Amended in Assembly July 9, 2015

Amended in Assembly June 29, 2015

Senate BillNo. 796


Introduced by Committee on Governmental Organization (Senators Hall (Chair), Berryhill, Block, Gaines, Galgiani, Hernandez, Hill, Hueso, Lara, McGuire, and Vidak)

March 12, 2015


An act to amend Sections 25502.2, 25503.28, 25600.1, and 25600.2 of, and to add Section 23405.4 to, the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

SB 796, as amended, Committee on Governmental Organization. Alcoholic beverages: licenses: advertising: contests and sweepstakes.

(1) The Alcoholic Beverage Control Act specifies the rules and procedures for the issuance and transfer of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. The act requires the department to make a thorough investigation to determine whether the applicant for a license and the premises for which a license is applied qualify for a license.

This bill would provide that the Department of Alcoholic Beverage Control is not required to qualify for a license a person who is an investor in a private equity fund that holds an interest in an alcoholic beverage license, subject to specified conditions, and would authorize the department to require the manager of the private equity fund to execute an affidavit confirming compliance with the requirements of this provision.

(2) The Alcoholic Beverage Control Act includes tied-house restrictions, which prohibit specified licensees from furnishing, giving, or lending money or other thing of value, directly or indirectly, to a person engaged in operating, owning, or maintaining an off-sale licensed premises. Existing law authorizes, until January 1, 2016, the appearance of a person employed or engaged by an authorized licensee at a promotional event held at the premises of an off-sale retail licensee for the purposes of providing autographs, subject to specified conditions.

This bill would delete the sunset date of the above provision, thereby extending the provision indefinitely.

(3) Existing law authorizes a beer manufacturer to sell, at the licensed premises of production, specified beer and wine to consumers under described conditions, and limits the beer manufacturer to six branch locations that may be used for the sale of alcoholic beverages to consumers for consumption off the licensed premises.

This bill would prohibit a beer manufacturer, regardless of the number of beer manufacturer licenses that are held by the beer manufacturer alone, under common ownership with any other licensed beer manufacturer, or under common ownership with any officer, director, employee, or agent of that beer manufacturer that is operating as an on-sale retailer, from exercising, alone or in common, any combination of specified described retail privileges that would result in that beer manufacturer exercising retail privileges at more than six locations.

(4) The Alcoholic Beverage Control Act prohibits any licensee from giving any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as provided. Existing law permits an authorized licensee, as defined, to conduct a consumer contest, as defined, and conduct or sponsor consumer sweepstakes, as defined, offering the chance to win prizes, if specified conditions are met, including that alcoholic beverages or anything redeemable are not awarded as a prize.

This bill would authorize the inclusion of alcoholic beverages as part of a prize in a consumer contest or sweepstakes where the inclusion is an incidental part of a prize package.

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

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

P2    1

SECTION 1.  

Section 23405.4 is added to the Business and
2Professions Code
, to read:

P3    1

23405.4.  

(a) The department is not required to qualify for a
2license a person who is an investor in a private equity fund that
3holds an interest in a license, provided all of the following
4conditions are satisfied:

5(1) The private equity fund’s interest in the license is limited to
6a passive investment, so that neither the private equity fund nor
7any manager, employee, or agent of the private equity fund has
8any involvement in, or control over, the management of the
9licensed business or of the licensee.

10(2) The private equity fund advisors are registered under the
11federal Investment Advisors Act of 1940, and the private equity
12fund advisors are subject to, and comply with, Section 275.204(b)-1
13of Title 17 of the Code of Federal Regulations.

14(3) An investor shall not, directly or indirectly, hold more than
1510-percent interest in the private equity fund.

16(4) An investor in the private equity fund shall not have any
17control, directly or indirectly, over the investment decisions of the
18private equity fund.

19(b) For purposes of this section, private equity fund means an
20investment company that makes investments in equity or debt
21securities of another company that does not provide investors with
22redemption rights in the ordinary course. A private equity fund
23does not include a hedge fund, liquidity fund, real estate fund,
24securitized asset fund, or venture capital fund.

25(c) The department may require the manager of the private
26equity fund to execute an affidavit confirming compliance with
27the requirements of this section. If the manager does not have
28personal knowledge of any of the facts necessary to execute the
29affidavit, the manager shall make a diligent inquiry and may
30thereafter execute the affidavit upon information and belief. The
31manager of the private equity fund shall promptly notify the
32department in writing if any of the facts attested to change.

33(d) This section is not intended to allow a person, by reason of
34his or her investment in a private equity fund, to hold an interest
35in a license issued by the department if that interest is not otherwise
36permitted under this division.

37

SEC. 2.  

Section 25502.2 of the Business and Professions Code
38 is amended to read:

39

25502.2.  

(a) A person employed or engaged by an authorized
40licensee may appear at a promotional event at the premises of an
P4    1off-sale retail licensee for the purposes of providing autographs
2to consumers at the promotional event only under the following
3conditions:

4(1) A purchase from the off-sale retail licensee is not required.

5(2) A fee is not charged to attend the promotional event.

6(3) Autographing may only be provided on consumer advertising
7specialities given by the authorized licensee to a consumer or on
8any item provided by the consumer.

9(4) The promotional event does not exceed four hours in
10duration.

11(5) There are no more than two promotional events per calendar
12year involving the same authorized licensee at a single premises
13of an off-sale retail licensee.

14(6) The off-sale retail licensee may advertise the promotional
15event to be held at its licensed premises.

16(7) An authorized licensee may advertise in advance of the
17promotional event only in publications of the authorized licensee,
18subject to the following conditions:

19(A) The advertising only lists the name and address of the
20off-sale retail licensee, the name of the alcoholic beverage product
21being featured at the promotional event, and the time, date, and
22location of the off-sale retail licensee location where the
23promotional event is being held.

24(B) The listing of the off-sale retail licensee’s name and address
25is the only reference to the off-sale retail licensee in the
26advertisement and is relatively inconspicuous in relation to the
27advertisement as a whole, and the advertisement does not contain
28any pictures or illustrations of the off-sale retail licensee’s premises
29or laudatory references to the off-sale retail licensee.

30(8) A wholesaler does not directly or indirectly underwrite,
31share in, or contribute to any costs related to the promotional event,
32except that a beer and wine wholesaler that holds at least six
33distilled spirits wholesaler licenses may directly or indirectly
34underwrite, share in, or contribute to any costs related to a
35promotional event for which the wholesaler employs or engages
36the person providing autographs to consumers at the promotional
37event.

38(9) The authorized licensee notifies the department in writing
39of the promotional event at least 30 days in advance of the
40promotional event.

P5    1(10) The authorized licensee maintains records necessary to
2establish its compliance with this section.

3(b) For purposes of this section, “authorized licensee” means a
4manufacturer, winegrower, manufacturer’s agent, California
5winegrower’s agent, rectifier, importer, brandy manufacturer,
6brandy importer, or wholesaler.

begin delete
7

SEC. 3.  

Section 25503.28 of the Business and Professions
8Code
is amended to read:

9

25503.28.  

(a) (1) Notwithstanding any other provision of this
10division, the holder of no more than six on-sale licenses, or any
11officer, director, employee, or agent of that licensee, may own a
12licensed beer manufacturer that exercises retail privileges pursuant
13to Section 23357 and may serve on the board of directors and as
14an officer or employee of a licensed beer manufacturer.

15(2) A beer manufacturer, regardless of the number of beer
16manufacturer licenses that are held by the beer manufacturer alone,
17under common ownership with any other licensed beer
18manufacturer, or under common ownership with any officer,
19director, employee, or agent of that beer manufacturer that is
20operating as an on-sale retailer as described by this section, shall
21not exercise, alone or in common, any combination of retail
22privileges described in this section or subdivision (c) of Section
2323389 that would result in that beer manufacturer exercising retail
24privileges at more than six locations, regardless of whether the
25retail privileges are exercised pursuant to this section, to
26subdivision (c) of Section 23389, or to any combination of retail
27privileges described under both of those sections. This section
28shall not limit the number of licensed beer manufacturer branch
29locations or the exercise of retail privileges at those branch
30locations as authorized by Section 23357.

31(b) An on-sale licensee specified in subdivision (a) shall
32purchase no alcoholic beverages for sale in this state other than
33from a wholesale or winegrower licensee, except for any alcoholic
34beverages manufactured by the licensed beer manufacturer at a
35single location contiguous or adjacent to the premises of the on-sale
36licensee.

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

end delete
8begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 25503.28 of the end insertbegin insertBusiness and Professions Codeend insert
9begin insert is amended to read:end insert

10

25503.28.  

(a) Notwithstanding any other provision of this
11division, the holder of no more than six on-sale licenses, or any
12officer, director, employee, or agent of that licensee, may own a
13licensed beer manufacturer holding a license pursuant tobegin delete paragraph
14(a) of subdivision (1) of Section 23320,end delete
begin insert Section 23357,end insert and may
15serve on the board of directors and as an officer or employee of a
16licensed beer manufacturer.begin insert A beer manufacturer, regardless of
17how many beer manufacturer licenses are held by the beer
18manufacturer alone, under common ownership with any other
19licensed beer manufacturer, or under common ownership with any
20officer, director, employee or agent of that beer manufacturer
21licensee who is operating as an on-sale retailer pursuant to this
22section, shall be prohibited from exercising alone or in common
23any combination of retail privileges authorized under this section
24and section 23389(c) that would result in that beer manufacturer
25exercising retail privileges at more than six locations regardless
26of whether the retail privileges are exercised pursuant to this
27section alone, pursuant to section 23389(c) alone, or pursuant to
28any combination of the retail privileges authorized under both of
29these sections. This section shall not limit the number of licensed
30beer manufacturer locations or the exercise of retail privileges at
31those licensed beer manufacturer locations as authorized pursuant
32to Section 23357. end insert

33(b) An on-sale licensee specified in subdivision (a) shall
34purchase no alcoholic beverages for sale in this state other than
35from a wholesale or winegrower licensee, except for any alcoholic
36beverages manufactured by the licensed beer manufacturer at a
37single location contiguous or adjacent to the premises of the on-sale
38licensee.

39(c) The Legislature finds that it is necessary and proper to
40require a separation between manufacturing interests, wholesale
P7    1interests, and retail interests in the production and distribution of
2alcoholic beverages in order to prevent suppliers from dominating
3local markets through vertical integration and to prevent excessive
4sales of alcoholic beverages produced by overly aggressive
5marketing techniques. The Legislature further finds that the
6exception established by this section to the general prohibition
7against tied interests must be limited to its expressed terms so as
8not to undermine the general prohibition, and intends that this
9section be construed accordingly.

begin delete

10(d) This section shall become operative on January 1, 1998.

end delete
11

SEC. 4.  

Section 25600.1 of the Business and Professions Code
12 is amended to read:

13

25600.1.  

(a) An authorized licensee may conduct consumer
14contests, subject to the following conditions:

15(1) (A) Entry or extra chances in a contest shall not be made
16available via the purchase of an alcoholic beverage.

17(B) Entry into or participation in a contest shall be limited to
18persons 21 years of age or older.

19(C) No contest shall involve consumption of alcoholic beverages
20by a participant.

21(D) A contest may not be conducted for the benefit of any
22permanent retail licensee.

23(2) (A) Closures, caps, cap liners, corks, labels, cartons, cases,
24packaging, or other similar material shall not be used as an entry
25to a contest or as a means of determining the amount or size of the
26prize or the winner in a contest, except as provided in
27subparagraphs (D) and (F).

28(B) The authorized licensee shall provide an alternative means
29of entry that does not require a visit to a licensed premises.

30(C) Except as provided in subparagraph (D), removable entry
31forms shall not be used on alcoholic beverage labels, containers,
32packaging, cases, or cartons.

33(D) Removable entry forms that are neck hangers shall be used
34only on bottles of wine or distilled spirits, and shall not require
35purchase of the product. Removable neck hangers shall be used
36only if other entry forms are available at the point of sale or if an
37alternative means of entry is also available.

38(E) Entry forms may be provided through electronic or other
39media, including point of sale.

P8    1(F) Codes that may be scanned or electronically entered by a
2consumer where the authorized licensee has permanently affixed
3the codes as part of the original alcoholic beverage label, container,
4packaging, case, or carton, and where the codes are not removable
5and not required to be removed are permitted as a form of entry.

6(G) All permitted means of entry, including the use of electronic
7or scanner codes, shall clearly indicate that no purchase is required
8to enter.

9(3) A contest shall not provide for the instant or immediate
10awarding of a prize or prizes. Instant or immediate notification to
11the consumer that he or she is a winner is permissible.

12(4) Except for providing a means of entry, a contest authorized
13by this section shall not be conducted at the premises of a retail
14licensee or the premises of a winegrower or beer manufacturer
15operating under a duplicate license for a branch office.

16(5) Alcoholic beverages or anything redeemable for alcoholic
17beverages shall not be awarded as a contest prize. This paragraph
18shall not prohibit a contest in which the prize is cash or cash
19equivalent, the awarding of cash or cash equivalent, or the inclusion
20of alcoholic beverages as an incidental part of a prize package.

21(6) A retail licensee shall not serve as the agent of an authorized
22licensee by collecting or forwarding entries or awarding prizes to,
23or redeeming prizes for, a contest winner.

24(7) A licensee that is not an authorized licensee shall not directly
25or indirectly underwrite, share in, or contribute to, the costs of a
26contest authorized by this section or serve as the agent of an
27authorized licensee to collect or forward entries or to furnish any
28prize to a contest winner.

29(8) (A) Advertising of a contest shall comply with the signage
30and advertising restrictions contained in this chapter, Chapter 15
31(commencing with Section 25500), and any regulations issued by
32 the department.

33(B) Advertising or promotion of a contest shall not identify or
34refer to any retail licensee.

35(C) A retail licensee shall only advertise or promote a contest
36authorized by this section in the manner specified in subparagraph
37(A).

38(D) Advertising or promotion of a contest shall only be
39conducted on the premises of a retail licensee when such
40advertisement or promotion involves a minimum of three
P9    1unaffiliated retail licensees. For purposes of this subparagraph,
2“unaffiliated retail licensees” shall not include any retail licensee
3owned or controlled in whole or in part by an authorized licensee
4or any officer, director, or agent of that licensee.

5(E) Placement of signs or other advertising of a contest in a
6licensed retail premises shall not be conditioned upon the
7following:

8(i) The placement of any product within the licensed premises
9or the restriction, in any way, of the purchase of a product by a
10licensee, the removal of a product from the sales area of a licensed
11premises, or the resetting or repositioning of a product within the
12licensed premises.

13(ii) The purchase or sale of any product produced, imported,
14distributed, represented, or promoted by an authorized licensee or
15its agent.

16(F) An agreement, whether written or oral, entered into, by, and
17between a retail licensee and an authorized licensee or its agent
18that precludes the advertisement or promotion of a contest on the
19premises of the retail licensee by another authorized licensee is
20prohibited.

21(9) Contest prizes shall not be awarded to an authorized licensee,
22retail licensee, or wholesale licensee or agent, officer, employee,
23or family member of an authorized licensee, retail licensee, or
24wholesale licensee. For the purposes of this paragraph, “family
25member” means a spouse, parent, sibling, child, son-in-law,
26daughter-in-law, and lineal descendants, including those by
27adoption. An authorized licensee shall maintain all records
28pertaining to a contest for three years following the completion of
29a contest. This section shall not apply to contests conducted by an
30authorized licensee as part of a sales incentive program for
31wholesale licensees or their employees or an authorized licensee’s
32employees.

33(b) Nothing in this section shall preclude licensees from
34sponsoring contests as permitted by regulations of the department.

35(c) For purposes of this section:

36(1) (A) “Authorized licensee” means a winegrower, beer and
37wine importer general, beer manufacturer, out-of-state beer
38manufacturer certificate holder, distilled spirits manufacturer,
39distilled spirits manufacturer’s agent, distilled spirits importer
40general, distilled spirits general rectifier, rectifier, out-of-state
P10   1distilled spirits shipper’s certificate holder, brandy manufacturer,
2and brandy importer. An authorized licensee may conduct a
3consumer contest pursuant to this section regardless of whether
4the licensee holds any additional license not included in this
5paragraph.

6(B) An “authorized licensee” shall not include a beer and wine
7wholesaler, a beer and wine importer general, or distilled spirits
8importer general that only holds a wholesaler’s or retailer’s license
9as an additional license.

10(2) “Contest” means a game, contest, puzzle, or similar activity
11that holds out or offers to participants the opportunity to receive
12or compete for gifts, prizes, gratuities, or other things of value as
13determined by skill, knowledge, or ability rather than upon random
14selection. Skill, knowledge, or ability does not include the
15consumption or use of alcoholic beverages.

16(d) Nothing in this section authorizes conducting any contest
17where consumers are entitled to an allotment or accumulation of
18points based on purchases made over a period of time that can be
19redeemed for prizes, things of value, or additional contest entries.

20(e) A prize awarded for a contest conducted pursuant to this
21section shall not be subject to the monetary limitation imposed by
22Section 25600 or a regulation of the department.

23(f) An authorized licensee that violates this section, in addition
24to any other penalty imposed by this division, may be prohibited
25by the department from offering a contest to California residents
26for a period of 12 months.

27

SEC. 5.  

Section 25600.2 of the Business and Professions Code
28 is amended to read:

29

25600.2.  

(a) An authorized licensee may conduct or sponsor
30consumer sweepstakes, subject to the following conditions:

31(1) (A) No entry fee may be charged to participate in a
32sweepstakes authorized by this subdivision. Entry or extra chances
33in a sweepstakes shall not be made available via the purchase of
34an alcoholic beverage.

35(B) Entry into or participation in a sweepstakes shall be limited
36to persons 21 years of age or older.

37(C) No sweepstakes shall involve consumption of alcoholic
38beverages by a participant.

39(D) Subject to subparagraph (B), any sweepstakes offered in
40California shall be open to all residents of California.

P11   1(E) A sweepstakes may not be conducted for the benefit of any
2permanent retail license.

3(2) (A) Closures, caps, cap liners, corks, labels, cartons, cases,
4packaging, or other similar material shall not be used as an entry
5to a sweepstakes or as a means of determining the amount or size
6of the prize or the winner in a sweepstakes, except as provided in
7subparagraphs (D) and (F).

8(B) The authorized licensee shall provide an alternative means
9of entry that does not require a visit to a licensed premises.

10(C) Except as provided in subparagraph (D), removable entry
11forms shall not be used on alcoholic beverage labels, containers,
12packaging, cases, or cartons.

13(D) Removable entry forms that are neck hangers shall be used
14only on bottles of wine or distilled spirits, and shall not require
15purchase of the product. Removable neck hangers shall be used
16only if other entry forms are available at the point of sale or if an
17alternative means of entry is also available.

18(E) Entry forms may be provided through electronic or other
19media, including point of sale.

20(F) Codes that may be scanned or electronically entered by a
21consumer where the authorized licensee has permanently affixed
22the codes as part of the original alcoholic beverage label, container,
23packaging, case, or carton and where the codes are not removable
24and not required to be removed are permitted as a form of entry.

25(G) All permitted means of entry, including the use of electronic
26or scanner codes, shall clearly indicate that no purchase is required
27to enter.

28(H) All sweepstakes entries shall provide the entrant with an
29equal odds of winning.

30(3) A sweepstakes shall not provide for the instant or immediate
31awarding of a prize or prizes. Instant or immediate notification to
32the consumer that he or she is a winner is permissible.

33(4) Except for providing a means of entry, a sweepstakes
34authorized by this section shall not be conducted at the premises
35of a retail licensee or the premises of a winegrower or beer
36manufacturer operating under a duplicate license for a branch
37office.

38(5) Alcoholic beverages or anything redeemable for alcoholic
39beverages shall not be awarded as a sweepstakes prize. This
40paragraph shall not prohibit a sweepstakes in which the prize is
P12   1cash or cash equivalent, the awarding of cash or cash equivalent,
2or the inclusion of alcoholic beverages as an incidental part of a
3prize package.

4(6) A retail licensee shall not serve as the agent of an authorized
5licensee by collecting or forwarding entries or awarding prizes to,
6or redeeming prizes for, a sweepstakes winner. The matching of
7entries with numbers or pictures on the point-of-sale materials at
8retail licensed premises is permitted only if entrants are also offered
9the opportunity to use an alternative means to determine
10prize-winning status. An authorized licensee may furnish and
11maintain a deposit box on a retail licensed premises for the
12collection and forwarding of sweepstakes entry forms.

13(7) A licensee that is not an authorized licensee shall not directly
14or indirectly underwrite, share in, or contribute to, the costs of a
15sweepstakes authorized by this section or serve as the agent of an
16authorized licensee to collect or forward entries or to furnish any
17prize to a sweepstakes winner.

18(8) (A) Advertising of a sweepstakes shall comply with the
19signage and advertising restrictions contained in this chapter,
20Chapter 15 (commencing with Section 25500), and any regulations
21issued by the department.

22(B) Advertising or promotion of a sweepstakes shall not identify
23or refer to a retail licensee.

24(C) A retail licensee shall only advertise or promote a
25sweepstakes authorized by this section in the manner specified in
26subparagraph (A).

27(D) Advertising or promotion of a sweepstakes shall only be
28conducted on the premises of a retail licensee when such
29advertisement or promotion involves a minimum of three
30unaffiliated retail licensees. For purposes of this subparagraph,
31“unaffiliated retail licensees” shall not include a retail licensee
32owned or controlled in whole or in part by an authorized licensee
33or any officer, director, or agent of that licensee.

34(E) Placement of signs or other advertising of a sweepstakes in
35a licensed retail premises shall not be conditioned upon the
36following:

37(i) The placement of a product within the licensed premises or
38the restriction, in any way, of the purchase of a product by a
39licensee, the removal of a product from the sales area of a licensed
P13   1premises, or the resetting or repositioning of a product within the
2licensed premises.

3(ii) The purchase or sale of a product produced, imported,
4distributed, represented, or promoted by an authorized licensee or
5its agent.

6(F) An agreement, whether written or oral, entered into, by, and
7between a retail licensee and an authorized licensee that precludes
8the advertisement or promotion of a sweepstakes on the premises
9of the retail licensee by another authorized licensee or its agent is
10prohibited.

11(9) Sweepstakes prizes shall not be awarded to an authorized
12licensee, retail licensee, or wholesale licensee or agent, officer,
13employee, or family member of an authorized licensee, retail
14licensee, or wholesale licensee. For the purposes of this paragraph,
15“family member” means a spouse, parent, sibling, child, son-in-law,
16daughter-in-law, and lineal descendants, including those by
17adoption. An authorized licensee shall maintain all records
18pertaining to a sweepstakes for three years following the
19completion of a sweepstakes.

20(b) For purposes of this section:

21(1) (A) “Authorized licensee” means a winegrower, beer and
22wine importer general, beer manufacturer, out-of-state beer
23manufacturer certificate holder, distilled spirits manufacturer,
24distilled spirits manufacturer’s agent, distilled spirits importer
25general, distilled spirits general rectifier, rectifier, out-of-state
26distilled spirits shipper’s certificate holder, brandy manufacturer,
27and brandy importer. An authorized licensee may conduct, sponsor,
28or participate in a sweepstakes pursuant to this section regardless
29of whether the licensee holds an additional license not included in
30this paragraph.

31(B) An “authorized licensee” shall not include a beer and wine
32wholesaler, a beer and wine importer general, or distilled spirits
33importer general that only holds a wholesaler’s or retailer’s license
34as an additional license.

35(2) “Sweepstakes” means a procedure, activity, or event for the
36distribution of anything of value by lot, chance, or random selection
37where the odds for winning a prize are equal for each entry.

38(c) Nothing in this section authorizes conducting sweepstakes
39where consumers are entitled to an allotment or accumulation of
40points based on purchases made over a period of time that can be
P14   1redeemed for prizes, things of value, or additional sweepstakes
2entries.

3(d) A prize awarded for a sweepstakes conducted pursuant to
4this section shall not be subject to the monetary limitation imposed
5by Section 25600 or a regulation of the department.

6(e) An authorized licensee that violates this section, in addition
7to any other penalty imposed by this division, may be prohibited
8by the department from offering a sweepstakes to California
9residents for a period of 12 months.



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