CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1370Introduced by Senator PanFebruary 18, 2022 An act to amend Section 24045.7 of the Business and Professions Code, relating to alcoholic beverages.LEGISLATIVE COUNSEL'S DIGESTSB 1370, as introduced, Pan. Alcoholic beverages: licensees.(1) The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law authorizes the department to issue a special on-sale general license to any nonprofit theater company that is exempt from the payment of income taxes, as specified. Existing law specifies that the license shall be for a single specified premises only, and authorizes a theater company that holds the license to sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide theater performance of the company. This bill would additionally authorize the department to issue a special on-sale license to a nonprofit radio broadcasting company. By expanding the application of an existing crime, the bill would impose a state-mandated local program.(2) Existing law, known as tied-house restrictions, generally prohibits certain alcoholic beverage licensees, including manufacturers, from holding any ownership interest in an on-sale license, subject to a variety of exceptions. In connection with special on-sale general licenses issued to nonprofit theater companies, existing law creates an exception to tied-house restrictions, by permitting specified licensees, including a licensed manufacturer, to serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating in the County of Napa, the City of Livermore, or the City of Modesto. This bill would expand the list of cities to include the City of Sacramento. The bill would extend the exception to tied-house restrictions provided to special on-sale general licenses for the trustees, officers, directors, and employees of nonprofit theater companies, described above, to a nonprofit radio broadcasting company operating a venue in the specified cities and county.(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Sacramento.(4) 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.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 24045.7 of the Business and Professions Code is amended to read:24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the conditions unique to the City of Sacramento.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1370Introduced by Senator PanFebruary 18, 2022 An act to amend Section 24045.7 of the Business and Professions Code, relating to alcoholic beverages.LEGISLATIVE COUNSEL'S DIGESTSB 1370, as introduced, Pan. Alcoholic beverages: licensees.(1) The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law authorizes the department to issue a special on-sale general license to any nonprofit theater company that is exempt from the payment of income taxes, as specified. Existing law specifies that the license shall be for a single specified premises only, and authorizes a theater company that holds the license to sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide theater performance of the company. This bill would additionally authorize the department to issue a special on-sale license to a nonprofit radio broadcasting company. By expanding the application of an existing crime, the bill would impose a state-mandated local program.(2) Existing law, known as tied-house restrictions, generally prohibits certain alcoholic beverage licensees, including manufacturers, from holding any ownership interest in an on-sale license, subject to a variety of exceptions. In connection with special on-sale general licenses issued to nonprofit theater companies, existing law creates an exception to tied-house restrictions, by permitting specified licensees, including a licensed manufacturer, to serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating in the County of Napa, the City of Livermore, or the City of Modesto. This bill would expand the list of cities to include the City of Sacramento. The bill would extend the exception to tied-house restrictions provided to special on-sale general licenses for the trustees, officers, directors, and employees of nonprofit theater companies, described above, to a nonprofit radio broadcasting company operating a venue in the specified cities and county.(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Sacramento.(4) 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1370 Introduced by Senator PanFebruary 18, 2022 Introduced by Senator Pan February 18, 2022 An act to amend Section 24045.7 of the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 1370, as introduced, Pan. Alcoholic beverages: licensees. (1) The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law authorizes the department to issue a special on-sale general license to any nonprofit theater company that is exempt from the payment of income taxes, as specified. Existing law specifies that the license shall be for a single specified premises only, and authorizes a theater company that holds the license to sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide theater performance of the company. This bill would additionally authorize the department to issue a special on-sale license to a nonprofit radio broadcasting company. By expanding the application of an existing crime, the bill would impose a state-mandated local program.(2) Existing law, known as tied-house restrictions, generally prohibits certain alcoholic beverage licensees, including manufacturers, from holding any ownership interest in an on-sale license, subject to a variety of exceptions. In connection with special on-sale general licenses issued to nonprofit theater companies, existing law creates an exception to tied-house restrictions, by permitting specified licensees, including a licensed manufacturer, to serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating in the County of Napa, the City of Livermore, or the City of Modesto. This bill would expand the list of cities to include the City of Sacramento. The bill would extend the exception to tied-house restrictions provided to special on-sale general licenses for the trustees, officers, directors, and employees of nonprofit theater companies, described above, to a nonprofit radio broadcasting company operating a venue in the specified cities and county.(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Sacramento.(4) 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. (1) The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law authorizes the department to issue a special on-sale general license to any nonprofit theater company that is exempt from the payment of income taxes, as specified. Existing law specifies that the license shall be for a single specified premises only, and authorizes a theater company that holds the license to sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide theater performance of the company. This bill would additionally authorize the department to issue a special on-sale license to a nonprofit radio broadcasting company. By expanding the application of an existing crime, the bill would impose a state-mandated local program. (2) Existing law, known as tied-house restrictions, generally prohibits certain alcoholic beverage licensees, including manufacturers, from holding any ownership interest in an on-sale license, subject to a variety of exceptions. In connection with special on-sale general licenses issued to nonprofit theater companies, existing law creates an exception to tied-house restrictions, by permitting specified licensees, including a licensed manufacturer, to serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating in the County of Napa, the City of Livermore, or the City of Modesto. This bill would expand the list of cities to include the City of Sacramento. The bill would extend the exception to tied-house restrictions provided to special on-sale general licenses for the trustees, officers, directors, and employees of nonprofit theater companies, described above, to a nonprofit radio broadcasting company operating a venue in the specified cities and county. (3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Sacramento. (4) 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. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 24045.7 of the Business and Professions Code is amended to read:24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the conditions unique to the City of Sacramento.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 24045.7 of the Business and Professions Code is amended to read:24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair. SECTION 1. Section 24045.7 of the Business and Professions Code is amended to read: ### SECTION 1. 24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair. 24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair. 24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only.(2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance.(3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision.(4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair. 24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit radio broadcasting company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit radio broadcasting company pursuant to this subdivision shall be for a single specified premises only. (2) Theater companies or nonprofit radio broadcasting companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to before and one hour after, a bona fide theater performance of the company. performance. (3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturers agent, California winegrowers agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company or nonprofit radio broadcasting company operating a theater venue in the County of Napa, the City of Livermore, or the City of Modesto, or the City of Sacramento licensed pursuant to this subdivision. (4) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly. (b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which that has been in existence for at least eight years, which that for at least six years has performed in facilities leased or rented from a local county fair association, and which that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. (2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which that is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits This section does not authorize a theater company to sell beer or wine during the run of a county fair. SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the conditions unique to the City of Sacramento. SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the conditions unique to the City of Sacramento. SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the conditions unique to the City of Sacramento. ### SEC. 2. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. ### SEC. 3.