AB 840: Tied-house exceptions: advertising.

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, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, agent or major tenant of the owner, or assignee of the owners advertising rights of certain venues, subject to specified conditions. Existing law requires the purchase of advertising space or time, in this context, to be conducted pursuant to a written contract and, in certain instances, specifically authorizes a contract to be made with the owner, a long-term tenant of the complex, or a licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license. In this context, existing law makes certain acts of coercion crimes, including when an on-sale licensee coerces other specified licensees to purchase advertising space or time.

This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by applying it to various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Sacramento, Monterey, Orange, Santa Clara, and Los Angeles, and on the campus of St. Marys College of California located in the County of Contra Costa. The bill would additionally expand the exception applicable to a motorsports entertainment complex located in the County of San Bernardino, by reducing the minimum fixed seating capacity from 50,000 to 25,000. By expanding the definition of a crime, 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 California State University campuses located in the Counties of San Luis Obispo, Fresno, Sacramento, Monterey, Orange, Santa Clara, and Los Angeles, the campus of St. Marys College of California located in the County of Contra Costa, and certain facilities located in the County of San Bernardino.

This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 392 to be operative only if this bill and SB 392 are enacted and this bill is enacted last.

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.