BILL NUMBER: AB 1424	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2014
	PASSED THE ASSEMBLY  AUGUST 29, 2014
	AMENDED IN SENATE  AUGUST 22, 2014

INTRODUCED BY   Committee on Governmental Organization (Hall (Chair),
Nestande (Vice Chair), Chesbro, Cooley, Hagman, Jones, Jones-Sawyer,
Levine, Perea, V. Manuel Pérez, Salas, Torres, and Waldron)

                        MARCH 21, 2013

   An act to amend Sections 25503.5 and 25503.6 of the Business and
Professions Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1424, Committee on Governmental Organization. Alcoholic
beverages: instruction: tastings: tied-house restrictions:
advertising.
   The Alcoholic Beverage Control Act permits a winegrower, beer
manufacturer, or a beer and wine wholesaler to instruct licensees and
their employees on the subject of wine or beer, including, but not
limited to, the history, nature, values, and characteristics of those
beverages, as provided.
   This bill would specifically reference the composition of the beer
or wine as a subject that may be included in this type of
instruction.
   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, on-sale retail licensees at
specified facilities located in the City of Santa Clara, as provided.

   This bill would expand that exception to allow the purchase of
advertising space and time from, or on behalf of, a major tenant that
does not hold a retail alcoholic beverage license, of one of the
specified facilities in Santa Clara, and allows that advertising to
include the placement of advertising in an on-sale licensed premises
operated at that stadium, as provided.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of Santa Clara.
   This bill would incorporate additional changes to Section 25503.5
of the Business and Professions Code proposed by AB 520 that would
become operative if this bill and AB 520 are enacted and this bill is
enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25503.5 of the Business and Professions Code is
amended to read:
   25503.5.  (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including, but not limited
to, the history, nature, values, composition, and characteristics of
wine or beer, the use of wine lists, and the methods of presenting
and serving wine or beer. The winegrower, beer manufacturer, or beer
and wine wholesaler may furnish wine or beer and the equipment,
materials, and utensils that may be required for use in connection
with the instruction or courses of instruction.
   (b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
   (c) A winegrower or distilled spirits manufacturer, or its
authorized agent may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
product and the methods of presenting and serving the product. The
instruction of consumers may include the furnishing of not more than
three tastings to any individual in one day. A single tasting of
distilled spirits may not exceed one-fourth of one ounce and a single
tasting of wine may not exceed one ounce. The winegrower or
distilled spirits manufacturer, or its authorized agent shall remove
any unfinished alcoholic beverages that he or she provided following
the instruction. Nothing in this subdivision shall limit the giving
away of samples pursuant to subdivision (a) of Section 23386.
   (d) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer, or of a licensee, including an on-sale retail licensee, or
elsewhere.
  SEC. 1.5.  Section 25503.5 of the Business and Professions Code is
amended to read:
   25503.5.  (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including, but not limited
to, the history, nature, values, composition, and characteristics of
wine or beer, the use of wine lists, and the methods of presenting
and serving wine or beer. The winegrower, beer manufacturer, or beer
and wine wholesaler may furnish wine or beer and the equipment,
materials, and utensils that may be required for use in connection
with the instruction or courses of instruction.
   (b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
   (c) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer, or of a licensee, including an on-sale retail licensee, or
elsewhere.
  SEC. 2.  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 or Los Angeles County.
   (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.
   (M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
   (N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.
   (ii) 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, a major tenant of an outdoor stadium
described in clause (i), provided the major tenant does not hold a
retail license, and the advertising may include the placement of
advertising in an on-sale licensed premises operated at the outdoor
stadium.
   (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, or with respect to clause (ii) of subparagraph (N)
of paragraph (1) of subdivision (a), the major tenant of the outdoor
stadium.
   (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 the 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. 3.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances and concerns applicable to
certain facilities in the City of Santa Clara.
  SEC. 4.  Section 1.5 of this bill incorporates amendments to
Section 25503.5 of the Business and Professions Code proposed by both
this bill and Assembly Bill 520. It shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2015, (2) each bill amends Section 25503.5 of the Business and
Professions Code, and (3) this bill is enacted after Assembly Bill
520, in which case Section 1 of this bill shall not become operative.