SB 582: Alcoholic beverages: tied-house restrictions: advertising.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-10-11
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium and venue located in the City of Inglewood and a specified outdoor stadium of at least 70,000 seats in Los Angeles County. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
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 incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 664 and AB 1724 to be operative only if this bill and SB 664, this bill and AB 1724, or all 3 bills are enacted and this bill is enacted last.
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium and venue located in the City of Inglewood and a specified outdoor stadium of at least 70,000 seats in Los Angeles County. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
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 incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 664 and AB 1724 to be operative only if this bill and SB 664, this bill and AB 1724, or all 3 bills are enacted and this bill is enacted last.
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium and venue located in the City of Inglewood and a specified outdoor stadium of at least 70,000 seats in Los Angeles County. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
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 incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 664 and AB 1724 to be operative only if this bill and SB 664, this bill and AB 1724, or all 3 bills are enacted and this bill is enacted last.
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium and venue located in the City of Inglewood. Inglewood and a specified outdoor stadium in Los Angeles County. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
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 incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 664 and AB 1724 to be operative only if this bill and SB 664, this bill and AB 1724, or all 3 bills are enacted and this bill is enacted last.
The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium and venue located in the City of Inglewood. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to 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 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 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 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 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. 1.3.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.5.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.7.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(T)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O), (R), and (T) 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 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 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.The Legislature finds and declares that a special statute is necessary and that a general statute 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 Inglewood.
SEC. 3.(a)Section 1.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Assembly Bill 1724 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 1, 1.5, and 1.7 of this bill shall not become operative.
(b)Section 1.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Assembly Bill 1724. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 1724, in which case Sections 1, 1.3, and 1.7 of this bill shall not become operative.
(c)Section 1.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 664, and Assembly Bill 1724. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 664 and Assembly Bill 1724, in which case Sections 1, 1.3, and 1.5 of this bill shall not become operative.
SEC. 4.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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to 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 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 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 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 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. 1.3.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.5.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.7.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(T)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O), (R), and (T) 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 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 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.The Legislature finds and declares that a special statute is necessary and that a general statute 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 Inglewood.
SEC. 3.(a)Section 1.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Assembly Bill 1724 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 1, 1.5, and 1.7 of this bill shall not become operative.
(b)Section 1.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Assembly Bill 1724. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 1724, in which case Sections 1, 1.3, and 1.7 of this bill shall not become operative.
(c)Section 1.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 664, and Assembly Bill 1724. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 664 and Assembly Bill 1724, in which case Sections 1, 1.3, and 1.5 of this bill shall not become operative.
SEC. 4.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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to 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 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 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 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 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. 1.3.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.5.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O) and (R) 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 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 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. 1.7.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(T)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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 subparagraphs (O), (R), and (T) 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 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 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.The Legislature finds and declares that a special statute is necessary and that a general statute 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 Inglewood.
SEC. 3.(a)Section 1.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Assembly Bill 1724 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 1, 1.5, and 1.7 of this bill shall not become operative.
(b)Section 1.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Assembly Bill 1724. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 1724, in which case Sections 1, 1.3, and 1.7 of this bill shall not become operative.
(c)Section 1.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 664, and Assembly Bill 1724. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 664 and Assembly Bill 1724, in which case Sections 1, 1.3, and 1.5 of this bill shall not become operative.
SEC. 4.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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to 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 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 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 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 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. 1.3.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(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 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 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) subparagraphs (O) and (R) 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 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 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. 1.5.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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) subparagraphs (O) and (R) 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 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 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. 1.7.Section 25503.6 of the Business and Professions Code is amended to read:25503.6.(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.
(ii)An outdoor stadium located in Los Angeles County operated by a joint powers authority.
(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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.
(R)An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(T)An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.
(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 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 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) subparagraphs (O), (R), and (T) 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 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 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.The Legislature finds and declares that a special statute is necessary and that a general statute 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 Inglewood.
SEC. 3.(a)Section 1.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Assembly Bill 1724 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 1, 1.5, and 1.7 of this bill shall not become operative.
(b)Section 1.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Assembly Bill 1724. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Assembly Bill 1724, in which case Sections 1, 1.3, and 1.7 of this bill shall not become operative.
(c)Section 1.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 664, and Assembly Bill 1724. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 664 and Assembly Bill 1724, in which case Sections 1, 1.3, and 1.5 of this bill shall not become operative.
SEC. 3.SEC. 4.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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a 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 seating 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 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)A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to 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 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 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 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 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.The Legislature finds and declares that a special statute is necessary and that a general statute 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 Inglewood.
SEC. 3.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.
|
Date
|
Status
|
|---|---|
| Oct 11, 2017 | Chaptered by Secretary of State. Chapter 672, Statutes of 2017. |
| Oct 11, 2017 | Approved by the Governor. |
| Sep 21, 2017 | Enrolled and presented to the Governor at 5:30 p.m. |
| Sep 14, 2017 | Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 14, 2017 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 13, 2017 | Read third time. Passed. Ordered to the Senate. |
| Sep 8, 2017 | Read third time and amended. |
| Aug 31, 2017 | Read third time and amended. |
| Aug 21, 2017 | From consent calendar on motion of Assembly Member Calderon. |
| Jul 20, 2017 | Read second time. Ordered to consent calendar. |
| Jul 19, 2017 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 19). |
| Jul 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 21. Noes 0.) (July 5). Re-referred to Com. on APPR. |
| May 18, 2017 | Referred to Com. on G.O. |
| Apr 20, 2017 | In Assembly. Read first time. Held at Desk. |
| Apr 20, 2017 | Read third time. Passed. (Ayes 39. Noes 0. Page 767.) Ordered to the Assembly. |
| Apr 18, 2017 | Read second time. Ordered to third reading. |
| Apr 17, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Apr 5, 2017 | Set for hearing April 17. |
| Mar 28, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (March 28). Re-referred to Com. on APPR. |
| Mar 8, 2017 | Set for hearing March 28. |
| Mar 2, 2017 | Referred to Com. on G.O. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2017 | Unfinished Business SB582 Bradford et al. Concurrence | Senate Floor |
Passed |
|
| Sep 13, 2017 | SB 582 Bradford Senate Third Reading By BURKE | Assembly Floor |
Passed |
|
| Jul 19, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 5, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Governmental Organization |
Passed |
|
| Apr 20, 2017 | Second Reading | Senate Floor |
Passed |
|
| Mar 28, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governmental Organization |
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
|
|---|---|---|
| Alcohol Justice | ** Against | Sep 14, 2017 |
| California Alcohol Policy Alliance | ** Against | Sep 14, 2017 |
| City Of Inglewood | ** Support | Sep 14, 2017 |
| Hollywood Park Land Company, Inc. | ** Support | Sep 14, 2017 |
| International Union Of Painters And Allied Trades | * Support | Mar 28, 2017 |
| Los Angeles Rams | ** Support | Sep 14, 2017 |
| State Building and Construction Trades Council | * Support | Mar 28, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 582
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 3/28/17
AYES: Glazer, Bradford, Cannella, Dodd, Gaines, Galgiani, Hill, Hueso, Lara, Mendoza, Vidak
NO VOTE RECORDED: Berryhill, Portantino
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 39-0, 4/20/17
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Fuller, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NO VOTE RECORDED: Jackson
ASSEMBLY FLOOR: 78-0, 9/13/17 - See last page for vote
SUBJECT: Alcoholic beverages: tied-house restrictions: advertising
DIGEST: This bill extends an existing exception in the Alcoholic Beverage Control (ABC) Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include a specified stadium (The Los Angeles Stadium at Hollywood Park), and venue located in the City of Inglewood, and a specified outdoor stadium of at least 70,000 seats in Los Angeles County (The Los Angeles Memorial Coliseum).
Assembly Amendments
(1) authorize beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at an outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority; (2) add chaptering language to avoid conflicts with SB 664 (Dodd) and AB 1724 (Jones-Sawyer).
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, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. 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, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
This bill:
- Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer’s agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at:
- A specified stadium and venue located in the City of Inglewood.
- An outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
- Contains language that prevents this bill from chaptering out any other legislative changes made to Business and Professions Code Section 25503.6 by AB 1724 (Jones-Sawyer) and SB 664 (Dodd) both of the current legislative session.
Comments
Purpose of the bill. The author’s office points out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill puts the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
Additionally the author’s office notes that, amendments taken in the Assembly add the Los Angeles Memorial Coliseum (Coliseum) to this bill. The Los Angeles Rams are currently playing in the Coliseum pending the completion of construction of the new stadium in Inglewood. Heavy rains at the site in Inglewood earlier this year have caused a delay in construction of the new stadium. The extension of the tied-house exemption to the Coliseum will assist in facilitating the Los Angeles Rams’ use of the Coliseum while they are there. The extension will also benefit other events planned for the Coliseum.
Tied-house laws. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000 seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
Los Angeles Memorial Coliseum. This bill also provides an advertising tied-house exemption for the Coliseum. The Coliseum, located in the Exposition Park neighborhood of Los Angeles, serves as the home to the University of Southern California Trojans football team, and as the temporary home of the Los Angeles Rams of the National Football League. The stadium has a seating capacity of approximately 93,607.
The University of Southern California manages the Coliseum under a lease agreement with the Los Angeles Memorial Coliseum Commission. The Coliseum Commission is a Joint Powers Authority between the City of Los Angeles, the County of Los Angeles, and the Sixth District Agricultural Association (referred to as the California Science Center), an institution of the State of California. The Commission Board consists of three voting members - one appointed by each of the three member entities. The Commission’s purpose is to provide for the ongoing operation and maintenance of the Los Angeles Memorial Coliseum and the Los Angeles Memorial Sports Arena.
Related/Prior Legislation
SB 664 (Dodd, 2017) allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at an outdoor stadium (AT&T Park) and an indoor arena (Chase Center) with specified seating capacities located in the City and County of San Francisco.
AB 1724 (Jones-Sawyer, 2017), among other things, extends an existing exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include a specified outdoor stadium located in the City of Los Angeles (Banc of California Stadium, the future home of the Los Angeles Football Club).
SB 1105 (Mendoza, 2016), among other things, would have authorized the Department of ABC to issue a general on-sale license for a sports entertainment facility bona fide public eating place that would allow the licensee to sell beer, wine, and distilled spirits at retail for consumption on the premises in a sports entertainment facility, as defined. (Never heard in the Assembly Governmental Organization Committee)
AB 1971 (Cooper, 2016) would have created 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. (Placed on the Senate Inactive File)
AB 2096 (Low, 2016) would have added leased premises to a specified condition in law that allows designated licensees to purchase advertising space or time from, or on behalf of, an on-sale retail licensee in connection with events which are held on the premises of an exposition park, stadium, or arena owned by the on-sale licensee. (Never heard in the Assembly Governmental Organization Committee)
AB 866 (E. Garcia, 2016) would have extended an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include outdoor stadiums with specified seating capacities located in the Cities of Inglewood and San Diego. (Placed on the Senate Inactive File)
AB 527 (Dodd, Chapter 517, Statutes of 2015) created a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.
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).
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 the 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 located in San Joaquin County (Stockton Arena).
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 located in San Joaquin County (Banner Island Ballpark).
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 a fully enclosed arena with a fixed seating capacity in excess of 15,000 seats located in Santa Clara County (HP Pavilion).
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 an outdoor stadium or a fully enclosed stadium, with a fixed seating capacity in excess of 10,000 seats located in Alameda County (Oakland Coliseum).
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 an outdoor stadium and an enclosed arena with fixed seating capacities in excess of 1,500 seats located in Tulare County (Visalia Oaks Stadium) and to 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 within San Bernardino County (California Speedway).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, minor and absorbable costs for the California Department of ABC.
SUPPORT: (Verified 9/14/17)
City of Inglewood
Hollywood Park Land Company, Inc.
Los Angeles Rams
OPPOSITION: (Verified 9/14/17)
Alcohol Justice
California Alcohol Policy Alliance
ARGUMENTS IN SUPPORT: The City of Inglewood and the Los Angeles Rams state that “SB 582 would add a tied house exemption for the purposes of advertising alcoholic beverages within the new NFL stadium in Inglewood, CA. The legislation simply adds the new LA Stadium & Entertainment District in Hollywood Park to the current list of 21 other stadium/arena exemptions.”
Additionally, the Hollywood Park Land Company, Inc. states that, “SB 582 simply seeks to provide an exemption for the new football stadium being built in Inglewood, similarly to those exemptions which have been historically provided to other stadiums and arenas which have been built here in California.”
ARGUMENTS IN OPPOSITION: Opponents are concerned that “football stadiums, often with many youth present or watching on TV, are swimming in alcohol advertising.” Additionally opponents state “this bill also blurs the necessary separation between manufacturing and the on-sale retail sector.”
ASSEMBLY FLOOR: 78-0, 9/13/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Nazarian
9/14/17 10:37:32
**** END ****
SENATE THIRD READING
STR Bill Id:SB 582
Author:(Bradford)
As Amended Ver:September 8, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Governmental Organization | 21-0 | Gray, Bigelow, Acosta, Aguiar-Curry, Bocanegra, Bonta, Brough, Cooley, Cooper, Daly, Gallagher, Eduardo Garcia, Gipson, Gloria, Jones-Sawyer, Kiley, Levine, Low, Rubio, Salas, Waldron | > |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes | > |
SUMMARY: Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at: 1) a stadium (The Los Angeles Stadium at Hollywood Park) and an adjacent performance venue with specified seating capacities located in the City of Inglewood and 2) an outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority. Specifically, this bill:
- Extends an existing exception in the Alcoholic Beverage Control Act (Act) pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood.
- Authorizes beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at an outdoor stadium of at least 70,000 seats located in Los Angeles County operated by a joint powers authority.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
- Incorporates chaptering language to avoid conflicts with SB 664 (Dodd) of the current legislative session, and AB 1724 (Jones-Sawyer) of the current legislative session.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
- Existing law, known as the "Tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.
- Prohibits, in general, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
FISCAL EFFECT: According to the Assembly Appropriations Committee, minor and absorbable costs for ABC.
COMMENTS:
Background
Tied-house laws: Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: 1) promote the state's interest in an orderly market; 2) prohibit the vertical integration and dominance by a single producer in the marketplace; 3) prohibit commercial bribery and to protect the public from predatory marketing practices; and 4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi's Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000-seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
Purpose of the bill: The author's office states out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC Tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
In addition, the bill provides an advertising Tied-house exemption for the Los Angeles Memorial Coliseum. The famed Memorial Coliseum, located in the Exposition Park neighborhood of Los Angeles, serves as the home to the University of Southern California (USC) Trojans football team, and as the temporary home of the Los Angeles Rams of the National Football League. The Coliseum is the first stadium to have hosted the Summer Olympics twice, in 1932 and 1984, and on July 31, 2017, the International Olympic Committee announced that Los Angeles, and presumably the Coliseum, would again host the Summer Olympics in 2028.
USC manages the Coliseum under a lease agreement with the Los Angeles Memorial Coliseum Commission. The Commission is a Joint Powers Authority (JPA) between the City of Los Angeles, the County of Los Angeles, and the Sixth District Agricultural Association. The Commission's purpose is to provide for the ongoing operation and maintenance of the Los Angeles Memorial Coliseum and Los Angeles Memorial Sports Arena.
Related legislation: SB 664 (Dodd) of the current legislative session. Would extend an existing Tied-house exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (AT&T Park – San Francisco Giants) and an indoor arena (Chase Center – Golden State Warriors) with specified seating capacities located in the City and County of San Francisco.
AB 1724 (Jones-Sawyer) of the current legislative session. Extends an existing exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include a specified outdoor stadium located in the City of Los Angeles (Banc of California Stadium, the future home of the Los Angeles Football Club). This bill also makes minor code maintenance changes to an outdated section of the Act.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0002049
SENATE THIRD READING
STR Bill Id:SB 582
Author:(Bradford)
As Amended Ver:August 31, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Governmental Organization | 21-0 | Gray, Bigelow, Acosta, Aguiar-Curry, Bocanegra, Bonta, Brough, Cooley, Cooper, Daly, Gallagher, Eduardo Garcia, Gipson, Gloria, Jones-Sawyer, Kiley, Levine, Low, Rubio, Salas, Waldron |
|
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
|
SUMMARY: Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at: 1) a stadium (The Los Angeles Stadium at Hollywood Park) and an adjacent performance venue with specified seating capacities located in the City of Inglewood and 2) an outdoor stadium located in Los Angeles County operated by a joint powers authority. Specifically, this bill:
- Extends an existing exception in the Alcoholic Beverage Control Act (Act) pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood.
- Authorizes beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at an outdoor stadium located in Los Angeles County operated by a joint powers authority.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
- Incorporates chaptering language to avoid conflicts with SB 664 (Dodd) of the current legislative session, and AB 1724 (Jones-Sawyer) of the current legislative session.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
- Existing law, known as the "Tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.
- Prohibits, in general, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
FISCAL EFFECT: According to the Assembly Appropriations Committee, minor and absorbable costs for ABC.
COMMENTS:
Background
Tied-house laws: Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: 1) promote the state's interest in an orderly market; 2) prohibit the vertical integration and dominance by a single producer in the marketplace; 3) prohibit commercial bribery and to protect the public from predatory marketing practices; and 4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi's Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000-seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
Purpose of the bill: The author's office states out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC Tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
In addition, the bill provides an advertising Tied-house exemption for the Los Angeles Memorial Coliseum. The famed Memorial Coliseum, located in the Exposition Park neighborhood of Los Angeles, serves as the home to the University of Southern California (USC) Trojans football team, and as the temporary home of the Los Angeles Rams of the National Football League. The Coliseum is the first stadium to have hosted the Summer Olympics twice, in 1932 and 1984, and on July 31, 2017, the International Olympic Committee announced that Los Angeles, and presumably the Coliseum, would again host the Summer Olympics in 2028.
USC manages the Coliseum under a lease agreement with the Los Angeles Memorial Coliseum Commission. The Commission is a Joint Powers Authority (JPA) between the City of Los Angeles, the County of Los Angeles, and the Sixth District Agricultural Association. The Commission's purpose is to provide for the ongoing operation and maintenance of the Los Angeles Memorial Coliseum and Los Angeles Memorial Sports Arena.
Related legislation: SB 664 (Dodd) of the current legislative session. Would extend an existing Tied-house exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (AT&T Park – San Francisco Giants) and an indoor arena (Chase Center – Golden State Warriors) with specified seating capacities located in the City and County of San Francisco.
AB 1724 (Jones-Sawyer) of the current legislative session. Extends an existing exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include a specified outdoor stadium located in the City of Los Angeles (Banc of California Stadium, the future home of the Los Angeles Football Club). This bill also makes minor code maintenance changes to an outdated section of the Act.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0001613
SENATE THIRD READING
STR Bill Id:SB 582
Author:(Bradford)
As Introduced Ver:February 17, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Governmental Organization | 21-0 | Gray, Bigelow, Acosta, Aguiar-Curry, Bocanegra, Bonta, Brough, Cooley, Cooper, Daly, Gallagher, Eduardo Garcia, Gipson, Gloria, Jones-Sawyer, Kiley, Levine, Low, Rubio, Salas, Waldron | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
SUMMARY: Would extend an existing exception in the Alcoholic Beverage Control Act (Act) pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood. Specifically, this bill:
- Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at a specified stadium and venue located in the City of Inglewood.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
- Existing law, known as the "Tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.
- Prohibits, in general, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
FISCAL EFFECT: According to the Assembly Appropriations Committee analysis, minor and absorbable costs for ABC.
COMMENTS:
Background
Tied-house laws: Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: (1) promote the state's interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi's Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000-seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
Purpose of the bill: The author's office states out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. SB 582 would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
Related legislation: SB 664 (Dodd) of the current legislative session. Would extend an existing Tied-house exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (AT&T Park – San Francisco Giants) and an indoor arena (Chase Center – Golden State Warriors) with specified seating capacities located in the City and County of San Francisco.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0001325
Date of Hearing: July 19, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 582
Author:(Bradford) – As Introduced Ver:February 17, 2017
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
The bill extends an exception in the Alcoholic Beverage Control Act (Act) pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium and an adjacent performance venue, both with specified seating capacity, located in the City of Inglewood.
FISCAL EFFECT:
Minor and absorbable costs for the California Department of Alcoholic Beverage Control (ABC).
COMMENTS:
- Background. Current "tied-house" law, also called “three-tier” law, prohibits paid advertising by winegrowers, beer manufacturers and distilled spirits producers in cases where a retail licensee also owns a sports or entertainment venue. California’s three-tier law is designed to prevent vertical integration between alcohol producers, wholesalers, and retailers. Limiting the ability for an alcoholic beverage producer or winegrower to pay a retail licensee, including a stadium or arena, for advertising its product is one way to protect consumers from predatory marketing.
However, over the years numerous exceptions to this prohibition have been added to the Act (such as Sleep Train Arena in Sacramento and Levi’s Stadium in Santa Clara). In these cases, an owner in one tier (Bud Light, for example) can pay a retail licensee (Santa Clara Stadium Authority, for example) for displaying advertising.
- Purpose. According to supporters, SB 582 will allow alcohol manufacturers to purchase advertising space at the Los Angeles Stadium at Hollywood Park in Inglewood. The stadium is currently under construction and will serve as the home for the Los Angeles Rams and the Los Angeles Chargers, and is scheduled to be completed in time for the 2019 football season. Moreover, the stadium will be surrounded by a development that includes a 5,000-seat music venue.
- Related legislation. SB 664 (Dodd) creates a similar exception for AT&T Park and the Chase Center. SB 664 is also being heard today in this committee.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: July 5, 2017
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
SBPCA Bill Id:SB 582
Author:(Bradford) – As Introduced Ver:February 17, 2017
SENATE VOTE: 39-0
SUBJECT: Alcoholic beverages: tied-house restrictions: advertising
SUMMARY: Would extend an existing exception in the Alcoholic Beverage Control Act (Act) pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood. Specifically, this bill:
1) Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer’s agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at a specified stadium and venue located in the City of Inglewood.
2) Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
- Existing law, known as the “Tied-house” law or “three-tier” system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices.
- Prohibits, in general, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
FISCAL EFFECT: Unknown
COMMENTS:
Background
Tied-house laws: Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000-seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
Purpose of the bill: The author’s office states out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
Related legislation: SB 664 (Dodd) of 2017. Would extend an existing Tied-house exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium (AT&T Park - San Francisco Giants) and an indoor arena (Chase Center - Golden State Warriors) with specified seating capacities located in the City and County of San Francisco. (Pending Action in the Assembly G.O. Committee)
Prior legislation: SB 1105 (Mendoza of 2016). Would have authorized ABC to issue a general on-sale license for a sports entertainment facility bona fide public eating-place that would allow the licensee to sell beer, wine, and distilled spirits at retail for consumption on the premises in a sports entertainment facility, as defined. (Never heard in the Assembly Governmental Organization Committee)
AB 1971 (Cooper of 2016). Would have created 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. (Placed on the Senate Inactive File)
AB 866 (E. Garcia of 2016). Would have extended an existing Tied-house exception in the 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). (Placed on the Senate Inactive File)
AB 527 (Dodd), Chapter 517, Statutes of 2015. Created a new Tied-house exception in the Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.
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.
SB 600 (Bonta), Chapter 139, Statutes of 2014. Extends an existing “Tied-house” exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include an outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara (Levi’s Stadium – San Francisco 49ers new stadium).
SB 324 (Wright), Chapter 164, Statutes of 2013. Provided a "Tied-house" exception to the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees and the Los Angeles Forum in the City of Inglewood.
AB 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) located in San Joaquin 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.
AB 3085 (Governmental Organization Committee), Chapter 437, Statutes of 2004. Provided the Los Angeles County Fair with an exemption from Tied-house laws so that so that alcohol manufacturers may purchase advertising from, or on behalf of, the on-sale licensees at this venue.
SB 1647 (Perata) Chapter 275, Statutes of 2004. Extended an existing "Tied-house" exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Oakland Coliseum in Alameda County.
SB 1189 (Costa) Chapter 47, Statutes of 2002. Extended an existing "Tied-house" exception pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licenses to the Visalia Oaks Stadium in Visalia and the California Speedway in Fontana.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
Alcohol Justice
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 582
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 3/28/17
AYES: Glazer, Bradford, Cannella, Dodd, Gaines, Galgiani, Hill, Hueso, Lara, Mendoza, Vidak
NO VOTE RECORDED: Berryhill, Portantino
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
DIGEST: This bill extends an existing exception in the Alcoholic Beverage Control (ABC) Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood.
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, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. 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, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
This bill:
- Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer’s agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at a specified stadium and venue located in the City of Inglewood.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
Background
Purpose of the bill. The author’s office points out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
Tied-house laws. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. The original policy rationale for this body of law was to: (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the marketplace; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and (4) discourage and/or prevent the intemperate use of alcoholic beverages.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000 seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
SB 56 (Mendoza, 2017). SB 56 is currently pending in the Senate Governmental Organization Committee. The bill authorizse the Department of ABC to issue a Sports Entertainment Facility Permit that would allow the permitholder to sell alcoholic beverages at a sports entertainment facility, as defined.
Proponents of SB 56 have stated that establishing a permit process will replace the need for future single-purpose statutory exemptions to allow alcohol beverage manufacturers to purchase stadium advertising from the owner or major tenant of a sports entertainment facility.
Recently, the U.S. Court of Appeals for the Ninth Circuit issued an opinion, relating to the legality of certain restrictions on alcohol beverage advertising under the First Amendment. The federal court made mention of the increasing number of statutory exceptions in tied-house laws related to advertising and questioned whether the existing statute materially advances the state’s goals of preventing vertical and horizontal integration and promoting temperance. The court case is currently pending.
Related/Prior Legislation
SB 56 (Mendoza, 2017), among other things, authorizes the Department of ABC to issue a Sports Entertainment Facility Permit that would allow the permitholder to sell alcoholic beverages at a sports entertainment facility, as defined. (Pending in the Senate Governmental Organization Committee).
SB 1105 (Mendoza, 2016), among other things, would have authorized the Department of ABC to issue a general on-sale license for a sports entertainment facility bona fide public eating place that would allow the licensee to sell beer, wine, and distilled spirits at retail for consumption on the premises in a sports entertainment facility, as defined. (Never heard in the Assembly Governmental Organization Committee)
AB 1971 (Cooper, 2016) would have created 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. (Placed on the Senate Inactive File)
AB 2096 (Low, 2016) would have added leased premises to a specified condition in law that allows designated licensees to purchase advertising space or time from, or on behalf of, an on-sale retail licensee in connection with events which are held on the premises of an exposition park, stadium, or arena owned by the on-sale licensee. (Never heard in the Assembly Governmental Organization Committee)
AB 866 (E. Garcia, 2016) would have extended an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include outdoor stadiums with specified seating capacities located in the Cities of Inglewood and San Diego. (Placed on the Senate Inactive File)
AB 527 (Dodd, Chapter 517, Statutes of 2015) created a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.
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).
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 the 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 located in San Joaquin County (Stockton Arena).
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 located in San Joaquin County (Banner Island Ballpark).
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 a fully enclosed arena with a fixed seating capacity in excess of 15,000 seats located in Santa Clara County (HP Pavilion).
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 an outdoor stadium or a fully enclosed stadium, with a fixed seating capacity in excess of 10,000 seats located in Alameda County (Oakland Coliseum).
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 an outdoor stadium and an enclosed arena with fixed seating capacities in excess of 1,500 seats located in Tulare County (Visalia Oaks Stadium) and to 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 within San Bernardino County (California Speedway).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
City of Inglewood
Hollywood Park Land Company, Inc.
Los Angeles Rams
OPPOSITION: (Verified 4/18/17)
Alcohol Justice
California Alcohol Policy Alliance
ARGUMENTS IN SUPPORT: The City of Inglewood and the Los Angeles Rams state that “SB 582 would add a tied house exemption for the purposes of advertising alcoholic beverages within the new NFL stadium in Inglewood, CA. The legislation simply adds the new LA Stadium & Entertainment District in Hollywood Park to the current list of 21 other stadium/arena exemptions.”
Additionally, the Hollywood Park Land Company, Inc. states that, “SB 582 simply seeks to provide an exemption for the new football stadium being built in Inglewood, similarly to those exemptions which have been historically provided to other stadiums and arenas which have been built here in California.”
ARGUMENTS IN OPPOSITION: Opponents are concerned that “football stadiums, often with many youth present or watching on TV, are swimming in alcohol advertising.” Additionally opponents state “this bill also blurs the necessary separation between manufacturing and the on-sale retail sector.”
4/19/17 10:26:37
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SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Steven Glazer
Chair
2017 - 2018 Regular
Bill No: 582 Hearing Date: 3/28/2017
Author: | , et al. | ||
Version: | 2/17/2017 Introduced | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Naomi Padron | ||
SUBJECT: Alcoholic beverages: tied-house restrictions: advertising
DIGEST: This bill extends an existing exception in the Alcoholic Beverage Control (ABC) Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include a stadium with a fixed seating capacity of at least 70,000 seats (The Los Angeles Stadium at Hollywood Park) and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium located in the City of Inglewood.
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, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. 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, a manufacturer, winegrower, manufacturer's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director or agent of any such person from owning, directly or indirectly, any interest in any on-sale license.
- Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
- Provides a variety of exceptions from the advertising prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions.
This bill:
- Allows beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturer’s agents to purchase advertising space and time from, or on behalf of, on-sale retail licensees at a specified stadium and venue located in the City of Inglewood.
- Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
Background
Purpose of the bill. The author’s office points out that existing law precludes any signage paid for by an alcoholic beverage manufacturer at a stadium unless such an exception is created. This bill amends ABC tied-house provisions to include the Los Angeles Stadium at Hollywood Park in Inglewood on the list of exceptions in the law. This bill would put the Los Angeles Stadium on an even playing field with other arenas and stadiums in California.
Tied-house laws. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers’ ability to gain control over retailers through indirect means. 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 marketplace; (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.
These provisions prohibit a manufacturer from paying for advertising space at a stadium or sports arena where the facility is licensed to sell alcoholic beverages at events held at the stadium or arena.
Over the years numerous exceptions to this prohibition have been added to the ABC Act e.g. Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Arrowhead Pond Arena in Anaheim, Kern County Arena in Bakersfield, the National Orange Show Events Center in San Bernardino, Auto Club Speedway, (formerly California Speedway) in Fontana, Grizzly Stadium in Fresno, Raley Field in West Sacramento, HP Pavilion in San Jose, StubHub Center (formerly the Home Depot Center) in Carson, and numerous other venues.
The Los Angeles Stadium at Hollywood Park. In February of 2015, the Inglewood City Council voted unanimously to approve an 80,000-seat stadium at the site of the old Hollywood Park Racetrack. Construction of the facility is currently underway. The stadium will serve as the home for the Los Angeles Rams and the Los Angeles Chargers of the National Football League. The stadium is scheduled to be available for the 2019 football season and plans are underway for the stadium to host Super Bowl LV in 2021.
The stadium will be surrounded by a development that also includes a 5,000 seat music venue directly adjacent to the football stadium, more than 1.5 million square feet of retail and office space, approximately 3,000 residential units, a 300-room hotel, as well as 25 acres of parks and open space. The development is projected to provide 30,000 jobs for the region during the construction phase and up to 10,000 permanent jobs.
The Los Angeles Stadium and Entertainment District at Hollywood Park is set to encompass nearly 300 acres in Inglewood, and is located just east of the Los Angeles International Airport and southwest of downtown Los Angeles.
SB 56 (Mendoza, 2017). SB 56 is currently pending in this committee. The bill would authorize the Department of ABC to issue a Sports Entertainment Facility Permit that would allow the permitholder to sell alcoholic beverages at a sports entertainment facility, as defined.
Proponents of SB 56 have stated that establishing a permit process will replace the need for future single-purpose statutory exemptions to allow alcohol beverage manufacturers to purchase stadium advertising from the owner or major tenant of a sports entertainment facility.
Recently, the U.S. Court of Appeals for the Ninth Circuit issued an opinion, relating to the legality of certain restrictions on alcohol beverage advertising under the First Amendment. The federal court made mention of the increasing number of statutory exceptions in tied-house laws related to advertising and questioned whether the existing statute materially advances the State’s goals of preventing vertical and horizontal integration and promoting temperance. The court case is currently pending.
Prior/Related Legislation
SB 56 (Mendoza, 2017) among other things, would authorize the Department of ABC to issue a Sports Entertainment Facility Permit that would allow the permitholder to sell alcoholic beverages at a sports entertainment facility, as defined. (Pending in Senate Governmental Organization Committee).
SB 1105 (Mendoza, 2016) among other things, would have authorized the Department of ABC to issue a general on-sale license for a sports entertainment facility bona fide public eating place that would allow the licensee to sell beer, wine, and distilled spirits at retail for consumption on the premises in a sports entertainment facility, as defined. (Never heard in Assembly Governmental Organization Committee)
AB 1971 (Cooper, 2016) would have created 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. (Placed on Senate inactive file)
AB 2096 (Low, 2016) would have added leased premises to a specified condition in law that allows designated licensees to purchase advertising space or time from, or on behalf of, an on-sale retail licensee in connection with events which are held on the premises of an exposition park, stadium, or arena owned by the on-sale licensee. (Never heard in Assembly Governmental Organization Committee)
AB 866 (E. Garcia, 2016) would have extended an existing tied-house exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale and manufacturer licensees to include outdoor stadiums with specified seating capacities located in the Cities of Inglewood and San Diego. (Placed on Senate Inactive File)
AB 527 (Dodd, Chapter 517, Statutes of 2015) created a new tied-house exception in the ABC Act that authorizes certain alcoholic beverage licensees to sponsor a limited number of events promoted by or to purchase advertising space and time from, or on behalf of, a live entertainment marketing company that conducts live artistic, musical, sports, food, beverage, culinary, or other cultural entertainment events at venues located solely in the County of Napa, under specified conditions.
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).
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 located in San Joaquin County (Stockton Arena).
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 located in San Joaquin County (Banner Island Ballpark).
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 a fully enclosed arena with a fixed seating capacity in excess of 15,000 seats located in Santa Clara County (HP Pavilion).
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 an outdoor stadium or a fully enclosed stadium, with a fixed seating capacity in excess of 10,000 seats located in Alameda County (Oakland Coliseum).
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 an outdoor stadium and an enclosed arena with fixed seating capacities in excess of 1,500 seats located in Tulare County (Visalia Oaks Stadium) and to 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 within San Bernardino County (California Speedway).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
City of Inglewood
Hollywood Park Land Company, Inc.
Los Angeles Rams
OPPOSITION:
Alcohol Justice
California Alcohol Policy Alliance
ARGUMENTS IN SUPPORT: The City of Inglewood and the Los Angeles Rams state that “SB582 would add a tied house exemption for the purposes of advertising alcoholic beverages within the new NFL stadium in Inglewood, CA. The legislation simply adds the new LA Stadium & Entertainment District in Hollywood Park to the current list of 21 other stadium/arena exemptions.”
Additionally, the Hollywood Park Land Company, Inc. states that, “SB 582 simply seeks to provide an exemption for the new football stadium being built in Inglewood, similarly to those exemptions which have been historically provided to other stadiums and arenas which have been built here in California.”
ARGUMENTS IN OPPOSITION: Opponents are concerned that “football stadiums, often with many youth present or watching on TV, are swimming in alcohol advertising.” Additionally opponents state “this bill also blurs the necessary separation between manufacturing and the on-sale retail sector.”
Bill Author
