BILL ANALYSIS Ó AB 1320 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1320 (Maienschein) - As Amended April 28, 2015 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|20 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill creates a specific tied-house exception to allow specific alcohol licensees to sponsor events or purchase advertising space and time from, or on behalf of, a live entertainment marketing company for live artistic, musical, sports, or cultural entertainment events conducted at the San Diego County Fairgrounds in Del Mar. FISCAL EFFECT: AB 1320 Page 2 Minor, likely absorbable enforcement costs to the Department of Alcoholic Beverage Control as the bill is effectively unenforceable. COMMENTS: 1)Purpose. According to the author, this bill creates a narrow exemption to the tied-house advertising rules to allow the event KAABOO to be conducted at the San Diego Fairgrounds in Del Mar. The author claims this exception is needed because KAABOO Entertainment's owners also own an interest in a winery, which would otherwise prohibit KAABOO from receiving advertising and sponsorships from alcoholic beverage manufacturers. The author asserts such limitations on alcoholic beverage sales would effectively preclude the festival from operation. The author believes the KAABOO festival will have a significant economic impact on the Del Mar region, generating additional tourism at hotels, restaurants, and retailers, and contributing as much as $1.5 million in additional sales tax. 2)Other Tied-House Exemptions. California law contains numerous tied-house exceptions to permit advertising and sponsorships at certain events and venues. Some of the best known are exceptions for Levi's Stadium in Santa Clara, the Los Angeles Forum, the Stockton Arena, the Los Angeles County Fair, the Oakland Coliseum, and the California Speedway in Fontana. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081 AB 1320 Page 3