Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1767


Introduced by Assembly Member Bigelow

February 3, 2016


An act to amend Sectionbegin delete 12012.68end deletebegin insert 25503.6end insert of thebegin delete Governmentend deletebegin insert Business and Professionsend insert Code, relating tobegin delete tribal gaming.end deletebegin insert alcoholic beverages.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1767, as amended, Bigelow. begin deleteTribal gaming. end deletebegin insertAlcoholic beverages: tied-house restrictions: advertising.end insert

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Existing law, 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, fairgrounds, 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.

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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.

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Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, including the tribal-state gaming compact entered into between the State of California and the United Auburn Indian Community, executed on August 14, 2015.

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This bill would make a technical, nonsubstantive change to that provision.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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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.

P3    1(G) An athletic and entertainment complex of not less than 50
2acres that includes within its boundaries an outdoor stadium with
3a fixed seating capacity of at least 8,000 seats and a second outdoor
4stadium with a fixed seating capacity of at least 3,500 seats located
5in Riverside County.

6(H) An outdoor stadium with a fixed seating capacity in excess
7of 1,500 seats located in Tulare County.

8(I) A motorsports entertainment complex of not less than 50
9acres that includes within its boundaries an outdoor speedway with
10a fixed seating capacity of at least 50,000 seats, located in San
11Bernardino County.

12(J) An exposition park, owned or operated by a bona fide
13nonprofit organization, of not less than 400 acres with facilities
14including a grandstand with a seating capacity of at least 8,000
15people, at least one exhibition hall greater than 100,000 square
16feet, and at least four exhibition halls, each greater than 30,000
17square feet, located in the City of Pomona or the City of La Verne
18in Los Angeles County.

19(K) An outdoor soccer stadium with a fixed seating capacity of
20at least 25,000 seats, an outdoor tennis stadium with a fixed
21capacity of at least 7,000 seats, an outdoor track and field facility
22with a fixed seating capacity of at least 7,000 seats, and an indoor
23velodrome with a fixed seating capacity of at least 2,000 seats, all
24located within a sports and athletic complex built before January
251, 2005, in the City of Carson in Los Angeles County.

26(L) An outdoor professional sports facility with a fixed seating
27capacity of at least 4,200 seats located in San Joaquin County.

28(M) A fully enclosed arena with a fixed seating capacity in
29excess of 13,000 seats in the City of Inglewood.

30(N) (i) An outdoor stadium with a fixed seating capacity of at
31least 68,000 seats located in the City of Santa Clara.

32(ii) A beer manufacturer, the holder of a winegrower’s license,
33a distilled spirits rectifier, a distilled spirits manufacturer, or
34distilled spirits manufacturer’s agent may purchase advertising
35space and time from, or on behalf of, a major tenant of an outdoor
36stadium described in clause (i), provided the major tenant does not
37hold a retail license, and the advertising may include the placement
38of advertising in an on-sale licensed premises operated at the
39outdoor stadium.

P4    1(O) A complex of not more than 50 acres located on the campus
2of, and owned by, Sonoma State University dedicated to presenting
3live artistic, musical, sports, food, beverage, culinary, lifestyle, or
4other cultural and entertainment events and performances with
5venues that include a concert hall with a seating capacity of
6approximately 1,500 seats, a second concert hall with a seating
7capacity of up to 300 seats, an outdoor area with a seating capacity
8of up to 5,000 seats, and a further outdoor area with a seating
9capacity of up to 10,000 seats. With respect to this complex,
10advertising space and time may also be purchased from or on behalf
11of the owner of the complex, a long-term tenant or licensee of the
12venue, whether or not the owner, long-term tenant, or licensee
13holds an on-sale license.

14(P) A fairgrounds with a horse racetrack and equestrian and
15sports facilities located in San Diego County.

16(2) The outdoor stadium or fully enclosed arena described in
17paragraph (1) is not owned by a community college district.

18(3) The advertising space or time is purchased only in connection
19with the events to be held on the premises of the exposition park,
20stadium, or arena ownedbegin insert or leasedend insert by the on-sale licensee. With
21respect to an exposition park as described in subparagraph (J) of
22paragraph (1) that includes at least one hotel, the advertising space
23or time shall not be displayed on or in any hotel located in the
24exposition park, or purchased in connection with the operation of
25any hotel located in the exposition park. With respect to the
26complex described in subparagraph (O) of paragraph (1), the
27advertising space or time shall be purchased only in connection
28with live artistic, musical, sports, food, beverage, culinary, lifestyle,
29or other cultural and entertainment events and performances to be
30held on the premises of the complex.

31(4) The on-sale licensee serves other brands of beer distributed
32by a competing beer wholesaler in addition to the brand
33manufactured or marketed by the beer manufacturer, other brands
34of wine distributed by a competing wine wholesaler in addition to
35the brand produced by the winegrower, and other brands of distilled
36spirits distributed by a competing distilled spirits wholesaler in
37addition to the brand manufactured or marketed by the distilled
38spirits rectifier, the distilled spirits manufacturer, or the distilled
39spirits manufacturer’s agent that purchased the advertising space
40or time.

P5    1(b) Any purchase of advertising space or time pursuant to
2subdivision (a) shall be conducted pursuant to a written contract
3entered into by the beer manufacturer, the holder of the
4winegrower’s license, the distilled spirits rectifier, the distilled
5spirits manufacturer, or the distilled spirits manufacturer’s agent
6and any of the following:

7(1) The on-sale licensee.

8(2) With respect to clause (ii) of subparagraph (N) of paragraph
9(1) of subdivision (a), the major tenant of the outdoor stadium.

10(3) With respect to subparagraph (O) of paragraph (1) of
11subdivision (a), the owner, a long-term tenant of the complex, or
12licensee of the complex, whether or not the owner, long-term
13tenant, or licensee holds an on-sale license.

14(c) Any beer manufacturer or holder of a winegrower’s license,
15any distilled spirits rectifier, any distilled spirits manufacturer, or
16any distilled spirits manufacturer’s agent who, through coercion
17or other illegal means, induces, directly or indirectly, a holder of
18a wholesaler’s license to fulfill all or part of those contractual
19obligations entered into pursuant to subdivision (a) or (b) shall be
20guilty of a misdemeanor and shall be punished by imprisonment
21in the county jail not exceeding six months, or by a fine in an
22amount equal to the entire value of the advertising space, time, or
23costs involved in the contract, whichever is greater, plus ten
24thousand dollars ($10,000), or by both imprisonment and fine. The
25person shall also be subject to license revocation pursuant to
26Section 24200.

27(d) Any on-sale retail licensee, as described in subdivision (a),
28who, directly or indirectly, solicits or coerces a holder of a
29wholesaler’s license to solicit a beer manufacturer, a holder of a
30winegrower’s license, a distilled spirits rectifier, a distilled spirits
31manufacturer, or a distilled spirits manufacturer’s agent to purchase
32advertising space or time pursuant to subdivision (a) or (b) shall
33be guilty of a misdemeanor and shall be punished by imprisonment
34in the county jail not exceeding six months, or by a fine in an
35amount equal to the entire value of the advertising space or time
36involved in the contract, whichever is greater, plus ten thousand
37dollars ($10,000), or by both imprisonment and fine. The person
38shall also be subject to license revocation pursuant to Section
3924200.

P6    1(e) For the purposes of this section, “beer manufacturer” includes
2any holder of a beer manufacturer’s license, any holder of an
3out-of-state beer manufacturer’s certificate, or any holder of a beer
4and wine importer’s general license.

5(f) The Legislature finds that it is necessary and proper to require
6a separation among manufacturing interests, wholesale interests,
7and retail interests in the production and distribution of alcoholic
8beverages in order to prevent suppliers from dominating local
9markets through vertical integration and to prevent excessive sales
10of alcoholic beverages produced by overly aggressive marketing
11techniques. The Legislature further finds that the exceptions
12established by this section to the general prohibition against tied
13interests shall be limited to their express terms so as not to
14undermine the general prohibition and intends that this section be
15construed accordingly.

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16

SECTION 1.  

Section 12012.68 of the Government Code is
17amended to read:

18

12012.68.  

(a) The tribal-state gaming compact entered into in
19accordance with the federal Indian Gaming Regulatory Act of
201988 (18 U.S.C. Sec. 1166 to 1168, inclusive, and 25 U.S.C. Sec.
212701 et seq.) between the State of California and the United Auburn
22Indian Community, executed on August 14, 2015, is hereby
23ratified.

24(b) (1) In deference to tribal sovereignty, the following shall
25not be deemed a project for purposes of the California
26Environmental Quality Act (Division 13 (commencing with Section
2721000) of the Public Resources Code):

28(A) The execution of an amendment to the tribal-state gaming
29 compact ratified by this section.

30(B) The execution of the tribal-state gaming compact ratified
31by this section.

32(C) The execution of an intergovernmental agreement between
33a tribe and a county or city government negotiated pursuant to the
34express authority of, or as expressly referenced in, the tribal-state
35gaming compact ratified by this section.

36(D) The execution of an intergovernmental agreement between
37a tribe and the Department of Transportation negotiated pursuant
38to the express authority of, or as expressly referenced in, the
39tribal-state gaming compact ratified by this section.

P7    1(E) The on-reservation impacts of compliance with the terms
2of the tribal-state gaming compact ratified by this section.

3(F) The sale of compact assets, as defined in subdivision (a) of
4Section 63048.6, or the creation of the special purpose trust
5established pursuant to Section 63048.65.

6(2) Except as expressly provided herein, this subdivision does
7not exempt a city, county, or city and county, or the Department
8of Transportation, from the requirements of the California
9Environmental Quality Act.

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