BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 600|
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THIRD READING
Bill No: AB 600
Author: Bonta (D), et al.
Amended: 3/17/14 in Senate
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 9-0, 5/13/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani, Lieu,
Padilla, Torres, Vidak
NO VOTE RECORDED: Hernandez, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 71-2, 5/30/13 - See last page for vote
SUBJECT : Alcoholic beverages: tied-house restrictions:
advertising
SOURCE : San Francisco 49ers
DIGEST : This bill extends an existing tied-house exception in
the Alcoholic Beverage Control Act (ABC Act) pertaining to the
general prohibition against advertising arrangements between
retail, wholesale and manufacturer licensees to include an
outdoor stadium with a fixed seating capacity of at least 68,000
seats located in the City of Santa Clara (Levi's Stadium - new
home of the San Francisco 49ers).
ANALYSIS :
Existing law:
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AB 600
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1. Establishes the Department of Alcoholic Beverage Control
(ABC) and grants it exclusive authority to administer the
provisions of the ABC Act in accordance with laws enacted by
the Legislature. This involves licensing individuals and
businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection
of license fees for this purpose.
2. Separates the alcoholic beverage industry into three
component parts of manufacturer (the first tier), wholesaler
(the second tier), and retailer (the third tier). The
original policy rationale for this body of law was to
prohibit the vertical integration of the alcohol industry and
to protect the public from predatory marketing practices.
This is known as the "tied-house" law or "three-tier" system.
3. Prohibits paid advertising by winegrowers, beer manufacturers
and distilled spirits producers in cases where a retail
licensee also owns a sports or entertainment venue. Over the
years numerous exceptions to this prohibition have been added
to the ABC Act [e.g., Sleep Train Arena (formerly known as
ARCO Arena) in Sacramento, Oakland Coliseum in Oakland,
Arrowhead Pond Arena in Anaheim, Kern County Arena in
Bakersfield, the National Orange Show Event Center in San
Bernardino, California Speedway in Fontana, Grizzly Stadium
in downtown Fresno, Raley Field in West Sacramento, HP
Pavilion in San Jose, the Home Depot Center in the City of
Carson and other venues].
This bill extends an existing "tied-house" exception in the ABC
Act pertaining to the general prohibition against advertising
arrangements between retail, wholesale and manufacturer
licensees to include an outdoor stadium with a fixed seating
capacity of at least 68,000 seats located in the City of Santa
Clara (Levi's Stadium - new home of the San Francisco 49ers).
Background
Levi's Stadium . Levi's Stadium, the new home of the 49ers, is
currently under construction in Santa Clara County and is
expected to be completed by July in time for the 2014 NFL
season. The stadium is a $1.2 billion dollar venture designed
to host a wide range of events including professional and
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AB 600
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college football, soccer, other sporting events, concerts and
civic events. The stadium will seat 68,500 fans during 49ers
home games and will have the capacity to accommodate up to
75,000 for other events. Levi's Stadium will be the first
stadium that will have both a green roof and solar panels. The
stadium will host two college football games in 2014 - the
Oregon v. Cal game on October 24 and the Fight Hunger Bowl in
late December. It will also host Super Bowl L (50) in February
2016.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/19/14)
San Francisco 49ers (source)
Family Winemakers of California
ARGUMENTS IN SUPPORT : The author's office points out that
Levi's Stadium is on target to open in late July of this year
and will be operated under the auspices of the Santa Clara
Stadium Authority which will be the holder of an alcoholic
beverage on-sale retail license. The author's office notes that
existing ABC laws contain numerous exceptions to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licensees. This bill includes Levi's
Stadium on the list of exemptions in the law, thereby allowing
the Santa Clara Stadium Authority to develop certain alcoholic
beverage sponsorships with various manufacturers and
distributors. The author's office emphasizes that this
exemption will put Levi's Stadium on an even playing field with
other arenas and stadiums in California.
ASSEMBLY FLOOR : 71-2, 5/30/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth
Gaines, Garcia, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove,
Hagman, Hall, Harkey, Roger Hern�ndez, Jones, Jones-Sawyer,
Levine, Logue, Lowenthal, Maienschein, Medina, Melendez,
Mitchell, Morrell, Mullin, Nazarian, Nestande, Olsen, Pan,
Patterson, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Salas, Skinner, Stone, Ting, Wagner, Weber, Wieckowski, Wilk,
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Williams, Yamada, John A. P�rez
NOES: Donnelly, Gatto
NO VOTE RECORDED: Dahle, Holden, Linder, Mansoor, Muratsuchi,
Waldron, Vacancy
MW:d 5/21/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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