Amended in Senate August 1, 2016

Amended in Senate June 20, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1971

Introduced by Assembly Member Cooper

February 16, 2016

An act to begin delete add Section 25503.61 to end delete begin insert amend Sections 23083, 23399.65, and 24310 of, and to add Sections 24301 and 25503.61 to, end insert the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1971, as amended, Cooper. Alcoholic begin delete beverages: tied-house restrictions: advertising. end delete begin insert beverages. end insert

begin insert

(1) The Alcoholic Beverage Control Act (act) authorizes the Department of Alcoholic Beverage Control (department) to conduct administrative hearings for, among other things, violations of the act by a licensee. Existing law allows a licensee to appeal specified decisions to the Alcoholic Beverage Control Appeals Board, authorizes a person to request a transcript of a hearing from the department for a case on appeal, and allows a party to an appeal to request the right to appear before the board for argument.

end insert begin insert

This bill would require an audio record to be kept as the official record of any administrative hearing conducted by the department, would require the department to provide an audio recording, when one has been made, of a hearing to the Alcoholic Beverage Control Appeals Board and each party in lieu of a transcript for a case on appeal, and would require an audio record to be kept of an argument before the board. The bill would prohibit the department from making the official record of any administrative hearing by videographic recording and would provide that this type of recording is inadmissible in any proceeding before the board.

end insert begin insert

(2) The act authorizes a licensee under an on-sale general license or an on-sale beer and wine license to apply to the department for an event permit that allows the sale of alcoholic beverages under that license for consumption on property adjacent to the licensed premises and owned or under the control of the licensee. The act also authorizes a licensed beer manufacturer to apply to the department for a brewery event permit that allows the sale of beer produced by that beer manufacturer for consumption on property contiguous and adjacent to the licensed premises of the manufacturer. Under the act, the fee for an event permit issued to an on-sale general licensee or an on-sale beer and wine licensee is $110 for permits issued during the 2004 calendar year and indexed for inflation thereafter, and the fee for a brewery event permit issued during the 2017 calendar year is $110 and indexed for inflation thereafter, as specified. Under the act, these and other fees collected pursuant to the act are deposited in the Alcohol Beverage Control Fund and are generally allocated to the department upon appropriation by the Legislature.

end insert begin insert

This bill would revise the fee for a brewery event permit to be identical to the fee for an event permit issued to an on-sale general licensee or an on-sale beer and wine licensee, as described above.

end insert begin delete

Existing law

end delete

begin insert (3) end insert begin insert   end insert begin insert The act end insert authorizes the holder of a winegrower’s license, a beer manufacturer, a distilled spirits manufacturer, or a distilled spirits manufacturer’s agent, to purchase advertising space and time from, or on behalf of, an on-sale retail licensee, under certain conditions, if the on-sale retail licensee is the owner, manager, agent of the owner, assignee of the owner’s advertising rights, or major tenant of facilities meeting specified criteria, begin delete including, end delete begin insert including end insert location in a specified city, county, or university campus.

This bill would, in begin delete a end delete addition, allow a beer manufacturer, the holder of a begin delete winegrowers end delete begin insert winegrower’s end insert license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturer’s agent to purchase advertising time and space from, or on behalf of, an on-sale retail licensee if the licensee is the owner, manager, agent of the owner, assignee of the owner’s advertising rights, or major tenant of stadiums and arenas subject to specified conditions, including that the advertising time and space is purchased only in connection with events begin insert to end insert be held on the premises of those stadiums or arenas, but without specifying the location of the facility.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 23083 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

23083.  

(a) The board shall determine the appeal upon the
record of the department and upon any briefs which may be filed
by the parties. If any party to the appeal requests the right to appear
before the board, the board shall fix a time and place for argument.
begin insert A record of the argument shall be kept by audio recording. end insert The
board shall not receive any evidence other than that contained in
the record of the proceedings of the department.

(b) Notwithstanding Section 11425.10 of the Government Code,
Chapter 4.5 (commencing with Section 11400) of Part 1 of Division
3 of Title 2 of the Government Code does not apply to the
determination.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 23399.65 of the end insert begin insert Business and Professions Code end insert

begin insert is amended to read: end insert

23399.65.  

(a) A licensed beer manufacturer may apply to the
department for a brewery event permit. A brewery event permit
shall authorize the sale of beer produced by the licensee pursuant
to Section 23357 for consumption on property contiguous and
adjacent to the licensed premises owned or under the control of
the licensee. The property shall be secured and controlled by the
licensee.

(b) (1) The fee for a brewery event permit for a licensed beer
manufacturer shall be begin delete one hundred ten dollars ($110) for a permit
issued during the 2016 calendar year, and for a permit issued during
the years thereafter, the annual fee shall be calculated pursuant to
subdivisions (b) and (c) of Section 23320. end delete begin insert the same as the fee for
an event permit issued to an on-sale general licensee or an on-sale
beer and wine licensee pursuant to subdivision (e) of Section
23399, inclusive of any annual adjustments. end insert The permit may be
renewed annually at the same time as the licensee’s license. A
brewery event permit shall be transferable as a part of the license.

(2) For each brewery event, consent for the sale of beer pursuant
to subdivision (a) at the brewery event shall be first obtained by
the licensee from the department in the form of an event
authorization issued by the department. An event authorization
shall be subject to approval by the appropriate local law
enforcement agency. The fee for each event authorization shall
not exceed twenty-five dollars ($25). The number of events
authorized by a brewery event permit shall not exceed four in any
calendar year.

(3) All moneys collected as fees pursuant to this subdivision
shall be deposited in the Alcohol Beverage Control Fund, as
described in Section 25761, for allocation, upon appropriation by
the Legislature, as provided in subdivision (d) of that section.

(c) At all approved events, the licensee may exercise only those
privileges authorized by the licensee’s license and shall comply
with all provisions of the act pertaining to the conduct of on-sale
premises, and violation of those provisions may be grounds for
suspension or revocation of the licensee’s license or permit, or
both, as though the violation occurred on the licensed premises.

(d) The department may adopt any regulations it determines to
be necessary for the administration of this section.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 24301 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 24301. end insert   

Notwithstanding subdivision (d) of Section 11512 of
the Government Code, an audio record shall be kept as the official
record of any administrative hearing conducted by the department.
The department shall not create an official record by videographic
recording. A videographic recording of an administrative hearing
shall not be admissible in any proceeding before the Alcoholic
Beverage Control Appeals Board or in any proceeding undertaken
pursuant to Section 23090.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 24310 of the end insert begin insert Business and Professions Code end insert

begin insert is amended to read: end insert

24310.  

(a) Any person requesting a transcript from the
department in a case on appeal to the Alcoholic Beverage Control
Appeals Board, shall pay the transcript cost specified in Section
69950 of the Government Code. Any actual cost in excess thereof
shall be paid by the begin delete Appeals Board end delete begin insert appeals board end insert from the
Alcoholic Beverage Control Appeals Fund.

begin delete

(b) A party in a case on appeal to the Appeals Board who, in
1983 or 1984, has paid that portion of the transcript fee in excess
of the fee specified in Section 69950 of the Government Code
shall be refunded that excess by payment from the Alcoholic
Beverage Control Appeals Fund, providing the Appeals Board has
not issued a dismissal or other final decision in the case on appeal.

end delete begin insert

(b) When a hearing record has been created by audio recording,
the department shall provide to the appeals board and each party
a copy of the audio recording in lieu of a transcript. The audio
recording shall serve as the record of the hearing for purposes of
Section 23083.

end insert

begin delete SECTION 1. end delete

begin insert SEC. 5. end insert   

Section 25503.61 is added to the Business and
Professions Code, to read:

25503.61.  

Notwithstanding any other provision of this division,
and in addition to the exceptions provided in Section 25503.6, a
beer manufacturer, the holder of a begin delete winegrowers end delete begin insert winegrower’s end insert
license, a rectifier, a distilled spirits manufacturer, or distilled
spirits manufacturer’s agent may purchase advertising time and
space from, or on behalf of, an on-sale retail licensee subject to
all of the following conditions:

(a) 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 outdoor stadium or fully enclosed arena
with a fixed seating capacity in excess of 1,500. This subdivision
includes all stadiums and arenas licensed prior to the effective date
of the measure adding this section.

(b) The outdoor stadium or fully enclosed arena described in
subdivision (a) is not owned by a community college district.

(c) The advertising space or time is purchased only in connection
with events to be held on the premises of the outdoor stadium or
fully enclosed arena.

(d) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand
manufactured or marked 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 rectifier,
the distilled spirits manufacturer, or the distilled spirits
manufacturer’s agent that purchased the advertising space or time.