as amended, Bigelow.
begin deleteAlcoholic beverages: tied-house restrictions: advertising. end delete
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.end delete
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.end delete
begin deletemajority end delete.
Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 25503.6 of the Business and Professions
35Code is amended to read:
(a) Notwithstanding any other provision of this
37chapter, a beer manufacturer, the holder of a winegrower’s license,
38a distilled spirits rectifier, a distilled spirits manufacturer, or
39distilled spirits manufacturer’s agent may purchase advertising
P4 1space and time from, or on behalf of, an on-sale retail licensee
2subject to all of the following conditions:
3(1) The on-sale licensee is the owner, manager, agent of the
4owner, assignee of the owner’s advertising rights, or the major
5tenant of the owner of any of the following:
6(A) An outdoor stadium or a fully enclosed arena with a fixed
7seating capacity in excess of 10,000 seats located in Sacramento
8County or Alameda County.
9(B) A fully enclosed arena with a fixed seating capacity in
10excess of 18,000 seats located in Orange County or Los Angeles
12(C) An outdoor stadium or fully enclosed arena with a fixed
13seating capacity in excess of 8,500 seats located in Kern County.
14(D) An exposition park of not less than 50 acres that includes
15an outdoor stadium with a fixed seating capacity in excess of 8,000
16seats and a fully enclosed arena with an attendance capacity in
17excess of 4,500 people, located in San Bernardino County.
18(E) An outdoor stadium with a fixed seating capacity in excess
19of 10,000 seats located in Yolo County.
20(F) An outdoor stadium and a fully enclosed arena with fixed
21seating capacities in excess of 10,000 seats located in Fresno
23(G) An athletic and entertainment complex of not less than 50
24acres that includes within its boundaries an outdoor stadium with
25a fixed seating capacity of at least 8,000 seats and a second outdoor
26stadium with a fixed seating capacity of at least 3,500 seats located
27in Riverside County.
28(H) An outdoor stadium with a fixed seating capacity in excess
29of 1,500 seats located in Tulare County.
30(I) A motorsports entertainment complex of not less than 50
31acres that includes within its boundaries an outdoor speedway with
32a fixed seating capacity of at least 50,000 seats, located in San
34(J) An exposition park, owned or operated by a bona fide
35nonprofit organization, of not less than 400 acres with facilities
36including a grandstand with a seating capacity of at least 8,000
37people, at least one exhibition hall greater than 100,000 square
38feet, and at least four exhibition halls, each greater than 30,000
39square feet, located in the City of Pomona or the City of La Verne
40in Los Angeles County.
P5 1(K) An outdoor soccer stadium with a fixed seating capacity of
2at least 25,000 seats, an outdoor tennis stadium with a fixed
3capacity of at least 7,000 seats, an outdoor track and field facility
4with a fixed seating capacity of at least 7,000 seats, and an indoor
5velodrome with a fixed seating capacity of at least 2,000 seats, all
6located within a sports and athletic complex built before January
71, 2005, in the City of Carson in Los Angeles County.
8(L) An outdoor professional sports facility with a fixed seating
9capacity of at least 4,200 seats located in San Joaquin County.
10(M) A fully enclosed arena with a fixed seating capacity in
11excess of 13,000 seats in the City of Inglewood.
12(N) (i) An outdoor stadium with a fixed seating capacity of at
13least 68,000 seats located in the City of Santa Clara.
14(ii) A beer manufacturer, the holder of a winegrower’s license,
15a distilled spirits rectifier, a distilled spirits manufacturer, or
16distilled spirits manufacturer’s agent may purchase advertising
17space and time from, or on behalf of, a major tenant of an outdoor
18stadium described in clause (i), provided the major tenant does not
19hold a retail license, and the advertising may include the placement
20of advertising in an on-sale licensed premises operated at the
22(O) A complex of not more than 50
acres located on the campus
23of, and owned by, Sonoma State University dedicated to presenting
24live artistic, musical, sports, food, beverage, culinary, lifestyle, or
25other cultural and entertainment events and performances with
26venues that include a concert hall with a seating capacity of
27approximately 1,500 seats, a second concert hall with a seating
28capacity of up to 300 seats, an outdoor area with a seating capacity
29of up to 5,000 seats, and a further outdoor area with a seating
30capacity of up to 10,000 seats. With respect to this complex,
31advertising space and time may also be purchased from or on behalf
32of the owner of the complex, a long-term tenant or licensee of the
33venue, whether or not the owner, long-term tenant, or licensee
34holds an on-sale license.
35(P) A fairgrounds with a horse racetrack and equestrian and
36sports facilities located in San Diego County.
outdoor stadium or fully enclosed arena described in
38paragraph (1) is not owned by a community college district.
39(3) The advertising space or time is purchased only in connection
40with the events to be held on the premises of the exposition park,
P6 1stadium, or arena owned or leased by the on-sale licensee. With
2respect to an exposition park as described in subparagraph (J) of
3paragraph (1) that includes at least one hotel, the advertising space
4or time shall not be displayed on or in any hotel located in the
5exposition park, or purchased in connection with the operation of
6any hotel located in the exposition park. With respect to the
7complex described in subparagraph (O) of paragraph (1), the
8advertising space or time shall be purchased only in connection
9with live artistic, musical, sports, food, beverage, culinary, lifestyle,
10or other cultural and entertainment events and performances to be
11held on the premises of the complex.
12(4) The on-sale licensee serves other brands of beer distributed
13by a competing beer wholesaler in addition to the brand
14manufactured or marketed by the beer manufacturer, other brands
15of wine distributed by a competing wine wholesaler in addition to
16the brand produced by the winegrower, and other brands of distilled
17spirits distributed by a competing distilled spirits wholesaler in
18addition to the brand manufactured or marketed by the distilled
19spirits rectifier, the distilled spirits manufacturer, or the distilled
20spirits manufacturer’s agent that purchased the advertising space
22(b) Any purchase of advertising space or time pursuant to
23subdivision (a) shall be conducted pursuant to a written contract
24entered into by the beer manufacturer, the holder of the
25winegrower’s license, the distilled spirits rectifier, the distilled
26spirits manufacturer, or the distilled spirits manufacturer’s agent
27and any of the following:
28(1) The on-sale licensee.
29(2) With respect to clause (ii) of subparagraph (N) of paragraph
30(1) of subdivision (a), the major tenant of the outdoor stadium.
31(3) With respect to subparagraph (O) of paragraph (1) of
32subdivision (a), the owner, a long-term tenant of the complex, or
33licensee of the complex, whether or not the owner, long-term
34tenant, or licensee holds an on-sale license.
35(c) Any beer manufacturer or holder of a winegrower’s license,
36any distilled spirits rectifier, any distilled spirits manufacturer, or
37any distilled spirits manufacturer’s agent who, through coercion
38or other illegal means, induces, directly or indirectly, a holder of
39a wholesaler’s license to fulfill all or part of those contractual
40obligations entered into pursuant to subdivision (a) or (b) shall be
P7 1guilty of a misdemeanor and shall be punished by imprisonment
2in the county jail not exceeding six months, or by a fine in an
3amount equal to the entire value of the advertising space, time, or
4costs involved in the contract, whichever is greater, plus ten
5thousand dollars ($10,000), or by both imprisonment and fine. The
6person shall also be subject to license revocation pursuant to
8(d) Any on-sale retail licensee, as described in subdivision (a),
9who, directly or indirectly, solicits or coerces a holder of a
10wholesaler’s license to solicit a beer manufacturer, a holder of a
11winegrower’s license, a distilled spirits rectifier, a distilled spirits
12manufacturer, or a distilled spirits manufacturer’s agent to purchase
13advertising space or time pursuant to subdivision (a) or (b) shall
14be guilty of a misdemeanor and shall be punished by imprisonment
15in the county jail not exceeding six months, or by a fine in an
16amount equal to the entire value of the advertising space or time
17involved in the contract, whichever is greater, plus ten thousand
18dollars ($10,000), or by both imprisonment and fine. The person
19shall also be subject to license revocation pursuant to Section
21(e) For the purposes of this section, “beer manufacturer” includes
22any holder of a beer manufacturer’s license, any holder of an
23out-of-state beer manufacturer’s certificate, or any holder of a beer
24and wine importer’s general license.
25(f) The Legislature finds that it is necessary and proper to require
26a separation among manufacturing interests, wholesale interests,
27and retail interests in the production and distribution of alcoholic
28beverages in order to prevent suppliers from dominating local
29markets through vertical integration and to prevent excessive sales
30of alcoholic beverages produced by overly aggressive marketing
31techniques. The Legislature further finds that the exceptions
32established by this section to the general prohibition against tied
33interests shall be limited to their express terms so as not to
34undermine the general prohibition and intends that this section be