BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1320


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1320 (Maienschein) - As Amended April 28, 2015


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          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:










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          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








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