BILL NUMBER: AB 2913 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 24, 2016
PASSED THE ASSEMBLY AUGUST 30, 2016
AMENDED IN SENATE AUGUST 19, 2016
AMENDED IN SENATE JUNE 13, 2016
INTRODUCED BY Committee on Governmental Organization (Assembly
Members Gray (Chair), Bigelow (Vice Chair), Alejo, Bonta, Campos,
Cooley, Cooper, Daly, Gallagher, Gipson, Jones-Sawyer, Levine,
Linder, Maienschein, Salas, and Wilk)
MARCH 17, 2016
An act to amend Sections 23355.3, 23502, 23504, 23506, 23508,
25503.6, and 25503.8 of, and to add Section 23771.5 to, the Business
and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2913, Committee on Governmental Organization. Alcoholic
beverages: licensees: craft distillers: tied-house restrictions.
(1) Existing law, the Craft Distillers Act of 2015, authorizes the
Department of Alcoholic Beverage Control to issue a craft distiller'
s license to manufacture distilled spirits, subject to specified
conditions, including that the licensee manufacture no more than
100,000 gallons of distilled spirits per fiscal year, excluding
brandy the craft distiller manufactures or has manufactured for them.
Existing law allows these licensees to sell distilled spirits to
specified consumers, to own interests in on-sale retail licenses, and
to sell beer, wines, brandies, and distilled spirits to consumers
for consumption on the premises of a bona fide eating place, as
provided.
This bill, among other things related to the craft distiller's
license, would define "manufacture" for the purposes of the license,
allow these licensees to produce, as defined, distilled spirits, and
require a specified percentage of the 100,000 allowed gallons to be
manufactured or produced by the licensee.
(2) 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 would instead prohibit a nonretail licensee from
receiving that advertising, sale, or promotional benefit.
(3) Existing law authorizes specified licensees, including
distilled spirits rectifiers, 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 specified facilities. Existing law makes it a crime
for an on-sale licensee to coerce certain licensees to purchase
advertising space or time, as specified.
This bill would revise these authorizations to instead allow a
rectifier to purchase the above-described advertising space and time
and would include rectifiers as licensees subject to specified
criminal provisions. By expanding the definition of a crime, this
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 23355.3 of the Business and Professions Code is
amended to read:
23355.3. (a) A licensee may 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 all of the following conditions:
(1) Except as otherwise provided in this section, any payment of
money or other consideration for sponsorship or participation in the
event shall be made only to the nonprofit organization conducting the
event.
(2) Except as otherwise provided in this section, a nonretail
licensee shall not, directly or indirectly, pay money or provide any
other thing of value to a permanent retail licensee that is also a
sponsor of, or participant in, the event.
(3) A nonretail licensee may donate alcoholic beverages to a
nonprofit only as otherwise authorized by Section 25503.9.
(4) Except as otherwise provided by this division, a retail
licensee shall not give, sell, or furnish any alcoholic beverages to
the temporary licensee.
(5) A nonretail or retail licensee may choose to participate in
any level of sponsorship, including at the name or principal sponsor
level. A nonprofit organization may choose to have one, or multiple,
name or principal sponsors.
(6) (A) A nonretail licensee may advertise or communicate
sponsorship or participation in the event. This advertising or
communication may include, but is not limited to, sharing, reposting,
or otherwise forwarding a social media post by a permanent retail
licensee or a nonretail licensee if the advertisement or
communication does not contain the retail price of any alcoholic
beverage or otherwise promotes a retail licensee beyond its
sponsorship or participation in the event.
(B) A nonretail licensee shall not pay or reimburse a permanent
licensee, directly or indirectly, for any advertising services,
including by way of social media. Except as otherwise permitted by
this section, a permanent retail licensee shall not accept any
payment or reimbursement, directly or indirectly, for any advertising
services offered by a nonretail licensee.
(C) For the purposes of this subdivision, "social media" means a
service, platform, application, or site where users communicate and
share media, such as pictures, videos, music, and blogs, with other
users.
(7) A nonretail licensee shall not require, directly or
indirectly, as a condition of sponsorship or participation in any
event under this section, that its products be sold or served
exclusively at the event. A nonretail licensee shall not receive,
directly or indirectly, any advertising, sale, or promotional benefit
from any permanent retail licensee in connection with the
sponsorship or participation. A permanent retail licensee shall not
offer or provide a nonretail licensee any advertising, sale, or
promotional benefit in connection with the sponsorship or
participation.
(b) This section does not authorize a nonretail licensee to pay,
in whole or in part, any costs, including the cost of sponsorship, of
any retail licensee that is sponsoring or participating in a
nonprofit event.
(c) A licensee that sponsors or participates in a nonprofit event
under this section shall keep detailed records of its sponsorship or
participation and shall maintain those records for a period of at
least three years. These records shall be provided to the department
upon request.
(d) Nothing in this section shall be deemed to exempt the
nonprofit organization from obtaining any licenses or permits as may
be required to conduct the event.
SEC. 2. Section 23502 of the Business and Professions Code is
amended to read:
23502. (a) The department may issue a craft distiller's license
to a person that has facilities and equipment for the purposes of,
and is engaged in, the commercial manufacture of distilled spirits.
The craft distiller's license authorizes the licensee to do all of
the following:
(1) Manufacture distilled spirits. For purposes of this article,
"manufacture" means the actual distillation of distilled spirits from
naturally fermented materials or the redistillation of distilled
spirits obtained from another manufacturer of distilled spirits.
(2) Produce distilled spirits. For purposes of this article,
"produce" means to mix, color, flavor, or blend distilled spirits,
whether manufactured by the licensee or by another manufacturer of
distilled spirits.
(3) Only sell distilled spirits that are manufactured or produced
by the licensee solely to a wholesaler, manufacturer, winegrower,
manufacturer's agent, or rectifier that holds a license authorizing
the sale of distilled spirits or to persons that take delivery of
those distilled spirits within this state for delivery or use without
the state.
(4) Deal in warehouse receipts.
(5) Manufacture or produce up to 100,000 gallons of distilled
spirits per fiscal year (July 1 through June 30), excluding brandy
the craft distiller manufactures or has manufactured for them
pursuant to a brandy manufacturer license, as reported to the
department in the manner prescribed by the department for the fiscal
year prior to the date of submitting an application for the license.
At least 65 percent of the total volume of distilled spirits
manufactured or produced shall be actually manufactured by the
licensee. The volume of distilled spirits authorized by this
paragraph shall be calculated by adding the volume of distilled
spirits, less waste, drawn off the still with the volume of distilled
spirits obtained by the licensee from any other source that is not
redistilled by the licensee. For purposes of this paragraph, "volume"
means the liquid volume and shall not be based on proof gallons or
packaged goods.
(b) A craft distiller's license shall not be issued to any person,
any officer, director, employee, or agent of such person, or any
person who is affiliated with, directly or indirectly, a person that
manufactures or has manufactured for them more than 100,000 gallons
of distilled spirits per year within or without the state, excluding
brandy it manufactures or has manufactured for them pursuant to a
brandy manufacturer license, or to any person that is affiliated
with, directly or indirectly, a wholesaler.
(c) (1) The fee for an original craft distiller's license issued
pursuant to this section shall be consistent with the distilled
spirits manufacturer's license and shall be adjusted pursuant to
subdivisions (b) and (c) of Section 23320.
(2) The annual license fee for a craft distiller's license shall
be consistent with the distilled spirits manufacturer's license and
shall be adjusted pursuant to subdivisions (b) and (c) of Section
23320.
(3) All moneys collected as fees pursuant to this section shall be
deposited in the Alcohol Beverage Control Fund as provided in
Section 25761.
(d) A licensed craft distiller shall report to the department, at
the time of renewal in the manner prescribed by the department, the
amount of distilled spirits manufactured or produced by the licensee
specifying, as applicable, the respective amounts of distilled
spirits the licensed craft distiller has manufactured itself,
obtained from another manufacturer of distilled spirits, and
imported, excluding brandy manufactured by or for the licensee
pursuant to a brandy manufacturer license, during the previous fiscal
year. If the report to the department establishes that the licensee
no longer qualifies to hold a craft distiller's license because the
licensee has either exceeded the 100,000 gallon manufacture or
production limitation as specified in paragraph (5) of subdivision
(a) or actually manufactured less than 65 percent of the total volume
of distilled spirits as specified in paragraph (5) of subdivision
(a), the department shall renew the license as a distilled spirits
manufacturer's license.
SEC. 3. Section 23504 of the Business and Professions Code is
amended to read:
23504. Notwithstanding any other provision, a licensed craft
distiller may sell up to the equivalent of 2.25 liters in any
combination of prepackaged containers per day per consumer of
distilled spirits manufactured or produced by the licensee at its
premises to a consumer attending an instructional tasting conducted
by the licensee on its licensed premises pursuant to subdivision (c)
of Section 23363.1.
SEC. 4. Section 23506 of the Business and Professions Code is
amended to read:
23506. (a) Notwithstanding any other provision of this division,
a licensed craft distiller or one or more of its direct or indirect
subsidiaries of which the licensed craft distiller owns not less than
a 51-percent interest, who manufactures or produces, bottles,
processes, imports, or sells distilled spirits under a craft
distiller's license or any other license issued pursuant to this
division, or any officer or director of, or any person holding any
interest in, those persons may serve as an officer or director of,
and may hold the ownership of any interest or any financial or
representative relationship in, any on-sale license, or the business
conducted under that license, provided that, except in the case of a
holder of on-sale general licenses for airplanes and duplicate
on-sale general licenses for air common carriers, all of the
following conditions are met:
(1) The on-sale licensee purchases all alcoholic beverages sold
and served only from California wholesale licensees.
(2) The number of distilled spirits items by brand offered for
sale by the on-sale licensee that are manufactured, produced,
bottled, processed, imported, or sold by the licensed craft distiller
or by the subsidiary of which the licensed craft distiller owns not
less than 51 percent, or by any officer or director of, or by any
person holding any interest in, those persons does not exceed 15
percent of the total distilled spirits items by brand listed and
offered for sale by the on-sale licensee selling and serving that
distilled spirit. Notwithstanding paragraph (1), distilled spirits
sold pursuant to this provision may be purchased from a California
licensed craft distiller so long as the distilled spirits purchased
are produced or bottled by, or produced and packaged for, the same
licensed craft distiller that holds an interest in the on-sale
license and such direct sales do not involve more than two on-sale
licenses in which the licensed craft distiller or any person holding
an interest in the licensed craft distiller holds any interest,
directly or indirectly, either individually or in combination or
together with each other in the aggregate.
(3) None of the persons specified in this section may have any of
the interests specified in this section in more than two on-sale
licenses.
(b) Notwithstanding any other provision of this division, a
licensee that has an interest in one or more on-sale retail licenses
pursuant to this section may continue to hold that interest in the
event the licensee no longer qualifies as a craft distiller, provided
that the interest was held, or an application was pending, at a time
when the licensee did hold a craft distiller's license pursuant to
Section 23502. Nothing in this subdivision is intended to prevent the
department from denying a pending application for any reason other
than the change in license of the licensee.
SEC. 5. Section 23508 of the Business and Professions Code is
amended to read:
23508. (a) A licensed craft distiller may also have upon its
licensed premises all beers, wines, and distilled spirits, regardless
of source, for sale or service only to guests during private events
or private functions not open to the general public. Alcoholic
beverage products sold at the premises that are not manufactured or
produced and bottled by, or manufactured or produced and packaged
for, the licensed craft distiller shall be purchased by the licensed
craft distiller only from a licensed wholesaler.
(b) A licensed craft distiller may sell all beers, wines,
brandies, or distilled spirits to consumers for consumption on the
premises in a bona fide eating place as defined in Section 23038,
which is located on the licensed premises or on premises owned by the
licensee that are contiguous licensed premises and which is operated
by and for the licensee, provided that any alcoholic beverage
products not manufactured or produced by the licensee must be
purchased from a licensed wholesaler. Beer, wine, and brandy may be
used in the preparation of food and beverages in the bona fide public
eating place for consumption on the premises.
(c) Notwithstanding any other provision of this division, in the
event that the licensee no longer qualifies as a craft distiller due
to the amount of distilled spirits reported pursuant to Section
23502, the licensee may continue to hold the privileges granted by
this section.
SEC. 6. Section 23771.5 is added to the Business and Professions
Code, to read:
23771.5. Section 23771 does not prevent a licensed craft
distiller from holding a distilled spirits license authorizing the
importing of distilled spirits, provided, however, that any distilled
spirits imported by the licensee shall only be used by the licensee
to manufacture or produce distilled spirits pursuant to Section
23502.
SEC. 7. 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
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 seating
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
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 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 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 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
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 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.
SEC. 8. Section 25503.8 of the Business and Professions Code is
amended to read:
25503.8. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a rectifier, a distilled spirits
manufacturer, or a distilled spirits manufacturer's agent may
purchase advertising space and time from, or on behalf of, an on-sale
retail licensee if all of the following conditions are met:
(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
(B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
(C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
(D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance
by the public on a ticketed basis only, with a fixed seating
capacity in excess of 6,000 seats, located in Los Angeles County
within the area subject to the Los Angeles Sports and Entertainment
District Specific Plan adopted by the City of Los Angeles pursuant to
ordinance number 174225, as approved on September 6, 2001.
(F) A fully enclosed arena with a fixed seating capacity in excess
of 15,000 seats located in Santa Clara County. With respect to the
arena described in this subparagraph, advertising space may also be
purchased from, or on behalf of, a lessee or manager of the arena.
(2) The advertising space or time is purchased only in connection
with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
(B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
(C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
(D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
(E) In the case of the fully enclosed theater described in
subparagraph (E) of paragraph (1) of subdivision (a), in connection
with events conducted at the theater.
(F) In the case of a fully enclosed arena described in
subparagraph (F) of paragraph (1) of subdivision (a), interior
advertising in connection with events conducted within the arena.
(3) 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 or marketed by the winegrower or California winegrower's
agent, 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 manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Any purchase of advertising space or time conducted 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 California winegrower's agent, the rectifier, the
distilled spirits
manufacturer, or the distilled spirits manufacturer's agent, and the
on-sale licensee, which contract shall not in any way involve the
holder of a wholesaler's license.
(c) Any beer manufacturer, rectifier, distilled spirits
manufacturer, distilled spirits manufacturer's agent, holder of a
winegrower's license, or California winegrower's agent, who, through
coercion or other illegal means, induces, directly or indirectly, a
holder of a wholesaler's license to fulfill 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 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.
(d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces, directly or indirectly, a holder of a
wholesaler's license to solicit a beer manufacturer, rectifier,
distilled spirits manufacturer, or distilled spirits manufacturer's
agent, holder of a winegrower's license, or California winegrower'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.
SEC. 9. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.