AB 2913, as introduced, Committee on Governmental Organization. Alcoholic beverages: licensees.
The Alcoholic Beverage Control Act regulates the application for, the issuance of, the suspension of, and the conditions imposed upon, various alcoholic beverage licenses pursuant to which the licensees may exercise specified privileges in the state. The act authorizes licensees to sponsor or otherwise participate in an event conducted by, and for the benefit of, a nonprofit organization in which retail and nonretail licensees are involved as sponsors or participants, subject to specified conditions.
The act authorizes a nonretail licensee to advertise or communicate sponsorship or participation in the event and provides that advertising or communication may include, but is not limited to, initiating, sharing, reposting, or otherwise forwarding a social media post by a permanent retail licensee or a nonretail licensee, as specified.
This bill would delete the word “initiating” from that provision.
The act also prohibits a retail licensee from receiving any advertising, sale, or promotional benefit from any permanent retail licensee in connection with the sponsorship or participation.
This bill instead would prohibit a nonretail licensee from receiving that advertising, sale, or promotional benefit.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 23355.3 of the Business and Professions
2Code is amended to read:
(a) A licensee may sponsor or otherwise participate
4in an event conducted by, and for the benefit of, a nonprofit
5organization in which retail and nonretail licensees are involved
6as sponsors or participants, subject to all of the following
7conditions:
8(1) Except as otherwise provided in this section, any payment
9of money or other consideration for sponsorship or participation
10in the event shall be made only to the nonprofit organization
11conducting the event.
12(2) Except as otherwise provided in this section, a nonretail
13licensee shall not, directly or indirectly, pay money or provide any
14other thing of value to a permanent retail licensee that is also a
15sponsor of, or participant
in, the event.
16(3) A nonretail licensee may donate alcoholic beverages to a
17nonprofit only as otherwise authorized by Section 25503.9.
18(4) Except as otherwise provided by this division, a retail
19licensee shall not give, sell, or furnish any alcoholic beverages to
20the temporary licensee.
21(5) A nonretail or retail licensee may choose to participate in
22any level of sponsorship, including at the name or principal sponsor
23level. A nonprofit organization may choose to have one, or
24multiple, name or principal sponsors.
25(6) (A) A nonretail licensee may advertise or communicate
26sponsorship or participation in the event. This advertising or
27communication may include, but is not limited to,begin delete initiating,end delete
28
sharing, reposting, or otherwise forwarding a social media post by
29a permanent retail licensee or a nonretail licensee if the
30advertisement or communication does not contain the retail price
P3 1of any alcoholic beverage or otherwise promotes a retail licensee
2beyond its sponsorship or participation in the event.
3(B) A nonretail licensee shall not pay or reimburse a permanent
4licensee, directly or indirectly, for any advertising services,
5including by way of social media. Except as otherwise permitted
6by this section, a permanent retail licensee shall not accept any
7payment or reimbursement, directly or indirectly, for any
8advertising services offered by a nonretail licensee.
9(C) For the purposes of this subdivision, “social media” means
10a service, platform, application, or site where users communicate
11and share media, such as pictures, videos, music, and blogs, with
12
other users.
13(7) A nonretail licensee shall not require, directly or indirectly,
14as a condition of sponsorship or participation in any event under
15this section, that its products be sold or served exclusively at the
16event. Abegin delete retailend deletebegin insert
nonretailend insert licensee shall not receive, directly or
17indirectly, any advertising, sale, or promotional benefit from any
18permanent retail licensee in connection with the sponsorship or
19participation. A permanent retail licensee shall not offer or provide
20a nonretail licensee any advertising, sale, or promotional benefit
21in connection with the sponsorship or participation.
22(b) This section does not authorize a nonretail licensee to pay,
23in whole or in part, any costs, including the cost of sponsorship,
24of any retail licensee that is sponsoring or participating in a
25nonprofit event.
26(c) A licensee that sponsors or participates in a nonprofit event
27under this section shall keep detailed records of its sponsorship or
28participation and shall maintain those records for a period of at
29least three years. These records shall be provided to the department
30
upon request.
31(d) Nothing in this section shall be deemed to exempt the
32nonprofit organization from obtaining any licenses or permits as
33may be required to conduct the event.
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