BILL NUMBER: AB 1320	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Maienschein

                        FEBRUARY 27, 2015

   An act to amend Section  25503.24   25503.6
 of the Business and Professions Code, relating to alcoholic
beverages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1320, as amended, Maienschein. Alcoholic beverages: tied-house
 restrictions.   restrictions: fairgrounds.

    Existing law  prohibits specified holders of alcoholic
beverage licenses from having specified relationships with an on-sale
alcoholic beverage licensee, with limited exceptions. Existing law
permits a manufacturer, winegrower, rectifier, distiller, distilled
spirits wholesaler, or any agent of those licenses, to conduct market
research and, in connection with that research, to purchase from
licensed off-sale retailers data, regarding purchases and sales of
alcoholic beverage products, at the customary rates that those
retailers sell similar data for nonalcoholic beverage products,
provided that no licensed retailer shall be obligated to purchase or
sell the alcoholic beverages of the manufacturer, winegrower,
rectifier, or distiller.   generally restricts certain
alcoholic beverage licensees, including manufacturers and
winegrowers, from paying, crediting, or compensating a retailer for
advertising in connection with the advertising and sale of alcoholic
beverages. Existing law expressly authorizes a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent to sponsor events promoted by or
purchase advertising space and time from, or on behalf of, specified
entities, including certain parks, entertainment complexes, and
outdoor stadiums, as provided. 
   This bill would  make a nonsubstantive change to this
provision.   expressly authorize a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent to sponsor events promoted by or own,
sponsor, conduct, or purchase advertising space and time from, or on
behalf of, an on-sale retail licensee that is the owner, manager,
agent of the owner, assignee of the owner's advertising rights, or
major tenant of a state- or county-owned fairground, under specified
conditions. The bill would also make a beer manufacturer, holder of a
winegrower's license, winegrower's agent, holder of an importer's
general license, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent who, through coercion or other illegal means,
induces the holder of a wholesaler's license to fulfill those
contractual obligations entered into   pursuant to these
provisions guilty of a misdemeanor. The bill would additionally make
an on-sale retail licensee, as described, who solicits or coerces a
holder of a wholesaler's license to solicit a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent to purchase advertising time or space
pursuant to these provisions guilty of a misdemeanor.  
   By creating new crimes, this bill would impose a state-mandated
local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    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 winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's 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 owner's advertising rights, or the major
tenant of the owner of any of the following:
   (A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
   (B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
   (C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
   (D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
   (E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
   (F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
   (G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within 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 within San
Bernardino County.
   (J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
   (K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within 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 within San Joaquin County.
   (M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
   (N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara. 
   (O) A state- or county-owned fairground. 
   (ii) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's 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.
   (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.
   (4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's 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 winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee, or with respect to clause (ii) of subparagraph (N)
of paragraph (1) of subdivision (a), the major tenant of the outdoor
stadium.
   (c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's 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
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's 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 manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B 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 XIII B of the
California Constitution.  
  SECTION 1.    Section 25503.24 of the Business and
Professions Code is amended to read:
   25503.24.  (a) Notwithstanding any other provision of this
chapter, any manufacturer, winegrower, rectifier, distiller,
distilled spirits wholesaler, or any agent, director, officer, or
representative of any of those entities, may conduct market research
and, in connection with that research, the entity conducting the
market research may purchase from licensed off-sale retailers data
regarding purchases and sales of alcoholic beverage products at the
customary rates that those retailers sell similar data for
nonalcoholic beverage products subject to the following limitations:
   (1) No licensed retailer shall be obligated to purchase or sell
the alcoholic beverage products of that manufacturer, winegrower,
rectifier, or distiller.
   (2) No retail premises shall participate in more than one research
project conducted by any single manufacturer, winegrower, rectifier,
distiller, or distilled spirits wholesaler during a calendar year. A
research project may involve multiple onsite surveys.
   (3) Nothing in this section shall allow a licensed retailer to
require a manufacturer, winegrower, rectifier, distiller, or
distilled spirits wholesaler to conduct any market research as a
condition for selling alcoholic beverage products to that licensed
retailer.
   (b) Any holder of a beer manufacturer's license or winegrower's
license who, through coercion or other illegal means, induces,
directly or indirectly, a holder of a beer or wine wholesaler's
license to fulfill obligations entered into pursuant to subdivision
(a) 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 market research or
time involved in the project, 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.
   (c) Any retail licensee who, directly or indirectly, solicits or
coerces a holder of a beer or wine wholesaler's license to solicit a
beer manufacturer, or holder of a winegrower's license to fulfill
obligations entered into pursuant to subdivision (a) 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 market research or time involved in the project,
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) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.