| 1 | | - | Assembly Bill No. 1724 CHAPTER 478 An act to amend Sections 24204 and 25503.6 of the Business and Professions Code, relating to alcoholic beverages. [ Approved by Governor October 04, 2017. Filed with Secretary of State October 04, 2017. ] LEGISLATIVE COUNSEL'S DIGESTAB 1724, Jones-Sawyer. Alcoholic beverages: licenses: suspension and revocation tied-house exception.Existing law, the Alcoholic Beverage Control Act, regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law requires the Chief of the Bureau of Food and Drug Inspection to notify the Department of Alcoholic Beverage Control of the conviction of any licensee of any violation of the California Pure Foods Act in connection with alcoholic beverages. Existing law requires the department to promptly investigate whether grounds exist for suspension or revocation of the license.This bill would instead require the Director of the State Department of Public Health to notify the department of the conviction of any licensees of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time, in connection with described events, from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium in the City of Los Angeles. By expanding the definition of a crime, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 582 and SB 664 to be operative only if this bill and SB 582, this bill and SB 664, or all 3 bills are enacted and this bill is enacted last.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 24204 of the Business and Professions Code is amended to read:24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee.SEC. 2. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.3. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.5. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.7. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles.SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative.(b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative.(c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative.SEC. 5. 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. |
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| 1 | + | Enrolled September 15, 2017 Passed IN Senate September 05, 2017 Passed IN Assembly September 14, 2017 Amended IN Senate August 29, 2017 Amended IN Senate July 17, 2017 Amended IN Senate July 03, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1724Introduced by Assembly Member Jones-Sawyer(Coauthor: Assembly Member Santiago)March 16, 2017 An act to amend Sections 24204 and 25503.6 of the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTAB 1724, Jones-Sawyer. Alcoholic beverages: licenses: suspension and revocation tied-house exception.Existing law, the Alcoholic Beverage Control Act, regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law requires the Chief of the Bureau of Food and Drug Inspection to notify the Department of Alcoholic Beverage Control of the conviction of any licensee of any violation of the California Pure Foods Act in connection with alcoholic beverages. Existing law requires the department to promptly investigate whether grounds exist for suspension or revocation of the license.This bill would instead require the Director of the State Department of Public Health to notify the department of the conviction of any licensees of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time, in connection with described events, from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium in the City of Los Angeles. By expanding the definition of a crime, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 582 and SB 664 to be operative only if this bill and SB 582, this bill and SB 664, or all 3 bills are enacted and this bill is enacted last.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 24204 of the Business and Professions Code is amended to read:24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee.SEC. 2. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.3. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.5. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.7. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles.SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative.(b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative.(c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative.SEC. 5. 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. |
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| 11 | 24 | | |
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| 12 | 25 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 13 | 26 | | |
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| 14 | 27 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 15 | 28 | | |
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| 16 | 29 | | AB 1724, Jones-Sawyer. Alcoholic beverages: licenses: suspension and revocation tied-house exception. |
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| 17 | 30 | | |
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| 18 | 31 | | Existing law, the Alcoholic Beverage Control Act, regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law requires the Chief of the Bureau of Food and Drug Inspection to notify the Department of Alcoholic Beverage Control of the conviction of any licensee of any violation of the California Pure Foods Act in connection with alcoholic beverages. Existing law requires the department to promptly investigate whether grounds exist for suspension or revocation of the license.This bill would instead require the Director of the State Department of Public Health to notify the department of the conviction of any licensees of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified.This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time, in connection with described events, from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium in the City of Los Angeles. By expanding the definition of a crime, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 582 and SB 664 to be operative only if this bill and SB 582, this bill and SB 664, or all 3 bills are enacted and this bill is enacted last. |
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| 19 | 32 | | |
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| 20 | 33 | | Existing law, the Alcoholic Beverage Control Act, regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law requires the Chief of the Bureau of Food and Drug Inspection to notify the Department of Alcoholic Beverage Control of the conviction of any licensee of any violation of the California Pure Foods Act in connection with alcoholic beverages. Existing law requires the department to promptly investigate whether grounds exist for suspension or revocation of the license. |
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| 21 | 34 | | |
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| 22 | 35 | | This bill would instead require the Director of the State Department of Public Health to notify the department of the conviction of any licensees of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. |
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| 23 | 36 | | |
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| 24 | 37 | | The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. Existing law requires the purchase of advertising space or time in this context to be conducted pursuant to a written contract with the on-sale licensee, with a specified exception. Existing law makes it a crime for an on-sale licensee to coerce certain licensees to purchase advertising space or time, as specified. |
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| 25 | 38 | | |
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| 26 | 39 | | This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, distilled spirits manufacturers, or distilled spirits manufacturers agents to purchase advertising space and time, in connection with described events, from, or on behalf of, on-sale retail licensees, as described above, at a specified stadium in the City of Los Angeles. By expanding the definition of a crime, this bill would impose a state-mandated local program. |
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| 27 | 40 | | |
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| 28 | 41 | | This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles. |
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| 29 | 42 | | |
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| 30 | 43 | | 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. |
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| 31 | 44 | | |
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| 32 | 45 | | This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 33 | 46 | | |
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| 34 | 47 | | This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 582 and SB 664 to be operative only if this bill and SB 582, this bill and SB 664, or all 3 bills are enacted and this bill is enacted last. |
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| 35 | 48 | | |
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| 36 | 49 | | ## Digest Key |
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| 37 | 50 | | |
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| 38 | 51 | | ## Bill Text |
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| 39 | 52 | | |
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| 40 | 53 | | The people of the State of California do enact as follows:SECTION 1. Section 24204 of the Business and Professions Code is amended to read:24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee.SEC. 2. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.3. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.5. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 2.7. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles.SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative.(b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative.(c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative.SEC. 5. 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. |
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| 41 | 54 | | |
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| 42 | 55 | | The people of the State of California do enact as follows: |
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| 43 | 56 | | |
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| 44 | 57 | | ## The people of the State of California do enact as follows: |
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| 45 | 58 | | |
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| 46 | 59 | | SECTION 1. Section 24204 of the Business and Professions Code is amended to read:24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee. |
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| 47 | 60 | | |
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| 48 | 61 | | SECTION 1. Section 24204 of the Business and Professions Code is amended to read: |
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| 49 | 62 | | |
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| 50 | 63 | | ### SECTION 1. |
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| 51 | 64 | | |
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| 52 | 65 | | 24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee. |
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| 53 | 66 | | |
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| 54 | 67 | | 24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee. |
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| 55 | 68 | | |
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| 56 | 69 | | 24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee. |
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| 57 | 70 | | |
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| 58 | 71 | | |
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| 59 | 72 | | |
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| 60 | 73 | | 24204. The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee. |
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| 61 | 74 | | |
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| 62 | 75 | | SEC. 2. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 63 | 76 | | |
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| 64 | 77 | | SEC. 2. Section 25503.6 of the Business and Professions Code is amended to read: |
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| 65 | 78 | | |
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| 66 | 79 | | ### SEC. 2. |
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| 67 | 80 | | |
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| 68 | 81 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 69 | 82 | | |
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| 70 | 83 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 71 | 84 | | |
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| 72 | 85 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 73 | 86 | | |
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| 74 | 87 | | |
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| 75 | 88 | | |
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| 76 | 89 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions: |
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| 77 | 90 | | |
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| 78 | 91 | | (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: |
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| 79 | 92 | | |
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| 80 | 93 | | (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. |
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| 81 | 94 | | |
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| 82 | 95 | | (B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County. |
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| 83 | 96 | | |
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| 84 | 97 | | (C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County. |
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| 85 | 98 | | |
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| 86 | 99 | | (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. |
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| 87 | 100 | | |
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| 88 | 101 | | (E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. |
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| 89 | 102 | | |
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| 90 | 103 | | (F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. |
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| 91 | 104 | | |
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| 92 | 105 | | (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. |
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| 93 | 106 | | |
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| 94 | 107 | | (H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. |
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| 95 | 108 | | |
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| 96 | 109 | | (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. |
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| 97 | 110 | | |
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| 98 | 111 | | (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. |
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| 99 | 112 | | |
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| 100 | 113 | | (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. |
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| 101 | 114 | | |
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| 102 | 115 | | (L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. |
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| 103 | 116 | | |
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| 104 | 117 | | (M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood. |
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| 105 | 118 | | |
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| 106 | 119 | | (N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara. |
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| 107 | 120 | | |
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| 108 | 121 | | (ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium. |
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| 109 | 122 | | |
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| 110 | 123 | | (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. |
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| 111 | 124 | | |
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| 112 | 125 | | (P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County. |
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| 113 | 126 | | |
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| 114 | 127 | | (Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles. |
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| 115 | 128 | | |
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| 116 | 129 | | (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district. |
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| 117 | 130 | | |
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| 118 | 131 | | (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. |
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| 119 | 132 | | |
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| 120 | 133 | | (4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time. |
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| 121 | 134 | | |
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| 122 | 135 | | (b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following: |
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| 123 | 136 | | |
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| 124 | 137 | | (1) The on-sale licensee. |
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| 125 | 138 | | |
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| 126 | 139 | | (2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium. |
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| 127 | 140 | | |
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| 128 | 141 | | (3) With respect to subparagraphs (O) and (Q) 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. |
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| 129 | 142 | | |
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| 130 | 143 | | (c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 131 | 144 | | |
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| 132 | 145 | | (d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 133 | 146 | | |
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| 134 | 147 | | (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. |
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| 135 | 148 | | |
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| 136 | 149 | | (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. |
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| 137 | 150 | | |
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| 138 | 151 | | SEC. 2.3. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 139 | 152 | | |
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| 140 | 153 | | SEC. 2.3. Section 25503.6 of the Business and Professions Code is amended to read: |
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| 141 | 154 | | |
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| 142 | 155 | | ### SEC. 2.3. |
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| 143 | 156 | | |
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| 144 | 157 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 145 | 158 | | |
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| 146 | 159 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 147 | 160 | | |
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| 148 | 161 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 149 | 162 | | |
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| 150 | 163 | | |
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| 151 | 164 | | |
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| 152 | 165 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions: |
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| 153 | 166 | | |
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| 154 | 167 | | (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: |
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| 155 | 168 | | |
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| 156 | 169 | | (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. |
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| 157 | 170 | | |
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| 158 | 171 | | (B) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County. |
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| 159 | 172 | | |
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| 160 | 173 | | (C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County. |
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| 161 | 174 | | |
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| 162 | 175 | | (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. |
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| 163 | 176 | | |
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| 164 | 177 | | (E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. |
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| 165 | 178 | | |
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| 166 | 179 | | (F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. |
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| 167 | 180 | | |
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| 168 | 181 | | (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. |
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| 169 | 182 | | |
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| 170 | 183 | | (H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. |
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| 171 | 184 | | |
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| 172 | 185 | | (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. |
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| 173 | 186 | | |
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| 174 | 187 | | (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. |
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| 175 | 188 | | |
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| 176 | 189 | | (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. |
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| 177 | 190 | | |
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| 178 | 191 | | (L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. |
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| 179 | 192 | | |
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| 180 | 193 | | (M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood. |
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| 181 | 194 | | |
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| 182 | 195 | | (N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara. |
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| 183 | 196 | | |
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| 184 | 197 | | (ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium. |
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| 185 | 198 | | |
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| 186 | 199 | | (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. |
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| 187 | 200 | | |
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| 188 | 201 | | (P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County. |
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| 189 | 202 | | |
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| 190 | 203 | | (Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles. |
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| 191 | 204 | | |
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| 192 | 205 | | (R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. |
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| 193 | 206 | | |
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| 194 | 207 | | (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco. |
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| 195 | 208 | | |
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| 196 | 209 | | (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district. |
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| 197 | 210 | | |
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| 198 | 211 | | (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. |
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| 199 | 212 | | |
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| 200 | 213 | | (4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time. |
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| 201 | 214 | | |
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| 202 | 215 | | (b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following: |
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| 203 | 216 | | |
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| 204 | 217 | | (1) The on-sale licensee. |
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| 205 | 218 | | |
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| 206 | 219 | | (2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium. |
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| 207 | 220 | | |
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| 208 | 221 | | (3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license. |
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| 209 | 222 | | |
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| 210 | 223 | | (c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 211 | 224 | | |
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| 212 | 225 | | (d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 213 | 226 | | |
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| 214 | 227 | | (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. |
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| 215 | 228 | | |
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| 216 | 229 | | (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. |
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| 217 | 230 | | |
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| 218 | 231 | | SEC. 2.5. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 219 | 232 | | |
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| 220 | 233 | | SEC. 2.5. Section 25503.6 of the Business and Professions Code is amended to read: |
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| 221 | 234 | | |
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| 222 | 235 | | ### SEC. 2.5. |
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| 223 | 236 | | |
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| 224 | 237 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 225 | 238 | | |
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| 226 | 239 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 227 | 240 | | |
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| 228 | 241 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(R) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O) and (Q) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 229 | 242 | | |
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| 230 | 243 | | |
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| 231 | 244 | | |
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| 232 | 245 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions: |
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| 233 | 246 | | |
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| 234 | 247 | | (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: |
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| 235 | 248 | | |
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| 236 | 249 | | (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. |
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| 237 | 250 | | |
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| 238 | 251 | | (B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County. |
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| 239 | 252 | | |
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| 240 | 253 | | (ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority. |
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| 241 | 254 | | |
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| 242 | 255 | | (C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County. |
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| 243 | 256 | | |
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| 244 | 257 | | (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. |
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| 245 | 258 | | |
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| 246 | 259 | | (E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. |
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| 247 | 260 | | |
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| 248 | 261 | | (F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. |
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| 249 | 262 | | |
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| 250 | 263 | | (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. |
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| 251 | 264 | | |
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| 252 | 265 | | (H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. |
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| 253 | 266 | | |
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| 254 | 267 | | (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. |
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| 255 | 268 | | |
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| 256 | 269 | | (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. |
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| 257 | 270 | | |
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| 258 | 271 | | (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. |
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| 259 | 272 | | |
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| 260 | 273 | | (L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. |
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| 261 | 274 | | |
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| 262 | 275 | | (M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood. |
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| 263 | 276 | | |
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| 264 | 277 | | (N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara. |
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| 265 | 278 | | |
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| 266 | 279 | | (ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium. |
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| 267 | 280 | | |
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| 268 | 281 | | (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. |
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| 269 | 282 | | |
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| 270 | 283 | | (P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County. |
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| 271 | 284 | | |
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| 272 | 285 | | (Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles. |
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| 273 | 286 | | |
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| 274 | 287 | | (R) 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. |
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| 275 | 288 | | |
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| 276 | 289 | | (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district. |
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| 277 | 290 | | |
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| 278 | 291 | | (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. |
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| 279 | 292 | | |
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| 280 | 293 | | (4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time. |
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| 281 | 294 | | |
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| 282 | 295 | | (b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following: |
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| 283 | 296 | | |
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| 284 | 297 | | (1) The on-sale licensee. |
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| 285 | 298 | | |
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| 286 | 299 | | (2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium. |
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| 287 | 300 | | |
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| 288 | 301 | | (3) With respect to subparagraphs (O) and (Q) 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. |
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| 289 | 302 | | |
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| 290 | 303 | | (c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 291 | 304 | | |
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| 292 | 305 | | (d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 293 | 306 | | |
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| 294 | 307 | | (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. |
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| 295 | 308 | | |
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| 296 | 309 | | (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. |
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| 297 | 310 | | |
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| 298 | 311 | | SEC. 2.7. Section 25503.6 of the Business and Professions Code is amended to read:25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 299 | 312 | | |
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| 300 | 313 | | SEC. 2.7. Section 25503.6 of the Business and Professions Code is amended to read: |
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| 301 | 314 | | |
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| 302 | 315 | | ### SEC. 2.7. |
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| 303 | 316 | | |
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| 304 | 317 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 305 | 318 | | |
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| 306 | 319 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 307 | 320 | | |
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| 308 | 321 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions:(1) The on-sale licensee is the owner, manager, agent of the owner, assignee of the owners advertising rights, or the major tenant of the owner of any of the following:(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in Sacramento County or Alameda County.(B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County.(ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority.(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County.(D) An exposition park of not less than 50 acres that includes an outdoor stadium with a fixed seating capacity in excess of 8,000 seats and a fully enclosed arena with an attendance capacity in excess of 4,500 people, located in San Bernardino County.(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County.(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County.(G) An athletic and entertainment complex of not less than 50 acres that includes within its boundaries an outdoor stadium with a fixed seating capacity of at least 8,000 seats and a second outdoor stadium with a fixed seating capacity of at least 3,500 seats located in Riverside County.(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County.(I) A motorsports entertainment complex of not less than 50 acres that includes within its boundaries an outdoor speedway with a fixed seating capacity of at least 50,000 seats, located in San Bernardino County.(J) An exposition park, owned or operated by a bona fide nonprofit organization, of not less than 400 acres with facilities including a grandstand with a seating capacity of at least 8,000 people, at least one exhibition hall greater than 100,000 square feet, and at least four exhibition halls, each greater than 30,000 square feet, located in the City of Pomona or the City of La Verne in Los Angeles County.(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating capacity of at least 7,000 seats, an outdoor track and field facility with a fixed seating capacity of at least 7,000 seats, and an indoor velodrome with a fixed seating capacity of at least 2,000 seats, all located within a sports and athletic complex built before January 1, 2005, in the City of Carson in Los Angeles County.(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County.(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood.(N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.(ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County.(Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles.(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) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium.(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.(3) The advertising space or time is purchased only in connection with the events to be held on the premises of the exposition park, stadium, or arena owned by the on-sale licensee. With respect to an exposition park as described in subparagraph (J) of paragraph (1) that includes at least one hotel, the advertising space or time shall not be displayed on or in any hotel located in the exposition park, or purchased in connection with the operation of any hotel located in the exposition park. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex.(4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time.(b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following:(1) The on-sale licensee.(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.(3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.(c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.(e) For the purposes of this section, beer manufacturer includes any holder of a beer manufacturers license, any holder of an out-of-state beer manufacturers certificate, or any holder of a beer and wine importers general license.(f) The Legislature finds that it is necessary and proper to require a separation among manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly. |
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| 309 | 322 | | |
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| 310 | 323 | | |
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| 311 | 324 | | |
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| 312 | 325 | | 25503.6. (a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee subject to all of the following conditions: |
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| 313 | 326 | | |
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| 314 | 327 | | (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: |
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| 315 | 328 | | |
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| 316 | 329 | | (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. |
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| 317 | 330 | | |
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| 318 | 331 | | (B) (i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in Orange County or Los Angeles County. |
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| 319 | 332 | | |
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| 320 | 333 | | (ii) An outdoor stadium located in Los Angeles County operated by a joint powers authority. |
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| 321 | 334 | | |
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| 322 | 335 | | (C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in Kern County. |
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| 323 | 336 | | |
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| 324 | 337 | | (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. |
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| 325 | 338 | | |
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| 326 | 339 | | (E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in Yolo County. |
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| 327 | 340 | | |
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| 328 | 341 | | (F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in Fresno County. |
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| 329 | 342 | | |
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| 330 | 343 | | (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. |
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| 331 | 344 | | |
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| 332 | 345 | | (H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in Tulare County. |
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| 333 | 346 | | |
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| 334 | 347 | | (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. |
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| 335 | 348 | | |
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| 336 | 349 | | (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. |
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| 337 | 350 | | |
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| 338 | 351 | | (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. |
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| 339 | 352 | | |
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| 340 | 353 | | (L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in San Joaquin County. |
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| 341 | 354 | | |
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| 342 | 355 | | (M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats in the City of Inglewood. |
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| 343 | 356 | | |
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| 344 | 357 | | (N) (i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara. |
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| 345 | 358 | | |
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| 346 | 359 | | (ii) A beer manufacturer, the holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or distilled spirits manufacturers agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium. |
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| 347 | 360 | | |
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| 348 | 361 | | (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. |
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| 349 | 362 | | |
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| 350 | 363 | | (P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in San Diego County. |
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| 351 | 364 | | |
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| 352 | 365 | | (Q) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats in the City of Los Angeles. |
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| 353 | 366 | | |
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| 354 | 367 | | (R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco. |
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| 355 | 368 | | |
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| 356 | 369 | | (S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco. |
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| 357 | 370 | | |
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| 358 | 371 | | (T) 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. |
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| 359 | 372 | | |
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| 360 | 373 | | (2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district. |
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| 361 | 374 | | |
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| 362 | 375 | | (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. |
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| 363 | 376 | | |
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| 364 | 377 | | (4) The on-sale licensee serves other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by the beer manufacturer, other brands of wine distributed by a competing wine wholesaler in addition to the brand produced by the winegrower, and other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent that purchased the advertising space or time. |
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| 365 | 378 | | |
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| 366 | 379 | | (b) Any purchase of advertising space or time pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer, the holder of the winegrowers license, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturers agent and any of the following: |
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| 367 | 380 | | |
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| 368 | 381 | | (1) The on-sale licensee. |
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| 369 | 382 | | |
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| 370 | 383 | | (2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium. |
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| 371 | 384 | | |
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| 372 | 385 | | (3) With respect to subparagraphs (O), (Q), and (R) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license. |
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| 373 | 386 | | |
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| 374 | 387 | | (c) Any beer manufacturer or holder of a winegrowers license, any rectifier, any distilled spirits manufacturer, or any distilled spirits manufacturers agent who, through coercion or other illegal means, induces, directly or indirectly, a holder of a wholesalers license to fulfill all or part of those contractual obligations entered into pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space, time, or costs involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 375 | 388 | | |
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| 376 | 389 | | (d) Any on-sale retail licensee, as described in subdivision (a), who, directly or indirectly, solicits or coerces a holder of a wholesalers license to solicit a beer manufacturer, a holder of a winegrowers license, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturers agent to purchase advertising space or time pursuant to subdivision (a) or (b) shall be guilty of a misdemeanor and shall be punished by imprisonment in the county jail not exceeding six months, or by a fine in an amount equal to the entire value of the advertising space or time involved in the contract, whichever is greater, plus ten thousand dollars ($10,000), or by both imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200. |
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| 377 | 390 | | |
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| 378 | 391 | | (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. |
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| 379 | 392 | | |
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| 380 | 393 | | (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. |
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| 381 | 394 | | |
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| 382 | 395 | | SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles. |
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| 383 | 396 | | |
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| 384 | 397 | | SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles. |
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| 385 | 398 | | |
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| 386 | 399 | | SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions located in the County of Los Angeles. |
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| 387 | 400 | | |
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| 388 | 401 | | ### SEC. 3. |
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| 389 | 402 | | |
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| 390 | 403 | | SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative.(b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative.(c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative. |
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| 391 | 404 | | |
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| 392 | 405 | | SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative.(b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative.(c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative. |
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| 393 | 406 | | |
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| 394 | 407 | | SEC. 4. (a) Section 2.3 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 664. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, and (3) Senate Bill 582 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 664, in which case Sections 2, 2.5, and 2.7 of this bill shall not become operative. |
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| 395 | 408 | | |
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| 396 | 409 | | ### SEC. 4. |
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| 397 | 410 | | |
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| 398 | 411 | | (b) Section 2.5 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by both this bill and Senate Bill 582. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 25503.6 of the Business and Professions Code, (3) Senate Bill 664 is not enacted or as enacted does not amend that section, and (4) this bill is enacted after Senate Bill 582 in which case Sections 2, 2.3, and 2.7 of this bill shall not become operative. |
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| 399 | 412 | | |
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| 400 | 413 | | (c) Section 2.7 of this bill incorporates amendments to Section 25503.6 of the Business and Professions Code proposed by this bill, Senate Bill 582, and Senate Bill 664. That section shall only become operative if (1) all three bills are enacted and become effective on or before January 1, 2018, (2) all three bills amend Section 25503.6 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 582 and Senate Bill 664, in which case Sections 2, 2.3, and 2.5 of this bill shall not become operative. |
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| 401 | 414 | | |
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| 402 | 415 | | SEC. 5. 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. |
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| 403 | 416 | | |
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| 404 | 417 | | SEC. 5. 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. |
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| 405 | 418 | | |
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| 406 | 419 | | SEC. 5. 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. |
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| 407 | 420 | | |
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| 408 | 421 | | ### SEC. 5. |
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