BILL ANALYSIS �
AB 600
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CONCURRENCE IN SENATE AMENDMENTS
AB 600 (Bonta)
As Amended March 17, 2014
2/3 vote. Urgency
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|ASSEMBLY: | |(May 30, 2013) |SENATE: |33-0 |(June 5, 2014) |
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(vote not relevant)
Original Committee Reference: TRANS.
SUMMARY : This bill, an urgency measure, extends an existing
"tied-house" exception in the Alcoholic Beverage Control Act
(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).
The Senate amendments delete the Assembly version of the bill,
and instead:
1)Expand an exception in current 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 specified
facilities located in the City of Santa Clara, as provided.
2)Add an urgency clause.
EXISTING LAW :
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)Existing law, known as the "tied-house" law or "three-tier"
system, separates the alcoholic beverage industry into three
component parts of manufacturer (the first tier), wholesaler
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(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.
3)Prohibits suppliers and retailers from sharing common owners
and legally restrict alcohol beverage suppliers' ability to
gain control over retailers through indirect means.
Generally, other than exemptions granted by the Legislature,
the holder of one type of license is not permitted to do
business as another type of licensee within the "three-tier"
system.
4)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].
AS PASSED BY THE ASSEMBLY , this bill established conditions for
the movement of intermodal marine equipment by intermodal marine
carriers.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly-approved provisions of this bill were deleted.
This bill, as amended is inconsistent with Assembly floor
actions on May 30, 2013.
Background:
Levi's Stadium: Levi's Stadium, the new home of the San
Francisco 49ers, is currently under construction in Santa Clara
County and is expected to be completed by July 2014 in time for
the 2014 National Football League season. The stadium is a $1.2
billion venture designed to host a wide range of events
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including professional and 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.
Purpose of the bill: The author's office points out that Levi's
Stadium is on target to open in late July 2014 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 measure would include 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 would put Levi's Stadium on an even playing field with
other arenas and stadiums in California. Additionally, the
author's office notes that this bill contains an urgency clause
because the first event scheduled in the stadium is an August 2,
2014 Major League Soccer match between the San Jose Earthquakes
and the Seattle Sounders.
Prior legislation: SB 324 (Wright), Chapter 164, Statutes of
2013, extended an existing "tied-house" exception pertaining to
the general prohibition against advertising arrangements between
retail, wholesale and manufacturer licensees to include a fully
enclosed arena with a fixed seating capacity in excess of 13,000
seats (the Forum) in the City of Inglewood.
SB 351 (Negrete-McLeod) of the 2007-08 legislative session,
would have extended an existing "tied-house" exception
pertaining to the general prohibition against advertising
arrangements between retail, wholesale and manufacturer
licensees so that alcoholic beverage manufacturers may purchase
advertising from on-sale retail licensees in order to promote
"safe ride home programs" at specified stadiums and arenas.
Died on the Assembly Inactive File.
AB 776 (Aghazarian), Chapter 221, Statutes of 2007, created a
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new "tied-house" exception by authorizing a beer manufacturer to
sponsor or purchase advertising space and time from, or on
behalf of, an off-sale retail licensee that is an owner or
co-owner of a professional sports team (California Cougars
indoor soccer team) that plays its home games, in an arena with
a fixed seating capacity of 10,000 seats (Stockton Arena)
located in San Joaquin County.
AB 663 (Galgiani), Chapter 745, Statutes of 2007, extended an
existing "tied-house" exception pertaining to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licensees to include an outdoor
professional sports facility with a fixed seating capacity of at
least 4,200 (Banner Island Ballpark - home of the Stockton Ports
Class A baseball team) located in San Joaquin County.
AB 3046 (Chavez), Chapter 587, Statutes of 2006, extended an
existing "tied-house" exception pertaining to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licensees to the HP Pavilion in Santa
Clara County.
AB 1442 (Horton), Chapter 617, Statutes of 2005, extended an
existing "tied-house" exception pertaining to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licensees to the Home Depot Center, a
sports and athletic complex within the City of Carson in Los
Angeles and the Nokia Theater, located within the Los Angeles
Sports and Entertainment District, adjacent to STAPLES Center.
SB 1647 (Perata), Chapter 275, Statutes of 2004, extended an
existing "tied-house" exception pertaining to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licenses to the Oakland Coliseum in
Alameda County.
SB 1189 (Costa), Chapter 47, Statutes of 2002, extended an
existing "tied-house" exception pertaining to the general
prohibition against advertising arrangements between retail,
wholesale and manufacturer licenses to the Visalia Oaks Stadium
in Visalia and the California Speedway in Fontana.
Analysis Prepared by : Eric Johnson / G.O. / (916) 319-2531
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