BILL NUMBER: AB 866 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 30, 2016
AMENDED IN ASSEMBLY MAY 28, 2015
AMENDED IN ASSEMBLY APRIL 13, 2015
INTRODUCED BY Assembly Member Eduardo Garcia
FEBRUARY 26, 2015
An act to amend Sections 12096.3, 12098.3, and 12098.4 of
the Government Code, relating to economic development.
Section 25503.6 of the Business and Professions Code, relating
to alcoholic beverages, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 866, as amended, Eduardo Garcia. Economic development:
small business. Alcoholic beverages: advertising: San
Diego.
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.
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.
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.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of San Diego.
This bill would declare that it is to take effect immediately as
an urgency statute.
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.
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.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.6 of the
Business and Professions Code is amended to read:
25503.6. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, an on-sale retail licensee subject
to all of the following conditions:
(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
(B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
(D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
(E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
in Riverside County.
(H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
(I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located in San Bernardino
County.
(J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
(K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, in the City of Carson in Los Angeles County.
(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located in San Joaquin County.
(M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
(N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.
(ii) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, a major tenant of an outdoor stadium
described in clause (i), provided the major tenant does not hold a
retail license, and the advertising may include the placement of
advertising in an on-sale licensed premises operated at the outdoor
stadium.
(O) A complex of not more than 50 acres located on the campus of,
and owned by, Sonoma State University dedicated to presenting live
artistic, musical, sports, food, beverage, culinary, lifestyle, or
other cultural and entertainment events and performances with venues
that include a concert hall with a seating capacity of approximately
1,500 seats, a second concert hall with a seating capacity of up to
300 seats, an outdoor area with a seating capacity of up to 5,000
seats, and a further outdoor area with a seating capacity of up to
10,000 seats. With respect to this complex, advertising space and
time may also be purchased from or on behalf of the owner of the
complex, a long-term tenant or licensee of the venue, whether or not
the owner, long-term tenant, or licensee holds an on-sale license.
(P) A fairgrounds with a horse racetrack and equestrian and sports
facilities located in San Diego County.
(Q) An outdoor stadium with a fixed seating capacity of at least
43,000 seats located in the City of San Diego.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park. With respect to the complex described in
subparagraph (O) of paragraph (1), the advertising space or time
shall be purchased only in connection with live artistic, musical,
sports, food, beverage, culinary, lifestyle, or other cultural and
entertainment events and performances to be held on the premises of
the complex.
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer, or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and any
of the following:
(1) The on-sale licensee.
(2) With respect to clause (ii) of subparagraph (N) of paragraph
(1) of subdivision (a), the major tenant of the outdoor stadium.
(3) With respect to subparagraph (O) of paragraph (1) of
subdivision (a), the owner, a long-term tenant of the complex, or
licensee of the complex, whether or not the owner, long-term tenant,
or licensee holds an on-sale license.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any 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 all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
(f) 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 exceptions
established by this section to the general prohibition against tied
interests shall be limited to their express terms so as not to
undermine the general prohibition and intends that this section be
construed accordingly.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique conditions located in
the City of San Diego.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to ensure the fair and efficient application of the
alcoholic beverage control licensing laws with respect to eligible
facilities in the City of San Diego, it is necessary that this act
take immediate effect.
SECTION 1. This act shall be known as the Small
Business Regulatory Enforcement Fairness Act of 2015.
SEC. 2. (a) The Legislature finds and declares
all of the following:
(1) A vibrant and growing small business sector is critical to
creating jobs in a dynamic economy.
(2) In California, 62 percent of all firms have fewer than five
employees and 98 percent of all firms have fewer than 100 employees
and account for 36 percent of all jobs in the state.
(3) While California small businesses create jobs and anchor the
state's economy, research shows that they bear a disproportionate
share of regulatory costs and burdens.
(4) Changes are needed in the regulatory and enforcement culture
of state agencies in order to help agencies be more responsive to the
implementation challenges of small businesses without compromising
statutory missions of the agencies.
(b) The Legislature further declares that the purpose of this act
is to do all of the following:
(1) Encourage the effective participation of small businesses in
the state regulatory process.
(2) Develop more accessible sources of information on regulatory
reporting requirements for small businesses.
(3) Create a more cooperative regulatory environment among
agencies and small businesses that is less punitive and more solution
oriented.
(4) Make state regulators more accountable for their enforcement
actions by providing small businesses and nonprofit organizations
with meaningful opportunities for redress of excessive enforcement
activities.
SEC. 3. Section 12096.3 of the Government Code
is amended to read:
12096.3. The office shall 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. In this capacity, the office may:
(a) Recommend to the Governor and the Legislature new state
policies, programs, and actions, or amendments to existing programs,
advance statewide economic goals and respond to emerging economic
problems and opportunities, and ensure that all state policies and
programs conform to the adopted state economic and business
development goals.
(b) Coordinate the development of policies and criteria to ensure
that federal grants administered or directly expended by state
government advance statewide economic goals and objectives.
(c) Market the business and investment opportunities available in
California by working in partnership with local, regional, federal,
and other state public and private institutions to encourage business
development and investment in the state.
(d) Provide, including, but not limited to, all of the following:
(1) Economic and demographic data.
(2) Financial information to help link businesses with state and
local public and private programs.
(3) Workforce information, including, but not limited to, labor
availability, training, and education programs.
(4) Transportation and infrastructure information.
(5) Assistance in obtaining state and local permits.
(6) Information on tax credits and other incentives.
(7) Permitting, siting, and other regulatory information pertinent
to business operations in the state.
(e) Establish a well-advertised telephone number, an interactive
Internet Web site, and an administrative structure that effectively
supports the facilitation of business development and investment in
the state.
(f) Encourage collaboration among research institutions, startup
companies, local governments, venture capitalists, and economic
development agencies to promote innovation.
(g) In cooperation with the federal government, foster
relationships with overseas entities to improve the state's image as
a destination for business investment and expansion.
(h) Conduct research on the state's business climate, including,
but not limited to, research on how the state can remain on the
leading edge of innovation and emerging sectors.
(i) Support small businesses by providing information about
accessing capital, technical assistance, and complying with
regulations, and by supporting state initiatives that support small
business.
SEC. 4. Section 12098.3 of the Government Code
is amended to read:
12098.3. (a) The Director of the Office of Small Business
Advocate shall be appointed by, and shall serve at the pleasure of,
the Governor.
(b) The Governor shall appoint the employees who are needed to
accomplish the purposes of this article.
(c) The duties and functions of the advocate shall include all of
the following:
(1) Serve as the principal advocate in the state on behalf of
small businesses, including, but not limited to, advisory
participation in the consideration of all legislation and
administrative regulations that affect small businesses, and advocacy
on state policy and programs related to small businesses on disaster
preparedness and recovery including providing technical assistance.
(2) Represent the views and interests of small businesses before
other state agencies whose policies and activities may affect small
business. To the extent information is available and requested, share
with a rulemaking agency the contact information for small business
organizations, which the rulemaking agency may want to include when
disseminating public information about a proposed new rule or
amendment.
(3) Enlist the cooperation and assistance of public and private
agencies, businesses, and other organizations in disseminating
information about the programs and services provided by state
government that are of benefit to small businesses, and information
on how small businesses can participate in, or make use of, those
programs and services.
(4) Consult with experts and authorities in the fields of small
business investment, venture capital investment, and commercial
banking and other comparable financial institutions involved in the
financing of business, and with individuals with regulatory, legal,
economic, or financial expertise, including members of the academic
community, and individuals who generally represent the public
interest.
(5) Seek the assistance and cooperation of all state agencies and
departments providing services to, or affecting, small business,
including the small business liaison designated pursuant to Section
14846, to ensure coordination of state efforts.
(6) Receive and respond to complaints from small businesses
concerning the actions of state agencies and the operative effects of
state laws and regulations adversely affecting those businesses.
(7) Counsel small businesses on how to resolve questions and
problems concerning the relationship of small business to state
government.
(8) Maintain, publicize, and distribute an annual list of persons
serving as small business ombudsmen throughout state government.
SEC. 5. Section 12098.4 of the Government Code
is amended to read:
12098.4. (a) Each agency of the state shall furnish to the
advocate the reports, documents, and information that are public
records and that the director deems necessary to carry out his or her
functions under this chapter.
(b) Each agency that develops a small entity compliance guide to
assist small businesses and nonprofit organizations in complying with
regulations in collaboration with a federal agency pursuant to the
federal Small Business Regulatory Fairness Act of 1996 (Public Law
104-121) shall notify the advocate within 45 days after the guide
becomes available to the public. The notice to the advocate shall
include information on how a small business or nonprofit organization
can obtain a copy of the small business compliance guide.
(c) The advocate shall prepare and submit a written annual report
to the Governor and to the Legislature that describes the activities
and recommendations of the office, including an evaluation of the
efforts of state agencies and, where appropriate, specific
departments, that significantly regulate small businesses to assist
minority and other small business enterprises, and making
recommendations that may be appropriate to assist the development and
strengthening of minority and other small business enterprises.
(d) The advocate may establish a centralized interactive telephone
referral system and Internet Web site to assist small and minority
businesses in their operations, including governmental requirements,
such as taxation, accounting, and pollution control, and to provide
information concerning the agency from which more specialized
assistance may be obtained. The advocate may establish and advertise
a telephone number and an Internet Web site address to serve this
centralized interactive telephone referral system and Internet Web
site.