California Legislature—2015–16 Regular Session

Assembly BillNo. 2096


Introduced by Assembly Member Low

February 17, 2016


An act to amend Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 2096, as introduced, Low. Alcoholic beverages: tied-house restrictions: advertising.

Existing law, the Alcoholic Beverage Control Act, authorizes a beer manufacturer, the 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 and time from, or on behalf of, an on-sale retail licensee subject to specified conditions, including that 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 by the on-sale licensee. Existing law makes a violation of these provisions a crime.

This bill would change that specified condition to also allow the advertising space or time to be purchased in connection with the events to be held on those premises leased by the on-sale licensee. By changing the definition of a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

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SECTION 1.  

Section 25503.6 of the Business and Professions
2Code
is amended to read:

3

25503.6.  

(a) Notwithstanding any other provision of this
4chapter, a beer manufacturer, the holder of a winegrower’s license,
5a distilled spirits rectifier, a distilled spirits manufacturer, or
6distilled spirits manufacturer’s agent may purchase advertising
7space and time from, or on behalf of, an on-sale retail licensee
8subject to all of the following conditions:

9(1) The on-sale licensee is the owner, manager, agent of the
10owner, assignee of the owner’s advertising rights, or the major
11tenant of the owner of any of the following:

12(A) An outdoor stadium or a fully enclosed arena with a fixed
13seating capacity in excess of 10,000 seats located in Sacramento
14County or Alameda County.

15(B) A fully enclosed arena with a fixed seating capacity in
16excess of 18,000 seats located in Orange County or Los Angeles
17County.

18(C) An outdoor stadium or fully enclosed arena with a fixed
19seating capacity in excess of 8,500 seats located in Kern County.

20(D) An exposition park of not less than 50 acres that includes
21an outdoor stadium with a fixed seating capacity in excess of 8,000
22seats and a fully enclosed arena with an attendance capacity in
23excess of 4,500 people, located in San Bernardino County.

24(E) An outdoor stadium with a fixed seating capacity in excess
25of 10,000 seats located in Yolo County.

26(F) An outdoor stadium and a fully enclosed arena with fixed
27seating capacities in excess of 10,000 seats located in Fresno
28County.

29(G) An athletic and entertainment complex of not less than 50
30acres that includes within its boundaries an outdoor stadium with
31a fixed seating capacity of at least 8,000 seats and a second outdoor
32stadium with a fixed seating capacity of at least 3,500 seats located
33in Riverside County.

34(H) An outdoor stadium with a fixed seating capacity in excess
35of 1,500 seats located in Tulare County.

P3    1(I) A motorsports entertainment complex of not less than 50
2acres that includes within its boundaries an outdoor speedway with
3a fixed seating capacity of at least 50,000 seats, located in San
4Bernardino County.

5(J) An exposition park, owned or operated by a bona fide
6nonprofit organization, of not less than 400 acres with facilities
7including a grandstand with a seating capacity of at least 8,000
8people, at least one exhibition hall greater than 100,000 square
9feet, and at least four exhibition halls, each greater than 30,000
10square feet, located in the City of Pomona or the City of La Verne
11in Los Angeles County.

12(K) An outdoor soccer stadium with a fixed seating capacity of
13at least 25,000 seats, an outdoor tennis stadium with a fixed
14capacity of at least 7,000 seats, an outdoor track and field facility
15with a fixed seating capacity of at least 7,000 seats, and an indoor
16velodrome with a fixed seating capacity of at least 2,000 seats, all
17located within a sports and athletic complex built before January
181, 2005, in the City of Carson in Los Angeles County.

19(L) An outdoor professional sports facility with a fixed seating
20capacity of at least 4,200 seats located in San Joaquin County.

21(M) A fully enclosed arena with a fixed seating capacity in
22excess of 13,000 seats in the City of Inglewood.

23(N) (i) An outdoor stadium with a fixed seating capacity of at
24least 68,000 seats located in the City of Santa Clara.

25(ii) A beer manufacturer, the holder of a winegrower’s license,
26a distilled spirits rectifier, a distilled spirits manufacturer, or
27distilled spirits manufacturer’s agent may purchase advertising
28space and time from, or on behalf of, a major tenant of an outdoor
29stadium described in clause (i), provided the major tenant does not
30hold a retail license, and the advertising may include the placement
31of advertising in an on-sale licensed premises operated at the
32outdoor stadium.

33(O) A complex of not more than 50 acres located on the campus
34of, and owned by, Sonoma State University dedicated to presenting
35live artistic, musical, sports, food, beverage, culinary, lifestyle, or
36other cultural and entertainment events and performances with
37venues that include a concert hall with a seating capacity of
38approximately 1,500 seats, a second concert hall with a seating
39capacity of up to 300 seats, an outdoor area with a seating capacity
40of up to 5,000 seats, and a further outdoor area with a seating
P4    1capacity of up to 10,000 seats. With respect to this complex,
2advertising space and time may also be purchased from or on behalf
3of the owner of the complex, a long-term tenant or licensee of the
4venue, whether or not the owner, long-term tenant, or licensee
5holds an on-sale license.

6(P) A fairgrounds with a horse racetrack and equestrian and
7sports facilities located in San Diego County.

8(2) The outdoor stadium or fully enclosed arena described in
9paragraph (1) is not owned by a community college district.

10(3) The advertising space or time is purchased only in connection
11with the events to be held on the premises of the exposition park,
12stadium, or arena owned begin insertor leased end insertby the on-sale licensee. With
13respect to an exposition park as described in subparagraph (J) of
14paragraph (1) that includes at least one hotel, the advertising space
15or time shall not be displayed on or in any hotel located in the
16exposition park, or purchased in connection with the operation of
17any hotel located in the exposition park. With respect to the
18complex described in subparagraph (O) of paragraph (1), the
19advertising space or time shall be purchased only in connection
20with live artistic, musical, sports, food, beverage, culinary, lifestyle,
21or other cultural and entertainment events and performances to be
22held on the premises of the complex.

23(4) The on-sale licensee serves other brands of beer distributed
24by a competing beer wholesaler in addition to the brand
25manufactured or marketed by the beer manufacturer, other brands
26of wine distributed by a competing wine wholesaler in addition to
27the brand produced by the winegrower, and other brands of distilled
28spirits distributed by a competing distilled spirits wholesaler in
29addition to the brand manufactured or marketed by the distilled
30spirits rectifier, the distilled spirits manufacturer, or the distilled
31spirits manufacturer’s agent that purchased the advertising space
32or time.

33(b) Any purchase of advertising space or time pursuant to
34subdivision (a) shall be begin deleteconductedend deletebegin insert controlledend insert pursuant to a written
35contract entered into by the beer manufacturer, the holder of the
36winegrower’s license, the distilled spirits rectifier, the distilled
37spirits manufacturer, or the distilled spirits manufacturer’s agent
38and any of the following:

39(1) The on-sale licensee.

P5    1(2) With respect to clause (ii) of subparagraph (N) of paragraph
2(1) of subdivision (a), the major tenant of the outdoor stadium.

3(3) With respect to subparagraph (O) of paragraph (1) of
4subdivision (a), the owner, a long-term tenant of the complex, or
5licensee of the complex, whether or not the owner, long-term
6tenant, or licensee holds an on-sale license.

7(c) Any beer manufacturer or holder of a winegrower’s license,
8any distilled spirits rectifier, any distilled spirits manufacturer, or
9any distilled spirits manufacturer’s agent who, through coercion
10or other illegal means, induces, directly or indirectly, a holder of
11a wholesaler’s license to fulfill all or part of those contractual
12obligations entered into pursuant to subdivision (a) or (b) shall be
13guilty of a misdemeanor and shall be punished by imprisonment
14in the county jail not exceeding six months, or by a fine in an
15amount equal to the entire value of the advertising space, time, or
16costs involved in the contract, whichever is greater, plus ten
17thousand dollars ($10,000), or by both imprisonment and fine. The
18person shall also be subject to license revocation pursuant to
19Section 24200.

20(d) Any on-sale retail licensee, as described in subdivision (a),
21who, directly or indirectly, solicits or coerces a holder of a
22wholesaler’s license to solicit a beer manufacturer, a holder of a
23winegrower’s license, a distilled spirits rectifier, a distilled spirits
24manufacturer, or a distilled spirits manufacturer’s agent to purchase
25advertising space or time pursuant to subdivision (a) or (b) shall
26be guilty of a misdemeanor and shall be punished by imprisonment
27in the county jail not exceeding six months, or by a fine in an
28amount equal to the entire value of the advertising space or time
29involved in the contract, whichever is greater, plus ten thousand
30dollars ($10,000), or by both imprisonment and fine. The person
31shall also be subject to license revocation pursuant to Section
3224200.

33(e) For the purposes of this section, “beer manufacturer” includes
34any holder of a beer manufacturer’s license, any holder of an
35out-of-state beer manufacturer’s certificate, or any holder of a beer
36and wine importer’s general license.

37(f) The Legislature finds that it is necessary and proper to require
38a separation among manufacturing interests, wholesale interests,
39and retail interests in the production and distribution of alcoholic
40beverages in order to prevent suppliers from dominating local
P6    1markets through vertical integration and to prevent excessive sales
2of alcoholic beverages produced by overly aggressive marketing
3techniques. The Legislature further finds that the exceptions
4established by this section to the general prohibition against tied
5interests shall be limited to their express terms so as not to
6undermine the general prohibition and intends that this section be
7construed accordingly.

8

SEC. 2.  

No reimbursement is required by this act pursuant to
9Section 6 of Article XIII B of the California Constitution because
10the only costs that may be incurred by a local agency or school
11district will be incurred because this act creates a new crime or
12infraction, eliminates a crime or infraction, or changes the penalty
13for a crime or infraction, within the meaning of Section 17556 of
14the Government Code, or changes the definition of a crime within
15the meaning of Section 6 of Article XIII B of the California
16Constitution.



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