BILL NUMBER: AB 1767 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Bigelow
FEBRUARY 3, 2016
An act to amend Section 25503.6 of the Business and
Professions Code, relating to alcoholic beverages. add
Section 12012.71 to the Government Code, relating to tribal gam
ing, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1767, as amended, Bigelow. Alcoholic beverages:
tied-house restrictions: advertising. Tribal gaming:
compact ratification.
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.
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.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
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.
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.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12012.71 is added to the
Government Code , to read:
12012.71. (a) The amendment to the tribal-state gaming compact
entered into in accordance with the federal Indian Gaming Regulatory
Act of 1988 (18 U.S.C. Secs. 1166 to 1168, inclusive, and 25 U.S.C.
Sec. 2701 et seq.) between the State of California and the Jackson
Rancheria Band of Miwuk Indians, executed on June 22, 2016, is hereby
ratified.
(b) (1) In deference to tribal sovereignty, none of the following
shall be deemed a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code):
(A) The execution of an amendment to the tribal-state gaming
compact ratified by this section.
(B) The execution of the amended tribal-state gaming compact
ratified by this section.
(C) The execution of an intergovernmental agreement between a
tribe and a county or city government negotiated pursuant to the
express authority of, or as expressly referenced in, the amended
tribal-state gaming compact ratified by this section.
(D) The execution of an intergovernmental agreement between a
tribe and the Department of Transportation, or other state agency,
negotiated pursuant to the express authority of, or as expressly
referenced in, the amended tribal-state gaming compact ratified by
this section.
(E) The on-reservation impacts of compliance with the terms of the
amended tribal-state gaming compact ratified by this section.
(F) The sale of compact assets, as defined in subdivision (a) of
Section 63048.6, or the creation of the special purpose trust
established pursuant to Section 63048.65.
(2) Except as expressly provided in this section, this subdivision
does not exempt a city, county, or city and county, or the
Department of Transportation, or any state agency or local
jurisdiction, from the requirements of the California Environmental
Quality Act.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to enhance, at the earliest possible time, the economic
development, long-term stability, and self-sufficiency of the Jackson
Rancheria Band of Miwuk Indians, and to protect the interests of the
tribe and its members, the surrounding community, and the California
public, it is necessary for this act to take effect immediately.
SECTION 1. Section 25503.6 of the Business and
Professions Code is amended to read:
25503.6. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, an on-sale retail licensee subject
to all of the following conditions:
(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
(B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
(D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
(E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
in Riverside County.
(H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
(I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located in San Bernardino
County.
(J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
(K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, in the City of Carson in Los Angeles County.
(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located in San Joaquin County.
(M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
(N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.
(ii) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, a major tenant of an outdoor stadium
described in clause (i), provided the major tenant does not hold a
retail license, and the advertising may include the placement of
advertising in an on-sale licensed premises operated at the outdoor
stadium.
(O) A complex of not more than 50 acres located on the campus of,
and owned by, Sonoma State University dedicated to presenting live
artistic, musical, sports, food, beverage, culinary, lifestyle, or
other cultural and entertainment events and performances with venues
that include a concert hall with a seating capacity of approximately
1,500 seats, a second concert hall with a seating capacity of up to
300 seats, an outdoor area with a seating capacity of up to 5,000
seats, and a further outdoor area with a seating capacity of up to
10,000 seats. With respect to this complex, advertising space and
time may also be purchased from or on behalf of the owner of the
complex, a long-term tenant or licensee of the venue, whether or not
the owner, long-term tenant, or licensee holds an on-sale license.
(P) A fairgrounds with a horse racetrack and equestrian and sports
facilities located in San Diego County.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned or leased by the on-sale licensee. With
respect to an exposition park as described in subparagraph (J) of
paragraph (1) that includes at least one hotel, the advertising space
or time shall not be displayed on or in any hotel located in the
exposition park, or purchased in connection with the operation of any
hotel located in the exposition park. With respect to the complex
described in subparagraph (O) of paragraph (1), the advertising space
or time shall be purchased only in connection with live artistic,
musical, sports, food, beverage, culinary, lifestyle, or other
cultural and entertainment events and performances to be held on the
premises of the complex.
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer, or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and any
of the following:
(1) The on-sale licensee.
(2) With respect to clause (ii) of subparagraph (N) of paragraph
(1) of subdivision (a), the major tenant of the outdoor stadium.
(3) With respect to subparagraph (O) of paragraph (1) of
subdivision (a), the owner, a long-term tenant of the complex, or
licensee of the complex, whether or not the owner, long-term tenant,
or licensee holds an on-sale license.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
(f) The Legislature finds that it is necessary and proper to
require a separation among manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exceptions
established by this section to the general prohibition against tied
interests shall be limited to their express terms so as not to
undermine the general prohibition and intends that this section be
construed accordingly.