SB 557, as amended, Hall. Alcoholic beverages: tied-house restrictions: advertising.
Existing law 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 specified facilities.
This bill would expand the exceptions to existing law to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer’s agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at a fairgrounds with a horse racetrack and equestrian and sports facilities located in the County of San Diego.
By creating new crimes this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.
begin insertThis bill would incorporate changes to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 462, which would become operative only if both bills are enacted and become effective on or before January 1, 2016, and this bill is chaptered last.
end insertThe 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:
Section 25503.6 of the Business and Professions
2Code is amended to read:
(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.
P3 1(E) An outdoor stadium with a fixed seating capacity in excess
2of 10,000 seats located in Yolo County.
3(F) An outdoor stadium and a fully enclosed arena with fixed
4seating capacities in excess of 10,000 seats located in Fresno
5County.
6(G) An athletic and entertainment complex of not less than 50
7acres that includes within its boundaries an outdoor stadium with
8a fixed seating capacity of at least 8,000 seats and a second outdoor
9stadium with a fixed seating capacity of at least 3,500 seats located
10in Riverside County.
11(H) An outdoor stadium with a fixed seating capacity in excess
12of 1,500 seats located in Tulare County.
13(I) A motorsports entertainment complex of not less than 50
14acres that includes within its boundaries an outdoor speedway with
15a fixed
seating capacity of at least 50,000 seats, located in San
16Bernardino County.
17(J) An exposition park, owned or operated by a bona fide
18nonprofit organization, of not less than 400 acres with facilities
19including a grandstand with a seating capacity of at least 8,000
20people, at least one exhibition hall greater than 100,000 square
21feet, and at least four exhibition halls, each greater than 30,000
22square feet, located in the City of Pomona or the City of La Verne
23in Los Angeles County.
24(K) An outdoor soccer stadium with a fixed seating capacity of
25at least 25,000 seats, an outdoor tennis stadium with a fixed
26capacity of at least 7,000 seats, an outdoor track and field facility
27with a fixed seating capacity of at least 7,000 seats, and an indoor
28velodrome with a fixed seating
capacity of at least 2,000 seats, all
29located within a sports and athletic complex built before January
301, 2005, in the City of Carson in Los Angeles County.
31(L) An outdoor professional sports facility with a fixed seating
32capacity of at least 4,200 seats located in San Joaquin County.
33(M) A fully enclosed arena with a fixed seating capacity in
34excess of 13,000 seats in the City of Inglewood.
35(N) (i) An outdoor stadium with a fixed seating capacity of at
36least 68,000 seats located in the City of Santa Clara.
37(ii) A beer manufacturer, the holder of a winegrower’s license,
38a distilled spirits rectifier, a distilled spirits manufacturer, or
39distilled
spirits manufacturer’s agent may purchase advertising
40space and time from, or on behalf of, a major tenant of an outdoor
P4 1stadium described in clause (i), provided the major tenant does not
2hold a retail license, and the advertising may include the placement
3of advertising in an on-sale licensed premises operated at the
4outdoor stadium.
5(O) A fairgrounds with a horse racetrack and equestrian and
6sports facilities located in San Diego County.
7(2) The outdoor stadium or fully enclosed arena described in
8paragraph (1) is not owned by a community college district.
9(3) The advertising space or time is purchased only in connection
10with the events to be held on the premises of the exposition park,
11stadium,
or arena owned by the on-sale licensee. With respect to
12an exposition park as described in subparagraph (J) of paragraph
13(1) that includes at least one hotel, the advertising space or time
14shall not be displayed on or in any hotel located in the exposition
15park, or purchased in connection with the operation of any hotel
16located in the exposition park.
17(4) The on-sale licensee serves other brands of beer distributed
18by a competing beer wholesaler in addition to the brand
19manufactured or marketed by the beer manufacturer, other brands
20of wine distributed by a competing wine wholesaler in addition to
21the brand produced by the winegrower, and other brands of distilled
22spirits distributed by a competing distilled spirits wholesaler in
23addition to the brand manufactured or marketed by the distilled
24spirits rectifier, the distilled spirits
manufacturer or the distilled
25spirits manufacturer’s agent that purchased the advertising space
26or time.
27(b) Any purchase of advertising space or time pursuant to
28subdivision (a) shall be conducted pursuant to a written contract
29entered into by the beer manufacturer, the holder of the
30
winegrower’s license, the distilled spirits rectifier, the distilled
31spirits manufacturer, or the distilled spirits manufacturer’s agent
32and the on-sale licensee, or with respect to clause (ii) of
33subparagraph (N) of paragraph (1) of subdivision (a), the major
34tenant of the outdoor stadium.
35(c) Any beer manufacturer or holder of a winegrower’s license,
36any distilled spirits rectifier, any distilled spirits manufacturer, or
37any distilled spirits manufacturer’s agent who, through coercion
38or other illegal means, induces, directly or indirectly, a holder of
39a wholesaler’s license to fulfill all or part of those contractual
40obligations entered into pursuant to subdivision (a) or (b) shall be
P5 1guilty of a misdemeanor and shall be punished by imprisonment
2in the county jail not exceeding six months, or by a fine in an
3amount equal to
the entire value of the advertising space, time, or
4costs involved in the contract, whichever is greater, plus ten
5
thousand dollars ($10,000), or by both imprisonment and fine. The
6person shall also be subject to license revocation pursuant to
7Section 24200.
8(d) Any on-sale retail licensee, as described in subdivision (a),
9who, directly or indirectly, solicits or coerces a holder of a
10wholesaler’s license to solicit a beer manufacturer, a holder of a
11winegrower’s license, a distilled spirits rectifier, a distilled spirits
12manufacturer, or a distilled spirits manufacturer’s agent to purchase
13advertising space or time pursuant to subdivision (a) or (b) shall
14be guilty of a misdemeanor and shall be punished by imprisonment
15in the county jail not exceeding six months, or by a fine in an
16amount equal to the entire value of the advertising space or time
17involved in the contract, whichever is greater, plus ten thousand
18dollars ($10,000), or by
both imprisonment and fine. The person
19shall also be subject to license revocation pursuant to Section
2024200.
21(e) For the purposes of this section, “beer manufacturer” includes
22any holder of a beer manufacturer’s license, any holder of an
23out-of-state beer manufacturer’s certificate, or any holder of a beer
24and wine importer’s general license.
begin insertSection 25503.6 of the end insertbegin insertBusiness and Professions
26Codeend insertbegin insert is amended to read:end insert
(a) Notwithstanding any other provision of this
28chapter, a beer manufacturer, the holder of a winegrower’s license,
29a distilled spirits rectifier, a distilled spirits manufacturer, or
30distilled spirits manufacturer’s agent may purchase advertising
31space and time from, or on behalf of, an on-sale retail licensee
32subject to all of the following conditions:
33(1) The on-sale licensee is the owner, manager, agent of the
34owner, assignee of the owner’s advertising rights, or the major
35tenant of the owner of any of the following:
36(A) An outdoor stadium or a fully enclosed arena with a fixed
37seating capacity in excess of 10,000 seats located in Sacramento
38County or Alameda County.
P6 1(B) A fully enclosed arena with a fixed seating capacity in
2excess of 18,000 seats located in Orange County or Los Angeles
3County.
4(C) An outdoor stadium or fully enclosed arena with a fixed
5seating capacity in excess of 8,500 seats located in Kern County.
6(D) An exposition park of not less than 50 acres that includes
7an outdoor stadium with a fixed seating capacity in excess of 8,000
8seats and a fully enclosed arena with an attendance capacity in
9excess of 4,500 people, located in San Bernardino County.
10(E) An outdoor stadium with a fixed seating capacity in excess
11of 10,000 seats located in Yolo County.
12(F) An outdoor stadium and a fully enclosed arena with fixed
13seating capacities in
excess of 10,000 seats located in Fresno
14County.
15(G) An athletic and entertainment complex of not less than 50
16acres that includes within its boundaries an outdoor stadium with
17a fixed seating capacity of at least 8,000 seats and a second outdoor
18stadium with a fixed seating capacity of at least 3,500 seats located
19begin delete withinend deletebegin insert inend insert Riverside County.
20(H) An outdoor stadium with a fixed seating capacity in excess
21of 1,500 seats located in Tulare County.
22(I) A motorsports entertainment complex of not less than 50
23acres that includes within its boundaries an outdoor speedway with
24a fixed seating capacity of at least 50,000 seats, locatedbegin delete withinend deletebegin insert
inend insert
25 San Bernardino County.
26(J) An exposition park, owned or operated by a bona fide
27nonprofit organization, of not less than 400 acres with facilities
28including a grandstand with a seating capacity of at least 8,000
29people, at least one exhibition hall greater than 100,000 square
30feet, and at least four exhibition halls, each greater than 30,000
31square feet, located in the City of Pomona or the City of La Verne
32in Los Angeles County.
33(K) An outdoor soccer stadium with a fixed seating capacity of
34at least 25,000 seats, an outdoor tennis stadium with a fixed
35capacity of at least 7,000 seats, an outdoor track and field facility
36with a fixed seating capacity of at least 7,000 seats, and an indoor
37velodrome with a fixed seating capacity of at least 2,000 seats, all
38located within a sports and athletic complex built before January
391, 2005,begin delete withinend deletebegin insert
inend insert the City of Carson in Los Angeles County.
P7 1(L) An outdoor professional sports facility with a fixed seating
2capacity of at least 4,200 seats locatedbegin delete withinend deletebegin insert inend insert San Joaquin
3County.
4(M) A fully enclosed arena with a fixed seating capacity in
5excess of 13,000 seats in the City of Inglewood.
6(N) (i) An outdoor stadium with a fixed seating capacity of at
7least 68,000 seats located in the City of Santa Clara.
8(ii) A beer manufacturer, the holder of a winegrower’s license,
9a distilled spirits rectifier, a
distilled spirits manufacturer, or
10distilled spirits manufacturer’s agent may purchase advertising
11space and time from, or on behalf of, a major tenant of an outdoor
12stadium described in clause (i), provided the major tenant does not
13hold a retail license, and the advertising may include the placement
14of advertising in an on-sale licensed premises operated at the
15outdoor stadium.
16(O) A complex of not more than 50 acres located on the campus
17of, and owned by, Sonoma State University dedicated to presenting
18live artistic, musical, sports, food, beverage, culinary, lifestyle, or
19other cultural and entertainment events and performances with
20venues that include a concert hall with a seating capacity of
21approximately 1,500 seats, a second concert hall with a seating
22capacity of up to 300 seats, an outdoor area with a seating capacity
23of up to 5,000 seats, and a further
outdoor area with a seating
24capacity of up to 10,000 seats. With respect to this complex,
25advertising space and time may also be purchased from or on
26behalf of the owner of the complex, a long-term tenant or licensee
27of the venue, whether or not the owner, long-term tenant, or
28licensee holds an on-sale license.
29(P) A fairgrounds with a horse racetrack and equestrian and
30sports facilities located in San Diego County.
31(2) The outdoor stadium or fully enclosed arena described in
32paragraph (1) is not owned by a community college district.
33(3) The advertising space or time is purchased only in connection
34with the events to be held on the premises of the exposition park,
35stadium, or arena
owned by the on-sale licensee. With respect to
36an exposition park as described in subparagraph (J) of paragraph
37(1) that includes at least one hotel, the advertising space or time
38shall not be displayed on or in any hotel located in the exposition
39park, or purchased in connection with the operation of any hotel
40located in the exposition park. begin insertWith respect to the complex
P8 1described in subparagraph (O) of paragraph (1), the advertising
2space or time shall be purchased only in connection with live
3artistic, musical, sports, food, beverage, culinary, lifestyle, or other
4cultural and entertainment events and performances to be held on
5the premises of the complex.end insert
6(4) The on-sale licensee serves other brands of beer distributed
7by a competing beer wholesaler in addition to the brand
8manufactured or marketed by the beer manufacturer, other brands
9
of wine distributed by a competing wine wholesaler in addition to
10the brand produced by the winegrower, and other brands of distilled
11spirits distributed by a competing distilled spirits wholesaler in
12addition to the brand manufactured or marketed by the distilled
13spirits rectifier, the distilled spiritsbegin delete manufacturerend deletebegin insert manufacturer,end insert or
14the distilled spirits manufacturer’s agent that purchased the
15advertising space or time.
16(b) Any purchase of advertising space or time pursuant to
17subdivision (a) shall be conducted pursuant to a written contract
18entered into by the beer manufacturer, the holder of the
19winegrower’s license, the distilled spirits rectifier, the distilled
20spirits manufacturer, or the distilled spirits manufacturer’s agent
21andbegin delete the on-sale licensee, or with respect to clause (ii) of begin insert
any of the following:end insert
22subparagraph (N) of paragraph (1) of subdivision (a), the major
23tenant of the outdoor stadium.end delete
24(1) The on-sale licensee.
end insertbegin insert
25(2) With respect to clause (ii) of subparagraph (N) of paragraph
26(1) of subdivision (a), the major tenant of the outdoor stadium.
27(3) With respect to subparagraph (O) of paragraph (1) of
28subdivision (a), the owner, a long-term tenant of the complex, or
29licensee of the complex, whether or not the owner, long-term
30tenant, or licensee holds an on-sale license.
31(c) Any beer manufacturer or holder of a winegrower’s license,
32any distilled spirits rectifier, any distilled spirits manufacturer, or
33any distilled spirits manufacturer’s agent who, through coercion
34or
other illegal means, induces, directly or indirectly, a holder of
35a wholesaler’s license to fulfill all or part of those contractual
36obligations entered into pursuant to subdivision (a) or (b) shall be
37guilty of a misdemeanor and shall be punished by imprisonment
38in the county jail not exceeding six months, or by a fine in an
39amount equal to the entire value of the advertising space, time, or
40costs involved in the contract, whichever is greater, plus ten
P9 1thousand dollars ($10,000), or by both imprisonment and fine. The
2person shall also be subject to license revocation pursuant to
3Section 24200.
4(d) Any on-sale retail licensee, as described in subdivision (a),
5who, directly or indirectly, solicits or coerces a holder of a
6wholesaler’s license to solicit a beer manufacturer, a holder of a
7winegrower’s license, a distilled spirits rectifier, a distilled spirits
8manufacturer, or a distilled spirits manufacturer’s agent to purchase
9advertising
space or time pursuant to subdivision (a) or (b) shall
10be guilty of a misdemeanor and shall be punished by imprisonment
11in the county jail not exceeding six months, or by a fine in an
12amount equal to the entire value of the advertising space or time
13involved in the contract, whichever is greater, plus ten thousand
14dollars ($10,000), or by both imprisonment and fine. The person
15shall also be subject to license revocation pursuant to Section
1624200.
17(e) For the purposes of this section, “beer manufacturer” includes
18any holder of a beer manufacturer’s license, any holder of an
19out-of-state beer manufacturer’s certificate, or any holder of a beer
20and wine importer’s general license.
21(f) The Legislature finds that it is necessary and proper to
22require a separation among manufacturing interests, wholesale
23
interests, and retail interests in the production and distribution of
24alcoholic beverages in order to prevent suppliers from dominating
25local markets through vertical integration and to prevent excessive
26sales of alcoholic beverages produced by overly aggressive
27marketing techniques. The Legislature further finds that the
28exceptions established by this section to the general prohibition
29against tied interests shall be limited to their express terms so as
30not to undermine the general prohibition and intends that this
31section be construed accordingly.
The Legislature finds and declares that a special law
33is necessary and that a general law cannot be made applicable
34within the meaning of Section 16 of Article IV of the California
35Constitution because of the unique conditions located in the County
36of San Diego.
Section 1.5 of this bill incorporates amendments to
38Section 25503.6 of the Business and Professions Code proposed
39by this bill and Senate Bill 462. It shall only become operative if
40(1) both bills are enacted and become effective on or before
P10 1January 1, 2016, (2) each bill amends Section 25503.6 of the
2Business and Professions Code, and (3) this bill is enacted after
3Senate Bill 462, in which case Section 25503.6 of the Business and
4Professions Code, as amended by Senate Bill 462, shall remain
5operative only until the operative date of this bill, at which time
6Section 1.5 of this bill shall
become operative, and Section 1 of
7this bill shall not become operative.
No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district will be incurred because this act creates a new crime or
13infraction, eliminates a crime or infraction, or changes the penalty
14for a crime or infraction, within the meaning of Section 17556 of
15the Government Code, or changes the definition of a crime within
16the meaning of Section 6 of Article XIII B of the California
17Constitution.
O
96