BILL NUMBER: AB 1320 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2015
AMENDED IN ASSEMBLY MAY 13, 2015
AMENDED IN ASSEMBLY APRIL 28, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Maienschein
FEBRUARY 27, 2015
An act to add Section 25503.36 to the Business and Professions
Code, relating to alcoholic beverages.
beverages, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1320, as amended, Maienschein. Alcoholic beverages: tied-house
restrictions: advertising.
Existing law generally restricts certain alcoholic beverage
licensees, including manufacturers and winegrowers, from paying,
crediting, or compensating a retailer for advertising in connection
with the advertising and sale of alcoholic beverages. Existing law
expressly authorizes a beer manufacturer, holder of a winegrower's
license, winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifier's general license, or a distilled spirits manufacturer's
agent to sponsor events promoted by or purchase advertising space and
time from, or on behalf of, a live entertainment marketing company
that is a wholly owned subsidiary of a live entertainment company
that has its principal place of business in the County of Los
Angeles, as provided.
This bill would expressly authorize a holder of a beer
manufacturer license , holder of an out
-of -state beer manufacturer's certificate, holder
of a winegrower's license, winegrower's agent, holder of an
importer's general license, as described, a rectifier
license, distilled spirits manufacturer, holder of a distilled
spirits rectifier's general license, or a
distilled spirits manufacturer's agent agent,
or holder of a beer and wine importer's general license or distilled
spirits importer's general license, as described, to sponsor
events promoted by or purchase advertising space and time from, or on
behalf of, a live entertainment marketing company that conducts
entertainment events solely at the San Diego County Fairgrounds,
under specified conditions. The bill would also make a beer
manufacturer, holder of a winegrower's license, winegrower's agent,
holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent who, through
coercion or other illegal means, induces the holder of a wholesaler's
license to fulfill those contractual obligations entered into
pursuant to these provisions guilty of a misdemeanor. The bill would
additionally make an on-sale retail licensee, as described, who
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, winegrower's
agent, holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent to purchase
advertising time or space pursuant to these provisions guilty of a
misdemeanor. The bill would make a related statement of findings.
By creating new crimes this bill would impose a state-mandated
local program.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the County of San Diego.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.36 is added to the Business and
Professions Code, to read:
25503.36. (a) Notwithstanding any other provision of this
division, a holder of a beer manufacturer license
, holder of an out -of -state beer
manufacturer's certificate, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license
that does not also hold a wholesale or retail license as an
additional license, a rectifier license,
distilled spirits manufacturer, holder of a distilled spirits
rectifier's general license, or a distilled
spirits manufacturer's agent agent, or holder
of a beer and wine importer's general license or distilled spirits
importer's general license that, unless it holds one of the other
authorized licenses specified in this section, does not also hold a
wholesale or retail license as an additional license, may
sponsor events promoted by, and may purchase advertising space and
time from, or on behalf of, a live entertainment marketing company
subject to all of the following conditions:
(1) The live entertainment marketing company operates and promotes
live artistic, musical, sports, or cultural entertainment events
only.
(2) All of the live artistic, musical, sports, or cultural
entertainment events are conducted at the San Diego County
Fairgrounds, located in the City of Del Mar in the County of San
Diego, and the events will typically occur over a period of no more
than four consecutive days during which approximately 100 acts will
perform before approximately 20,000 or more patrons. The live
entertainment marketing company shall not conduct more than three of
these types of events within a calendar year.
(3) The live entertainment marketing company is a Delaware limited
liability company that is under common ownership, management, or
control by a private equity firm that may also have common ownership,
management, or control of a licensed California winery, provided the
winery represents not more than 25 percent of the assets under
common ownership, management, or control by the private equity firm
or its subsidiaries, and the live entertainment marketing company
exercises no control over the operations of the winery.
(4) Any on-sale licensee operating at a venue where live artistic,
musical, sports, or cultural entertainment events are performed
pursuant to a sponsorship described in this section or where
advertising is purchased as described in this section shall serve
other brands of beer, distilled spirits, and wine distributed by a
competing wholesaler in addition to any brand manufactured or
distributed by the owning, sponsoring, or advertising beer
manufacturer, holder of a winegrower's license, winegrower's agent,
holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent.
(5) An agreement for the sponsorship of, or for the purchase of
advertising space and time during, a live artistic, musical, sports,
or cultural entertainment event shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the owning,
advertising, or sponsoring beer manufacturer, holder of a winegrower'
s license, winegrower's agent, holder of an importer's general
license, distilled spirits manufacturer, holder of a distilled
spirits rectifier's general license, or a distilled spirits
manufacturer's agent by the live entertainment company described in
this section.
(b) Any sponsorship of events or purchase of advertising space or
time conducted pursuant to subdivision (a) shall be conducted
pursuant to a written contract entered into by the beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifier's general license, or a distilled
spirits manufacturer's agent and the live entertainment marketing
company.
(c) Any beer manufacturer, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifier's general license, or a 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 those
contractual obligations entered into pursuant to subdivision (a)
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 suspension or revocation
pursuant to Section 24200.
(d) Any on-sale retail licensee who, directly or indirectly,
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, winegrower's
agent, holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent to purchase
advertising time or space pursuant to subdivision (a) 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 suspension or revocation pursuant to Section 24200.
(e) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
(f)
(e) Nothing in this section shall authorize the
purchasing of advertising space or time directly from, or on behalf
of, any on-sale licensee except as expressly authorized by this
section or any other provision of this division.
(g)
(f) Nothing in this section shall authorize a beer
manufacturer, holder of a winegrower's license, winegrower's agent,
holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifier's general
license, or a distilled spirits manufacturer's agent to furnish,
give, or lend anything of value to an on-sale retail licensee
described in subdivision (a) except as expressly authorized by this
section or any other provision of this division.
(h)
(g) 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 expressed terms so as
not to undermine the general prohibition, and intends that this
section be construed accordingly.
SEC. 2. 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 conditions located in the County of San Diego.
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.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to allow for the sponsoring of events within the County
of San Diego as soon as possible, it is necessary that this act take
effect immediately.