BILL ANALYSIS Ó
AB 1767
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1767 (Bigelow) - As Amended March 17, 2016
-----------------------------------------------------------------
|Policy |Governmental Organization |Vote:|21 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill permits designated alcohol licensees to purchase
advertising space or time, on the premises of an exposition,
park, stadium, or arena leased by the on-sale licensee.
AB 1767
Page 2
FISCAL EFFECT:
Negligible fiscal costs.
COMMENTS:
1)Purpose. According to the author's office, this bill would
expand existing tied-house exceptions to circumstances in
which the on-sale licensee is not actually the owner of a
stadium or arena in which the paid-for advertising is allowed.
Due to the evolving ownership structures of larger sports and
entertainment venues, it is rare that the on-sale licensee is
the owner of the venue. However, this measure would ensure
that existing tied-house exceptions are able to continue in
effect even if the ownership of the venue changes.
2)Background. Current "tied-house" law, also called "three-tier"
law, prohibits paid advertising by winegrowers, beer
manufacturers and distilled spirits producers in cases where a
retail licensee also owns a sports or entertainment venue.
California's three-tier law is designed to prevent vertical
integration between alcohol producers, wholesalers, and
retailers. Limiting the ability for an alcoholic beverage
producer or winegrower to pay a retail licensee, including a
stadium or arena, for advertising its product is one way to
protect consumers from predatory marketing.
However, over the years numerous exceptions to this
prohibition have been added to the ABC Act (such as Sleep
Train Arena in Sacramento, Oakland Coliseum in Oakland, Levi's
AB 1767
Page 3
Stadium in Santa Clara). In these cases, an owner in one tier
(Bud Light, for example) can pay a retail licensee (Santa
Clara Stadium Authority, for example) for displaying
advertising.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081