Bill Text: CA AB866 | 2015-2016 | Regular Session | Amended
Bill Title: Alcoholic beverages: advertising: San Diego: Inglewood.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB866 Detail]
Download: California-2015-AB866-Amended.html
BILL NUMBER: AB 866 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 8, 2016
AMENDED IN SENATE MAY 12, 2016
AMENDED IN SENATE MARCH 30, 2016
AMENDED IN ASSEMBLY MAY 28, 2015
AMENDED IN ASSEMBLY APRIL 13, 2015
INTRODUCED BY Assembly Member Eduardo Garcia
(Principal coauthors: Senators Block and Hall)
FEBRUARY 26, 2015
An act to amend Section 25503.6 of the Business and Professions
Code, relating to alcoholic beverages, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 866, as amended, Eduardo Garcia. Alcoholic beverages:
advertising: San Diego: Inglewood.
Existing law generally prohibits various licenseholders from
providing money or any other thing of value to a person owning or
operating an on-sale premises where alcoholic beverages are served,
subject to specified exceptions. Existing law authorizes the holder
of a winegrower's license, a beer manufacturer, a distilled spirits
rectifier, a distilled spirits manufacturer, and a distilled spirits
manufacturer's agent, agent to purchase
advertising space and time from, or on behalf of, an on-sale retail
licensee, under certain conditions, if the on-sale retail licensee is
the owner, manager, agent of the owner, assignee of the owner's
advertising rights, or major tenant of specified facilities. Existing
law makes it a misdemeanor to coerce or solicit licensees in
connection with these provisions, as specified.
This bill would expand the facilities to which the exception
described above would apply to include outdoor stadiums with
specified seating capacities located in the Cities of San Diego and
Inglewood. Inglewood, as provided. By
expanding the scope of a crime, this bill 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.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the Cities of San Diego and
Inglewood.
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 25503.6 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
in 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 in 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, in 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 in 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.
(O) A complex of not more than 50 acres located on the campus of,
and owned by, Sonoma State University dedicated to presenting live
artistic, musical, sports, food, beverage, culinary, lifestyle, or
other cultural and entertainment events and performances with venues
that include a concert hall with a seating capacity of approximately
1,500 seats, a second concert hall with a seating capacity of up to
300 seats, an outdoor area with a seating capacity of up to 5,000
seats, and a further outdoor area with a seating capacity of up to
10,000 seats. With respect to this complex, advertising space and
time may also be purchased from or on behalf of the owner of the
complex, a long-term tenant or licensee of the venue, whether or not
the owner, long-term tenant, or licensee holds an on-sale license.
(P) A fairgrounds with a horse racetrack and equestrian and sports
facilities located in San Diego County.
(Q) An outdoor stadium with a fixed seating capacity of at least
43,000 seats located in the City of San Diego.
Diego, as follows:
(i) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, or a distilled spirits manufacturer may
purchase advertising space and time from the owner or a major tenant
of the stadium described in this subparagraph, provided the owner or
major tenant does not hold a retail license.
(ii) The terms of the agreement shall not include an inducement
for the owner or major tenant of the stadium to require its on-sale
licensee to purchase the brands of the advertiser or to exclude
brands for sale at the facility other than those of the advertiser.
(iii) No revenue from the advertising agreement shall be shared or
provided, directly or indirectly, with the on-sale licensee
providing alcoholic beverage and food services at the stadium.
(R) An outdoor stadium with a fixed seating capacity of at least
70,000 seats located in the City of Inglewood.
Inglewood, as follows:
(i) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, or a distilled spirits manufacturer may
purchase advertising space and time from the owner or a major tenant
of the stadium described in this subparagraph, provided the owner or
major tenant does not hold a retail license.
(ii) The terms of the agreement shall not include an inducement
for the owner or major tenant of the stadium to require its on-sale
licensee to purchase the brands of the advertiser or to exclude
brands for sale at the facility other than those of the advertiser.
(iii) No revenue from the advertising agreement shall be shared or
provided, directly or indirectly, with the on-sale licensee
providing alcoholic beverage and food services at the 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. With respect to the complex described in
subparagraph (O) of paragraph (1), the advertising space or time
shall be purchased only in connection with live artistic, musical,
sports, food, beverage, culinary, lifestyle, or other cultural and
entertainment events and performances to be held on the premises of
the complex.
(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 any
of the following:
(1) The on-sale licensee.
(2) With respect to clause (ii) of subparagraph (N) of paragraph
(1) of subdivision (a), the major tenant of the outdoor stadium.
(3) With respect to subparagraph (O) of paragraph (1) of
subdivision (a), the owner, a long-term tenant of the complex, or
licensee of the complex, whether or not the owner, long-term tenant,
or licensee holds an on-sale license.
(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.
(f) The Legislature finds that it is necessary and proper to
require a separation among 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 exceptions
established by this section to the general prohibition against tied
interests shall be limited to their express terms so as not to
undermine the general prohibition and intends that this section be
construed accordingly.
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.
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 conditions located in the Cities of San Diego
and Inglewood.
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 ensure the fair and efficient application of the
alcoholic beverage control licensing laws with respect to eligible
facilities in the Cities of San Diego and Inglewood, it is necessary
that this act take immediate effect.
