AB 527: Alcoholic beverage control: tied-house restrictions: advertising.

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.