AB 1189, as introduced, Bigelow. Alcoholic beverages: tied-house restrictions: advertising.
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Among these conditions, the act requires that the advertising space or time be purchased only in connection with events held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee.
This bill would permit the purchase of advertising space or time, as described above, on the premises of the exposition, park, stadium, or arena leased by the on-sale licensee.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 25503.6 of the Business and Professions
2Code is amended to read:
(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
33within Riverside County.
34(H) An outdoor stadium with a fixed seating capacity in excess
35of 1,500 seats located in Tulare County.
36(I) A motorsports entertainment complex of not less than 50
37acres that includes within its boundaries an outdoor speedway with
P3 1a fixed seating capacity of at least 50,000 seats, located within San
2Bernardino County.
3(J) An exposition park, owned or operated by a bona fide
4nonprofit organization, of not less than 400
acres with facilities
5including a grandstand with a seating capacity of at least 8,000
6people, at least one exhibition hall greater than 100,000 square
7feet, and at least four exhibition halls, each greater than 30,000
8square feet, located in the City of Pomona or the City of La Verne
9in Los Angeles County.
10(K) An outdoor soccer stadium with a fixed seating capacity of
11at least 25,000 seats, an outdoor tennis stadium with a fixed
12capacity of at least 7,000 seats, an outdoor track and field facility
13with a fixed seating capacity of at least 7,000 seats, and an indoor
14velodrome with a fixed seating capacity of at least 2,000 seats, all
15located within a sports and athletic complex built before January
161, 2005, within the City of Carson in Los Angeles County.
17(L) An outdoor professional sports facility with a fixed seating
18capacity of at least 4,200 seats located within San Joaquin
County.
19(M) A fully enclosed arena with a fixed seating capacity in
20excess of 13,000 seats in the City of Inglewood.
21(N) (i) An outdoor stadium with a fixed seating capacity of at
22least 68,000 seats located in the City of Santa Clara.
23(ii) A beer manufacturer, the holder of a winegrower’s license,
24a distilled spirits rectifier, a distilled spirits manufacturer, or
25distilled spirits manufacturer’s agent may purchase advertising
26space and time from, or on behalf of, a major tenant of an outdoor
27stadium described in clause (i), provided the major tenant does not
28hold a retail license, and the advertising may include the placement
29of advertising in an on-sale licensed premises operated at the
30outdoor stadium.
31(2) The outdoor stadium or
fully enclosed arena described in
32paragraph (1) is not owned by a community college district.
33(3) The advertising space or time is purchased only in connection
34with the events to be held on the premises of the exposition park,
35stadium, or arena ownedbegin insert or leased end insert by the on-sale licensee. With
36respect to an exposition park as described in subparagraph (J) of
37paragraph (1) that includes at least one hotel, the advertising space
38or time shall not be displayed on or in any hotel located in the
39exposition park, or purchased in connection with the operation of
40any hotel located in the exposition park.
P4 1(4) The on-sale licensee serves other brands of beer distributed
2by a competing beer wholesaler in addition to the brand
3manufactured or marketed by the beer manufacturer, other brands
4
of wine distributed by a competing wine wholesaler in addition to
5the brand produced by the winegrower, and other brands of distilled
6spirits distributed by a competing distilled spirits wholesaler in
7addition to the brand manufactured or marketed by the distilled
8spirits rectifier, the distilled spirits manufacturer or the distilled
9spirits manufacturer’s agent that purchased the advertising space
10or time.
11(b) Any purchase of advertising space or time pursuant to
12subdivision (a) shall be conducted pursuant to a written contract
13entered into by the beer manufacturer, the holder of the
14winegrower’s license, the distilled spirits rectifier, the distilled
15spirits manufacturer, or the distilled spirits manufacturer’s agent
16and the on-sale licensee, or with respect to clause (ii) of
17subparagraph (N) of paragraph (1) of subdivision (a), the major
18tenant of the outdoor stadium.
19(c) Any
beer manufacturer or holder of a winegrower’s license,
20any distilled spirits rectifier, any distilled spirits manufacturer, or
21any distilled spirits manufacturer’s agent who, through coercion
22or other illegal means, induces, directly or indirectly, a holder of
23a wholesaler’s license to fulfill all or part of those contractual
24obligations entered into pursuant to subdivision (a) or (b) shall be
25guilty of a misdemeanor and shall be punished by imprisonment
26in the county jail not exceeding six months, or by a fine in an
27amount equal to the entire value of the advertising space, time, or
28costs involved in the contract, whichever is greater, plus ten
29thousand dollars ($10,000), or by both imprisonment and fine. The
30person shall also be subject to license revocation pursuant to
31Section 24200.
32(d) Any on-sale retail licensee, as described in subdivision (a),
33who, directly or indirectly, solicits or coerces a holder of a
34wholesaler’s license to solicit
a beer manufacturer, a holder of a
35winegrower’s license, a distilled spirits rectifier, a distilled spirits
36manufacturer, or a distilled spirits manufacturer’s agent to purchase
37advertising space or time pursuant to subdivision (a) or (b) shall
38be guilty of a misdemeanor and shall be punished by imprisonment
39in the county jail not exceeding six months, or by a fine in an
40amount equal to the entire value of the advertising space or time
P5 1involved in the contract, whichever is greater, plus ten thousand
2dollars ($10,000), or by both imprisonment and fine. The person
3shall also be subject to license revocation pursuant to Section
424200.
5(e) For the purposes of this section, “beer manufacturer” includes
6any holder of a beer manufacturer’s license, any holder of an
7out-of-state beer manufacturer’s certificate, or any holder of a beer
8and wine importer’s general license.
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