SB 430: Tied-house exceptions: advertising: common parent company.

Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of licenses for the manufacture, distribution, and sale of alcoholic beverages. Existing law, known as tied-house restrictions, generally prohibits specified licensees and their agents from paying a retailer for advertising. Existing law creates a variety of exceptions to this general prohibition.

This bill would create a new exception to the tied-house restrictions on advertising. In this regard, the bill would authorize specified licensees to purchase advertising services from an advertising subsidiary that is under common ownership with a retail licensee subsidiary, subject to specified conditions. The bill would require an advertising subsidiary from whom an authorized licensee purchases advertising services pursuant to these provisions to submit to the department semiannually a report that summarizes those services and includes other specified information. The bill would make it a misdemeanor for an authorized licensee or a retail licensee subsidiary to solicit or coerce a wholesaler the solicitation or coercion of a wholesaler or an authorized licensee, as specified, in connection with the advertising services permitted under these provisions. provisions a misdemeanor and subject to specified penalties. By creating a new crime, the bill would impose a state-mandated local program. The bill would define terms for its purposes and would set forth related findings. By creating a new crime, the 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.