Senate BillNo. 557


Introduced by Senator Hall

February 26, 2015


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

LEGISLATIVE COUNSEL’S DIGEST

SB 557, as introduced, Hall. Alcoholic beverages.

Existing law, known as tied-house restrictions, prohibits specified alcoholic beverage licensees from paying, crediting, or compensating a retailer for advertising or paying or giving anything of value for the privilege of placing a sign or advertisement with a retail licensee. Existing law authorizes, as an exception, a beer manufacturer, the holder of a winegrower’s license, a distilled spirits rectifer, a distilled spirits manufacturer, or a distilled spirits manufacturer’s agent to purchase advertising space and time from, or on behalf of, on-sale retail licensees at certain facilities, as specified.

This bill would make nonsubstantive changes to this provision.

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

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:

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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
P2    1space and time from, or on behalf of, an on-sale retail licensee
2subject to all of the following conditions:

3(1) The on-sale licensee is the owner, manager, agent of the
4owner, assignee of the owner’s advertising rights, or the major
5tenant of the owner of any of the following:

6(A) An outdoor stadium or a fully enclosed arena with a fixed
7seating capacity in excess of 10,000 seats located in Sacramento
8County or Alameda County.

9(B) A fully enclosed arena with a fixed seating capacity in
10excess of 18,000 seats located in Orange County or Los Angeles
11County.

12(C) An outdoor stadium or fully enclosed arena with a fixed
13seating capacity in excess of 8,500 seats located in Kern County.

14(D) An exposition park of not less than 50 acres that includes
15an outdoor stadium with a fixed seating capacity in excess of 8,000
16seats and a fully enclosed arena with an attendance capacity in
17excess of 4,500 people, located in San Bernardino County.

18(E) An outdoor stadium with a fixed seating capacity in excess
19of 10,000 seats located in Yolo County.

20(F) An outdoor stadium and a fully enclosed arena with fixed
21seating capacities in excess of 10,000 seats located in Fresno
22County.

23(G) An athletic and entertainment complex of not less than 50
24acres that includes within its boundaries an outdoor stadium with
25a fixed seating capacity of at least 8,000 seats and a second outdoor
26stadium with a fixed seating capacity of at least 3,500 seats located
27begin delete withinend deletebegin insert inend insert Riverside County.

28(H) An outdoor stadium with a fixed seating capacity in excess
29of 1,500 seats located in Tulare County.

30(I) A motorsports entertainment complex of not less than 50
31acres that includes within its boundaries an outdoor speedway with
32a fixed seating capacity of at least 50,000 seats, locatedbegin delete withinend deletebegin insert inend insert
33 San Bernardino County.

34(J) An exposition park, owned or operated by a bona fide
35nonprofit organization, of not less than 400 acres with facilities
36including a grandstand with a seating capacity of at least 8,000
37people, at least one exhibition hall greater than 100,000 square
38feet, and at least four exhibition halls, each greater than 30,000
39square feet, located in the City of Pomona or the City of La Verne
40in Los Angeles County.

P3    1(K) An outdoor soccer stadium with a fixed seating capacity of
2at least 25,000 seats, an outdoor tennis stadium with a fixed
3capacity of at least 7,000 seats, an outdoor track and field facility
4with a fixed seating capacity of at least 7,000 seats, and an indoor
5velodrome with a fixed seating capacity of at least 2,000 seats, all
6located within a sports and athletic complex built before January
71, 2005,begin delete withinend deletebegin insert inend insert the City of Carson in Los Angeles County.

8(L) An outdoor professional sports facility with a fixed seating
9capacity of at least 4,200 seats locatedbegin delete withinend deletebegin insert inend insert San Joaquin
10County.

11(M) A fully enclosed arena with a fixed seating capacity in
12excess of 13,000 seats in the City of Inglewood.

13(N) (i) An outdoor stadium with a fixed seating capacity of at
14least 68,000 seats located in the City of Santa Clara.

15(ii) A beer manufacturer, the holder of a winegrower’s license,
16a distilled spirits rectifier, a distilled spirits manufacturer, or
17distilled spirits manufacturer’s agent may purchase advertising
18space and time from, or on behalf of, a major tenant of an outdoor
19stadium described in clause (i), provided the major tenant does not
20hold a retail license, and the advertising may include the placement
21of advertising in an on-sale licensed premises operated at the
22outdoor stadium.

23(2) The outdoor stadium or fully enclosed arena described in
24paragraph (1) is not owned by a community college district.

25(3) The advertising space or time is purchased only in connection
26with the events to be held on the premises of the exposition park,
27stadium, or arena owned by the on-sale licensee. With respect to
28an exposition park as described in subparagraph (J) of paragraph
29(1) that includes at least one hotel, the advertising space or time
30shall not be displayed on or in any hotel located in the exposition
31park, or purchased in connection with the operation of any hotel
32located in the exposition park.

33(4) The on-sale licensee serves other brands of beer distributed
34by a competing beer wholesaler in addition to the brand
35manufactured or marketed by the beer manufacturer, other brands
36of wine distributed by a competing wine wholesaler in addition to
37the brand produced by the winegrower, and other brands of distilled
38spirits distributed by a competing distilled spirits wholesaler in
39addition to the brand manufactured or marketed by the distilled
40spirits rectifier, the distilled spirits manufacturer or the distilled
P4    1spirits manufacturer’s agent that purchased the advertising space
2or time.

3(b) Any purchase of advertising space or time pursuant to
4subdivision (a) shall be conducted pursuant to a written contract
5entered into by the beer manufacturer, the holder of the
6 winegrower’s license, the distilled spirits rectifier, the distilled
7spirits manufacturer, or the distilled spirits manufacturer’s agent
8and the on-sale licensee, or with respect to clause (ii) of
9subparagraph (N) of paragraph (1) of subdivision (a), the major
10tenant of the outdoor stadium.

11(c) Any beer manufacturer or holder of a winegrower’s license,
12any distilled spirits rectifier, any distilled spirits manufacturer, or
13any distilled spirits manufacturer’s agent who, through coercion
14or other illegal means, induces, directly or indirectly, a holder of
15a wholesaler’s license to fulfill all or part of those contractual
16obligations entered into pursuant to subdivision (a) or (b) shall be
17guilty of a misdemeanor and shall be punished by imprisonment
18in the county jail not exceeding six months, or by a fine in an
19amount equal to the entire value of the advertising space, time, or
20costs involved in the contract, whichever is greater, plus ten
21 thousand dollars ($10,000), or by both imprisonment and fine. The
22person shall also be subject to license revocation pursuant to
23Section 24200.

24(d) Any on-sale retail licensee, as described in subdivision (a),
25who, directly or indirectly, solicits or coerces a holder of a
26wholesaler’s license to solicit a beer manufacturer, a holder of a
27winegrower’s license, a distilled spirits rectifier, a distilled spirits
28manufacturer, or a distilled spirits manufacturer’s agent to purchase
29advertising space or time pursuant to subdivision (a) or (b) shall
30be guilty of a misdemeanor and shall be punished by imprisonment
31in the county jail not exceeding six months, or by a fine in an
32amount equal to the entire value of the advertising space or time
33involved in the contract, whichever is greater, plus ten thousand
34dollars ($10,000), or by both imprisonment and fine. The person
35shall also be subject to license revocation pursuant to Section
3624200.

37(e) For the purposes of this section, “beer manufacturer” includes
38any holder of a beer manufacturer’s license, any holder of an
P5    1out-of-state beer manufacturer’s certificate, or any holder of a beer
2and wine importer’s general license.



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