AB 1788, as introduced, Waldron. Alcoholic beverages: tied-house restrictions.
Existing law, known as tied-house restrictions, prohibits a manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, and wholesaler, and any officer, director, or agent of any of those persons, from having specified relationships with an on-sale alcoholic beverage licensee with limited exceptions.
This bill would make technical, nonsubstantive changes to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 25500 of the Business and Professions
2Code is amended to read:
(a) No manufacturer, winegrower,begin insert end insertbegin insertCalifornia
4winegrower’s agent,end insert manufacturer’s agent, rectifier,begin delete California distiller, bottler, importer, or wholesaler, or
5winegrower’s agent,end delete
6any officer, director, or agent of any such person shall:
P2 1(1) Hold the ownership, directly or indirectly, of any interest in
2any on-sale license.
3(2) Furnish, give, or lend any money or other
thing of value,
4directly or indirectly, to, or guarantee the repayment of any loan
5or the fulfillment of any financial obligation of, any person engaged
6in operating, owning, or maintaining any on-sale premises where
7alcoholic beverages are sold for consumption on the premises.
8(3) Own any interest, directly or indirectly, in the business,
9furniture, fixtures, refrigeration equipment, signs, except signs for
10interior use mentioned in subdivision (g) of Section 25503, or lease
11in or of any premises operated or maintained under any on-sale
12license for the sale of alcoholic beverages for consumption on the
13premises where sold; or own any interest, directly or indirectly, in
14realty acquired after June 13, 1935, upon which on-sale premises
15are maintained unless the holding of the interest is permitted in
16accordance with rules of the department.
17(b) This section does not apply to the
holding by one person of
18a wholesaler’s license and an on-sale license in counties not to
19exceed 15,000 population.
20(c) This section does not apply to the financial or representative
21relationship between a manufacturer, winegrower, manufacturer’s
22agent, rectifier, California winegrower’s agent, distiller, bottler,
23importer, or wholesaler, or any officer, director, or agent of such
24person, and a person holding only one of the following types of
25licenses:
26(1) On-sale general license for a bona fide club.
27(2) Club license issued under Article 4 (commencing with
28Section 23425) of Chapter 3.
29(3) Veterans’ club license issued under Article 5 (commencing
30with Section 23450) of Chapter 3.
31(4) On-sale license for boats, trains, sleeping cars, or airplanes
32where the alcoholic beverages produced or sold by the
33manufacturer, winegrower, manufacturer’s agent, rectifier,
34California winegrower’s agent, bottler, importer, or wholesaler or
35any officer, director, or agent of the person are not sold, furnished,
36or given, directly or indirectly to the on-sale licensee.
37(d) This section does not apply to an employee of a licensee
38referred to in subdivision (a) who is a nonadministrative and
39nonsupervisorial employee.
P3 1(e) Notwithstanding any other provision of this division or
2regulation of the department, this section does not apply to an
3employee of a licensee referred to in subdivision (a) who is the
4spouse of an on-sale licensee, so long as the on-sale licensee does
5not purchase, offer for sale, or promote, regardless of source, any
6of the brands of alcoholic
beverages that are produced, bottled,
7processed, imported, rectified, distributed, represented, or sold by
8any licensee referred to in subdivision (a) that employs the spouse
9of the on-sale licensee.
10(f) Nothing in this division prohibits the holder of any retail
11on-sale or off-sale license from purchasing, for fair consideration,
12advertising in any publication published by any manufacturer,
13winegrower, manufacturer’s agent, rectifier, California
14winegrower’s agent, distiller, bottler, importer, or wholesaler, or
15any person who directly or indirectly holds the ownership of any
16interest in the premises of the retail licensee.
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