SB 392: Tied-house restrictions: advertising exceptions: City of Inglewood.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-10-08
Current Status:
Passed
(2023-10-08: Chaptered by Secretary of State. Chapter 604, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including 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. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor.
This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. By expanding the scope 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.
This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by AB 840 to be operative only if this bill and AB 840 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including 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. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor.
This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. By expanding the scope 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.
This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by AB 840 to be operative only if this bill and AB 840 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including 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. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor.
This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. By expanding the scope 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.
This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by AB 840 to be operative only if this bill and AB 840 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including 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. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor.
This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. By expanding the scope 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.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including 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. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor.
This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. By expanding the scope 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 craft distiller, 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 the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in the County of Los Angeles 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 the County of Kern.
(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 the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(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 the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(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 the County of San Bernardino.
(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 the County of Los Angeles.
(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 the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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 the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) 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 craft distiller, 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 craft distiller, 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 craft distiller, 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 the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in the County of Los Angeles 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 the County of Kern.
(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 the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(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 the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(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 25,000 seats, located in the County of San Bernardino.
(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 the County of Los Angeles.
(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 the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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 the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(AA)Any of the following facilities that are situated on the campus of California Polytechnic State University, San Luis Obispo, located in the County of San Luis Obispo:
(i)An outdoor stadium with a fixed seating capacity of at least 11,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 3,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 3,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An indoor performing arts venue with two concert halls and a theater with a combined fixed seating capacity of at least 1,800 seats.
(AB)Any of the following facilities that are situated on the campus of California State University, Fresno, located in the County of Fresno:
(i)An outdoor stadium with a fixed seating capacity of at least 40,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 2,400 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 2,000 seats.
(AC)Any of the following facilities that are situated on the campus of California State University, Sacramento, located in the County of Sacramento:
(i)An outdoor stadium with a fixed seating capacity of at least 20,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 1,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,200 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(AD)The following facility that is situated on the campus of California State University, Monterey Bay, located in the County of Monterey:
(i)An outdoor stadium with a fixed seating capacity of at least 6,000 seats.
(AE)Any of the following facilities that are situated on the campus of California State University, Fullerton, located in the County of Orange:
(i)A fully enclosed arena with a fixed seating capacity of at least 4,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 3,500 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 10,000 seats.
(AF)Any of the following facilities that are situated on the campus of San Jose State University, located in the County of Santa Clara:
(i)An outdoor stadium with a fixed seating capacity of at least 17,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 5,000 seats.
(AG)Any of the following facilities that are situated on the campus of California State University, Northridge, located in the County of Los Angeles:
(i)An indoor performing arts center with a fixed seating capacity of at least 1,700 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 2,000 seats.
(AH)Any of the following facilities that are situated on the campus of St. Marys College of California, located in the County of Contra Costa:
(i)A fully enclosed arena with a fixed seating capacity in excess of 3,500 seats located in the Town of Moraga.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,500 seats located in the Town of Moraga.
(iii)An outdoor stadium with a fixed seating capacity of at least 650 seats located in the Town of Moraga.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), (Z), (AA), (AB), (AC), (AD), (AE), (AF), (AG), and (AH) 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 craft distiller, 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 craft distiller, 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 found in the City of Inglewood, relating to fair and efficient application of the alcoholic beverage control licensing laws with respect to an eligible arena.
SEC. 3.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 840. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 840, in which case Section 1 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 craft distiller, 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 the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in the County of Los Angeles 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 the County of Kern.
(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 the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(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 the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(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 the County of San Bernardino.
(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 the County of Los Angeles.
(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 the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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 the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) 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 craft distiller, 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 craft distiller, 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 craft distiller, 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 the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in the County of Los Angeles 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 the County of Kern.
(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 the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(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 the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(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 25,000 seats, located in the County of San Bernardino.
(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 the County of Los Angeles.
(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 the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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 the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(AA)Any of the following facilities that are situated on the campus of California Polytechnic State University, San Luis Obispo, located in the County of San Luis Obispo:
(i)An outdoor stadium with a fixed seating capacity of at least 11,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 3,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 3,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An indoor performing arts venue with two concert halls and a theater with a combined fixed seating capacity of at least 1,800 seats.
(AB)Any of the following facilities that are situated on the campus of California State University, Fresno, located in the County of Fresno:
(i)An outdoor stadium with a fixed seating capacity of at least 40,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 2,400 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 2,000 seats.
(AC)Any of the following facilities that are situated on the campus of California State University, Sacramento, located in the County of Sacramento:
(i)An outdoor stadium with a fixed seating capacity of at least 20,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 1,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,200 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(AD)The following facility that is situated on the campus of California State University, Monterey Bay, located in the County of Monterey:
(i)An outdoor stadium with a fixed seating capacity of at least 6,000 seats.
(AE)Any of the following facilities that are situated on the campus of California State University, Fullerton, located in the County of Orange:
(i)A fully enclosed arena with a fixed seating capacity of at least 4,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 3,500 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 10,000 seats.
(AF)Any of the following facilities that are situated on the campus of San Jose State University, located in the County of Santa Clara:
(i)An outdoor stadium with a fixed seating capacity of at least 17,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 5,000 seats.
(AG)Any of the following facilities that are situated on the campus of California State University, Northridge, located in the County of Los Angeles:
(i)An indoor performing arts center with a fixed seating capacity of at least 1,700 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 2,000 seats.
(AH)Any of the following facilities that are situated on the campus of St. Marys College of California, located in the County of Contra Costa:
(i)A fully enclosed arena with a fixed seating capacity in excess of 3,500 seats located in the Town of Moraga.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,500 seats located in the Town of Moraga.
(iii)An outdoor stadium with a fixed seating capacity of at least 650 seats located in the Town of Moraga.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), (Z), (AA), (AB), (AC), (AD), (AE), (AF), (AG), and (AH) 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 craft distiller, 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 craft distiller, 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 found in the City of Inglewood, relating to fair and efficient application of the alcoholic beverage control licensing laws with respect to an eligible arena.
SEC. 3.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 840. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 840, in which case Section 1 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 craft distiller, 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 the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in the County of Los Angeles. Angeles 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 the County of Kern.
(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 the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(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 the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(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 the County of San Bernardino.
(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 the County of Los Angeles.
(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 the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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 the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) 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 craft distiller, 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 craft distiller, 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 craft distiller, 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. the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Los Angeles County. the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County the County of Los Angeles 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. the County of Kern.
(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. the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. the County of Fresno.
(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. the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. the County of Tulare.
(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 25,000 seats, located in San Bernardino County. the County of San Bernardino.
(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. the County of Los Angeles.
(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. the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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. the County of San Diego.
(Q)(i)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.
(ii)Advertising stadium. Advertising authorized by this subparagraph clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in San Diego County. the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(AA)Any of the following facilities that are situated on the campus of California Polytechnic State University, San Luis Obispo, located in the County of San Luis Obispo:
(i)An outdoor stadium with a fixed seating capacity of at least 11,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 3,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 3,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An indoor performing arts venue with two concert halls and a theater with a combined fixed seating capacity of at least 1,800 seats.
(AB)Any of the following facilities that are situated on the campus of California State University, Fresno, located in the County of Fresno:
(i)An outdoor stadium with a fixed seating capacity of at least 40,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 2,400 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 2,000 seats.
(AC)Any of the following facilities that are situated on the campus of California State University, Sacramento, located in the County of Sacramento:
(i)An outdoor stadium with a fixed seating capacity of at least 20,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 1,000 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,200 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(AD)The following facility that is situated on the campus of California State University, Monterey Bay, located in the County of Monterey:
(i)An outdoor stadium with a fixed seating capacity of at least 6,000 seats.
(AE)Any of the following facilities that are situated on the campus of California State University, Fullerton, located in the County of Orange:
(i)A fully enclosed arena with a fixed seating capacity of at least 4,000 seats.
(ii)An outdoor stadium with a fixed seating capacity of at least 3,500 seats.
(iii)An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(iv)An outdoor stadium with a fixed seating capacity of at least 10,000 seats.
(AF)Any of the following facilities that are situated on the campus of San Jose State University, located in the County of Santa Clara:
(i)An outdoor stadium with a fixed seating capacity of at least 17,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 5,000 seats.
(AG)Any of the following facilities that are situated on the campus of California State University, Northridge, located in the County of Los Angeles:
(i)An indoor performing arts center with a fixed seating capacity of at least 1,700 seats.
(ii)A fully enclosed arena with a fixed seating capacity of at least 2,000 seats.
(AH)Any of the following facilities that are situated on the campus of St. Marys College of California, located in the County of Contra Costa:
(i)A fully enclosed arena with a fixed seating capacity in excess of 3,500 seats located in the Town of Moraga.
(ii)An outdoor stadium with a fixed seating capacity of at least 5,500 seats located in the Town of Moraga.
(iii)An outdoor stadium with a fixed seating capacity of at least 650 seats located in the Town of Moraga.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) (Z), (AA), (AB), (AC), (AD), (AE), (AF), (AG), and (AH) 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 craft distiller, 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 craft distiller, 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 found in the City of Inglewood, relating to fair and efficient application of the alcoholic beverage control licensing laws with respect to an eligible arena.
SEC. 3.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 840. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 840, in which case Section 1 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 craft distiller, 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. the County of Sacramento or the County of Alameda.
(B)(i)A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Los Angeles County. the County of Los Angeles.
(ii)An outdoor stadium of at least 70,000 seats located in Los Angeles County the County of Los Angeles. 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. the County of Kern.
(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. the County of San Bernardino.
(E)An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. the County of Yolo.
(F)An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. the County of Fresno.
(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. the County of Riverside.
(H)An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. the County of Tulare.
(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. the County of San Bernardino.
(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. the County of Los Angeles.
(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. the County of Los Angeles.
(L)An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. the County of San Joaquin.
(M)A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located 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 craft distiller, 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. the County of San Diego.
(Q)(i)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. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(iii)Advertising authorized by this subparagraph may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium, performance venue, and the fully enclosed arena, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium, performance venue, or fully enclosed arena.(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in San Diego County. the County of San Diego.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) 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 craft distiller, 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 craft distiller, 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 found in the City of Inglewood, relating to fair and efficient application of the alcoholic beverage control licensing laws with respect to an eligible arena.
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.
(a)Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a craft distiller, 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 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 located 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 craft distiller, 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)(i)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.
(ii)A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood.
(ii)(iii)Advertising authorized by this subparagraph may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and stadium, performance venue, and the fully enclosed arena, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue. stadium, performance venue, or fully enclosed arena.
(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 located in the City of Los Angeles.
(U)An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in San Diego County.
(i)An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(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. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(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 craft distiller, 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 craft distiller, 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), (Q), (R), (T), (Y), and (Z) 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 craft distiller, 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 craft distiller, 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 found in the City of Inglewood, relating to fair and efficient application of the alcoholic beverage control licensing laws with respect to an eligible arena.
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 8, 2023 | Chaptered by Secretary of State. Chapter 604, Statutes of 2023. |
| Oct 8, 2023 | Approved by the Governor. |
| Sep 20, 2023 | Enrolled and presented to the Governor at 4:30 p.m. |
| Sep 13, 2023 | Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2739.) Ordered to engrossing and enrolling. |
| Sep 12, 2023 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 12, 2023 | Read third time. Passed. (Ayes 80. Noes 0. Page 3248.) Ordered to the Senate. |
| Sep 7, 2023 | Read third time and amended. |
| Sep 7, 2023 | Ordered to third reading. |
| Jun 29, 2023 | Read second time. Ordered to consent calendar. |
| Jun 29, 2023 | Ordered to third reading. |
| Jun 29, 2023 | From consent calendar on motion of Assembly Member Reyes. |
| Jun 28, 2023 | From committee: Do pass. Ordered to consent calendar. (Ayes 14. Noes 0.) (June 28). |
| Jun 15, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 21. Noes 0.) (June 14). Re-referred to Com. on APPR. |
| May 18, 2023 | Referred to Com. on G.O. |
| May 8, 2023 | In Assembly. Read first time. Held at Desk. |
| May 8, 2023 | Read third time. Passed. (Ayes 36. Noes 0. Page 1022.) Ordered to the Assembly. |
| Apr 27, 2023 | Read second time. Ordered to third reading. |
| Apr 26, 2023 | Read third time and amended. |
| Apr 26, 2023 | Ordered to second reading. |
| Apr 11, 2023 | Read second time. Ordered to third reading. |
| Apr 10, 2023 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Mar 28, 2023 | Set for hearing April 10. |
| Mar 14, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 340.) (March 14). Re-referred to Com. on APPR. |
| Feb 28, 2023 | Set for hearing March 14. |
| Feb 22, 2023 | Referred to Com. on G.O. |
| Feb 10, 2023 | From printer. May be acted upon on or after March 12. |
| Feb 9, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 13, 2023 | Unfinished Business SB392 Bradford et al. Concurrence | Senate Floor |
Passed |
|
| Sep 12, 2023 | SB 392 Bradford Senate Third Reading By Santiago | Assembly Floor |
Passed |
|
| Jun 28, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 14, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Governmental Organization |
Passed |
|
| May 8, 2023 | Senate 3rd Reading SB392 Bradford et al. | Senate Floor |
Passed |
|
| Mar 14, 2023 | 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 | |
| Los Angeles Clippers | ** Support | |
| Murphy Bowl LLC | * Support | Jun 14, 2023 |
| Murphy’s Bowl | ** Support | |
| Murphy’s Bowl and the Los Angeles Clippers | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 392 |
UNFINISHED BUSINESS
Bill No: SB 392
Author: Bradford (D), et al.
Amended: 9/7/23
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 3/14/23
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Padilla, Portantino, Roth, Seyarto
NO VOTE RECORDED: Ochoa Bogh, Rubio
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 36-0, 5/8/23
AYES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Alvarado-Gil, Hurtado, Min, Roth
ASSEMBLY FLOOR: 80-0, 9/12/23 - See last page for vote
SUBJECT: Tied-house restrictions: advertising exceptions: City of Inglewood
SOURCE: Author
DIGEST:
This bill authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
Assembly Amendments
add chaptering out language with AB 840 (Addis).
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages 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:
- Authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
Background
Purpose of the bill. According to the author’s office, “when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. SB 392 allows the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.”
Intuit Dome. The Intuit Dome is an indoor arena under construction in Inglewood, California, and the future home of the Los Angeles Clippers. Expected to be completed in 2024, the 18,000-seat arena will include a practice facility, sports medicine clinic, team offices, retail space, and a large outdoor plaza with basketball courts that will be open to the public.
The Intuit Dome will be the centerpiece of a larger 28-acre development which will include 63,000 square feet of ancillary retail; a public plaza featuring a large LED screen, a concert stage, and basketball courts; a 150-room hotel; and parking for 4,125 vehicles.
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 any facility where the facility is licensed to sell alcoholic beverages. Over the years, numerous exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Honda Center 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, Sutter Health Park in West Sacramento, SAP Center in San Jose, Dignity Health in Carson, and numerous other venues.
Related/Prior Legislation
SB 430 (Dodd, 2023) would have authorized specified licenses to purchase advertising services from an advertising subsidiary that is under the common ownership with a retail licensee subsidiary if specified conditions are met. (Held in the Assembly Appropriation’s Suspense File)
AB 840 (Addis, 2023) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenants at various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Monterey, Orange, Santa Clara, and Los Angeles, as specified. (Pending on the Assembly Floor)
SB 1280 (Hueso, Chapter 304, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities on the campus of San Diego State University.
AB 98 (Kalra, Chapter 267, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a fixed capacity in excess of 4,000 seats located in the City of San Jose (Tech CU Arena).
AB 1323 (Haney, Chapter 271, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of an on-sale retail licensed premises configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats in the City and County of San Francisco (Curran Theater), as specified.
AB 1330 (Mayes, Chapter 272, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 10,000 seats located in the County of Riverside (Acrisure Arena).
SB 386 (Umberg, Chapter 309, Statutes of 2021) authorized specified alcohol licensees to sponsor events promoted by, and to purchase advertising space and time from, or on behalf, an on-sale licensee that is the owner, operator agent of the operator, or sole assignee or the operator’s advertising rights of a mixed-use district located in the County of Orange (ocV!BE), as specified.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, minor and absorbable costs to the Department of ABC for enforcement.
This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, advertising tied-house exceptions such as those proposed by this bill do not generate major new enforcement workload for ABC, but many similar exceptions for other premises across the state have been approved in recent years. Over time, these proposals in the aggregate could lead to significant new costs and future budget requests.
SUPPORT: (Verified 9/7/23)
Los Angeles Clippers
Murphy’s Bowl
OPPOSITION: (Verified 9/7/23)
Alcohol Justice
ARGUMENTS IN SUPPORT: According to the Los Angeles Clippers, “[this] bill provides for the same protections and conditions as exists in the current exemptions and will assist the new arena to provide all of the amazing community benefits, jobs, etc., which this state-of-the-art facility will provide to the City of Inglewood and the surrounding region.
ARGUMENTS IN OPPOSITION: According to Alcohol Justice, “enforcing three-tier systems in just this one stadium is not the solution, but using this one stadium as the inflection point where the legislature begins refusing to roll back established protective regulations would be the start of a solution.”
ASSEMBLY FLOOR: 80-0, 9/12/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
9/12/23 19:11:01
**** END ****
SENATE THIRD READING
STR Bill Id:SB 392
Author:(Bradford)
As Amended Ver:September 7, 2023
Majority vote
SUMMARY
This bill authorizes specified alcoholic beverage licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
Major Provisions
- Authorizes a beer manufacturer, the holder of a winegrower's license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer's agent that purchased the advertising space or time.
- Makes technical and clarifying changes.
- Contains language to avoid a chaptering issue with AB 840 (Addis) of the current legislative session.
COMMENTS
Background.
Tied-house laws. State and federal laws generally prohibit certain relationships among those who produce, distribute, and sell alcoholic beverages. The term "Tied-house" is derived from a common practice in England whereby a bar or public house was "tied" – by ownership, contractual obligations, or other influences – to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption. This was because retailers would offer manufacturers generous favors, such as expensive business meals and gifts. In order to recoup these costs, aggressive product promotion was needed. Manufacturers sometimes used their influence to force tied houses to sell their products and exclude products from other manufacturers.
As a result, after the repeal of prohibition in 1933, California's current "three-tier" system was introduced. This body of law was initially created to: 1) promote the state's interest in an orderly market; 2) prohibit vertical integration and dominance by a single producer in the market place; 3) stop commercial bribery and safeguard the public from predatory marketing techniques; 4) discourage and/or prevent intemperate drinking. These provisions prohibit a manufacturer from paying for advertising space at any facility where the facility is licensed to sell alcoholic beverages.
Over the years, several exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are 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 many other venues.
Intuit Dome. The Intuit Dome, the new home of the Los Angeles Clippers, will open in Inglewood, California for the 2024-25 season. Built for the fan, by the fan, the arena, entertainment venue, and outdoor plaza were all designed with the fan in mind and will provide a uniquely intimate and intense live event experience with all the comforts of home. The 18,000-seat arena will also have a practice facility, sports medicine clinic, team offices, retail space, and a sizable outdoor plaza with public basketball courts.
The arena will be the focal point of a larger 28-acre development that also includes a 150-room hotel, a public plaza with a large LED screen, a concert stage, and basketball courts, 63,000 square feet of ancillary retail space, and parking for 4,125 cars. The largest community benefit package ever associated with an arena will include a $100 million donation to Inglewood infrastructure and causes. Inglewood is anticipated to produce $260 million in annual economic activity. During construction, more than 7,000 jobs will be generated. More than 30% of Inglewood residents will hold permanent positions at Intuit Dome.
According to the Author
According to the author's office, "when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. This bill authorizes the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024."
Arguments in Support
Murphy's Bowl and the Los Angeles Clippers writes in support, "SB 392 would establish an exemption for the new arena being constructed to be the home of the Los Angeles Clippers basketball team, similar to the current law exemptions for other stadiums and arenas. The bill provides for the same protections and conditions as exist in the current exemptions and will assist the new arena to provide all of the amazing community benefits, jobs, etc. which this state-of-the-art facility will provide to the City of Inglewood and the surrounding region."
Arguments in Opposition
Alcohol Justice writes, "The three-tier laws are intended to lower the clout of the most powerful alcohol producers, and this emphatically applies to those who can afford to purchase advertising at a major sports stadium. These mega producers rely on moving high volumes of low-cost product, the kind that is frequently consumed as part of binge drinking. Binge drinking is not only a major concern for professional sports leagues – who institute various voluntary initiatives and sales cutoffs to try and stem alcohol-related harm at events – it is a major driver of alcohol harm."
FISCAL COMMENTS
According to the Assembly Appropriations Committee, "Minor and absorbable costs to ABC for enforcement. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, advertising tied-house exceptions such as those proposed by this bill do not generate major new enforcement workload for ABC, but many similar exceptions for other premises across the state have been approved in recent years. Over time, these proposals in the aggregate could lead to significant new costs and future budget requests."
VOTES
SENATE FLOOR: 36-0-4
YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Alvarado-Gil, Hurtado, Min, Roth
ASM GOVERNMENTAL ORGANIZATION: 21-0-1
YES: Santiago, Lackey, Aguiar-Curry, Berman, Bryan, Cervantes, Megan Dahle, Waldron, Gipson, Jones-Sawyer, Low, Mathis, McCarty, McKinnor, Jim Patterson, Quirk-Silva, Ramos, Robert Rivas, Blanca Rubio, Ta, Villapudua
ABS, ABST OR NV: Garcia
ASM APPROPRIATIONS: 14-0-2
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Sanchez, Weber, Wilson
ABS, ABST OR NV: Pellerin, Robert Rivas
UPDATED
VERSION: September 7, 2023
CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001934
SENATE THIRD READING
STR Bill Id:SB 392
Author:(Bradford)
As Amended Ver:April 26, 2023
Majority vote
SUMMARY
This bill authorizes specified alcoholic beverage licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
Major Provisions
- Authorizes a beer manufacturer, the holder of a winegrower's license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer's agent that purchased the advertising space or time.
- Makes technical and clarifying changes.
COMMENTS
Background.
Tied-house laws. State and federal laws generally prohibit certain relationships among those who produce, distribute, and sell alcoholic beverages. The term "Tied-house" is derived from a common practice in England whereby a bar or public house was "tied" – by ownership, contractual obligations, or other influences – to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption. This was because retailers would offer manufacturers generous favors, such as expensive business meals and gifts. In order to recoup these costs, aggressive product promotion was needed. Manufacturers sometimes used their influence to force tied houses to sell their products and exclude products from other manufacturers.
As a result, after the repeal of prohibition in 1933, California's current "three-tier" system was introduced. This body of law was initially created to: 1) promote the state's interest in an orderly market; 2) prohibit vertical integration and dominance by a single producer in the market place; 3) stop commercial bribery and safeguard the public from predatory marketing techniques; 4) discourage and/or prevent intemperate drinking. These provisions prohibit a manufacturer from paying for advertising space at any facility where the facility is licensed to sell alcoholic beverages.
Over the years, several exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are 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 many other venues.
Intuit Dome. The Intuit Dome, the new home of the Los Angeles Clippers, will open in Inglewood, California for the 2024-25 season. Built for the fan, by the fan, the arena, entertainment venue, and outdoor plaza were all designed with the fan in mind and will provide a uniquely intimate and intense live event experience with all the comforts of home. The 18,000-seat arena will also have a practice facility, sports medicine clinic, team offices, retail space, and a sizable outdoor plaza with public basketball courts.
The arena will be the focal point of a larger 28-acre development that also includes a 150-room hotel, a public plaza with a large LED screen, a concert stage, and basketball courts, 63,000 square feet of ancillary retail space, and parking for 4,125 cars. The largest community benefit package ever associated with an arena will include a $100 million donation to Inglewood infrastructure and causes. Inglewood is anticipated to produce $260 million in annual economic activity. During construction, more than 7,000 jobs will be generated. More than 30% of Inglewood residents will hold permanent positions at Intuit Dome.
According to the Author
According to the author's office, "when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. This bill authorizes the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024."
Arguments in Support
Murphy's Bowl and the Los Angeles Clippers writes in support, "SB 392 would establish an exemption for the new arena being constructed to be the home of the Los Angeles Clippers basketball team, similar to the current law exemptions for other stadiums and arenas. The bill provides for the same protections and conditions as exist in the current exemptions and will assist the new arena to provide all of the amazing community benefits, jobs, etc. which this state-of-the-art facility will provide to the City of Inglewood and the surrounding region."
Arguments in Opposition
Alcohol Justice writes, "The three-tier laws are intended to lower the clout of the most powerful alcohol producers, and this emphatically applies to those who can afford to purchase advertising at a major sports stadium. These mega producers rely on moving high volumes of low-cost product, the kind that is frequently consumed as part of binge drinking. Binge drinking is not only a major concern for professional sports leagues – who institute various voluntary initiatives and sales cutoffs to try and stem alcohol-related harm at events – it is a major driver of alcohol harm."
FISCAL COMMENTS
According to the Assembly Appropriations Committee, "Minor and absorbable costs to ABC for enforcement. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, advertising tied-house exceptions such as those proposed by this bill do not generate major new enforcement workload for ABC, but many similar exceptions for other premises across the state have been approved in recent years. Over time, these proposals in the aggregate could lead to significant new costs and future budget requests."
VOTES
SENATE FLOOR: 36-0-4
YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Jones, Laird, Limón, McGuire, Menjivar, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Alvarado-Gil, Hurtado, Min, Roth
ASM GOVERNMENTAL ORGANIZATION: 21-0-1
YES: Santiago, Lackey, Aguiar-Curry, Berman, Bryan, Cervantes, Megan Dahle, Waldron, Gipson, Jones-Sawyer, Low, Mathis, McCarty, McKinnor, Jim Patterson, Quirk-Silva, Ramos, Robert Rivas, Blanca Rubio, Ta, Villapudua
ABS, ABST OR NV: Garcia
ASM APPROPRIATIONS: 14-0-2
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Sanchez, Weber, Wilson
ABS, ABST OR NV: Pellerin, Robert Rivas
UPDATED
VERSION: April 26, 2023
CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001192
Date of Hearing: June 28, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
SBPCA Bill Id:SB 392
Author:(Bradford) – As Amended Ver:April 26, 2023
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill creates a tied-house exception authorizing specified licensees regulated by the Department of Alcoholic Beverage Control (ABC) to purchase advertising space and time from an on-sale retail licensee that is the owner, manager or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome).
This bill authorizes advertising to be placed on or in the arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, but prohibits advertising from being placed on or in, or otherwise promoting, any permanently licensed retail premises other than the arena or such premises located within the main entry area owned and operated by the arena.
FISCAL EFFECT:
Minor and absorbable costs to ABC for enforcement.
This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, advertising tied-house exceptions such as those proposed by this bill do not generate major new enforcement workload for ABC, but many similar exceptions for other premises across the state have been approved in recent years. Over time, these proposals in the aggregate could lead to significant new costs and future budget requests.
COMMENTS:
- Purpose. According to the author:
When new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. This bill authorizes the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.
- Support and Opposition. This bill is supported by Murphy’s Bowl and the Los Angeles Clippers, as the exception is for the arena being built to become the home of the basketball team. Supporters argue this bill “provides for the same protections and conditions as exist in the current exemptions and will assist the new arena to provide all of the amazing community benefits, jobs, etc.”
This bill is opposed by Alcohol Justice, which argues “Three-tier laws are intended to lower the clout of the most powerful alcohol producers, and this emphatically applies to those who can afford to purchase advertising at a major sports stadium.”
- Background.
Tied-house Law. California’s tied-house law prevents the vertical integration of the alcohol industry by keeping the manufacturer, wholesaler, and retailer separated. Generally, one type of license holder is not permitted to do business as another type of licensee, and licensees are prohibited from directly or indirectly giving away anything of value, such as free goods, services, or advertising, in connection with the sale or distribution of an alcoholic beverage.
Another Exception. Over the years, numerous exceptions to this tied-house prohibition have been added for arenas and stadiums, such as those for SoFi Stadium, home of the Los Angeles Rams, and Crypto.com Arena, home of the Los Angeles Lakers, allowing sponsorship deals with alcohol manufacturers and distributors. This bill grants an exception to Intuit Dome in the City of Inglewood, future home of the Los Angeles Clippers, and specifies where advertisements may be placed.
- Related Legislation. AB 840 (Addis) provides a similar tied-house exception to facilities situated on specified California State University campuses and St. Mary’s College and revises the exception already provided to a motorsports entertainment complex located in the County of San Bernardino. AB 840 is pending hearing by the Senate Governmental Organization Committee.
AB 1294 (Boerner) provides a similar tied-house exception to a company that owns a wave basin facility located in the County of Kings. AB 1294 is pending on the Senate Floor.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: June 14, 2023
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Miguel Santiago, Chair
SBPCA Bill Id:SB 392
Author:(Bradford) – As Amended Ver:April 26, 2023
SENATE VOTE: 36-0
SUBJECT: Tied-house restrictions: advertising exceptions: City of Inglewood
SUMMARY: This bill authorizes specified alcoholic beverage licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified. Specifically, this bill:
1) Authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
2) Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
3) Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
4) Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
5) Makes technical and clarifying changes.
EXISTING LAW:
1) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (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 and the collection of license fees for this purpose.
2) 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.
3) 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. 4) Prohibits, in general, a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising.
4) 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.
5) Authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities, such as outdoor stadiums, with prescribed fixed seating capacities, which are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in San Diego County, as defined. (California Business and Professions Code § 25503.6)
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.
COMMENTS:
Purpose of the bill. According to the author’s office, “when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. This bill authorizes the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.”
Background.
Tied-house laws. State and federal laws generally prohibit certain relationships among those who produce, distribute, and sell alcoholic beverages. The term “Tied-house” is derived from a common practice in England whereby a bar or public house was “tied”—by ownership, contractual obligations, or other influences—to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption. This was because retailers would offer manufacturers generous favors, such as expensive business meals and gifts. In order to recoup these costs, aggressive product promotion was needed. Manufacturers sometimes used their influence to force tied houses to sell their products and exclude products from other manufacturers.
As a result, after the repeal of prohibition in 1933, California’s current “three-tier” system was introduced. This body of law was initially created to: a) promote the state’s interest in an orderly market; b) prohibit vertical integration and dominance by a single producer in the market place; c) stop commercial bribery and safeguard the public from predatory marketing techniques; d) discourage and/or prevent intemperate drinking. These provisions prohibit a manufacturer from paying for advertising space at any facility where the facility is licensed to sell alcoholic beverages.
Over the years, several exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are 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 many other venues.
Intuit Dome. The Intuit Dome, the new home of the Los Angeles Clippers, will open in Inglewood, California for the 2024-25 season. Built for the fan, by the fan, the arena, entertainment venue, and outdoor plaza were all designed with the fan in mind and will provide a uniquely intimate and intense live event experience with all the comforts of home. The 18,000-seat arena will also have a practice facility, sports medicine clinic, team offices, retail space, and a sizable outdoor plaza with public basketball courts.
The arena will be the focal point of a larger 28-acre development that also includes a 150-room hotel, a public plaza with a large LED screen, a concert stage, and basketball courts, 63,000 square feet of ancillary retail space, and parking for 4,125 cars. The largest community benefit package ever associated with an arena will include a $100 million donation to Inglewood infrastructure and causes. Inglewood is anticipated to produce $260 million in annual economic activity. During construction, more than 7,000 jobs will be generated. More than 30% of Inglewood residents will hold permanent positions at Intuit Dome.
In support. Murphy’s Bowl and the Los Angeles Clippers writes in support, “SB 392 would establish an exemption for the new arena being constructed to be the home of the Los Angeles Clippers basketball team, similar to the current law exemptions for other stadiums and arenas. The bill provides for the same protections and conditions as exist in the current exemptions and will assist the new arena to provide all of the amazing community benefits, jobs, etc. which this state-of-the-art facility will provide to the City of Inglewood and the surrounding region.”
In opposition. Alcohol Justice writes, “The three-tier laws are intended to lower the clout of the most powerful alcohol producers, and this emphatically applies to those who can afford to purchase advertising at a major sports stadium. These mega producers rely on moving high volumes of low-cost product, the kind that is frequently consumed as part of binge drinking. Binge drinking is not only a major concern for professional sports leagues—who institute various voluntary initiatives and sales cutoffs to try and stem alcohol-related harm at events—it is a major driver of alcohol harm.”
Related legislation. SB 430 (Dodd) of 2023. Would authorize specified licenses to purchase advertising services from an advertising subsidiary that is under the common ownership with a retail licensee subsidiary if specified conditions are met. (Assembly Committee on Governmental Organization)
AB 840 (Addis) of 2023. Would authorize specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenants at various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Monterey, Orange, Santa Clara, and Los Angeles, as specified. (Senate Committee on Governmental Organization)
Prior legislation. SB 1280 (Hueso), Chapter 304, Statutes of 2022. Allowed specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities on the campus of San Diego State University (SDSU).
AB 98 (Kalra), Chapter 267, Statutes of 2022. Authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 4,000 seats located in the City of San Jose (Tech CU Arena).
AB 1323 (Haney), Chapter 271, Statutes of 2022. Allowed specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of an on-sale retail licensed premises configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats in the city and County of San Francisco (Curran Theatre), as specified.
AB 1330 (Mayes), Chapter 272, Statutes of 2022. Authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 10,000 seats located in the County of Riverside (Acrisure Arena).
SB 386 (Umberg), Chapter 309, Statutes of 2021. Authorized specified alcohol licensees to sponsor events promoted by, and to purchase advertising space and time from, or on behalf, an on-sale licensee that is the owner, operator agent of the operator, or sole assignee or the operator’s advertising rights of a mixed-use district located in the County of Orange (ocV!BE), as specified.
AB 2000 (Kalra), Chapter 483, Statutes of 2018. Extended an existing exception in the Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include an outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose (San Jose Municipal Stadium – minor league baseball San Jose Giants), and an outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose (Avaya Stadium – San Jose Earthquakes).
AB 2146 (Gloria), Chapter 487, Statutes of 2018. Extended an existing 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 – San Diego Padres).
REGISTERED SUPPORT / OPPOSITION:
Support
Murphy’s Bowl and the Los Angeles Clippers
Opposition
Alcohol Justice
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 392 |
THIRD READING
Bill No: SB 392
Author: Bradford (D), et al.
Amended: 4/26/23
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 3/14/23
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Padilla, Portantino, Roth, Seyarto
NO VOTE RECORDED: Ochoa Bogh, Rubio
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Tied-house restrictions: advertising exceptions: City of Inglewood
SOURCE: Author
DIGEST: This bill authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
Senate Floor Amendments of 4/26/23 clarify that the tied-house advertising exception in this bill is intended to apply to the Intuit Dome in the City of Inglewood.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages 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:
- Authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
Background
Purpose of the bill. According to the author’s office, “when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. SB 392 allows the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.”
Intuit Dome. The Intuit Dome is an indoor arena under construction in Inglewood, California, and the future home of the Los Angeles Clippers. Expected to be completed in 2024, the 18,000-seat arena will include a practice facility, sports medicine clinic, team offices, retail space, and a large outdoor plaza with basketball courts that will be open to the public.
The Intuit Dome will be the centerpiece of a larger 28-acre development which will include 63,000 square feet of ancillary retail; a public plaza featuring a large LED screen, a concert stage, and basketball courts; a 150-room hotel; and parking for 4,125 vehicles.
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 any facility where the facility is licensed to sell alcoholic beverages. Over the years, numerous exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Honda Center 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, Sutter Health Park in West Sacramento, SAP Center in San Jose, Dignity Health in Carson, and numerous other venues.
Related/Prior Legislation
SB 430 (Dodd, 2023) authorizes specified licenses to purchase advertising services from an advertising subsidiary that is under the common ownership with a retail licensee subsidiary if specified conditions are met. (Pending on the Senate Floor)
AB 840 (Addis, 2023) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenants at various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Monterey, Orange, Santa Clara, and Los Angeles, as specified. (Pending in the Assembly Appropriations Committee)
SB 1280 (Hueso, Chapter 304, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities on the campus of San Diego State University.
AB 98 (Kalra, Chapter 267, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a fixed capacity in excess of 4,000 seats located in the City of San Jose (Tech CU Arena).
AB 1323 (Haney, Chapter 271, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of an on-sale retail licensed premises configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats in the City and County of San Francisco (Curran Theater), as specified.
AB 1330 (Mayes, Chapter 272, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 10,000 seats located in the County of Riverside (Acrisure Arena).
SB 386 (Umberg, Chapter 309, Statutes of 2021) authorized specified alcohol licensees to sponsor events promoted by, and to purchase advertising space and time from, or on behalf, an on-sale licensee that is the owner, operator agent of the operator, or sole assignee or the operator’s advertising rights of a mixed-use district located in the County of Orange (ocV!BE), as specified.
AB 3139 (Gray, Chapter 175, Statutes of 2020) among other things, extended a current tied-house exception to the Orpheum and Golden Gate Theater in the City and County of San Francisco.
AB 2000 (Kalra, Chapter 483, Statutes of 2018) extended an existing exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include an outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose (San Jose Municipal Stadium – minor league baseball San Jose Giants), and an outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose (Avaya Stadium – San Jose Earthquakes).
AB 2146 (Gloria, Chapter 487, Statutes of 2018) extended an existing 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 43,000 seats located in the City of San Diego (Petco Park – San Diego Padres).
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 4/28/23)
None received
OPPOSITION: (Verified 4/28/23)
None received
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
4/28/23 15:14:56
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 392 |
THIRD READING
Bill No: SB 392
Author: Bradford (D), et al.
Introduced: 2/9/23
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 3/14/23
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Padilla, Portantino, Roth, Seyarto
NO VOTE RECORDED: Ochoa Bogh, Rubio
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Tied-house restrictions: advertising exceptions: City of Inglewood
SOURCE: Author
DIGEST: This bill authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages 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:
- Authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
Background
Purpose of the bill. According to the author’s office, “when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. SB 392 allows the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.”
Intuit Dome. The Intuit Dome is an indoor arena under construction in Inglewood, California, and the future home of the Los Angeles Clippers. Expected to be completed in 2024, the 18,000-seat arena will include a practice facility, sports medicine clinic, team offices, retail space, and a large outdoor plaza with basketball courts that will be open to the public.
The Intuit Dome will be the centerpiece of a larger 28-acre development which will include 63,000 square feet of ancillary retail; a public plaza featuring a large LED screen, a concert stage, and basketball courts; a 150-room hotel; and parking for 4,125 vehicles.
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 any facility where the facility is licensed to sell alcoholic beverages. Over the years, numerous exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Honda Center 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, Sutter Health Park in West Sacramento, SAP Center in San Jose, Dignity Health in Carson, and numerous other venues.
Unclear Language. As currently written, it is unclear whether the bill actually authorizes alcohol advertising at Intuit Dome or the surrounding development. The language in this bill is being added to a section of the ABC Act that provides a tied-house advertising exception for SoFi Stadium. This can create some confusion since the Intuit Dome is a separate, although nearby, arena, and therefore not within the “retail, entertainment, commercial, and mixed-use development” that surrounds SoFi Stadium. Assuming that is correct, it could be argued that the bill might not have the intended effect of allowing alcohol advertising where the bill intends such advertising to occur. As the bill moves forward, the Author might consider clarifying the language in the bill to eliminate any confusion.
Related/Prior Legislation
AB 840 (Addis, 2023) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenants at various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Monterey, Orange, Santa Clara, and Los Angeles, as specified. (Pending in the Assembly Governmental Organization Committee)
SB 1280 (Hueso, Chapter 304, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities on the campus of San Diego State University.
AB 98 (Kalra, Chapter 267, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a fixed capacity in excess of 4,000 seats located in the City of San Jose (Tech CU Arena).
AB 1323 (Haney, Chapter 271, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of an on-sale retail licensed premises configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats in the City and County of San Francisco (Curran Theater), as specified.
AB 1330 (Mayes, Chapter 272, Statutes of 2022) authorized specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 10,000 seats located in the County of Riverside (Acrisure Arena).
SB 386 (Umberg, Chapter 309, Statutes of 2021) authorized specified alcohol licensees to sponsor events promoted by, and to purchase advertising space and time from, or on behalf, an on-sale licensee that is the owner, operator agent of the operator, or sole assignee or the operator’s advertising rights of a mixed-use district located in the County of Orange (ocV!BE), as specified.
AB 3139 (Gray, Chapter 175, Statutes of 2020) among other things, extended a current tied-house exception to the Orpheum and Golden Gate Theater in the City and County of San Francisco.
AB 2000 (Kalra, Chapter 483, Statutes of 2018) extended an existing exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include an outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose (San Jose Municipal Stadium – minor league baseball San Jose Giants), and an outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose (Avaya Stadium – San Jose Earthquakes).
AB 2146 (Gloria, Chapter 487, Statutes of 2018) extended an existing 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 43,000 seats located in the City of San Diego (Petco Park – San Diego Padres).
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 4/12/23)
None received
OPPOSITION: (Verified 4/12/23)
None received
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
4/12/23 14:04:19
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2023 - 2024 Regular
Bill No: SB Hearing Date: 3/14/2023
Author: | Bradford, at al. | ||
Version: | Introduced | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood (Intuit Dome), as specified.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages 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:
- Authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits agent to purchase space and time from, or on behalf of, an on-sale retail license at a fully enclosed arena with a fixed capacity in excess of 18,000 seats located in the City of Inglewood (Intuit Dome).
- Provides that the advertising authorized by this bill may be placed in areas within the retail, entertainment, commercial, and mixed-used development that includes the fully enclosed arena provided that the advertising shall not be placed on or in, or otherwise promote any permanently licensed retail premises other than the performance venue, or fully enclosed arena.
- Requires any purchase of advertising space or time to be conducted by a written contract, as specified.
- Requires the on-sale licensee to serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured 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 by the rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
Background
Purpose of the Bill. According to the author’s office, “when new stadiums or arenas are constructed in California, legislation is required to exempt the stadium (a licensed alcoholic beverage retailer) from the current legal prohibition of receiving a thing of value (promotional and advertising revenue) from alcoholic beverage manufacturers. SB 392 allows the Intuit Dome to develop alcoholic beverage sponsorships with beer and distilled spirits manufacturers and winegrowers. These sponsorships will help the arena increase revenue, maintain financial stability, and serve the region as a major entertainment hub when it is expected to open in 2024.”
Intuit Dome. The Intuit Dome is an indoor arena under construction in Inglewood, California, and the future home of the Los Angeles Clippers. Expected to be completed in 2024, the 18,000-seat arena will include a practice facility, sports medicine clinic, team offices, retail space, and a large outdoor plaza with basketball courts that will be open to the public.
The Intuit Dome will be the centerpiece of a larger 28-acre development which will include 63,000 square feet of ancillary retail; a public plaza featuring a large LED screen, a concert stage, and basketball courts; a 150-room hotel; and parking for 4,125 vehicles.
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 any facility where the facility is licensed to sell alcoholic beverages. Over the years, numerous exceptions to this prohibition have been added to a number of stadiums, parks, entertainment complexes, and arenas. Some examples are Levi’s Stadium in Santa Clara, Oakland Coliseum in Oakland, Honda Center 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, Sutter Health Park in West Sacramento, SAP Center in San Jose, Dignity Health in Carson, and numerous other venues.
Unclear Language. As currently written, it is unclear whether the bill actually authorizes alcohol advertising at Intuit Dome or the surrounding development. The language in this bill is being added to a section of the ABC Act that provides a tied-house advertising exception for SoFi Stadium. This can create some confusion since the Intuit Dome is a separate, although nearby, arena, and therefore not within the “retail, entertainment, commercial, and mixed-use development” that surrounds SoFi Stadium. Assuming that is correct, it could be argued that the bill might not have the intended effect of allowing alcohol advertising where the bill intends such advertising to occur. As the bill moves forward, the Author might consider clarifying the language in the bill to eliminate any confusion.
Prior/Related Legislation
AB 840 (Addis, 2023) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenants at various facilities that are situated on California State University campuses located in the Counties of San Luis Obispo, Fresno, Monterey, Orange, Santa Clara, and Los Angeles, as specified. (Pending in the Assembly Governmental Organization Committee)
SB 1280 (Hueso, Chapter 304, Statutes of 2022) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at specified facilities on the campus of San Diego State University.
AB 98 (Kalra, Chapter 267, Statutes of 2022) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of a fully enclosed arena with a fixed capacity in excess of 4,000 seats located in the City of San Jose (Tech CU Arena).
AB 1323 (Haney, Chapter 271, Statutes of 2022) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant of an on-sale retail licensed premises configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats in the City and County of San Francisco (Curran Theater), as specified.
AB 1330 (Mayes, Chapter 272, Statutes 2022) authorizes specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, manager, or major tenant at a fully enclosed arena with a fixed capacity in excess of 10,000 seats located in the County of Riverside (Acrisure Arena).
SB 386 (Umberg, Chapter 309, Statutes of 2021) authorizes specified alcohol licensees to sponsor events promoted by, and to purchase advertising space and time from, or on behalf, an on-sale licensee that is the owner, operator agent of the operator, or sole assignee or the operator’s advertising rights of a mixed-use district located in the County of Orange (ocV!BE), as specified.
AB 3139 (Gray, Chapter 175, Statutes of 2020) among other things, extended a current tied-house exception to the Orpheum and Golden Gate Theater in the City and County of San Francisco.
AB 2000 (Kalra, Chapter 483, Statutes of 2018) extended an existing exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include an outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose (San Jose Municipal Stadium – minor league baseball San Jose Giants), and an outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose (Avaya Stadium – San Jose Earthquakes).
AB 2146 (Gloria, Chapter 487, Statutes of 2018) extended an existing 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 43,000 seats located in the City of San Diego (Petco Park – San Diego Padres).
SB 664 (Dodd, Chapter 486, Statutes of 2017) extended an existing exception in the ABC Act pertaining to the general prohibition against advertising arrangements between retail, wholesale, and manufacturer licensees to include an outdoor stadium (AT&T Park – the home of the San Francisco Giants) and an indoor arena (Chase Center – the home of the Golden State Warriors) with specified seating capacities located in the City and County of San Francisco.
AB 1724 (Jones-Sawyer, Chapter 478, Statutes of 2017), among other things, extended 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 582 (Bradford, Chapter 672, Statutes of 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 a specified stadium (The Los Angeles Stadium at Hollywood Park) and performance venue located in the City of Inglewood.
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. (Died 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. (Died 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.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT:
None received
OPPOSITION:
None received
Discussed in Hearing
49SEC
Senate Floor
43SEC
Assembly Floor
1MIN
Assembly Floor
6MIN
Assembly Standing Committee on Governmental Organization
1MIN
Senate Floor
3MIN
Senate Standing Committee on Governmental Organization
Bill Author
Bill Co-Author(s):
