Amended in Senate June 30, 2016

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 tobegin delete amend Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages.end deletebegin insert add Section 12012.71 to the Government Code, relating to tribal gaming, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1767, as amended, Bigelow. begin deleteAlcoholic beverages: tied-house restrictions: advertising. end deletebegin insertTribal gaming: compact ratification.end insert

begin insert

Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude tribal-state gaming compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, between the State of California and specified Indian tribes.

end insert
begin insert

The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

end insert
begin insert

This bill would ratify the amendment to the tribal-state gaming compact entered into between the State of California and the Jackson Rancheria Band of Miwuk Indians, executed on June 22, 2016. The bill would provide that, in deference to tribal sovereignty, certain actions related to that amended compact are not projects for purposes of CEQA.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin 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
begin 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

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 12012.71 is added to the end insertbegin insertGovernment
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert12012.71.end insert  

(a) The amendment to the tribal-state gaming
4compact entered into in accordance with the federal Indian Gaming
5Regulatory Act of 1988 (18 U.S.C. Secs. 1166 to 1168, inclusive,
6and 25 U.S.C. Sec. 2701 et seq.) between the State of California
7and the Jackson Rancheria Band of Miwuk Indians, executed on
8June 22, 2016, is hereby ratified.

9
(b) (1) In deference to tribal sovereignty, none of the following
10shall be deemed a project for purposes of the California
11Environmental Quality Act (Division 13 (commencing with Section
1221000) of the Public Resources Code):

P3    1
(A) The execution of an amendment to the tribal-state gaming
2compact ratified by this section.

3
(B) The execution of the amended tribal-state gaming compact
4ratified by this section.

5
(C) The execution of an intergovernmental agreement between
6a tribe and a county or city government negotiated pursuant to
7the express authority of, or as expressly referenced in, the amended
8tribal-state gaming compact ratified by this section.

9
(D) The execution of an intergovernmental agreement between
10a tribe and the Department of Transportation, or other state
11agency, negotiated pursuant to the express authority of, or as
12expressly referenced in, the amended tribal-state gaming compact
13ratified by this section.

14
(E) The on-reservation impacts of compliance with the terms
15of the amended tribal-state gaming compact ratified by this section.

16
(F) The sale of compact assets, as defined in subdivision (a) of
17Section 63048.6, or the creation of the special purpose trust
18established pursuant to Section 63048.65.

19
(2) Except as expressly provided in this section, this subdivision
20does not exempt a city, county, or city and county, or the
21Department of Transportation, or any state agency or local
22jurisdiction, from the requirements of the California Environmental
23Quality Act.

end insert
24begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
25immediate preservation of the public peace, health, or safety within
26the meaning of Article IV of the Constitution and shall go into
27immediate effect. The facts constituting the necessity are:

end insert
begin insert

28
In order to enhance, at the earliest possible time, the economic
29development, long-term stability, and self-sufficiency of the Jackson
30Rancheria Band of Miwuk Indians, and to protect the interests of
31the tribe and its members, the surrounding community, and the
32California public, it is necessary for this act to take effect
33immediately.

end insert
begin delete
34

SECTION 1.  

Section 25503.6 of the Business and Professions
35Code
is amended to read:

36

25503.6.  

(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
11County.

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
22County.

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
33Bernardino County.

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
21outdoor stadium.

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.

37(2) The 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
21or time.

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
7Section 24200.

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
2024200.

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
35construed accordingly.

end delete


O

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