Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1320


Introduced by Assembly Member Maienschein

February 27, 2015


An act to amend Sectionbegin delete 25503.24end deletebegin insert 25503.6end insert of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1320, as amended, Maienschein. Alcoholic beverages: tied-housebegin delete restrictions.end deletebegin insert restrictions: fairgrounds.end insert

Existing lawbegin delete prohibits specified holders of alcoholic beverage licenses from having specified relationships with an on-sale alcoholic beverage licensee, with limited exceptions. Existing law permits a manufacturer, winegrower, rectifier, distiller, distilled spirits wholesaler, or any agent of those licenses, to conduct market research and, in connection with that research, to purchase from licensed off-sale retailers data, regarding purchases and sales of alcoholic beverage products, at the customary rates that those retailers sell similar data for nonalcoholic beverage products, provided that no licensed retailer shall be obligated to purchase or sell the alcoholic beverages of the manufacturer, winegrower, rectifier, or distiller.end deletebegin insert 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, specified entities, including certain parks, entertainment complexes, and outdoor stadiums, as provided.end insert

This bill wouldbegin delete make a nonsubstantive change to this provision.end deletebegin insert 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 own, sponsor, conduct, or purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is the owner, manager, agent of the owner, assignee of the owner’s advertising rights, or major tenant of a state- or county-owned fairground, under specified conditions. The 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. The 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. end insert

begin insert

By creating new crimes, 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

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. 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
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
P4    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.

begin insert

23(O) A state- or county-owned fairground.

end insert

24(ii) A beer manufacturer, the holder of a winegrower’s license,
25a distilled spirits rectifier, a distilled spirits manufacturer, or
26distilled spirits manufacturer’s agent may purchase advertising
27space and time from, or on behalf of, a major tenant of an outdoor
28stadium described in clause (i), provided the major tenant does not
29hold a retail license, and the advertising may include the placement
30of advertising in an on-sale licensed premises operated at the
31outdoor stadium.

32(2) The outdoor stadium or fully enclosed arena described in
33paragraph (1) is not owned by a community college district.

34(3) The advertising space or time is purchased only in connection
35with the events to be held on the premises of the exposition park,
36stadium, or arena owned by the on-sale licensee. With respect to
37an exposition park as described in subparagraph (J) of paragraph
38(1) that includes at least one hotel, the advertising space or time
39shall not be displayed on or in any hotel located in the exposition
P5    1park, or purchased in connection with the operation of any hotel
2located in the exposition park.

3(4) The on-sale licensee serves other brands of beer distributed
4by a competing beer wholesaler in addition to the brand
5manufactured or marketed by the beer manufacturer, other brands
6of wine distributed by a competing wine wholesaler in addition to
7the brand produced by the winegrower, and other brands of distilled
8spirits distributed by a competing distilled spirits wholesaler in
9addition to the brand manufactured or marketed by the distilled
10spirits rectifier, the distilled spirits manufacturer or the distilled
11spirits manufacturer’s agent that purchased the advertising space
12or time.

13(b) Any purchase of advertising space or time pursuant to
14subdivision (a) shall be conducted pursuant to a written contract
15entered into by the beer manufacturer, the holder of the
16winegrower’s license, the distilled spirits rectifier, the distilled
17spirits manufacturer, or the distilled spirits manufacturer’s agent
18and the on-sale licensee, or with respect to clause (ii) of
19subparagraph (N) of paragraph (1) of subdivision (a), the major
20 tenant of the outdoor stadium.

21(c) Any beer manufacturer or holder of a winegrower’s license,
22any distilled spirits rectifier, any distilled spirits manufacturer, or
23any distilled spirits manufacturer’s agent who, through coercion
24or other illegal means, induces, directly or indirectly, a holder of
25a wholesaler’s license to fulfill all or part of those contractual
26obligations entered into pursuant to subdivision (a) or (b) shall be
27guilty of a misdemeanor and shall be punished by imprisonment
28in the county jail not exceeding six months, or by a fine in an
29amount equal to the entire value of the advertising space, time, or
30costs involved in the contract, whichever is greater, plus ten
31thousand dollars ($10,000), or by both imprisonment and fine. The
32person shall also be subject to license revocation pursuant to
33Section 24200.

34(d) Any on-sale retail licensee, as described in subdivision (a),
35who, directly or indirectly, solicits or coerces a holder of a
36wholesaler’s license to solicit a beer manufacturer, a holder of a
37winegrower’s license, a distilled spirits rectifier, a distilled spirits
38manufacturer, or a distilled spirits manufacturer’s agent to purchase
39advertising space or time pursuant to subdivision (a) or (b) shall
40be guilty of a misdemeanor and shall be punished by imprisonment
P6    1in the county jail not exceeding six months, or by a fine in an
2amount equal to the entire value of the advertising space or time
3involved in the contract, whichever is greater, plus ten thousand
4dollars ($10,000), or by both imprisonment and fine. The person
5shall also be subject to license revocation pursuant to Section
624200.

7(e) For the purposes of this section, “beer manufacturer” includes
8any holder of a beer manufacturer’s license, any holder of an
9out-of-state beer manufacturer’s certificate, or any holder of a beer
10and wine importer’s general license.

11begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California
19Constitution.

end insert
begin delete
20

SECTION 1.  

Section 25503.24 of the Business and Professions
21Code
is amended to read:

22

25503.24.  

(a) Notwithstanding any other provision of this
23chapter, any manufacturer, winegrower, rectifier, distiller, distilled
24spirits wholesaler, or any agent, director, officer, or representative
25of any of those entities, may conduct market research and, in
26connection with that research, the entity conducting the market
27research may purchase from licensed off-sale retailers data
28regarding purchases and sales of alcoholic beverage products at
29the customary rates that those retailers sell similar data for
30nonalcoholic beverage products subject to the following limitations:

31(1) No licensed retailer shall be obligated to purchase or sell
32the alcoholic beverage products of that manufacturer, winegrower,
33rectifier, or distiller.

34(2) No retail premises shall participate in more than one research
35project conducted by any single manufacturer, winegrower,
36rectifier, distiller, or distilled spirits wholesaler during a calendar
37year. A research project may involve multiple onsite surveys.

38(3) Nothing in this section shall allow a licensed retailer to
39require a manufacturer, winegrower, rectifier, distiller, or distilled
P7    1spirits wholesaler to conduct any market research as a condition
2for selling alcoholic beverage products to that licensed retailer.

3(b) Any holder of a beer manufacturer’s license or winegrower’s
4license who, through coercion or other illegal means, induces,
5directly or indirectly, a holder of a beer or wine wholesaler’s
6license to fulfill obligations entered into pursuant to subdivision
7(a) shall be guilty of a misdemeanor and shall be punished by
8imprisonment in the county jail not exceeding six months, or by
9a fine in an amount equal to the entire value of the market research
10or time involved in the project, whichever is greater, plus ten
11thousand dollars ($10,000), or by both imprisonment and fine. The
12person shall also be subject to license revocation pursuant to
13Section 24200.

14(c) Any retail licensee who, directly or indirectly, solicits or
15coerces a holder of a beer or wine wholesaler’s license to solicit
16a beer manufacturer, or holder of a winegrower’s license to fulfill
17obligations entered into pursuant to subdivision (a) shall be guilty
18of a misdemeanor and shall be punished by imprisonment in the
19county jail not exceeding six months, or by a fine in an amount
20equal to the entire value of the market research or time involved
21in the project, whichever is greater, plus ten thousand dollars
22($10,000), or by both imprisonment and fine. The person shall also
23be subject to license revocation pursuant to Section 24200.

24(d) For the purposes of this section, “beer manufacturer”
25includes any holder of a beer manufacturer’s license, any holder
26of an out-of-state beer manufacturer’s certificate, or any holder of
27a beer and wine importer’s general license.

end delete


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