BILL NUMBER: AB 1320 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2015
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, 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 a rectifier license, distilled spirits manufacturer, holder
of a distilled spirits rectifier's general license, distilled
spirits manufacturer's agent, or holder of a beer and wine importer's
general license or distilled spirits importer's general license, as
described, an authorized licensee , as
defined, 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
in connection with events organized and conducted by
the live entertainment marketing company 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 an authorized licensee 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 an authorized licensee 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: 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 a rectifier
license, distilled spirits manufacturer, holder of a distilled
spirits rectifier's general license, distilled spirits manufacturer's
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,
an authorized licensee may sponsor events
promoted by, and may purchase advertising space and time from, or on
behalf of, a live entertainment marketing company in connection
with events organized and conducted by the live entertainment
marketing company on the premises of a permanent retail licensee
located at the San Diego County Fairgrounds, located in
the City of Del Mar in the County of San Diego, 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 The events will
typically occur take place 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. Any
authorized licensee sponsoring an event or purchasing advertising
space or time, pursuant to this section, shall obtain written
verification of compliance with this subdivision prior to such
sponsorship or the purchase of advertising space or time.
(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
the San Diego County Fairgrounds shall serve other brands
of beer, distilled spirits, and wine distributed by a competing
wholesaler or manufacturer 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. manufactured, distributed, or owned by the
authorized licensee sponsoring an event or purchasing advertising
space or time pursuant to this section.
(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
pursuant to this section 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. any authorized licensee
sponsoring or purchasing advertising space or time pursuant to 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
authorized licensee 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 authorized licensee 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 an authorized licensee 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) 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.
(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
an authorized licensee 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.
(g) For purposes of this section, the following definitions shall
apply:
(1) "Authorized licensee" means the following licensees: beer
manufacturer, out-of-state beer manufacturer's certificate,
winegrower, winegrower's agent, importer, rectifier, distilled
spirits manufacturer, distilled spirits rectifier general, distilled
spirits manufacturer's agent.
(2) Except for a licensee that holds only a beer and wine importer
general license or a distilled spirits importer general license,
"importer" does not include the holder of any importer license that
does not also hold at least one other license specified as an
authorized licensee.
(g)
(h) 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.