Bill Text: CA AB775 | 2011-2012 | Regular Session | Amended
Bill Title: Alcoholic beverages: tied-house restrictions.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB775 Detail]
Download: California-2011-AB775-Amended.html
BILL NUMBER: AB 775 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 3, 2011
AMENDED IN ASSEMBLY APRIL 5, 2011
INTRODUCED BY Assembly Member Galgiani
(Principal coauthor: Senator Berryhill)
(Coauthors: Assembly Members Bill Berryhill, Cook, and Jeffries)
(Coauthor: Senator Strickland)
FEBRUARY 17, 2011
An act to add Section 25503.34 to amend
Section 25503.24 of the Business and Professions Code, relating
to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 775, as amended, Galgiani. Alcoholic beverages:
advertising. Alcoholic beverages: tied-house
restrictions.
Existing law prohibits specified holders of alcoholic beverage
licenses from having specified relationships with an on-sale
alcoholic beverage licensee, with limited exceptions. Existing law
permits a manufacturer, winegrower, rectifier, distiller, distilled
spirits wholesaler, or any agent of those licensees, to conduct
market research and, in connection with that research, to purchase
from licensed off-sale retailers data, regarding purchases and sales
of alcoholic beverage products, at the customary rates that those
retailers sell similar data for nonalcoholic beverage products,
provided that a licensed retailer shall not be obligated to purchase
or sell the alcoholic beverages of the manufacturer, winegrower,
rectifier, or distiller.
This bill would additionally include a distilled spirits
wholesaler in the provision prohibiting a licensed retailer from
being obligated to purchase or sell the alcoholic beverages of the
licensee conducting the market research.
Existing law makes it a misdemeanor for a licensee, subject to
these provisions, to violate existing provisions relating to the
purchase of that advertising time or space.
This bill would impose a state-mandated local program by expanding
the licensees subject to these criminal provisions.
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.
This bill would expressly authorize a beer manufacturer, the
holder of a winegrower's license, a California winegrower's agent, a
distilled spirits rectifier, a distilled spirits manufacturer, and a
distilled spirits manufacturer's agent to provide sponsorship funds,
purchase advertising space or time, or furnish, give, lend, rent, or
sell specified items to a holder of not less than 15 but not more
than 65 off-sale licenses within this state in connection with live
entertainment events at specified locations in the Counties of San
Joaquin, San Luis Obispo, and Stanislaus, as provided.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the counties described above.
The Alcoholic Beverage Control Act provides that a violation of
its provisions is a misdemeanor, unless otherwise specified.
This bill, by including provisions that would be subject to those
existing criminal sanctions, would impose a state-mandated local
program.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.24 of the
Business and Professions Code is amended to read:
25503.24. (a) Notwithstanding any other provision of this
chapter, any manufacturer, winegrower, rectifier, distiller,
distilled spirits wholesaler, or any officer, director, agent, or
representative of any of those entities, may conduct market research
and, in connection with that research, the entity conducting the
market research may purchase from licensed off-sale retailers data
regarding purchases and sales of alcoholic beverage products at the
customary rates that those retailers sell similar data for
nonalcoholic beverage products subject to the following limitations:
(1) No licensed retailer shall be obligated to purchase or sell
the alcoholic beverage products of that manufacturer, winegrower,
rectifier, or distiller , or distilled
spirits wholesaler .
(2) No retail premises shall participate in more than one research
project conducted by any single manufacturer, winegrower, rectifier,
distiller, or distilled spirits wholesaler during a calendar year. A
research project may involve multiple onsite surveys.
(3) Nothing in this section shall allow a licensed retailer to
require a manufacturer, winegrower, rectifier, distiller, or
distilled spirits wholesaler to conduct any market research as a
condition for selling alcoholic beverage products to that licensed
retailer.
(b) Any holder of a beer manufacturer's license or winegrower's
license who, through coercion or other illegal means, induces,
directly or indirectly, a holder of a beer or wine wholesaler's
license to fulfill 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 market research or
time involved in the project, 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.
(c) Any retail licensee who, directly or indirectly, solicits or
coerces a holder of a beer or wine wholesaler's license to solicit a
beer manufacturer, or holder of a winegrower's license to fulfill
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 market research or time involved in the project,
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) 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. 2. 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.
SECTION 1. Section 25503.34 is added to the
Business and Professions Code, to read:
25503.34. (a) Notwithstanding any other provision of this
chapter, a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a distilled spirits rectifier, a
distilled spirits manufacturer, and a distilled spirits manufacturer'
s
agent may provide sponsorship funds, purchase advertising space
or time, or furnish, lend, rent, or sell equipment, fixtures,
supplies, decorations, paintings, or signs, directly or indirectly,
to or from the holder of not less than 15 but not more than 65
off-sale licenses within this state.
(b) The activities described in subdivision (a) may only be in
connection with live entertainment events at the following locations
in the Counties of San Joaquin, San Luis Obispo, and Stanislaus:
(1) An outdoor stadium with a fixed capacity of at least 25,000
seats within the City of Stockton in San Joaquin County.
(2) An indoor arena with a fixed seating capacity of at least
4,000 seats within the City of Stockton in San Joaquin County.
(3) An indoor theatre with a fixed seating capacity of at least
900 seats located within the City of Stockton in San Joaquin County.
(4) An outdoor stadium with a fixed capacity of at least 1,200
seats within the City of Stockton in San Joaquin County.
(5) A fully enclosed theater with a fixed seating capacity in
excess of 250 seats located in San Joaquin County or Stanislaus
County.
(6) An outdoor football stadium with a fixed seating capacity of
at least 2,000 seats located in San Joaquin County.
(7) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in San Luis Obispo County.
(8) An outdoor stadium with a fixed seating capacity of at least
5,000 seats located in San Luis Obispo County.
(9) A fully enclosed arena with a fixed seating capacity in excess
of 8,000 seats located in San Joaquin County.
(10) An outdoor baseball stadium with a fixed seating capacity of
at least 3,500 seats located in San Joaquin County.
(c) The events may only be conducted pursuant to a written
contract between the qualified supplier and the off-sale licensee or
its agent.
(d) Any benefit provided indirectly to on-sale licensees operating
at qualified venues as a result of authorized supplier activity
described in subdivision (a) shall not be deemed a thing of value, as
otherwise prohibited by Section 25500.
(e) 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 express terms so as not to undermine
the general prohibition, and intends that this section be construed
accordingly.
SEC. 2. Due to the unique circumstances
concerning the Counties of San Joaquin, San Luis Obispo, and
Stanislaus, the Legislature finds and declares that a general statute
cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution. Therefore, this act is
necessarily applicable only to the Counties of San Joaquin, San Luis
Obispo, and Stanislaus.
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.
