BILL NUMBER: AB 2623 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 15, 2010
INTRODUCED BY Assembly Member Hall
FEBRUARY 19, 2010
An act to amend Section 25503.6 of add
Section 25503.25 to the Business and Professions Code, relating
to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2623, as amended, Hall. Alcoholic beverages: tied-house
restrictions: advertising.
The Alcoholic Beverage Control Act provides that any manufacturer,
winegrower, manufacturer's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any of
those persons, may furnish, give, lend, or rent specified types of
signs, including signs relating to advertising beer, wine, or
distilled spirits.
This bill would provide that specified licensees under the
Alcoholic Beverage Control Act, may purchase advertising from a
nonlicensee that provides Internet-delivered content for show on
video display devices located on the premises of on-sale retail
licensees, subject to specified restrictions.
The Alcoholic Beverage Control Act provides that a violation of
its provisions is punishable as a misdemeanor, unless otherwise
specified.
This bill, by including provisions that would be subject to those
existing criminal sanctions, would impose a state-mandated local
program.
This bill would make findings regarding the need for special
legislation.
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.
Existing law generally prohibits a manufacturer of alcoholic
beverages and a winegrower 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. It authorizes, as an exception, 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,
including specified facilities located in the County of Los Angeles.
This bill would instead limit this exception to specified
facilities located in the City of Los Angeles.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.25 is added to the
Business and Professions Code , to read:
25503.25. Notwithstanding any other law, a beer manufacturer,
small beer manufacturer, winegrower, distilled spirits manufacturer,
distilled spirits manufacturer's agent, rectifier, distilled spirits
importer, or beer and wine importer may purchase advertising from a
nonlicensee providing Internet-delivered content and advertising to
on-sale retail licensees, provided all of the following requirements
are met:
(a) The on-sale Retail licensee is responsible for providing the
video display devices, which may not be sold, rented, given, or
loaned to the on-sale retail licensee by the nonlicensee providing
the Internet-delivered content.
(b) The on-sale retail licensee receives no monetary payment
directly or indirectly from the beer manufacturer, small beer
manufacturer, winegrower, distilled spirits manufacturer, distilled
spirits manufacturer's agent, rectifier, distilled spirits importer,
or beer and wine importer purchasing the wine, beer, or distilled
spirits advertising.
(c) The on-sale retail licensee has no control over the content or
placement of the Internet-delivered content or the alcoholic
beverage paid advertising.
(d) The Internet-delivered content and advertising does not
interfere with regular broadcasts on the video display devices other
than to reduce the size of the picture.
(e) The on-sale retail licensee may provide its own messages and
promotions through the device delivering the Internet-delivered
content.
(f) The wine, beer, and spirits advertising purchased by the beer
manufacturer, small beer manufacturer, winegrower, distilled spirits
manufacturer, distilled spirits manufacturer's agent, rectifier,
distilled spirits importer, or beer and wine importer may not make
any reference to the on-sale retail licensee.
(g) A beer manufacturer, small beer manufacturer, winegrower,
distilled spirits manufacturer, distilled spirits manufacturer's
agent, rectifier, distilled spirits importer, or beer and wine
importer may specify that its advertising appear in a particular
trading area or type of retail location, but a beer manufacturer,
small beer manufacturer, winegrower, distilled spirits manufacturer,
distilled spirits manufacturer's agent, rectifier, distilled spirits
importer, or beer and wine importer shall not demand or receive the
right to specify that its advertising appear in a particular on-sale
retail licensee's premises.
(h) A beer manufacturer, small beer manufacturer, winegrower,
distilled spirits manufacturer, distilled spirits manufacturer's
agent, rectifier, distilled spirits importer, or beer and wine
importer shall not include in its advertising instant redeemable
coupons or other discounts contemporaneously usable in the retail
premises.
SEC. 2. The Legislature finds that it is necessary
and proper to require a separation between 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 exception established by this section to the general prohibition
against tied interests must be limited to its express terms so as not
to undermine the general prohibition, and intends that this section
be construed accordingly.
SEC. 3. 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.
SECTION 1. 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
distilled spirits 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 the City of Los Angeles.
(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
within 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 within 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 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, within 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 within San Joaquin 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.
(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 distilled spirits
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 distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits 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 distilled spirits 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 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. 2. The Legislature hereby finds and
declares, with respect to Section 1 of this act, that a special
statute is necessary and that a statute of general applicability
cannot be enacted within the meaning of Section 16 of Article IV of
the California Constitution, because of unique circumstances and
concerns applicable to certain facilities located in the City of Los
Angeles.