Amended IN Assembly March 23, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1294Introduced by Assembly Member Boerner Horvath(Coauthor: Assembly Member Mathis)February 16, 2023An act to add Section 25503.62 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTAB 1294, as amended, Boerner Horvath. Tied-house restrictions: advertising exceptions: County of Kern. Kings.Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, as specified.This bill would create an exception to tied-house restrictions that authorizes specified licensees to sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, subject to specified requirements.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Kern. Kings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 25503.62 is added to the Business and Professions Code, immediately following Section 25503.61, to read:25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.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 unique conditions located in the County of Kern. Kings.
Amended IN Assembly March 23, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1294Introduced by Assembly Member Boerner Horvath(Coauthor: Assembly Member Mathis)February 16, 2023An act to add Section 25503.62 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTAB 1294, as amended, Boerner Horvath. Tied-house restrictions: advertising exceptions: County of Kern. Kings.Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, as specified.This bill would create an exception to tied-house restrictions that authorizes specified licensees to sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, subject to specified requirements.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Kern. Kings.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly March 23, 2023
Amended IN Assembly March 23, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1294
Introduced by Assembly Member Boerner Horvath(Coauthor: Assembly Member Mathis)February 16, 2023
Introduced by Assembly Member Boerner Horvath(Coauthor: Assembly Member Mathis)
February 16, 2023
An act to add Section 25503.62 to the Business and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1294, as amended, Boerner Horvath. Tied-house restrictions: advertising exceptions: County of Kern. Kings.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, as specified.This bill would create an exception to tied-house restrictions that authorizes specified licensees to sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, subject to specified requirements.This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Kern. Kings.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, as specified.
This bill would create an exception to tied-house restrictions that authorizes specified licensees to sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, subject to specified requirements.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Kern. Kings.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 25503.62 is added to the Business and Professions Code, immediately following Section 25503.61, to read:25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.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 unique conditions located in the County of Kern. Kings.
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 25503.62 is added to the Business and Professions Code, immediately following Section 25503.61, to read:25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
SECTION 1. Section 25503.62 is added to the Business and Professions Code, immediately following Section 25503.61, to read:
### SECTION 1.
25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.(b) For purposes of this section, the following definitions apply:(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
25503.62. (a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kern Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:
(1) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.
(2) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kern. Kings.
(3) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.
(4) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.
(b) For purposes of this section, the following definitions apply:
(1) Authorized licensee means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturers agent, winegrowers agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, or out-of-state beer manufacturer certificate holder.
(2) Wave basin has the same meaning as defined in Section 115960.1 of the Health and Safety Code.
(c) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this section to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
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 unique conditions located in the County of Kern. Kings.
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 unique conditions located in the County of Kern. Kings.
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 unique conditions located in the County of Kern. Kings.
### SEC. 2.