BILL NUMBER: SB 462 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 8, 2015
INTRODUCED BY Senator Wolk
(Principal coauthor: Assembly Member Dodd)
(Coauthor: Senator McGuire)
(Coauthor: Assembly Member Levine)
FEBRUARY 25, 2015
An act to amend Section 25503.6 of, and to add Section 25503.34
to, the Business and Professions Code, relating to alcoholic
beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 462, as amended, Wolk. Alcoholic beverages: tied house
restrictions: Sonoma County.
The
(1) The Alcoholic Beverage
Control Act generally prohibits a manufacturer, winegrower,
distiller, bottler, or wholesaler, among other licensees, or agents
of these licensees, from paying a retailer for advertising. The act
creates a variety of exceptions from this prohibition, including
permitting specified licensees to purchase advertising space and time
from, or on behalf of, an on-sale retail licensee that is an owner,
manager, or major tenant of certain stadiums, parks, entertainment
complexes, and arenas, subject to specified conditions. Existing law
requires the purchase of advertising space or time in this context to
be conducted pursuant to a written contract with the on-sale
licensee, with a specified exception. Existing law defines a beer
manufacturer for these specific purposes as including any holder of
an out-of-state beer manufacturer's certificate or any holder of a
beer and wine importer's general license. Existing law mak
es it a crime for an on-sale licensee to coerce certain
licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to allow
beer manufacturers, winegrowers, distilled spirits rectifiers,
distilled spirits manufacturers, or distilled spirits manufacturer's
agents to purchase advertising space and time from, or on behalf of,
on-sale retail licensees, as described above, at a specified complex
located in Sonoma County on the campus of,
and owned by, Sonoma State University . The bill would permit
the contract for purchasing space or time in this context to also be
with an owner, long-term long-
term tenant of the venue, or licensee of the venue. The bill
would also include within the definition of beer
manufacturer, for these purposes, a holder of a beer and wine
wholesaler's license within the exceptions described
above generally, as well as for the Sonoma State
University complex specifically, beer and wine wholesalers that also
hold an off-sale beer and wine retail license and only sell wine. By
expanding the definition of a crime, this bill would impose a
state-mandated local program .
Existing
(2) Existing law permits
specified alcoholic beverage licensees to donate money and sponsor
events at certain sites and facilities.
This bill would permit a holder of a winegrower's license, a beer
manufacturer, as defined, a distilled spirits rectifier, a distilled
spirits manufacturer, or distilled spirits manufacturer's agent to
donate wine, beer, or spirits, and make monetary contributions to a
specified complex located in Sonoma County,
on the campus of, and owned by, Sonoma State University, if
certain conditions are met. The bill would also include within
this authorization generally, as well as for the Sonoma State
University complex specifically, beer and wine wholesalers that also
hold an off-sale beer and wine retail license and only sell wine, as
specified.
(3) 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: 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
beer and wine wholesaler that also holds an off-sale beer
and wine retail license and only sells wine, 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.
(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.
(O) A complex of not more than 50 acres located in Sonoma
County 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
that includes 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
planned further outdoor facility
area with a seating capacity of up to 10,000 seats. With respect
to this venue, complex, advertising
space and time may also be purchased from or on behalf of the owner
of the complex, a long-term long-term
tenant or licensee of the venue, whether or not the owner,
long-term long-term tenant, or licensee holds an
on-sale license.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park. With respect to the complex described in
subparagraph (O) of paragraph (1), the advertising space
or time shall be purchased only in connection with live artistic,
musical, sports, food, beverage, culinary, lifestyle, or other
cultural and entertainment events and performances to be held on the
premises of the complex .
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower or the beer and wine wholesaler that
also holds an off-sale beer and wine retail license and only sells
wine , 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 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 beer and wine wholesaler that also holds an
off-sale beer and wine retail license and only sells wine, the
distilled spirits rectifier, the distilled spirits manufacturer, or
the distilled spirits manufacturer's agent and any of the following:
(1) The on-sale licensee.
(2) With respect to clause (ii) of subparagraph (N) of paragraph
(1) of subdivision (a), the major tenant of the outdoor stadium.
(3) With respect to subparagraph (O) of paragraph (1) of
subdivision (a), the owner, a long-term
long-term tenant of the venue, complex,
or licensee of the venue, complex,
whether or not the owner, long-term
long-term tenant, or licensee holds an on-sale license.
(c) Any beer manufacturer or manufacturer,
any holder of a winegrower's license, any beer and wine
wholesaler that also holds an off-sale beer and wine retail license
and only sells wine, 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 beer and wine wholesaler that also holds
an off-sale beer and wine retail license and only sells wine,
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, any holder of
a beer and wine wholesaler's license, or any holder of a
beer and wine importer's general license.
SEC. 2. Section 25503.34 is added to the Business and Professions
Code, to read:
25503.34. (a) A holder of a winegrower's license, a beer and
wine wholesaler that also holds an off-sale beer and wine retail
license and only sells wine, a beer manufacturer as defined in
subdivision (d), a distilled spirits rectifier, a distilled spirits
manufacturer, or distilled spirits manufacturer's agent may donate
wine, beer, or spirits, and make monetary contributions to a complex
dedicated to the presentation of live artistic, musical, sports,
food, beverage, culinary, lifestyle, or other cultural entertainment
events or performances, if all of the following conditions are met:
(1) The permanent retail on-sale licensee in the complex is a
nonprofit charitable corporation or association exempt from payment
of income taxes under the provisions of the Internal Revenue Code and
Chapter 4 (commencing with Section 23701) of Part 11 of Division 2
of the Revenue and Taxation Code.
(2) The complex is of not more than 50 acres located in
Sonoma County 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 that
includes 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
planned further outdoor facility
area with a seating capacity of up to 10,000 seats.
(3) The complex has a permanent retail on-sale license that is a
long-term tenant of the complex.
(4) The donation or monetary contribution shall not be conditioned
directly or indirectly, in any way, on the purchase, sale, or
distribution of any alcoholic beverage manufactured or distributed by
the holder of a winegrower's license, the holder of a beer and
wine wholesaler that also holds an off-sale beer and wine retail
license and only sells wine, the beer manufacturer, the
distilled spirits rectifier, the distilled spirits manufacturer, or
the distilled spirits manufacturer's agent by the licensee of the
complex.
(5) Except as provided in paragraph (6), donated wine, beer, or
spirits shall not be used or sold by the permanent retail licensee
and a monetary contribution shall not be used in, or for the benefit
of, the permanent retail on-sale licensee.
(6) Donated wine, beer, or spirits may only be used or sold in
connection with fundraising activities held on or off the permanent
licensed premises. Fundraising activities held in any area included
in the licensed premises during which donated wine, beer, or spirits
is used or sold shall not take place at the complex while the
permanent retail licensee is exercising its license privileges and
shall only be conducted pursuant to a temporary license issued by the
department, provided however, that the permanent licensee shall
surrender its license during the fundraising only for those areas of
the complex where the fundraising activities are being presented and
may continue to operate under its permanent license in other areas
covered by the license where the fundraising is not taking place.
(b) The complex may acknowledge and thank a donating winegrower,
beer and wine wholesaler that also holds
an off-sale beer and wine retail license and only sells wine,
beer manufacturer as defined in subdivision (d), distilled spirits
rectifier, distilled spirits manufacturer, or distilled spirits
manufacturer's agent in the complex's event programs, on the complex'
s Internet Web site, and on stage at the permanent licensed premises
during an event or performance.
(c) The Legislature finds that it is necessary and proper to
require a separation between 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.
(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, any holder of
a beer and wine wholesaler's license, or any holder of a
beer and wine importer's general license.
(e) The privilege granted by this section to a beer and wine
wholesaler that also holds an off-sale beer and wine retail license
and only sells wine shall apply only to wine produced for the
donating licensee that is labeled with a brand owned exclusively by
the donating licensee.
SEC. 3. 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.