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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize, until January 1, 2019, a beer manufacturer, as described, holder of a winegrowers license, winegrowers agent, holder of any importers license that does not also hold a wholesaler or retail license as an additional license, as specified, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that is not publicly traded and has its principal place of business in the County of Napa, under specified conditions. The bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of any importers license, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. The bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of any importers license, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize, until January 1, 2019, a beer manufacturer, as described, holder of a winegrowers license, winegrowers agent, holder of any importers license that does not also hold a wholesaler or retail license as an additional license, as specified, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that is not publicly traded and has its principal place of business in the County of Napa, under specified conditions. The bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of any importers license, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. The bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of any importers license, distilled spirits manufacturer, holder of any rectifiers license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize authorize, until January 1, 2019, a beer manufacturer, as described, holder of a winegrowers license, winegrowers agent, holder of an any importers general license that does not also hold a wholesaler or retail license as an additional license, as specified, distilled spirits manufacturer, holder of a distilled spirits any rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that is not publicly traded and has its principal place of business in the County of Napa, under specified conditions. The bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an any importers general license, distilled spirits manufacturer, holder of a distilled spirits any rectifiers general license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. The bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an any importers general license, distilled spirits manufacturer, holder of a distilled spirits any rectifiers general license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize a beer manufacturer, as described, holder of a winegrowers license, winegrowers agent, holder of an importers general license, license that does not also hold a wholesaler or retail license as an additional license, distilled spirits manufacturer, holder of a distilled spirits rectifiers rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that is not publicly traded and has its principal place of business in the County of Napa, under specified conditions. The bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers rectifiers general license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. The bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers rectifiers general license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize a beer manufacturer, as described, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Napa, under specified conditions. This The bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. This The bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

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. Existing law expressly authorizes a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, as provided.

This bill would expressly authorize a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Napa, under specified conditions. This bill would also make a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent who, through coercion or other illegal means, induces the holder of a wholesalers license to fulfill those contractual obligations entered into pursuant to these provisions guilty of a misdemeanor. This bill would additionally make an on-sale retail licensee, as described, who solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, holder of a winegrowers license, winegrowers agent, holder of an importers general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturers agent to purchase advertising time or space pursuant to these provisions guilty of a misdemeanor.

By creating a new 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 the County of Napa.

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.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 527

Author:(Dodd)

As Amended Ver:September 4, 2015

Majority vote

Original Committee Reference: G.O.

SUMMARY: Creates, until January 1, 2019, a new tied-house exception in the Alcoholic Beverage Control Act (Act) that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.

The Senate amendments:

1. Add clarity relative to the type of alcohol licensees that can sponsor events promoted by, and may purchase advertising space and time from, or on behalf of, a live entertainment marketing company in the County of Napa, as specified.

2. Add language requiring the live entertainment company promoting the event to affirmatively represent and warrant in writing to any retail licensee operating as the retail licensee for such an event that it has fulfilled the requirements and restrictions proscribed by law.

3. Add a January 1, 2019, sunset date to the bill.

4. Make technical and clarifying amendments.

EXISTING LAW:

1. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for this purpose.

2. Existing law, known as the "tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.

3. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.

4. The Act prohibits an alcoholic beverage supplier from paying money, or giving or furnishing anything of value, for the privilege of placing or painting a sign or advertisement, or window display, on or in premises selling alcoholic beverages at retail.

5. Prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. Over the years numerous exceptions to this prohibition have been added to the ABC Act (e.g., Sleep Train Arena in Sacramento, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Event Center in San Bernardino, California Speedway in Fontana, Grizzly Stadium in downtown Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, the Home Depot Center in the City of Carson and other venues).

6. Provides a tied-house exception allowing certain alcohol manufacturers and distributors to sponsor events or purchase advertising space from a live entertainment company that has its principal place of business in the County of Los Angeles, as defined.

7. Defines an "On-sale" license as authorizing the sale of all types of alcoholic beverages namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar).

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: This bill, as amended in the Senate is consistent with Assembly actions.

Purpose of this bill: Existing tied-house laws prohibit an alcoholic beverage supplier, or any officer, director or agent of an alcoholic beverage supplier, from providing anything of value to an on-sale retailer licensee, be it free goods, money, services or advertising. Over the years, numerous exceptions to this prohibition have been added to the Act encompassing various venues throughout the state.

According to the author's office, Latitude 38 Entertainment, headquartered in Napa County, produces the annual BottleRock festival and budgets approximately $2 million for costs associated with renting the Napa County fairgrounds, hiring Napa County based employees and contractors, City of Napa fees, security, parking rentals and other added expenses. More than 95,000 festival attendees spend an estimated $14 million on tourism, including hotel accommodations, food, and beverage and retail purchases. In addition, the festival generates approximately $35 million of economic activity in the City and County of Napa.

This bill creates a stand-alone tied-house exception applicable to Latitude 38 Entertainment Company (or any other such live entertainment marketing company based in Napa County) which promotes and produces the BottleRock Napa Valley Festival – a three-day event held in late May that features a diverse mix of live music, culinary offerings, libations and other amenities. This bill is necessary due to the fact that Latitude 38 Entertainment's ownership group includes a wine producer. This bill will enable alcoholic beverage suppliers to purchase advertising space and time at the festival from Latitude 38 Entertainment, as well as other live entertainment marketing companies in Napa County who fall under the same circumstances.

This bill subjects Latitude 38 Entertainment to certain requirements, as specified, and also requires that other brands of beer, wine, or distilled spirits distributed by a competing wholesaler be served at the venue in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier. Furthermore, this bill makes it explicit that no more than three such events may be held in Napa County each year.

Proponents contend that this bill will provide Napa County based companies the ability to receive advertising and sponsorship monies directly from alcoholic beverage manufacturers to the benefit of the region and the State of California. Additionally, proponents claim this bill will help facilitate sponsorship agreements between vintners and sponsors of certain community events, which in turn will help promote travel and tourism throughout the Napa region.

Related Legislation: SB 462 (Wolk) of the current legislative session. Extends an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a specified entertainment complex, known as the Green Music Center, located on the campus of Sonoma State University. Additionally, this bill adds a new section of law to the Act that allows alcoholic beverage licensees, as specified, to make monetary or alcoholic beverage contributions to the Green Music Center under certain conditions. (Enrolled and presented to the Governor on 9/3/15)

AB 1320 (Maienschein) of the current legislative session. Creates a new tied-house exception in the Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, or cultural entertainment events solely at the San Diego County Fairgrounds in Del Mar, under specified conditions. (Pending on the Senate Floor)

Prior legislation: SB 600 (Bonta), Chapter 139, Statutes of 2014. Extended a tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (Levi's Stadium) with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.

SB 324 (Wright), Chapter 164, Statutes of 2013. Provided a tied-house exception to the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees and the Los Angeles Forum in the City of Inglewood.

AB 813 (John A. Pérez), Chapter 647, Statutes of 2009. Created a tied-house exception by allowing the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an alcoholic beverage supplier for the privilege of placing advertising in the on-sale licensee's premises.

SB 520 (Governmental Organization Committee), Chapter 349, Statutes of 2007. Provided a tied-house exception allowing certain alcohol manufacturers and distributors to sponsor events or purchase advertising space from a live entertainment company that has its principal place of business in the County of Los Angeles.

AB 776 (Aghazarian) Chapter 221, Statutes of 2007. Created a tied-house exception by authorizing a beer manufacturer to sponsor or purchase advertising space and time from, or on behalf of, an off-sale retail licensee that is an owner or co-owner of a professional sports team (California Cougars indoor soccer team) that plays its home games, in an arena with a fixed seating capacity of 10,000 seats (Stockton Arena) located in San Joaquin County.

AB 663 (Galgiani) Chapter 745, Statutes of 2007. Extended a tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor professional sports facility with a fixed seating capacity of at least 4,200 (Banner Island Ballpark) located in San Joaquin County.

AB 3046 (Chavez) Chapter 587, Statutes of 2006. Extended a tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the HP Pavilion in Santa Clara County.

AB 1442 (Horton) Chapter 617, Statutes of 2005. Extended a tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Home Depot Center, a sports and athletic complex within the City of Carson in Los Angeles and the Nokia Theater, located within the Los Angeles Sports and Entertainment District, adjacent to Staples Center.

AB 3085 (Governmental Organization Committee), Chapter 437, Statutes of 2004. Provided the Los Angeles County Fair with an exemption from tied-house laws so that so that alcohol manufacturers may purchase advertising from, or on behalf of, the on-sale licensees at this venue.

SB 1647 (Perata) Chapter 275, Statutes of 2004. Extended a tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Oakland Coliseum in Alameda County.

SB 1189 (Costa) Chapter 47, Statutes of 2002. Extended a tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Visalia Oaks Stadium in Visalia and the California Speedway in Fontana.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0002349

 THIRD READING  

Bill No: AB 527

Author: Dodd (D)

Amended: 9/4/15 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/29/15

AYES: Hall, Berryhill, Block, Gaines, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak

NO VOTE RECORDED: Galgiani

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 5/26/15 (Consent) - See last page for vote

SUBJECT: Alcoholic beverage control: tied-house restrictions: advertising

SOURCE: Author

DIGEST: This bill creates, until January 1, 2019, a new tied-house exception in the Alcoholic Beverage Control (ABC) Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.

Senate Floor Amendments of 9/4/15 add clarity relative to the type of licensees that can participate, add a three-year sunset clause, and add language requiring the live entertainment company promoting the event to affirmatively represent and warrant in writing to any retail licensee operating as the retail licensee for such an event that it has fulfilled the requirements and restrictions proscribed by law.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
   
   

2. Separates the alcoholic beverage industry into three component parts, or tiers (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.

3. Prohibits, in general, an alcohol manufacturer, wholesaler, or any officer, director, or agent of any such person from owning, directly, or indirectly, any interest in any on-sale license, or from providing anything of value to retailers, be it free goods, services, or advertising.
   
   

4. Prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. Over the years, numerous exceptions to this prohibition have been added to the ABC Act [e.g., Sleep Train Arena (formerly known as ARCO Arena) in Sacramento, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Event Center in San Bernardino, California Speedway in Fontana, Grizzly Stadium in downtown Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, the Home Depot Center in the City of Carson, Levi’s Stadium in the City of Santa Clara, and other venues].

5. Provides a narrow tied-house exception that expressly authorizes, under specified conditions, a beer manufacturer, holder of a winegrower’s license, California winegrower’s agent, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to purchase advertising space or time from a fully enclosed venue (ClubNokia) with box office sales and attendance by the public on a ticket basis only, with a patronage capacity in excess of 2,000, but not more than 3,000, located in Los Angeles County within the area subject to the Los Angeles Sports and Entertainment District Specific Plan adopted by the City on September 6, 2001, where the owner of the venue is not the on-sale retail licensee. (Business & Professions Code Section 25503.42)
   
   

This bill:

1. Authorizes a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license that does not also hold a wholesale or retail license as an additional license, unless the holder of the importer’s license holds one of the other authorized licenses specified in this section, holder of any rectifier’s license, distilled spirits manufacturer, or a distilled spirits manufacturer’s agent (these entities will hereafter be referred to as “alcoholic beverage suppliers”) to sponsor events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company subject to the following conditions:
   
   

   1. The live entertainment marketing company is a wholly owned subsidiary of a live entertainment company that is not publicly traded, has its principal place of business in Napa County, and may also own interests, directly or indirectly, in retail licenses or winegrower licenses.
      
      

   2. The venue of the event is located within the County of Napa with expected attendance of at least 5,000 people per day, with no more than three such events to be held in the County each year.
      
      

   3. The live entertainment company promoting the event shall affirmatively represent and warrant in writing to any retail licensee operating as the retail licensee for such an event that the live entertainment company promoting the event, including the subject event, has not exceeded the permissible limit of three events and the expected attendance for the event is in excess of 5,000 people per day. In addition, requires the retail licensee to provide the written representation and warranty of the live entertainment company to the Department of ABC and affirmatively state when obtaining the authorization for the event from ABC that the event is being held pursuant to the conditions proscribed in this bill.
      
      

   4. The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural entertainment events at facilities, parks, fairgrounds, auditoriums, arenas or venues that are designed for, or set up to be, and lawfully permitted to be used for such events.
      
      

   5. Any on-sale licensee operating at a venue where live events are performed pursuant to a sponsorship or where advertising is purchased must serve other brands of beer, wine, or distilled spirits distributed by a competing wholesaler in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier.
      
      

   6. Any on-sale retail licensee “owned by the live entertainment company” must 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 alcoholic beverage supplier.
      
      

   7. Advertising space or time purchased shall not be placed in any on-sale licensed premises where the on-sale retail licensee is owned directly or indirectly by the live entertainment company, or any of its subsidiaries.
      
      

   8. Sponsorship shall not be allowed if the event is held at or in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries.
      
      

   9. An agreement for the sponsorship of or for the purchase of advertising space and time during a live 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 alcoholic beverage supplier by the live entertainment company.
      
      

2. Provides that any sponsorship of events or purchase of advertising space or time must be conducted pursuant to a written contract entered into by the alcoholic beverage supplier and the live entertainment marketing company.
   
   

3. Makes it a misdemeanor for an alcoholic beverage supplier to coerce or induce, directly or indirectly, a licensed wholesaler to fulfill the contractual obligations entered into pursuant to the above provisions. Also, subjects the alcoholic beverage supplier (licensee) to license suspension or revocation.
   
   

4. Makes it a misdemeanor for any on-sale retail licensee to solicit or coerce, directly or indirectly, an alcoholic beverage supplier to purchase advertising time or space and subjects the on-sale retail licensee to license suspension or revocation.
   
   

5. Contains boiler plate language (legislative findings and declarations) relative to the necessity of requiring a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages.
   
   

6. Finds and declares that the earthquake that struck Napa on August 24, 2014, was a catastrophic event that resulted in economic hardship and that the tied-house exception provided by this bill is in the best interests of the citizens of Napa County.
   
   

7. Contains a January 1, 2019 sunset provision.

Background

Purpose of AB 527. As noted above, existing tied-house laws prohibit an alcoholic beverage supplier, or any officer, director or agent of an alcoholic beverage supplier, from providing anything of value to an on-sale retailer licensee, be it free goods, money, services or advertising. Over the years, numerous exceptions to this prohibition have been added to the ABC Act encompassing various venues throughout the state.

According to the author’s office, Latitude 38 Entertainment, headquartered in Napa County, produces the annual BottleRock festival and budgets approximately $2 million for costs associated with renting the Napa County fairgrounds, hiring Napa County based employees and contractors, City of Napa fees, security, parking rentals and other added expenses. More than 95,000 festival attendees spend an estimated $14 million on tourism, including hotel accommodations, food, and beverage and retail purchases. In addition, the festival generates approximately $35 million of economic activity in the City and County of Napa.

This bill creates a stand-alone tied-house exception applicable to Latitude 38 Entertainment Company (or any other such live entertainment marketing company based in Napa County) which promotes and produces the BottleRock Napa Valley Festival – a three-day event held in late May that features a diverse mix of live music, culinary offerings, libations and other amenities. This bill is necessary due to the fact that Latitude 38 Entertainment’s ownership group includes a wine producer. This bill will enable alcoholic beverage suppliers to purchase advertising space and time at the festival from Latitude 38 Entertainment, as well as other live entertainment marketing companies in Napa County who fall under the same circumstances. This bill subjects Latitude 38 Entertainment to certain requirements, as specified, and also requires that other brands of beer, wine, or distilled spirits distributed by a competing wholesaler be served at the venue in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier. Furthermore, this bill makes it explicit that no more than three such events may be held in Napa County each year.

Related Legislation

SB 462 (Wolk, 2015) extends an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a specified entertainment complex, known as the Green Music Center, located on the campus of Sonoma State University. Additionally, this bill adds a new section of law to the ABC Act that allows alcoholic beverage licensees, as specified, to make monetary or alcoholic beverage contributions to the Green Music Center under certain conditions. (Enrolled and presented to the Governor on 9/3/15)

AB 1320 (Maienschein, 2015) creates a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, or cultural entertainment events solely at the San Diego County Fairgrounds in Del Mar, under specified conditions. (Pending on the Senate Floor)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 9/8/15)

California Travel Association

City of Napa

Family Winemakers of California

Napa County Board of Supervisors

Napa Valley Vintners

OPPOSITION: (Verified 9/8/15)

None received

ARGUMENTS IN SUPPORT: Proponents contend that AB 527 will provide Napa County based companies the ability to receive advertising and sponsorship monies directly from alcoholic beverage manufacturers to the benefit of the region and the State of California. Additionally, proponents claim that AB 527 will help facilitate sponsorship agreements between vintners and sponsors of certain community events which in turn will help promote travel and tourism throughout the Napa region.

ASSEMBLY FLOOR: 76-0, 5/26/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Bloom, Chávez, Harper, Mathis

Prepared by: Arthur Terzakis / G.O. / (916) 651-1530

9/8/15 14:38:35

**** END ****

 THIRD READING  

Bill No: AB 527

Author: Dodd (D)

Amended: 5/4/15 in Assembly

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/29/15

AYES: Hall, Berryhill, Block, Gaines, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak

NO VOTE RECORDED: Galgiani

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 5/26/15 (Consent) - See last page for vote

SUBJECT: Alcoholic beverage control: tied-house restrictions: advertising

SOURCE: Author

DIGEST: This bill creates a new tied-house exception in the Alcoholic Beverage Control (ABC) Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
   
   

2. Separates the alcoholic beverage industry into three component parts, or tiers (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.

3. Prohibits, in general, an alcohol manufacturer, wholesaler, or any officer, director, or agent of any such person from owning, directly, or indirectly, any interest in any on-sale license, or from providing anything of value to retailers, be it free goods, services, or advertising.
   
   

4. Prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. Over the years, numerous exceptions to this prohibition have been added to the ABC Act [e.g., Sleep Train Arena (formerly known as ARCO Arena) in Sacramento, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Event Center in San Bernardino, California Speedway in Fontana, Grizzly Stadium in downtown Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, the Home Depot Center in the City of Carson, Levi’s Stadium in the City of Santa Clara, and other venues].

5. Provides a narrow tied-house exception that expressly authorizes, under specified conditions, a beer manufacturer, holder of a winegrower’s license, California winegrower’s agent, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to purchase advertising space or time from a fully enclosed venue (ClubNokia) with box office sales and attendance by the public on a ticket basis only, with a patronage capacity in excess of 2,000, but not more than 3,000, located in Los Angeles County within the area subject to the Los Angeles Sports and Entertainment District Specific Plan adopted by the City on September 6, 2001, where the owner of the venue is not the on-sale retail licensee. (Business & Professions Code Section 25503.42)
   
   

This bill:

1. Authorizes a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license that does not also hold a wholesale or retail license as an additional license, holder of a distilled spirits rectifiers general license, distilled spirits manufacturer, or a distilled spirits manufacturer’s agent (these entities will hereafter be referred to as “alcoholic beverage suppliers”) to sponsor events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company subject to the following conditions:
   
   

   1. The live entertainment marketing company is a wholly owned subsidiary of a live entertainment company that is not publicly traded, has its principal place of business in Napa County, and may also own interests, directly or indirectly, in retail licenses or winegrower licenses.
      
      

   2. The venue of the event is located within the County of Napa with expected attendance of at least 5,000 people per day, with no more than three such events to be held in the County each year.
      
      

   3. The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural entertainment events at facilities, parks, fairgrounds, auditoriums, arenas or venues that are designed for, or set up to be, lawfully used for such events.
      
      

   4. Any on-sale licensee operating at a venue where live events are performed pursuant to a sponsorship or where advertising is purchased must serve other brands of beer, wine, or distilled spirits distributed by a competing wholesaler in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier.
      
      

   5. Any on-sale retail licensee “owned by the live entertainment company” must 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 alcoholic beverage supplier.
      
      

   6. Advertising space or time purchased shall not be placed in any on-sale licensed premises where the on-sale retail licensee is owned directly or indirectly by the live entertainment company, or any of its subsidiaries.
      
      

   7. Sponsorship shall not be allowed if the event is held at or in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries.
      
      

   8. An agreement for the sponsorship of or for the purchase of advertising space and time during a live 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 alcoholic beverage supplier by the live entertainment company.
      
      

2. Provides that any sponsorship of events or purchase of advertising space or time must be conducted pursuant to a written contract entered into by the alcoholic beverage supplier and the live entertainment marketing company.
   
   

3. Makes it a misdemeanor for an alcoholic beverage supplier to coerce or induce, directly or indirectly, a licensed wholesaler to fulfill the contractual obligations entered into pursuant to the above provisions. Also, subjects the alcoholic beverage supplier (licensee) to license suspension or revocation.
   
   

4. Makes it a misdemeanor for any on-sale retail licensee to solicit or coerce, directly or indirectly, an alcoholic beverage supplier to purchase advertising time or space and subjects the on-sale retail licensee to license suspension or revocation.
   
   

5. Contains boiler plate language (legislative findings and declarations) relative to the necessity of requiring a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages.
   
   

6. Finds and declares that the earthquake that struck Napa on August 24, 2014, was a catastrophic event that resulted in economic hardship and that the tied-house exception provided by this bill is in the best interests of the citizens of Napa County.

Background

Purpose of AB 527. As noted above, existing tied-house laws prohibit an alcoholic beverage supplier, or any officer, director or agent of an alcoholic beverage supplier, from providing anything of value to an on-sale retailer licensee, be it free goods, money, services or advertising. Over the years, numerous exceptions to this prohibition have been added to the ABC Act encompassing various venues throughout the state.

According to the author’s office, Latitude 38 Entertainment, headquartered in Napa County, produces the annual BottleRock festival and budgets approximately $2 million for costs associated with renting the Napa County fairgrounds, hiring Napa County based employees and contractors, City of Napa fees, security, parking rentals and other added expenses. More than 95,000 festival attendees spend an estimated $14 million on tourism, including hotel accommodations, food, and beverage and retail purchases. In addition, the festival generates approximately $35 million of economic activity in the City and County of Napa.

This bill creates a stand-alone tied-house exception applicable to Latitude 38 Entertainment Company (or any other such live entertainment marketing company based in Napa County) which promotes and produces the BottleRock Napa Valley Festival – a three-day event held in late May that features a diverse mix of live music, culinary offerings, libations and other amenities. This bill is necessary due to the fact that Latitude 38 Entertainment’s ownership group includes a wine producer. This bill will enable alcoholic beverage suppliers to purchase advertising space and time at the festival from Latitude 38 Entertainment, as well as other live entertainment marketing companies in Napa County who fall under the same circumstances. This bill subjects Latitude 38 Entertainment to certain requirements, as specified, and also requires that other brands of beer, wine, or distilled spirits distributed by a competing wholesaler be served at the venue in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier. Furthermore, this bill makes it explicit that no more than three such events may be held in Napa County each year.

Related/Prior Legislation

SB 462 (Wolk, 2015) extends an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a specified entertainment complex, known as the Green Music Center, located on the campus of Sonoma State University. Additionally, this bill adds a new section of law to the ABC Act that allows alcoholic beverage licensees, as specified, to make monetary or alcoholic beverage contributions to the Green Music Center under certain conditions. (Pending in Assembly Appropriations Committee)

AB 1320 (Maienschein, 2015) creates a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, or cultural entertainment events solely at the San Diego County Fairgrounds in Del Mar, under specified conditions. (Pending on Senate Floor)

AB 600 (Bonta, Chapter 139, Statutes of 2014) extended an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara (Levi’s Stadium – new home of the San Francisco 49ers).

SB 324 (Wright, Chapter 164, Statutes of 2013) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a fully enclosed arena with a fixed seating capacity in excess of 13,000 seats (the Forum) in the City of Inglewood.

AB 813 (John A. Perez, Chapter 647, Statutes of 2009) created a new tied-house exception that authorized the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an alcoholic beverage supplier for the privilege of placing advertising in the on-sale licensee’s premises, subject to specified conditions.

AB 776 (Aghazarian, Chapter 221, Statutes of 2007) created a new tied-house exception by authorizing a beer manufacturer to sponsor or purchase advertising space and time from, or on behalf of, an off-sale retail licensee that is an owner or co-owner of a professional sports team (California Cougars indoor soccer team) that plays its home games, in an arena with a fixed seating capacity of 10,000 seats (Stockton Arena) located in San Joaquin County.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/7/15)

California Travel Association

City of Napa

Family Winemakers of California

Napa County Board of Supervisors

Napa Valley Vintners

OPPOSITION: (Verified 8/7/15)

None received

ARGUMENTS IN SUPPORT: Proponents contend that AB 527 will provide Napa County based companies the ability to receive advertising and sponsorship monies directly from alcoholic beverage manufacturers to the benefit of the region and the State of California. Additionally, proponents claim that AB 527 will help facilitate sponsorship agreements between vintners and sponsors of certain community events which in turn will help promote travel and tourism throughout the Napa region.

ASSEMBLY FLOOR: 76-0, 5/26/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Bloom, Chávez, Harper, Mathis

Prepared by: Arthur Terzakis / G.O. / (916) 651-1530

8/20/15 16:25:59

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB 527 Hearing Date: 6/29/2015

SUBJECT: Alcoholic beverage control: tied-house restrictions: advertising

DIGEST: This bill creates a new tied-house exception in the Alcoholic Beverage Control (ABC) Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose.
   
   

2. Separates the alcoholic beverage industry into three component parts, or tiers (referred to as the “tied-house” law or “three-tier” system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the three-tier system.

3. Prohibits, in general, an alcohol manufacturer, wholesaler, or any officer, director, or agent of any such person from owning, directly, or indirectly, any interest in any on-sale license, or from providing anything of value to retailers, be it free goods, services, or advertising.
   
   

4. Prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. Over the years numerous exceptions to this prohibition have been added to the ABC Act [e.g., Sleep Train Arena (formerly known as ARCO Arena) in Sacramento, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Event Center in San Bernardino, California Speedway in Fontana, Grizzly Stadium in downtown Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, the Home Depot Center in the City of Carson, Levi’s Stadium in the City of Santa Clara, and other venues].

5. Provides a narrow tied-house exception that expressly authorizes, under specified conditions, a beer manufacturer, holder of a winegrower’s license, California winegrower’s agent, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to purchase advertising space or time from a fully enclosed venue (ClubNokia) with box office sales and attendance by the public on a ticket basis only, with a patronage capacity in excess of 2,000, but not more than 3,000, located in Los Angeles County within the area subject to the Los Angeles Sports and Entertainment District Specific Plan adopted by the City on September 6, 2001, where the owner of the venue is not the on-sale retail licensee. (Business & Professions Code Section 25503.42)
   
   

This bill:

1. Authorizes a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license that does not also hold a wholesale or retail license as an additional license, holder of a distilled spirits rectifiers general license, distilled spirits manufacturer, or a distilled spirits manufacturer’s agent (these entities will hereafter be referred to as “alcoholic beverage suppliers”) to sponsor events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company subject to the following conditions:
   
   

   1. The live entertainment marketing company is a wholly owned subsidiary of a live entertainment company that is not publicly traded, has its principal place of business in Napa County, and may also own interests, directly or indirectly, in retail licenses or winegrower licenses.
      
      

   2. The venue of the event is located within the County of Napa with expected attendance of at least 5,000 people per day, with no more than three such events to be held in the County each year.
      
      

   3. The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural entertainment events at facilities, parks, fairgrounds, auditoriums, arenas or venues that are designed for, or set up to be, lawfully used for such events.
      
      

   4. Any on-sale licensee operating at a venue where live events are performed pursuant to a sponsorship or where advertising is purchased must serve other brands of beer, wine, or distilled spirits distributed by a competing wholesaler in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier.
      
      

   5. Any on-sale retail licensee “owned by the live entertainment company” must 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 alcoholic beverage supplier.
      
      

   6. Advertising space or time purchased shall not be placed in any on-sale licensed premises where the on-sale retail licensee is owned directly or indirectly by the live entertainment company, or any of its subsidiaries.
      
      

   7. Sponsorship shall not be allowed if the event is held at or in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries.
      
      

   8. An agreement for the sponsorship of or for the purchase of advertising space and time during a live 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 alcoholic beverage supplier by the live entertainment company.
      
      

2. Provides that any sponsorship of events or purchase of advertising space or time must be conducted pursuant to a written contract entered into by the alcoholic beverage supplier and the live entertainment marketing company.
   
   

3. Makes it a misdemeanor for an alcoholic beverage supplier to coerce or induce, directly or indirectly, a licensed wholesaler to fulfill the contractual obligations entered into pursuant to the above provisions. Also, subjects the alcoholic beverage supplier (licensee) to license suspension or revocation.
   
   

4. Makes it a misdemeanor for any on-sale retail licensee to solicit or coerce, directly or indirectly, an alcoholic beverage supplier to purchase advertising time or space and subjects the on-sale retail licensee to license suspension or revocation.
   
   

5. Contains boiler plate language (legislative findings and declarations) relative to the necessity of requiring a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages.
   
   

6. Finds and declares that the earthquake that struck Napa on August 24, 2014, was a catastrophic event that resulted in economic hardship and that the tied-house exception provided by this bill is in the best interests of the citizens of Napa County.

Background

Purpose of AB 527. As noted above, existing tied-house laws prohibit an alcoholic beverage supplier, or any officer, director or agent of an alcoholic beverage supplier, from providing anything of value to an on-sale retailer licensee, be it free goods, money, services or advertising. Over the years, numerous exceptions to this prohibition have been added to the ABC Act encompassing various venues throughout the state.

According to the author’s office, Latitude 38 Entertainment, headquartered in Napa County, produces the annual BottleRock festival and budgets approximately $2 million for costs associated with renting the Napa County fairgrounds, hiring Napa County based employees and contractors, City of Napa fees, security, parking rentals and other added expenses. More than 95,000 festival attendees spend an estimated $14 million on tourism, including hotel accommodations, food, and beverage and retail purchases. In addition, the festival generates approximately $35 million of economic activity in the City and County of Napa.

This bill creates a stand-alone tied-house exception applicable to Latitude 38 Entertainment Company (or any other such live entertainment marketing company based in Napa County) which promotes and produces the BottleRock Napa Valley Festival – a three-day event held in late May that features a diverse mix of live music, culinary offerings, libations and other amenities. This bill is necessary due to the fact that Latitude 38 Entertainment’s ownership group includes a wine producer. This bill will enable alcoholic beverage suppliers to purchase advertising space and time at the festival from Latitude 38 Entertainment, as well as other live entertainment marketing companies in Napa County who fall under the same circumstances. This bill subjects Latitude 38 Entertainment to certain requirements, as specified, and also requires that other brands of beer, wine, or distilled spirits distributed by a competing wholesaler be served at the venue in addition to any brand manufactured or distributed by the sponsoring or advertising alcoholic beverage supplier. Furthermore, this bill makes it explicit that no more than three such events may be held in Napa County each year.

Staff Comments. This bill contains two distinct legislative findings sections, one codified and the other uncodified. The uncodified findings attempt to draw a connection between the 2014 earthquake in Napa County and the need for this bill, suggesting the tied-house exception will help Napa County recover from the earthquake. The author may wish to consider striking Section 1 of this bill, the uncodified findings, referencing the Napa earthquake in light of the fact that he has also introduced AB 18 relating to “Napa earthquake disaster relief” which is pending in this committee. AB 18 seeks to add the 2014 Napa earthquake to the list of disasters eligible for 100% state reimbursement of local agency costs under the California Disaster Assistance Act.

Prior/Related Legislation

SB 462 (Wolk, 2015) extends an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a specified entertainment complex, known as the Green Music Center, located on the campus of Sonoma State University. Additionally, this bill adds a new section of law to the ABC Act that allows alcoholic beverage licensees, as specified, to make monetary or alcoholic beverage contributions to the Green Music Center under certain conditions. (Pending in Assembly policy committee)

AB 1320 (Maienschein, 2015) creates a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, or cultural entertainment events solely at the San Diego County Fairgrounds in Del Mar, under specified conditions. (Pending in this Committee)

AB 600 (Bonta, Chapter 139, Statutes of 2014) extended an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara (Levi’s Stadium – new home of the San Francisco 49ers).

SB 324 (Wright, Chapter 164, Statutes of 2013) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a fully enclosed arena with a fixed seating capacity in excess of 13,000 seats (the Forum) in the City of Inglewood.

AB 813 (John A. Perez, Chapter 647, Statutes of 2009) created a new tied-house exception that authorized the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an alcoholic beverage supplier for the privilege of placing advertising in the on-sale licensee’s premises, subject to specified conditions.

AB 776 (Aghazarian, Chapter 221, Statutes of 2007) created a new tied-house exception by authorizing a beer manufacturer to sponsor or purchase advertising space and time from, or on behalf of, an off-sale retail licensee that is an owner or co-owner of a professional sports team (California Cougars indoor soccer team) that plays its home games, in an arena with a fixed seating capacity of 10,000 seats (Stockton Arena) located in San Joaquin County.

AB 663 (Galgiani, Chapter 745, Statutes of 2007) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor professional sports facility with a fixed seating capacity of at least 4,200 (Banner Island Ballpark – home of the Stockton Ports Class A baseball team) located in San Joaquin County.

AB 3046 (Chavez, Chapter 587, Statutes of 2006) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the HP Pavilion in Santa Clara County.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT:

California Travel Association

Family Winemakers of California

Napa, City of

Napa County Board of Supervisors

Napa Valley Vintners

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: Proponents contend that AB 527 will provide Napa County based companies the ability to receive advertising and sponsorship monies directly from alcoholic beverage manufacturers to the benefit of the region and the State of California. Additionally, proponents claim that AB 527 will help facilitate sponsorship agreements between vintners and sponsors of certain community events which in turn will help promote travel and tourism throughout the Napa region.

Date of Hearing: May 20, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 527

Author:(Dodd) – As Amended Ver:May 4, 2015

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill creates a tied-house exception to allow specific alcohol manufacturers and distributors to sponsor events or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly-owned subsidiary of a non-publicly traded live entertainment company that has its principal place of business in Napa County, subject to specified restrictions.

FISCAL EFFECT:

Minor, likely absorbable enforcement costs to the Department of Alcoholic Beverage Control as the bill is effectively unenforceable.

COMMENTS:

1) Purpose. According to the author, this bill allows live entertainment marketing companies in Napa County, in particular Latitude 38 Entertainment, to receive advertising and sponsorship directly from alcohol manufacturers, benefitting the Napa regional economy. The author believes the tied-house exception is needed in order to help promote the Napa Valley wine industry. The author maintains the bill preserves adequate protections and competition for other alcohol manufacturers by requiring the entertainment licensee to serve other brands of beer, wine, and distilled spirits.

2) Latitude 38 Entertainment. Headquartered in Napa County, this live entertainment company produces the BottleRock Napa Valley Festival. The company spends approximately $2 million to produce the event, renting the Napa County fairgrounds, hiring contractors and employees, and paying various event permit and security fees. More than 95,000 people attended the festival in 2014, spending an estimated $14 million on hotels, food, beverages, and retail purchases.

3) Findings. This bill contains two distinct legislative findings sections, one codified and the other uncodified. The uncodified findings attempt to draw a connection between the 2014 earthquake in Napa County and the need for this bill, suggesting the tied-house exemption will help Napa County recover from the earthquake. By implication, the findings suggest that once Napa County has recovered, the tied-house exemption in this bill will no longer be needed. Given this bill is patterned off several other tied-house exemptions that do not contain such qualifications, the author and the Committee may wish to consider whether the Section 1 legislative findings are necessary.

Analysis Prepared by: Joel Tashjian / APPR. / (916) 319-2081

Date of Hearing: April 22, 2015

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 527

Author:(Dodd) – As Introduced Ver:February 23, 2015

SUBJECT: Alcoholic beverage control: tied-house restrictions: advertising

SUMMARY: Provides a Tied-house exception allowing specific alcohol manufacturers and distributors to sponsor events or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Napa, under specified conditions. Specifically, this bill:

1) Authorizes a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to sponsor events promoted by or purchase advertising space and time from, or on behalf of, a live entertainment marketing company that is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Napa, under specified conditions.

2) Provides that any on-sale licensee operating at a venue where live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural entertainment events are performed pursuant to a sponsorship or where advertising is purchased, as described, shall serve other brands of beer, distilled spirits, and wine 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 an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent. If, however, there is brand diversity by virtue of the existence of multiple sponsors within the same sponsorship category, this requirement shall not apply.

3) Provides any on-sale retail licensee owned by the live entertainment company, as described, shall serve other brands of beer, distilled spirits, and wine 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 an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent. If, however, there is brand diversity by virtue of the existence of multiple sponsors within the same sponsorship category, this subparagraph shall not apply.

4) Provides advertising space or time purchased pursuant to this bill shall not be placed in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries, as described.

5) Provides sponsorship provided pursuant to this bill shall not be allowed if the event or activity is held at or in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries, as described.

6) Contains language to address coercion or other illegal means, relating to the purchase of advertising time or space pursuant to this bill.

EXISTING LAW:

1) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for this purpose.

2) Existing law, known as the “tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.

3) Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.

4) The Act prohibits an alcoholic beverage supplier from paying money, or giving or furnishing anything of value, for the privilege of placing or painting a sign or advertisement, or window display, on or in premises selling alcoholic beverages at retail.

5) Prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. Over the years numerous exceptions to this prohibition have been added to the ABC Act (e.g., Sleep Train Arena in Sacramento, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Event Center in San Bernardino, California Speedway in Fontana, Grizzly Stadium in downtown Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, the Home Depot Center in the City of Carson and other venues).

6) Provides a Tied-house exception allowing certain alcohol manufacturers and distributors to sponsor events or purchase advertising space from a live entertainment company that has its principal place of business in the County of Los Angeles, as defined.

7) Defines an “On-sale” license as authorizing the sale of all types of alcoholic beverages namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar).

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill: According to the author's office, this bill provides for an additional “Tied-house” exception, allowing Napa County based live entertainment marketing companies to receive advertising and sponsorship monies directly from alcohol manufacturers, to the economic benefit of the Napa region and the State of California. This bill is needed because current law prevents an alcohol manufacturer from paying a retailer directly or indirectly for advertising or sponsorship opportunities.

The author believes focusing the Tied-house exemption authorized by AB 527 on entertainment events taking place in Napa County is important because those events promote the Napa Valley Wine industry, which is the heart of California’s wine businesses. Napa Valley wines account for a significant proportion of the state’s $61.5 billion in wine related economic activity. Wine is not only a major state export, but also California wine accounts for more than 90% of the nation's wine exports.

The author states that the Napa Valley Appellation is legally protected and it is world renown, and when people think of California wine, they think of the Napa Valley. Entertainment events that showcase this industry, in Napa, will help to promote this important California industry. In addition, it would help to support local wineries and other businesses that are major contributors to the local economy in rural regions of the county.

This bill, among other things, requires the on-sale licensee to serve other brands of beer, wine, and distilled spirits distributed by a competing beer, wine or distilled spirits wholesaler in addition to the brands manufactured or marketed by the advertising beer, wine or distilled spirits manufacturer. In addition, the bill does not change previous Tied-house exceptions that other brands of beer, wine or distilled spirts, distributed by competing wholesaler entities, be served at the venue in addition to the brand that is advertised. This requirement creates some equity for competing brands and wholesalers.

Background: Latitude 38 Entertainment, headquartered in Napa County, is a live entertainment company and producer of the BottleRock Napa Valley Festival (Festival). To produce the annual event, the entertainment company budgets approximately $2 million for costs associated with renting the Napa County fairgrounds, hiring Napa County based employees and contractors, City of Napa fees, security, parking rentals and other added expenses. More than 95,000 Festival attendees spend an estimated $14 million on tourism, including hotel accommodations, food, beverage and retail purchases. In addition, the Festival generates approximately $35 million of added economic activity in the City and County of Napa.

Tied-house law: Tied-House Law refers to the statutory scheme restricting any cross-ownership among the three independent tiers of the alcohol industry: a) manufacturers; b) distributors/wholesalers; and, c) retailers. The term "Tied-House" refers to a practice which was common in this country prior to prohibition, and is still occurring in England today, where a bar or "public house" is tied to the products of a particular manufacturer.

The original rationale for Tied-house restrictions are in place to promote the state's interest in maintaining an orderly market, to prohibit the vertical integration of the alcohol industry, to protect the public from predatory marketing practices, and to prevent the intemperate consumption of alcoholic beverages. In order to further these policy goals, the Legislature has generally prohibited forms of cross-ownership between manufacturers and retailers, and discouraged manufacturers from providing anything of value to distributors or retailers, be it free goods, services or advertising.

Numerous exceptions to these restrictions have been enacted through the years in those specific instances where the Legislature determined that the public's interests were protected. Generally, the business community is interested in removing unnecessary business regulations and creating conditions that facilitate investment and expansion opportunities for companies that have some degree of ownership in multiple segments of the industry. However, the Legislature traditionally does not grant exemptions that favors the products of the entity seeking the exemption, or exemptions that unfairly compromise the role of the distributors.

Possible amendments by the author: The author is considering the following amendments for committee: 1) Limit the exemption to events held within the County of Napa; 2) Limit the exemption to events where the expected attendance is at least 5,000 people per day; 3) No more than 3 of these events may be held in Napa County each year; 4) Add a finding and declaration to not undermine the general prohibition; 5) Remove beer wholesalers from requirements of the bill; 6) On page 3, line 22 , after agent ... strike 22-25; 7) On page 3, line 33 , after agent ... strike lines 33-36; and; 8) On page 3, line 39, after owned ... add “directly or indirectly."

Prior legislation: SB 600 (Bonta), Chapter 139, Statutes of 2014. Extended a “Tied-house” exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (Levi’s Stadium) with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.

SB 324 (Wright), Chapter 164, Statutes of 2013. Provided a "Tied-house" exception to the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees and the Los Angeles Forum in the City of Inglewood.

AB 813 (John A. Perez), Chapter 647, Statutes of 2009. Created a "Tied-house" exception by allowing the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an alcoholic beverage supplier for the privilege of placing advertising in the on-sale licensee’s premises.

SB 520 (Senate Governmental Organization Committee), Chapter 349, Statutes of 2007. Provided a "Tied-house" exception allowing certain alcohol manufacturers and distributors to sponsor events or purchase advertising space from a live entertainment company that has its principal place of business in the County of Los Angeles.

AB 776 (Aghazarian) Chapter 221, Statutes of 2007. Created a "Tied-house" exception by authorizing a beer manufacturer to sponsor or purchase advertising space and time from, or on behalf of, an off-sale retail licensee that is an owner or co-owner of a professional sports team (California Cougars indoor soccer team) that plays its home games, in an arena with a fixed seating capacity of 10,000 seats (Stockton Arena) located in San Joaquin County.

AB 663 (Galgiani) Chapter 745, Statutes of 2007. Extended a “Tied-house” exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor professional sports facility with a fixed seating capacity of at least 4,200 (Banner Island Ballpark) located in San Joaquin County.

AB 3046 (Chavez) Chapter 587, Statutes of 2006. Extended a “Tied-house” exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the HP Pavilion in Santa Clara County.

AB 1442 (Horton) Chapter 617, Statutes of 2005. Extended a “Tied-house” exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Home Depot Center, a sports and athletic complex within the City of Carson in Los Angeles and the Nokia Theater, located within the Los Angeles Sports and Entertainment District, adjacent to Staples Center.

AB 3085 (Governmental Organization Committee), Chapter 437, Statutes of 2004. Provided the Los Angeles County Fair with an exemption from "Tied-house" laws so that so that alcohol manufacturers may purchase advertising from, or on behalf of, the on-sale licensees at this venue.

SB 1647 (Perata) Chapter 275, Statutes of 2004. Extended a "Tied-house" exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Oakland Coliseum in Alameda County.

SB 1189 (Costa) Chapter 47, Statutes of 2002. Extended a "Tied-house" exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Visalia Oaks Stadium in Visalia and the California Speedway in Fontana.

REGISTERED SUPPORT / OPPOSITION:

Support

California Travel Association (CalTravel)

Family Winemakers of California

Opposition

Alcohol Justice

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531