AB 866: Alcoholic beverages: advertising: San Diego: Inglewood.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-06-08
Existing law generally prohibits various licenseholders from providing money or any other thing of value to a person owning or operating an on-sale premises where alcoholic beverages are served, subject to specified exceptions. Existing law authorizes the holder of a winegrowers license, a beer manufacturer, a distilled spirits rectifier, a distilled spirits manufacturer, and a distilled spirits manufacturers agent, agent to purchase advertising space and time from, or on behalf of, an on-sale retail licensee, under certain conditions, if the on-sale retail licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or major tenant of specified facilities. Existing law makes it a misdemeanor to coerce or solicit licensees in connection with these provisions, as specified.
This bill would expand the facilities to which the exception described above would apply to include outdoor stadiums with specified seating capacities located in the Cities of San Diego and Inglewood. Inglewood, as provided. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Cities of San Diego and Inglewood.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law generally prohibits various licenseholders from providing money or any other thing of value to a person owning or operating an on-sale premises where alcoholic beverages are served, subject to specified exceptions. Existing law authorizes the holder of a winegrowers license, a beer manufacturer, a distilled spirits rectifier, a distilled spirits manufacturer, and a distilled spirits manufacturers agent, to purchase advertising space and time from, or on behalf of, an on-sale retail licensee, under certain conditions, if the on-sale retail licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or major tenant of specified facilities. Existing law makes it a misdemeanor to coerce or solicit licensees in connection with these provisions, as specified.
This bill would expand the facilities to which the exception described above would apply to include an outdoor stadium with a fixed seating capacity of at least 46,000 seats located in the City of San Diego. outdoor stadiums with specified seating capacities located in the Cities of San Diego and Inglewood. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Diego. Cities of San Diego and Inglewood.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law generally prohibits various licenseholders from providing money or any other thing of value to a person owning or operating an on-sale premises where alcoholic beverages are served, subject to specified exceptions. Existing law authorizes the holder of a winegrowers license, a beer manufacturer, a distilled spirits rectifier, a distilled spirits manufacturer, and a distilled spirits manufacturers agent, to purchase advertising space and time from, or on behalf of, an on-sale retail licensee, under certain conditions, if the on-sale retail licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or major tenant of specified facilities. Existing law makes it a misdemeanor to coerce or solicit licensees in connection with these provisions, as specified.
This bill would expand the facilities to which the exception described above would apply to include an outdoor stadium with a fixed seating capacity of at least 46,000 seats located in the City of San Diego. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Diego.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.
This bill would additionally authorize GO-Biz to support small businesses by providing information about technical assistance. The bill would expand the duties of the advocate to include sharing with a rulemaking agency the contact information for small business organizations, to the extent that information is available and requested. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regarding small businesses.
Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.
This bill would additionally authorize GO-Biz to support small businesses by providing information about technical assistance. The bill would expand the duties of the advocate to include providing information to rulemaking agencies regarding the number and size of businesses which may be affected by a proposed new or amended regulation, as specified. sharing with a rulemaking agency the contact information for small business organizations, to the extent that information is available and requested. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regarding small businesses.
Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.
This bill would additional additionally authorize GO-Biz to support small businesses by advocating for their interests before state agencies and providing information about accessing technical assistance. The bill would expand the duties of the advocate to include advocating for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards. providing information to rulemaking agencies regarding the number and size of businesses which may be affected by a proposed new or amended regulation, as specified. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regrading regarding small businesses.
Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law authorizes GO-Biz to, among other things, support small businesses by providing information about accessing capital. Existing law establishes the Office of Small Business Advocate, within GO-Biz. Existing law establishes the duties and functions of the Director of the Office of Small Business Advocate, also known as the advocate. Those duties include, among other things, representing the views and interests of small businesses before other state agencies whose policies and activities may affect small businesses. Under existing law, each agency of the state is required to furnish to the advocate reports, documents, and information that are public records and that the advocate deems necessary to carry out his or her functions.
This bill would additional authorize GO-Biz to support small businesses by advocating for their interests before state agencies and providing information about accessing technical assistance. The bill would expand the duties of the advocate to include advocating for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards. The bill would additionally require each agency that develops a small entity compliance guide, as specified, to notify the advocate within 45 days after the guide becomes available to the public, and to include in that notice information on how a small business can obtain a copy of the small business compliance guide. The bill would also make various findings and declarations regrading small businesses.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:
(1)The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:
(A)An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.
(B)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(C)An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.
(D)An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.
(G)An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.
(I)A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.
(J)An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.
(K)An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.
(N)(i)An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.
(ii)A beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.
(O)A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(P)A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.
(Q)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego. Diego, as follows:
(i)A beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, or a distilled spirits manufacturer may purchase advertising space and time from the owner or a major tenant of the stadium described in this subparagraph, provided the owner or major tenant does not hold a retail license.
(ii)The terms of the agreement shall not include an inducement for the owner or major tenant of the stadium to require its on-sale licensee to purchase the brands of the advertiser or to exclude brands for sale at the facility other than those of the advertiser.
(iii)No revenue from the advertising agreement shall be shared or provided, directly or indirectly, with the on-sale licensee providing alcoholic beverage and food services at the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood. Inglewood, as follows:
(i)A beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, or a distilled spirits manufacturer may purchase advertising space and time from the owner or a major tenant of the stadium described in this subparagraph, provided the owner or major tenant does not hold a retail license.
(ii)The terms of the agreement shall not include an inducement for the owner or major tenant of the stadium to require its on-sale licensee to purchase the brands of the advertiser or to exclude brands for sale at the facility other than those of the advertiser.
(iii)No revenue from the advertising agreement shall be shared or provided, directly or indirectly, with the on-sale licensee providing alcoholic beverage and food services at the stadium.
(2)The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.
(3)The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.
(4)The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.
(b)Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:
(1)The on-sale licensee.
(2)With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.
(3)With respect to subparagraph (O) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(c)Any beer manufacturer or holder of a winegrowers license, any distilled spirits rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(d)Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(e)For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.
(f)The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the Cities of San Diego and Inglewood.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure the fair and efficient application of the alcoholic beverage control licensing laws with respect to eligible facilities in the Cities of San Diego and Inglewood, it is necessary that this act take immediate effect.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:
(1)The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:
(A)An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.
(B)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(C)An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.
(D)An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.
(G)An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.
(I)A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.
(J)An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.
(K)An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.
(N)(i)An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.
(ii)A beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.
(O)A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(P)A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.
(Q)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(R)An outdoor stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood.
(2)The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.
(3)The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.
(4)The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.
(b)Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:
(1)The on-sale licensee.
(2)With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.
(3)With respect to subparagraph (O) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(c)Any beer manufacturer or holder of a winegrowers license, any distilled spirits rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(d)Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(e)For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.
(f)The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the City of San Diego. Cities of San Diego and Inglewood.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure the fair and efficient application of the alcoholic beverage control licensing laws with respect to eligible facilities in the City of San Diego, Cities of San Diego and Inglewood, it is necessary that this act take immediate effect.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:
(1)The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:
(A)An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.
(B)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(C)An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.
(D)An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.
(G)An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.
(I)A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.
(J)An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.
(K)An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.
(N)(i)An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.
(ii)A beer manufacturer, the holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.
(O)A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(P)A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.
(Q)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(2)The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.
(3)The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.
(4)The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.
(b)Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:
(1)The on-sale licensee.
(2)With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.
(3)With respect to subparagraph (O) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(c)Any beer manufacturer or holder of a winegrowers license, any distilled spirits rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(d)Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a distilled spirits rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(e)For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.
(f)The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the City of San Diego.
SEC. 4.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure the fair and efficient application of the alcoholic beverage control licensing laws with respect to eligible facilities in the City of San Diego, it is necessary that this act take immediate effect.
SECTION 1.This act shall be known as the Small Business Regulatory Enforcement Fairness Act of 2015.
SEC. 2.(a)The Legislature finds and declares all of the following:
(1)A vibrant and growing small business sector is critical to creating jobs in a dynamic economy.
(2)In California, 62 percent of all firms have fewer than five employees and 98 percent of all firms have fewer than 100 employees and account for 36 percent of all jobs in the state.
(3)While California small businesses create jobs and anchor the states economy, research shows that they bear a disproportionate share of regulatory costs and burdens.
(4)Changes are needed in the regulatory and enforcement culture of state agencies in order to help agencies be more responsive to the implementation challenges of small businesses without compromising statutory missions of the agencies.
(b)The Legislature further declares that the purpose of this act is to do all of the following:
(1)Encourage the effective participation of small businesses in the state regulatory process.
(2)Develop more accessible sources of information on regulatory reporting requirements for small businesses.
(3)Create a more cooperative regulatory environment among agencies and small businesses that is less punitive and more solution oriented.
(4)Make state regulators more accountable for their enforcement actions by providing small businesses and nonprofit organizations with meaningful opportunities for redress of excessive enforcement activities.
SEC. 3.Section 12096.3 of the Government Code is amended to read:12096.3.The office shall serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. In this capacity, the office may:
(a)Recommend to the Governor and the Legislature new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the adopted state economic and business development goals.
(b)Coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives.
(c)Market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
(d)Provide, including, but not limited to, all of the following:
(1)Economic and demographic data.
(2)Financial information to help link businesses with state and local public and private programs.
(3)Workforce information, including, but not limited to, labor availability, training, and education programs.
(4)Transportation and infrastructure information.
(5)Assistance in obtaining state and local permits.
(6)Information on tax credits and other incentives.
(7)Permitting, siting, and other regulatory information pertinent to business operations in the state.
(e)Establish a well-advertised telephone number, an interactive Internet Web site, and an administrative structure that effectively supports the facilitation of business development and investment in the state.
(f)Encourage collaboration among research institutions, startup companies, local governments, venture capitalists, and economic development agencies to promote innovation.
(g)In cooperation with the federal government, foster relationships with overseas entities to improve the states image as a destination for business investment and expansion.
(h)Conduct research on the states business climate, including, but not limited to, research on how the state can remain on the leading edge of innovation and emerging sectors.
(i)Support small businesses by providing information about accessing capital, technical assistance, and complying with regulations, and by supporting state initiatives that support small business.
SEC. 4.Section 12098.3 of the Government Code is amended to read:12098.3.(a)The Director of the Office of Small Business Advocate shall be appointed by, and shall serve at the pleasure of, the Governor.
(b)The Governor shall appoint the employees who are needed to accomplish the purposes of this article.
(c)The duties and functions of the advocate shall include all of the following:
(1)Serve as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses, and advocacy on state policy and programs related to small businesses on disaster preparedness and recovery including providing technical assistance.
(2)Represent the views and interests of small businesses before other state agencies whose policies and activities may affect small business. To the extent information is available and requested, share with a rulemaking agency the contact information for small business organizations, which the rulemaking agency may want to include when disseminating public information about a proposed new rule or amendment.
(3)Enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by state government that are of benefit to small businesses, and information on how small businesses can participate in, or make use of, those programs and services.
(4)Consult with experts and authorities in the fields of small business investment, venture capital investment, and commercial banking and other comparable financial institutions involved in the financing of business, and with individuals with regulatory, legal, economic, or financial expertise, including members of the academic community, and individuals who generally represent the public interest.
(5)Seek the assistance and cooperation of all state agencies and departments providing services to, or affecting, small business, including the small business liaison designated pursuant to Section 14846, to ensure coordination of state efforts.
(6)Receive and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.
(7)Counsel small businesses on how to resolve questions and problems concerning the relationship of small business to state government.
(8)Maintain, publicize, and distribute an annual list of persons serving as small business ombudsmen throughout state government.
SEC. 5.Section 12098.4 of the Government Code is amended to read:12098.4.(a)Each agency of the state shall furnish to the advocate the reports, documents, and information that are public records and that the director deems necessary to carry out his or her functions under this chapter.
(b)Each agency that develops a small entity compliance guide to assist small businesses and nonprofit organizations in complying with regulations in collaboration with a federal agency pursuant to the federal Small Business Regulatory Fairness Act of 1996 (Public Law 104-121) shall notify the advocate within 45 days after the guide becomes available to the public. The notice to the advocate shall include information on how a small business or nonprofit organization can obtain a copy of the small business compliance guide.
(c)The advocate shall prepare and submit a written annual report to the Governor and to the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business enterprises, and making recommendations that may be appropriate to assist the development and strengthening of minority and other small business enterprises.
(d)The advocate may establish a centralized interactive telephone referral system and Internet Web site to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained. The advocate may establish and advertise a telephone number and an Internet Web site address to serve this centralized interactive telephone referral system and Internet Web site.
This act shall be known as the Small Business Regulatory Enforcement Fairness Act of 2015.
SEC. 2.(a)The Legislature finds and declares all of the following:
(1)A vibrant and growing small business sector is critical to creating jobs in a dynamic economy.
(2)In California, 62 percent of all firms have fewer than five employees and 98 percent of all firms have fewer than 100 employees and account for 36 percent of all jobs in the state.
(3)While California small businesses create jobs and anchor the states economy, research shows that they bear a disproportionate share of regulatory costs and burdens.
(4)Changes are needed in the regulatory and enforcement culture of state agencies in order to help agencies be more responsive to the implementation challenges of small businesses without compromising statutory missions of the agencies.
(b)The Legislature further declares that the purpose of this act is to do all of the following:
(1)Encourage the effective participation of small businesses in the state regulatory process.
(2)Develop more accessible sources of information on regulatory reporting requirements for small businesses.
(3)Create a more cooperative regulatory environment among agencies and small businesses that is less punitive and more solution oriented.
(4)Make state regulators more accountable for their enforcement actions by providing small businesses and nonprofit organizations with meaningful opportunities for redress of excessive enforcement activities.
SEC. 3.Section 12096.3 of the Government Code is amended to read:12096.3.The office shall serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. In this capacity, the office may:
(a)Recommend to the Governor and the Legislature new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the adopted state economic and business development goals.
(b)Coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives.
(c)Market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
(d)Provide, including, but not limited to, all of the following:
(1)Economic and demographic data.
(2)Financial information to help link businesses with state and local public and private programs.
(3)Workforce information, including, but not limited to, labor availability, training, and education programs.
(4)Transportation and infrastructure information.
(5)Assistance in obtaining state and local permits.
(6)Information on tax credits and other incentives.
(7)Permitting, siting, and other regulatory information pertinent to business operations in the state.
(e)Establish a well-advertised telephone number, an interactive Internet Web site, and an administrative structure that effectively supports the facilitation of business development and investment in the state.
(f)Encourage collaboration among research institutions, startup companies, local governments, venture capitalists, and economic development agencies to promote innovation.
(g)In cooperation with the federal government, foster relationships with overseas entities to improve the states image as a destination for business investment and expansion.
(h)Conduct research on the states business climate, including, but not limited to, research on how the state can remain on the leading edge of innovation and emerging sectors.
(i)Support small businesses by providing information about accessing capital, technical assistance, and complying with regulations, and by supporting state initiatives that support small business.
SEC. 4.Section 12098.3 of the Government Code is amended to read:12098.3.(a)The Director of the Office of Small Business Advocate shall be appointed by, and shall serve at the pleasure of, the Governor.
(b)The Governor shall appoint the employees who are needed to accomplish the purposes of this article.
(c)The duties and functions of the advocate shall include all of the following:
(1)Serve as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses, and advocacy on state policy and programs related to small businesses on disaster preparedness and recovery including providing technical assistance.
(2)Represent the views and interests of small businesses before other state agencies whose policies and activities may affect small business. To the extent information is available and requested, share with a rulemaking agency the contact information for small business organizations, which the rulemaking agency may want to include when disseminating public information about a proposed new rule or amendment.
(3)Enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by state government that are of benefit to small businesses, and information on how small businesses can participate in, or make use of, those programs and services.
(4)Consult with experts and authorities in the fields of small business investment, venture capital investment, and commercial banking and other comparable financial institutions involved in the financing of business, and with individuals with regulatory, legal, economic, or financial expertise, including members of the academic community, and individuals who generally represent the public interest.
(5)Seek the assistance and cooperation of all state agencies and departments providing services to, or affecting, small business, including the small business liaison designated pursuant to Section 14846, to ensure coordination of state efforts.
(6)Receive and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.
(7)Provide information to rulemaking agencies on the aggregate numbers and size of businesses which may be affected by a proposed new or amended regulation, including, to the extent information is available, identification of small business stakeholder groups which the rulemaking agency may want to include when disseminating public information about the proposed new rule or amendment.
(8)
(7)Counsel small businesses on how to resolve questions and problems concerning the relationship of small business to state government.
(9)
(8)Maintain, publicize, and distribute an annual list of persons serving as small business ombudsmen throughout state government.
SEC. 5.Section 12098.4 of the Government Code is amended to read:12098.4.(a)Each agency of the state shall furnish to the advocate the reports, documents, and information that are public records and that the director deems necessary to carry out his or her functions under this chapter.
(b)Each agency that develops a small entity compliance guide to assist small businesses and nonprofit organizations in complying with regulations in collaboration with a federal agency pursuant to the federal Small Business Regulatory Fairness Act of 1996 (Public Law 104-121) shall notify the advocate within 45 days after the guide becomes available to the public. The notice to the advocate shall include information on how a small business or nonprofit organization can obtain a copy of the small business compliance guide.
(c)The advocate shall prepare and submit a written annual report to the Governor and to the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business enterprises, and making recommendations that may be appropriate to assist the development and strengthening of minority and other small business enterprises.
(d)The advocate may establish a centralized interactive telephone referral system and Internet Web site to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained. The advocate may establish and advertise a telephone number and an Internet Web site address to serve this centralized interactive telephone referral system and Internet Web site.
This act shall be known as the Small Business Regulatory Enforcement Fairness Act of 2015.
SEC. 2.(a)The Legislature finds and declares all of the following:
(1)A vibrant and growing small business sector is critical to creating jobs in a dynamic economy.
(2)In California, 62 percent of all firms have fewer than five employees and 98 percent of all firms have fewer than 100 employees and account for 36 percent of all jobs in the state.
(3)While California small businesses create jobs and anchor the states economy, research shows that they bear a disproportionate share of regulatory costs and burdens.
(4)Changes are needed in the regulatory and enforcement culture of state agencies in order to help agencies be more responsive to the implementation challenges of small businesses without compromising statutory missions of the agencies.
(b)The Legislature further declares that the purpose of this act is to do all of the following:
(1)Encourage the effective participation of small businesses in the state regulatory process.
(2)Develop more accessible sources of information on regulatory reporting requirements for small businesses.
(3)Create a more cooperative regulatory environment among agencies and small businesses that is less punitive and more solution oriented.
(4)Make state regulators more accountable for their enforcement actions by providing small businesses and nonprofits nonprofit organizations with meaningful opportunities for redress of excessive enforcement activities.
SEC. 3.Section 12096.3 of the Government Code is amended to read:12096.3.The office shall serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. In this capacity, the office may:
(a)Recommend to the Governor and the Legislature new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the adopted state economic and business development goals.
(b)Coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives.
(c)Market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
(d)Provide, including, but not limited to, all of the following:
(1)Economic and demographic data.
(2)Financial information to help link businesses with state and local public and private programs.
(3)Workforce information, including, but not limited to, labor availability, training, and education programs.
(4)Transportation and infrastructure information.
(5)Assistance in obtaining state and local permits.
(6)Information on tax credits and other incentives.
(7)Permitting, siting, and other regulatory information pertinent to business operations in the state.
(e)Establish a well-advertised telephone number, an interactive Internet Web site, and an administrative structure that effectively supports the facilitation of business development and investment in the state.
(f)Encourage collaboration among research institutions, startup companies, local governments, venture capitalists, and economic development agencies to promote innovation.
(g)In cooperation with the federal government, foster relationships with overseas entities to improve the states image as a destination for business investment and expansion.
(h)Conduct research on the states business climate, including, but not limited to, research on how the state can remain on the leading edge of innovation and emerging sectors.
(i)Support small businesses by advocating for their interests before state agencies, providing information about accessing capital and capital, technical assistance assistance, and complying with regulations, and by supporting state initiatives that support small business.
SEC. 4.Section 12098.3 of the Government Code is amended to read:12098.3.(a)The Director of the Office of Small Business Advocate shall be appointed by, and shall serve at the pleasure of, the Governor.
(b)The Governor shall appoint the employees who are needed to accomplish the purposes of this article.
(c)The duties and functions of the advocate shall include all of the following:
(1)Serve as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses, and advocacy on state policy and programs related to small businesses on disaster preparedness and recovery including providing technical assistance.
(2)Represent the views and interests of small businesses before other state agencies whose policies and activities may affect small business.
(3)Enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by state government that are of benefit to small businesses, and information on how small businesses can participate in, or make use of, those programs and services.
(4)Consult with experts and authorities in the fields of small business investment, venture capital investment, and commercial banking and other comparable financial institutions involved in the financing of business, and with individuals with regulatory, legal, economic, or financial expertise, including members of the academic community, and individuals who generally represent the public interest.
(5)Seek the assistance and cooperation of all state agencies and departments providing services to, or affecting, small business, including the small business liaison designated pursuant to Section 14846, to ensure coordination of state efforts.
(6)Receive and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.
(7)Advocate for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards.
(7)Provide information to rulemaking agencies on the aggregate numbers and size of businesses which may be affected by a proposed new or amended regulation, including, to the extent information is available, identification of small business stakeholder groups which the rulemaking agency may want to include when disseminating public information about the proposed new rule or amendment.
(8)Counsel small businesses on how to resolve questions and problems concerning the relationship of small business to state government.
(9)Maintain, publicize, and distribute an annual list of persons serving as small business ombudsmen throughout state government.
SEC. 5.Section 12098.4 of the Government Code is amended to read:12098.4.(a)Each agency of the state shall furnish to the advocate the reports, documents, and information that are public records and that the director deems necessary to carry out his or her functions under this chapter.
(b)Each agency that develops a small entity compliance guide to assist small businesses and nonprofit organizations in complying with regulations in collaboration with a federal agency pursuant to the federal Small Business Regulatory Fairness Act of 1996 (Public Law 104-121) shall notify the advocate within 45 days after the guide becomes available to the public. The notice to the advocate shall include information on how a small business or nonprofit organization can obtain a copy of the small business compliance guide.
(c)The advocate shall prepare and submit a written annual report to the Governor and to the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business enterprises, and making recommendations that may be appropriate to assist the development and strengthening of minority and other small business enterprises.
(d)The advocate may establish a centralized interactive telephone referral system and Internet Web site to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained. The advocate may establish and advertise a telephone number and an Internet Web site address to serve this centralized interactive telephone referral system and Internet Web site.
This act shall be known as the Small Business Regulatory Enforcement Fairness Act of 2015.
SEC. 2.(a)The Legislature finds and declares all of the following:
(1)A vibrant and growing small business sector is critical to creating jobs in a dynamic economy.
(2)In California, 62 percent of all firms have fewer than five employees and 98 percent of all firms have fewer than 100 employees and account for 36 percent of all jobs in the state.
(3)While California small businesses create jobs and anchor the states economy, research shows that they bear a disproportionate share of regulatory costs and burdens.
(4)Changes are needed in the regulatory and enforcement culture of state agencies in order to help agencies be more responsive to the implementation challenges of small businesses without compromising statutory missions of the agencies.
(b)The Legislature further declares that the purpose of this act is to do all of the following:
(1)Encourage the effective participation of small businesses in the state regulatory process.
(2)Develop more accessible sources of information on regulatory reporting requirements for small businesses.
(3)Create a more cooperative regulatory environment among agencies and small businesses that is less punitive and more solution oriented.
(4)Make state regulators more accountable for their enforcement actions by providing small businesses and nonprofits with meaningful opportunities for redress of excessive enforcement activities.
SEC. 3.Section 12096.3 of the Government Code is amended to read:12096.3.The office shall serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. In this capacity, the office may:
(a)Recommend to the Governor and the Legislature new state policies, programs, and actions, or amendments to existing programs, advance statewide economic goals and respond to emerging economic problems and opportunities, and ensure that all state policies and programs conform to the adopted state economic and business development goals.
(b)Coordinate the development of policies and criteria to ensure that federal grants administered or directly expended by state government advance statewide economic goals and objectives.
(c)Market the business and investment opportunities available in California by working in partnership with local, regional, federal, and other state public and private institutions to encourage business development and investment in the state.
(d)Provide, including, but not limited to, all of the following:
(1)Economic and demographic data.
(2)Financial information to help link businesses with state and local public and private programs.
(3)Workforce information, including, but not limited to, labor availability, training, and education programs.
(4)Transportation and infrastructure information.
(5)Assistance in obtaining state and local permits.
(6)Information on tax credits and other incentives.
(7)Permitting, siting, and other regulatory information pertinent to business operations in the state.
(e)Establish a well-advertised telephone number, an interactive Internet Web site, and an administrative structure that effectively supports the facilitation of business development and investment in the state.
(f)Encourage collaboration among research institutions, startup companies, local governments, venture capitalists, and economic development agencies to promote innovation.
(g)In cooperation with the federal government, foster relationships with overseas entities to improve the states image as a destination for business investment and expansion.
(h)Conduct research on the states business climate, including, but not limited to, research on how the state can remain on the leading edge of innovation and emerging sectors.
(i)Support small businesses by advocating for their interests before state agencies, providing information about accessing capital, capital and technical assistance and complying with regulations, and supporting state initiatives that support small business.
SEC. 4.Section 12098.3 of the Government Code is amended to read:12098.3.(a)The Director of the Office of Small Business Advocate shall be appointed by, and shall serve at the pleasure of, the Governor.
(b)The Governor shall appoint the employees who are needed to accomplish the purposes of this article.
(c)The duties and functions of the advocate shall include all of the following:
(1)Serve as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses, and advocacy on state policy and programs related to small businesses on disaster preparedness and recovery including providing technical assistance.
(2)Represent the views and interests of small businesses before other state agencies whose policies and activities may affect small business.
(3)Enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by state government that are of benefit to small businesses, and information on how small businesses can participate in, or make use of, those programs and services.
(4)Consult with experts and authorities in the fields of small business investment, venture capital investment, and commercial banking and other comparable financial institutions involved in the financing of business, and with individuals with regulatory, legal, economic, or financial expertise, including members of the academic community, and individuals who generally represent the public interest.
(5)Seek the assistance and cooperation of all state agencies and departments providing services to, or affecting, small business, including the small business liaison designated pursuant to Section 14846, to ensure coordination of state efforts.
(6)Receive and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.
(7)Advocate for regulatory implementation models that are flexible in addressing challenges small businesses face in meeting regulatory mandates without compromising policy standards.
(7)
(8)Counsel small businesses on how to resolve questions and problems concerning the relationship of small business to state government.
(8)
(9)Maintain, publicize, and distribute an annual list of persons serving as small business ombudsmen throughout state government.
SEC. 5.Section 12098.4 of the Government Code is amended to read:12098.4.(a)Each agency of the state shall furnish to the advocate the reports, documents, and information that are public records and that the director deems necessary to carry out his or her functions under this chapter.
(b)Each agency that develops a small entity compliance guide to assist small businesses and nonprofit organizations in complying with regulations in collaboration with a federal agency pursuant to the federal Small Business Regulatory Fairness Act of 1996 (Public Law 104-121) shall notify the advocate within 45 days after the guide becomes available to the public. The notice to the advocate shall include information on how a small business or nonprofit organization can obtain a copy of the small business compliance guide.
(b)
(c)The advocate shall prepare and submit a written annual report to the Governor and to the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business enterprises, and making recommendations that may be appropriate to assist the development and strengthening of minority and other small business enterprises.
(c)
(d)The advocate may establish a centralized interactive telephone referral system and Internet Web site to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained. The advocate may establish and advertise a telephone number and an Internet Web site address to serve this centralized interactive telephone referral system and Internet Web site.
|
Date
|
Status
|
|---|---|
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1810.) |
| Aug 30, 2016 | Ordered to inactive file pursuant to Senate Rule 29. |
| Jun 21, 2016 | Read second time. Ordered to third reading. |
| Jun 20, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8. |
| Jun 8, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| May 12, 2016 | Read second time and amended. Re-referred to Com. on APPR. |
| May 11, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (May 10). |
| Apr 4, 2016 | Re-referred to Com. on G.O. |
| Mar 31, 2016 | Withdrawn from committee. |
| Mar 31, 2016 | Re-referred to Com. on RLS. |
| Mar 30, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| Jun 19, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 11, 2015 | Referred to Com. on B., P. & E.D. |
| Feb 26, 2015 | Read first time. To print. |
| Jun 2, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 2, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 1, 2015 | Read second time. Ordered to third reading. |
| May 28, 2015 | Read second time and amended. Ordered returned to second reading. |
| May 28, 2015 | From committee: Amend, and do pass as amended. (Ayes 17. Noes 0.) (May 28). |
| May 6, 2015 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 21, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 21). Re-referred to Com. on APPR. |
| Apr 14, 2015 | Re-referred to Com. on J., E.D., & E. |
| Apr 13, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on J., E.D., & E. Read second time and amended. |
| Mar 16, 2015 | Referred to Com. on J., E.D., & E. |
| Feb 27, 2015 | From printer. May be heard in committee March 29. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| May 10, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
Passed |
|
| Jun 2, 2015 | AB 866 GARCIA, E. Assembly Third Reading | Assembly Floor |
Passed |
|
| May 28, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 21, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Jobs, Economic Development, and the Economy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Building Owners and Managers Association | ** Support | Jun 2, 2015 |
| California Asian Pacific Chamber Of Commerce | ** Support | Jun 2, 2015 |
| California Business Properties Association | ** Support | Jun 2, 2015 |
| California Chamber Of Commerce | ** Support | Jun 2, 2015 |
| California Manufacturers And Technology Association | ** Support | Jun 2, 2015 |
| Industrial Environmental Association | ** Support | Jun 2, 2015 |
| International Council of Shopping Centers | ** Support | Jun 2, 2015 |
| NAIOP - Commercial Real Estate Development Association | ** Support | Jun 2, 2015 |
| National Federation Of Independent Business | ** Support | Jun 2, 2015 |
| San Diego Padres | ** Support | May 10, 2016 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 866
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 5/10/16
AYES: Hall, Berryhill, Block, Galgiani, Glazer, Hernandez, Hill, Lara, McGuire, Vidak
NO VOTE RECORDED: Bates, Gaines, Hueso
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: Not relevant
DIGEST: This bill extends an existing tied-house exception in the Alcoholic Beverage Control (ABC) Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include outdoor stadiums with specified seating capacities located in the Cities of Inglewood and San Diego, specifically, the future home of the National Football League Los Angeles Rams and Petco Park, home of the San Diego Padres Major League Baseball team.
ANALYSIS:
Existing law:
- 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.
- 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.
- 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.
- 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, the Forum in the City of Inglewood, Levi’s Stadium in the City of Santa Clara, and other venues].
This bill:
- Extends an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include: (a) an outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego and (b) an outdoor stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood.
- Contains an urgency clause to take effect immediately.
Background
Purpose of AB 866. According to the author's office, the home of the San Diego Padres Major League Baseball team is Petco Park which is located in downtown San Diego. This state of the art facility is owned by the City of San Diego and operated under the auspices of the San Diego Padres Baseball Club LP, the holder of the alcoholic beverage on-sale retail license. The author’s office notes that existing ABC laws contain numerous exceptions to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees.
This bill includes Petco Park on the list of exemptions in the law, thereby allowing the Padres LP to develop certain alcoholic beverage sponsorships with various manufacturers and distributors. The author’s office emphasizes that this exemption would put Petco Park on an even playing field with other arenas and stadiums in California. Additionally, the author’s office notes that AB 866 contains an urgency clause because Petco Park is hosting the 87th Major League Baseball All-Star Week July 10-12, 2016.
Furthermore, this bill adds the soon to be built National Football League (NFL) Los Angeles Rams Inglewood Stadium to the list of exemptions in the law. The Rams and their #1 overall pick in the 2016 draft (Quarterback Jared Goff – University of California) will open the 2016 NFL season in their former home at the L.A. Memorial Coliseum. The Rams new venue, which is scheduled to open in 2019, will be on the site of the former Hollywood Park horse racing track. The 300-acre development’s footprint consists of more than 1.5 million square feet of retail and office space, 2500 homes, a 300-room hotel, and 25 acres of parks.
Petco Park. Petco Park is a baseball park, but also known as a venue for concerts, football, rugby sevens and other events. It opened in 2004, replacing Jack Murphy/Qualcomm Stadium as the home park of the San Diego Padres, the city’s Major League Baseball (MLB) franchise. The ballpark seats approximately 43,000 and is named after the pet supplies retailer Petco, which is based in San Diego and paid for the naming rights. The Padres previously shared Jack Murphy/Qualcomm Stadium with the National Football League’s San Diego Chargers. The construction cost of over $450 million was partially funded by the Center City Development Corporation and the San Diego Redevelopment Agency. The ballpark was intended to be part of a comprehensive plan to revitalize San Diego’s aging downtown. The ballpark is located across Harbor Drive from the San Diego Convention Center and its main entrance behind home plate is located two blocks from the downtown terminal of the San Diego Trolley light rail system. The official address of Petco Park is 19 Tony Gwynn Way, in honor of the eight-time National League batting champion who wore that uniform number during his entire major league career with the Padres. A 10-foot statue of Gwynn was unveiled on the park grounds in July of 2007 – Gwynn passed in June of 2014 after battling salivary gland cancer. Gwynn's .338 career batting average over 20 seasons is the highest since Ted Williams (the “Splendid Splinter”) retired from the Red Sox in 1960 with a .344 career batting average.
Comments
Although the stated purpose of this bill is to provide exemptions for Petco Park and the new Inglewood stadium, Qualcomm Stadium seats approximately 70,000 and therefore meets the exemption threshold of 43,000 fixed seats at an outdoor stadium in the City of San Diego thus making it eligible for the same exemption.
Related/Prior Legislation
AB 1971 (Cooper, 2016) creates a stand-alone tied-house exception in the ABC Act to allow holders of manufacturer licenses, as specified, to purchase advertising from retail licensees at outdoor stadiums and indoor arenas, subject to specified conditions. (Pending in the Senate Appropriations Committee)
SB 557 (Hall, Chapter 420, Statutes of 2015) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.
SB 462 (Wolk, Chapter 315, Statutes of 2015) among other things, extended an existing tied-house exception 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.
AB 600 (Bonta, Chapter 139, Statutes of 2014) extended an existing tied-house exception 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 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.
AB 1442 (Horton, Chapter 617, Statutes of 2005) extended an existing 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.
SB 1647 (Perata, Chapter 275, Statutes of 2004) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Oakland Coliseum in Alameda County.
SB 1189 (Costa, Chapter 47, Statutes of 2002) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Visalia Oaks Stadium in Visalia and the California Speedway in Fontana.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 6/21/16)
San Diego Padres
OPPOSITION: (Verified 6/21/16)
None received
6/22/16 15:14:55
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: 866 Hearing Date: 5/10/2016
Author: | |||
Version: | 3/30/2016 Amended | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Arthur Terzakis | ||
SUBJECT: Alcoholic beverages: advertising: San Diego
DIGEST: This bill extends an existing tied-house exception in the Alcoholic Beverage Control (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 43,000 seats located in the City of San Diego (Petco Park – home of the San Diego Padres Major League Baseball team).
ANALYSIS:
Existing law:
- 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.
- 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.
- 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.
- 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, the Forum in the City of Inglewood, Levi’s Stadium in the City of Santa Clara, and other venues].
This bill:
- Extends an existing tied-house exception 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 43,000 seats located in the City of San Diego.
- Contains an urgency clause to take effect immediately.
Background
Purpose of AB 866. According to the author's office, the home of the San Diego Padres Major League Baseball team is Petco Park which is located in downtown San Diego. This state of the art facility is owned by the City of San Diego and operated under the auspices of the San Diego Padres Baseball Club LP, the holder of the alcoholic beverage on-sale retail license. The author’s office notes that existing ABC laws contain numerous exceptions to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees. This bill will include Petco Park on the list of exemptions in the law, thereby allowing the Padres LP to develop certain alcoholic beverage sponsorships with various manufacturers and distributors. The author’s office emphasizes that this exemption would put Petco Park on an even playing field with other arenas and stadiums in California. Additionally, the author’s office notes that AB 866 contains an urgency clause because Petco Park is hosting the 87th Major League Baseball All-Star Week July 10-12, 2016.
Petco Park. Petco Park is a baseball park, but also known as a venue for concerts, football, rugby sevens and other events. It opened in 2004, replacing Jack Murphy/Qualcomm Stadium as the home park of the San Diego Padres, the city’s Major League Baseball (MLB) franchise. The ballpark seats approximately 43,000 and is named after the pet supplies retailer Petco, which is based in San Diego and paid for the naming rights. The Padres previously shared Jack Murphy/Qualcomm Stadium with the National Football League’s San Diego Chargers. The construction cost of over $450 million was partially funded by the Center City Development Corporation and the San Diego Redevelopment Agency. The ballpark was intended to be part of a comprehensive plan to revitalize San Diego’s aging downtown. The ballpark is located across Harbor Drive from the San Diego Convention Center and its main entrance behind home plate is located two blocks from the downtown terminal of the San Diego Trolley light rail system. The official address of Petco Park is 19 Tony Gwynn Way, in honor of the eight-time National League batting champion who wore that uniform number during his entire major league career with the Padres. A 10-foot statue of Gwynn was unveiled on the park grounds in July of 2007 – Gwynn passed in June of 2014 after battling salivary gland cancer. Gwynn's .338 career batting average over 20 seasons is the highest since Ted Williams (the “Splendid Splinter”) retired from the Red Sox in 1960 with a .344 career batting average.
Comments. Although the stated purpose of this bill is to provide an exemption for Petco Park, Qualcomm Stadium seats approximately 70,000 and therefore meets the exemption threshold of 43,000 fixed seats at an outdoor stadium in the City of San Diego thus making it eligible for the same exemption.
Author’s amendments. The author will offer the following amendments in committee on Tuesday, May 10, 2016:
- Add Senator Hall and Senator Hueso as co-authors.
- On page 5, between lines 11 & 12, add, (R) an outdoor stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood. (new stadium for the Los Angeles Rams National Football League team)
Prior/Related Legislation
AB 1767 (Bigelow, 2016) expands the specified conditions under which designated alcoholic beverage licensees may purchase advertising space or time in connection with events held on the premises of an exposition, park, stadium or arena owned by the on-sale licensee to include circumstances in which the premises are “leased” by the on-sale licensee. (Pending in Assembly Appropriations Committee)
SB 557 (Hall, Chapter 420, Statutes of 2015) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a fairgrounds with a horse racetrack and equestrian and sports facilities located in the County of San Diego.
SB 462 (Wolk, Chapter 315, Statutes of 2015) among other things, extended an existing tied-house exception 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.
AB 600 (Bonta, Chapter 139, Statutes of 2014) extended an existing tied-house exception 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.
SB 351 (Negrete-McLeod, 2007) would have extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees so that alcoholic beverage manufacturers may purchase advertising from on-sale retail licensees in order to promote “safe ride home programs” at specified stadiums and arenas. (Placed on Assembly inactive file)
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.
AB 1442 (Horton, Chapter 617, Statutes of 2005) extended an existing 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.
SB 1647 (Perata, Chapter 275, Statutes of 2004) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Oakland Coliseum in Alameda County.
SB 1189 (Costa, Chapter 47, Statutes of 2002) extended an existing tied-house exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to the Visalia Oaks Stadium in Visalia and the California Speedway in Fontana.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
San Diego Padres
OPPOSITION:
None received
AB 866
Page 2
ASSEMBLY THIRD READING
AB 866
(Eduardo Garcia)
As Amended May 28, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Jobs |
9-0 |
Eduardo Garcia, Kim, Brough, Brown, Chau, Chu, Gipson, Irwin, Mathis |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Expands the duties of the Small Business Advocate to include the provision of known information to state rulemaking agencies on small business stakeholder groups which the rulemaking agency may choose to include when disseminating public information about a proposed new rule or amendment.
This bill also requires a state agency that develops a small business compliance guide in partnership with federal agency, under the federal Small Business Regulatory Fairness Act of 1996 (Public Law 104-121), to notify and provide specified information to the Small Business Advocate within 45 days after the guide becomes available to the public.
EXISTING LAW:
Finds and declares that it is in the public interest to aid, counsel, assist, and protect the interests of small business concerns in order to maintain a healthy state economy.
Finds and declares that the complexity and lack of clarity in many regulations put small businesses, which do not have the resources to hire experts to assist them, at a distinct disadvantage.
Establishes the Office of the Small Business Advocate, within the Governor's Office of Business and Economic Development, to serve, among other things, as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses.
Establishes basic minimum procedural requirements for the adoption, amendment, or repeal of administrative regulations, including assessing the potential adverse impact of an action on California businesses and individuals with the purpose of avoiding the imposition of unreasonable and unnecessary regulations, reporting, recordkeeping, or compliance requirements. Among other requirements, an agency is required to:
Base decisions on adequate information;
Consider the impact of a proposed rule on an industry's ability to compete with businesses in other states; and
Assess its impact on the creation or elimination of jobs and new and expanding businesses.
FISCAL EFFECT: According to the Assembly Appropriations Committee, minor/absorbable costs to Governor's Office of Business and Economic Development to share contact information for small business organization with rulemaking agencies as specified.
COMMENTS: The state has a vigorous public process that is designed to allow the rulemaking agency to fully consider the comments, suggestions, and economic impacts of proposed regulations on all size businesses – especially small businesses. The process, however, is dependent on the abilities of the potentially impacted parties to submit specific information to the rulemaking agency on the rules' affect. This requirement represents an intrinsic conflict within California's rulemaking process. While research shows that small business are likely to be the most affected, they also have the least ability to monitor the broad range of state rulemaking entities, recommend appropriate alternative implementation methods, or engage meaningfully in the often complex and highly technical rulemaking proceedings.
Given that nearly 3 million firms in California have no employees and 90% of firms with employees have less than 20, having implementation methods that are appropriate for small businesses in terms of time, money, and expertise are important state's long-term economic growth.
In order to supplement small businesses' direct engagement in the rulemaking process, the state could more effectively use small business advocacy groups to help educate a rulemaking agency on the compliance challenges of small businesses. This bill provides a potential new resource for rulemaking agencies that are seeking information on how proposed new and amended rules could affect small businesses, including recommendations on how to mitigate administrative burdens, while still meeting the same policy standards.
Further, this bill expands the type of information and materials the Small Business Advocate will have to serve small businesses seeking help in meeting government regulations. Federal law, the Small Business Regulatory Fairness Act of 1996, encourages federal agencies to develop small business regulatory compliance guides with their state counterparts. There is currently no single source of information on which state agencies have developed or are in the process of developing these materials.
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0000838
AB 866
Page 2
Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 866
(Eduardo Garcia) – As Amended April 13, 2015
Policy Committee: |
Jobs, Economic Development, and the Economy |
Vote: |
9 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY: This bill expands the duties of the Office of the Small Business Advocate (OSBA), in the Governor's Office of Business and Economic Development (GO-Biz), to include assisting state rulemaking agencies in identifying the aggregate number and size of businesses which may be affected by a new or amended regulation. Further, this bill requires a state agency that develops a small business compliance guide under the federal Small Business Regulatory Fairness Act, to notify the OSBA within 45 days after the guide becomes available to the public. The notice is also required to include information on how a small business or nonprofit organization can obtain a copy of the guide.
FISCAL EFFECT:
Ongoing General Fund costs to GO-Biz of approximately $260,000 to fund three positions for workload related to the expanded duties of the OSBA.
The OSBA does not currently have the staff to formally comment on pending state regulations. On a case-by-case basis, GO-Biz has engaged on current and proposed regulatory proposals through its Office of Permit Assistance but state statutory direction is currently permissive.
COMMENTS:
Background. The Office of Small Business Advocate (OSBA) serves as the primary advocate for California’s small business community. The OSBA engages in outreach with small businesses through a variety of methods, including workshops and individual assistance to small business owners. OSBA also manages programs to assist small businesses with capital access and marketing. Additionally, OSBA collaborates with GO-Biz’s Permit Assistance Unit to convene an Interagency Working Group that focuses on regulatory updates and small business outreach.
Purpose. This bill seeks to make the regulatory process more accessible to small businesses and requires OSBA to assist state agencies in their rule making process by providing information on the number and size of businesses within the industry sector that could be impacted by the regulation. Further, OSBA would assist the rulemaking agency in identifying key small business stakeholder groups, which should be included in the public dissemination of information.
Analysis Prepared by: Misty Feusahrens / APPR. / (916) 319-2081
Discussed in Hearing
12MIN
Senate Standing Committee on Governmental Organization
1MIN
Assembly Floor
Bill Author
