BILL NUMBER: AB 1189	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 6, 2015

INTRODUCED BY   Assembly Member Bigelow

                        FEBRUARY 27, 2015

   An act to amend Section  25503.6   23055
 of the Business and Professions Code, relating to alcoholic
beverages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1189, as amended, Bigelow.  Alcoholic beverages:
tied-house restrictions: advertising.   Department of
Alcoholic Beverage Control: report.  
   Under existing law, the Alcoholic Beverage Control Act is
administered by the Department of Alcoholic Beverage Control through
the Director of Alcoholic Beverage Control. Existing law requires the
director to make an annual report to the Legislature on the
department's activities, on or before March 1 of each year. 

   This bill would instead require the director to make that report
by November 1 of each even calendar year.  
   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 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.
Among these conditions, the act requires that the advertising space
or time be purchased only in connection with events held on the
premises of the exposition park, stadium, or arena owned by the
on-sale licensee.  
   This bill would permit the purchase of advertising space or time,
as described above, on the premises of the exposition, park, stadium,
or arena leased by the on-sale licensee. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 23055 of the  
Business and Professions Code  is amended to read: 
   23055.   (a)    On or before  March
  November  1 of each  even calendar 
year, the director shall prepare and submit to the Legislature
 an annual   a  report on the department's
activities and post the report on the department's Internet Web site.
The report shall include, but not be limited to, the following
information for  the previous   relevant 
fiscal  year:   years:  
   (a) 
    (1)  The amount of funds allocated and spent by the
department for licensing, enforcement, and administration. 
   (b)
    (2)  The number of licenses issued, renewed, denied,
suspended, and revoked, by license category. 
   (c) 
    (3)  The average time for processing license
applications, by license category. 
   (d) 
    (4)  The number and type of enforcement activities
conducted by the department and by local law enforcement agencies in
conjunction with the department. 
   (e) 
    (5)  The number, type, and amount of penalties, fines,
and other disciplinary actions taken by the department. 
   (b) A report to the Legislature pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
 
  SECTION 1.    Section 25503.6 of the Business and
Professions Code is amended to read:
   25503.6.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, an on-sale retail licensee subject
to all of the following conditions:
   (1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
   (A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
   (B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
   (C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
   (D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
   (E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
   (F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
   (G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.
   (H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
   (I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located within San
Bernardino County.
   (J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
   (K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within the City of Carson in Los Angeles County.
   (L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.
   (M) A fully enclosed arena with a fixed seating capacity in excess
of 13,000 seats in the City of Inglewood.
   (N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.
   (ii) A beer manufacturer, the holder of a winegrower's license, a
distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer's agent may purchase advertising space
and time from, or on behalf of, a major tenant of an outdoor stadium
described in clause (i), provided the major tenant does not hold a
retail license, and the advertising may include the placement of
advertising in an on-sale licensed premises operated at the outdoor
stadium.
   (2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
   (3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned or leased by the on-sale licensee. With
respect to an exposition park as described in subparagraph (J) of
paragraph (1) that includes at least one hotel, the advertising space
or time shall not be displayed on or in any hotel located in the
exposition park, or purchased in connection with the operation of any
hotel located in the exposition park.
   (4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
   (b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee, or with respect to clause (ii) of subparagraph (N)
of paragraph (1) of subdivision (a), the major tenant of the outdoor
stadium.
   (c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
   (e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.