Bill Text: CA SB1495 | 2023-2024 | Regular Session | Introduced

California Senate Bill 1495

Introduced

Bill Title: Tied-house restrictions: for-profit cemeteries: City of Los Angeles.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-23 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 23). Re-referred to Com. on APPR. [SB1495 Detail]

Download: California-2023-SB1495-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1495

Introduced by Senator Wilk

February 16, 2024

An act to add Section 25503.63 to the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL'S DIGEST

SB 1495, as introduced, Wilk. Tied-house restrictions: for-profit cemeteries: City of Los Angeles.

Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, as specified.

This bill would authorize certain licensees to sponsor events promoted by, and purchase advertising space or time from, an operator of a for-profit cemetery, subject to specified conditions, including that the for-profit cemetery be more than 100 years old and be located in, and designated, a Historic-Cultural Monument by the City of Los Angeles. The bill would require any sponsorship of events or purchase of advertising space or time to be conducted pursuant to a written agreement. The bill would make it a misdemeanor for certain licensees to induce, through coercion or other illegal means, the holder of a wholesaler’s license to fulfill contractual obligations, as specified, and for an on-sale licensee to solicit certain licensees to purchase advertising space or time, as specified. By creating new crimes, the 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 cemeteries more than 100 years old and located in, and designated, a Historic-Cultural Monument by the City of Los Angeles.

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 Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.

Section 25503.63 is added to the Business and Professions Code, to read:

25503.63.

(a) Notwithstanding any other provision of this chapter, a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license that does not also hold a wholesaler or retail license as an additional license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent may sponsor events promoted by, and may purchase advertising space or time from, an operator of a for-profit cemetery subject to all of the following conditions:

(1) The for-profit cemetery shall be more than 100 years old, be located in, and designated a Historic-Cultural Monument by, the City of Los Angeles, have an endowment care fund and a memorial care fund that are exempt from the payment of income taxes, and hold a valid special on-sale general license for historic cemetery (Type 88).

(2) The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events permitted at the for-profit cemetery and permitted by the local jurisdiction.

(3) (A) An on-sale licensee operating at a venue where live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events are performed pursuant to a sponsorship or where advertising space or time is purchased 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 sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent.

(B) An on-sale retail licensee owned by the for-profit cemetery 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 sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent.

(4) Advertising space or time purchased shall not be placed in an on-sale licensed premises, other than where the cultural event will take place, where the on-sale retail licensee is also owned directly or indirectly by the operator of the for-profit cemetery, or any of its subsidiaries.

(5) An agreement for the sponsorship of, or for the purchase of advertising space and time during, a live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural 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 advertising or sponsoring beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent by the for-profit cemetery.

(b) A 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 any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent and the for-profit cemetery operator.

(c) A beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s 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) A 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 any importer’s license, distilled spirits manufacturer, holder of any rectifier’s 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) Nothing in this section shall authorize a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s 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 a provision of this division.

(f) 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 license that does not also hold a wholesaler or retail license as an additional license.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions related to cemeteries more than 100 years old and located in, and designated, a Historic-Cultural Monument by the City of Los Angeles.

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.