulations, and by supporting state initiatives that support small
30business.

31

SEC. 4.  

Section 12098.3 of the Government Code is amended
32to read:

33

12098.3.  

(a) The Director of the Office of Small Business
34Advocate shall be appointed by, and shall serve at the pleasure of,
35the Governor.

36(b) The Governor shall appoint the employees who are needed
37to accomplish the purposes of this article.

38(c) The duties and functions of the advocate shall include all of
39the following:

P10   1(1) Serve as the principal advocate in the state on behalf of small
2businesses, including, but not limited to, advisory participation in
3the consideration of all legislation and administrative regulations
4that affect small businesses, and advocacy on state policy and
5programs related to small businesses on disaster preparedness and
6recovery including providing technical assistance.

7(2) Represent the views and interests of small businesses before
8other state agencies whose policies and activities may affect small
9business. To the extent information is available and requested,
10share with a rulemaking agency the contact information for small
11business organizations, which the rulemaking agency may want
12to include when disseminating public information about a proposed
13new rule or amendment.

14(3) Enlist the cooperation and assistance of public and private
15agencies, businesses, and other organizations in disseminating
16information about the programs and services provided by state
17government that are of benefit to small businesses, and information
18on how small businesses can participate in, or make use of, those
19programs and services.

20(4) Consult with experts and authorities in the fields of small
21business investment, venture capital investment, and commercial
22banking and other comparable financial institutions involved in
23the financing of business, and with individuals with regulatory,
24legal, economic, or financial expertise, including members of the
25academic community, and individuals who generally represent the
26public interest.

27(5) Seek the assistance and cooperation of all state agencies and
28departments providing services to, or affecting, small business,
29including the small business liaison designated pursuant to Section
3014846, to ensure coordination of state efforts.

31(6) Receive and respond to complaints from small businesses
32concerning the actions of state agencies and the operative effects
33of state laws and regulations adversely affecting those businesses.

34(7) Counsel small businesses on how to resolve questions and
35problems concerning the relationship of small business to state
36government.

37(8) Maintain, publicize, and distribute an annual list of persons
38serving as small business ombudsmen throughout state government.

39

SEC. 5.  

Section 12098.4 of the Government Code is amended
40to read:

P11   1

12098.4.  

(a) Each agency of the state shall furnish to the
2advocate the reports, documents, and information that are public
3records and that the director deems necessary to carry out his or
4her functions under this chapter.

5(b) Each agency that develops a small entity compliance guide
6to assist small businesses and nonprofit organizations in complying
7with regulations in collaboration with a federal agency pursuant
8to the federal Small Business Regulatory Fairness Act of 1996
9(Public Law 104-121) shall notify the advocate within 45 days
10after the guide becomes available to the public. The notice to the
11advocate shall include information on how a small business or
12nonprofit organization can obtain a copy of the small business
13compliance guide.

14(c) The advocate shall prepare and submit a written annual report
15to the Governor and to the Legislature that describes the activities
16and recommendations of the office, including an evaluation of the
17efforts of state agencies and, where appropriate, specific
18departments, that significantly regulate small businesses to assist
19minority and other small business enterprises, and making
20recommendations that may be appropriate to assist the development
21and strengthening of minority and other small business enterprises.

22(d) The advocate may establish a centralized interactive
23telephone referral system and Internet Web site to assist small and
24minority businesses in their operations, including governmental
25requirements, such as taxation, accounting, and pollution control,
26and to provide information concerning the agency from which
27more specialized assistance may be obtained. The advocate may
28establish and advertise a telephone number and an Internet Web
29site address to serve this centralized interactive telephone referral
30system and Internet Web site.

end delete


O

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