AB 1320, as amended, Maienschein. Alcoholic beverages: 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 rectifier’s 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, as described, distilled spirits manufacturer, holder of a distilled spirits rectifier’s 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 conducts entertainment events solely at the San Diego County Fairgrounds, 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 rectifier’s 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 rectifier’s general license, or a distilled spirits manufacturer’s agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor. The bill would make a related statement of findings.
By creating new crimes 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 San Diego.
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 25503.36 is added to the Business and
2Professions Code, to read:
(a) Notwithstanding any otherbegin delete law,end deletebegin insert provision of this
4division,end insert a beer manufacturer, holder of a winegrower’s license,
5winegrower’s agent, holder of an importer’s general license that
6does not also hold a wholesale or retail license as an additional
7license, distilled spirits manufacturer, holder of a distilled spirits
P3 1rectifier’s general license, or a distilled spirits manufacturer’s agent
2may sponsor events promoted by, and may purchase advertising
3space and time from, or on behalf of, a live entertainment
4marketing company subject to all of the following
conditions:
5(1) The live entertainment marketing company operates and
6promotes live artistic, musical, sports, or cultural entertainment
7events only.
8(2) All of the live artistic, musical, sports, or cultural
9entertainment events are conducted at the San Diego County
10Fairgrounds, located in the City of Del Mar in the County of San
11Diego, and the events will typically occur over a period ofbegin delete three begin insert no more than fourend insert consecutive days during which
12or moreend delete
13approximately 100 acts will perform before approximately 20,000
14or more patrons. The live entertainment marketing company shall
15not conduct more than three
of these types of events within a
16calendar year.
17(3) The live entertainment marketing company is a Delaware
18limited liability company that is under common ownership,
19management, or control by a private equity firm that may also have
20common ownership, management, or control of a licensed
21California winery, provided the winery represents not more than
2225 percent of the assets under common ownership, management,
23or control by the private equity firm or its subsidiaries, and the
24live entertainment marketing company exercises no control over
25the operations of the winery.
26(4) Any on-sale licensee operating at a venue where live artistic,
27musical, sports, or cultural entertainment events are performed
28pursuant to a sponsorship described in this section or where
29advertising is purchased
as described in this section shall serve
30other brands of beer, distilled spirits, and wine distributed by a
31competing wholesaler in addition to any brand manufactured or
32distributed by the owning, sponsoring, or advertising beer
33manufacturer, holder of a winegrower’s license, winegrower’s
34agent, holder of an importer’s general license, distilled spirits
35manufacturer, holder of a distilled spirits rectifier’s general license,
36or a distilled spirits manufacturer’s agent.
37(5) An agreement for the sponsorship of, or for the purchase of
38advertising space and time during, a live artistic, musical, sports,
39or cultural entertainment event shall not be conditioned directly
40or indirectly, in any way, on the purchase, sale, or distribution of
P4 1any alcoholic beverage manufactured or distributed by the owning,
2advertising, or sponsoring beer
manufacturer, holder of a
3winegrower’s license, winegrower’s agent, holder of an importer’s
4general license, distilled spirits manufacturer, holder of a distilled
5spirits rectifier’s general license, or a distilled spirits
6manufacturer’s agent by the live entertainment company described
7in this section.
8(b) Any sponsorship of events or purchase of advertising space
9or time conducted pursuant to subdivision (a) shall be conducted
10pursuant to a written contract entered into by the beer manufacturer,
11holder of a winegrower’s license, winegrower’s agent, holder of
12an importer’s general license, distilled spirits manufacturer, holder
13of a distilled spirits rectifier’s general license, or a distilled spirits
14manufacturer’s agent and the live entertainment marketing
15company.
16(c) Any beer manufacturer, holder of a winegrower’s license,
17winegrower’s agent, holder of an importer’s general license,
18distilled spirits manufacturer, holder of a distilled spirits rectifier’s
19general license, or a distilled spirits manufacturer’s agent who,
20through coercion or other illegal means, induces, directly or
21indirectly, a holder of a wholesaler’s license to fulfill those
22contractual obligations entered into pursuant to subdivision (a)
23shall be guilty of a misdemeanor and shall be punished by
24imprisonment in the county jail not exceeding six months, or by
25a fine in an amount equal to the entire value of the advertising
26space or time involved in the contract, whichever is greater, plus
27ten thousand dollars ($10,000), or by both imprisonment and fine.
28The person shall also be subject to license suspension or revocation
29pursuant to Section 24200.
30(d) Any on-sale retail licensee who, directly or indirectly, solicits
31or coerces a holder of a wholesaler’s license to solicit a beer
32manufacturer, holder of a winegrower’s license, winegrower’s
33agent, holder of an importer’s general license, distilled spirits
34manufacturer, holder of a distilled spirits rectifier’s general license,
35or a distilled spirits manufacturer’s agent to purchase advertising
36time or space pursuant to subdivision (a) shall be guilty of a
37misdemeanor and shall be punished by imprisonment in the county
38jail not exceeding six months, or by a fine in an amount equal to
39the entire value of the advertising space or time involved in the
40contract, whichever is greater, plus ten thousand dollars ($10,000),
P5 1or by both imprisonment and fine. The person shall also be subject
2to license suspension or revocation pursuant to Section
24200.
3(e) For purposes of this section, “beer manufacturer” includes
4a holder of a beer manufacturer’s license, a holder of an out-of-state
5beer manufacturer’s certificate, or a holder of a beer and wine
6importer’s general license.
7(f) Nothing in this section shall authorize the purchasing of
8advertising space or time directly from, or on behalf of, any on-sale
9licensee except as expressly authorized by this section or any other
10provision of this division.
11(g) Nothing in this section shall authorize a beer manufacturer,
12holder of a winegrower’s license, winegrower’s agent, holder of
13an importer’s general license, distilled spirits manufacturer, holder
14of a distilled spirits rectifier’s general license,
or a distilled spirits
15manufacturer’s agent to furnish, give, or lend anything of value to
16an on-sale retail licensee described in subdivision (a) except as
17expressly authorized by this section or any other provision of this
18division.
19(h) The Legislature finds that it is necessary and proper to
20require a separation between manufacturing interests, wholesale
21interests, and retail interests in the production and distribution of
22alcoholic beverages in order to prevent suppliers from dominating
23local markets through vertical integration and to prevent excessive
24sales of alcoholic beverages produced by overly aggressive
25marketing techniques. The Legislature further finds that the
26exception established by this section to the general prohibition
27against tied interests must be limited to its expressed terms so as
28not
to undermine the general prohibition, and intends that this
29section be construed accordingly.
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 San Diego.
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.
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