Bill Text: CA AB2580 | 2021-2022 | Regular Session | Introduced
Bill Title: Alcoholic beverages: tied-house restrictions: exceptions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-10 - Referred to Com. on G.O. [AB2580 Detail]
Download: California-2021-AB2580-Introduced.html
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 2580
| Introduced by Assembly Member Bloom |
February 18, 2022 |
An act to add Section 25503.46 to the Business and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2580, as introduced, Bloom.
Alcoholic beverages: tied-house restrictions: exceptions.
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 a manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any of those licensees, 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. Existing law creates a variety of exceptions to tied-house restrictions, including for specified places and activities.
This bill would create an exception from tied-house restrictions for a hotel consisting of not less than 25
guestroom accommodations with an outdoor piazza or motor court of approximately 9,000 square feet located on Sunset Boulevard in the City of West Hollywood. In this regard, the bill would authorize a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, wholesaler, or out-of-state distilled spirits shipper to purchase advertising space and time in connection with the hotel if specified conditions are met.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of West Hollywood.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 25503.46 is added to the Business and Professions Code, to read:25503.46.
(a) Notwithstanding any other provision of this chapter, a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, wholesaler, or out-of-state distilled spirits shipper may purchase advertising space and time in connection with a hotel that consists of not less than 25 guestroom accommodations with an outdoor piazza or motor court of approximately 9,000 square feet located on Sunset Boulevard in the City of West Hollywood, if all the following conditions are met:(1) Purchased advertising space and time shall be for advertising on the exterior of the hotel building.
(2) Purchased advertising space and time shall not
refer to any retailer name or business.
(3) An agreement to purchase advertising space and time shall not require, directly or indirectly, the purchase or sale of the advertiser’s products by any retailer. Every retailer located at the hotel shall offer for sale, in a bona fide manner, alcoholic beverages manufactured, produced, or distributed by competing manufacturers, winegrowers, manufacturer’s agents, California winegrower’s agents, rectifiers, distillers, bottlers, importers, wholesalers, or out-of-state distilled spirits shippers.
(b) 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.
