SB 1195: Tied-house exceptions: advertising: Counties of Los Angeles, San Bernardino, and San Diego.

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 retail licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, subject to specified conditions. Existing law requires the purchase of advertising space or time, in this context, to be conducted pursuant to a written contract. In this context, existing law makes certain acts of coercion crimes, including when an on-sale licensee coerces other specified licensees to purchase advertising space or time.

This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by applying it to various facilities that are located in the Counties of Los Angeles, San Bernardino, and San Diego, as specified. By expanding the definition of a crime, this bill would impose a state-mandated local program. The bill would prohibit an on-sale licensee from soliciting a beer manufacturer, holder of a winegrowers license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits manufacturers agent to enter into an agreement, as specified, that, among other things, includes a provision requiring, among other things, the prioritization of the sale or promotion of a specific alcoholic beverage product or brand. The bill would also prohibit a beer manufacturer, holder of a winegrowers license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits manufacturers agent from entering into a contract or agreement, as specified, that requires the on-sale retail licensee to, among other things, prioritize the sale or promotion of a specific alcoholic beverage product or brand.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles, San Bernardino, and San Diego.

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.