Bill Text: CA AB2793 | 2009-2010 | Regular Session | Chaptered
Bill Title: Alcoholic beverage control: advertising: club licenses:
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Passed) 2010-09-24 - Chaptered by Secretary of State - Chapter 273, Statutes of 2010. [AB2793 Detail]
Download: California-2009-AB2793-Chaptered.html
BILL NUMBER: AB 2793 CHAPTERED
BILL TEXT
CHAPTER 273
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2010
APPROVED BY GOVERNOR SEPTEMBER 23, 2010
PASSED THE SENATE AUGUST 25, 2010
PASSED THE ASSEMBLY AUGUST 30, 2010
AMENDED IN SENATE AUGUST 18, 2010
AMENDED IN ASSEMBLY APRIL 14, 2010
INTRODUCED BY Committee on Governmental Organization (Coto (Chair),
Bradford, Chesbro, Evans, Galgiani, Hall, Hill, Lieu, Mendoza, V.
Manuel Perez, and Portantino)
MARCH 17, 2010
An act to amend Sections 24045.7 and 25503.42 of, and to add
Section 23433.5 to, the Business and Professions Code, relating to
alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2793, Committee on Governmental Organization. Alcoholic
beverage control: advertising: club licenses: tied-house
restrictions: nonprofit theaters: venues.
(1) Existing law provides for the issuance of a club license for
the sale of alcoholic beverages to specified organizations.
This bill would authorize the Department of Alcoholic Beverage
Control to issue a club license to nonprofit lawn bowls clubs, that
do not discriminate or restrict membership, as specified.
The Alcoholic Beverage Control Act provides that a violation of
its provisions is a misdemeanor, unless otherwise specified.
This bill, by including provisions that would be subject to those
existing criminal sanctions, would impose a state-mandated local
program.
(2) Under the Alcoholic Beverage Control Act, the Department of
Alcoholic Beverage Control may issue a special on-sale general
license to any nonprofit theater company, subject to specified
requirements. Existing law permits a licensed manufacturer,
winegrower, manufacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler, or any
officer, director, employee, or agent of that person, to serve on the
board of trustees of a nonprofit theater company operating a theater
in Napa County licensed pursuant to these provisions.
This bill would additionally permit a licensed manufacturer,
winegrower, manufacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler, or any
officer, director, employee, or agent of that person, to serve on the
board of trustees of a nonprofit theater company operating a theater
in the City of Livermore licensed pursuant to these provisions.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of Livermore.
(3) Existing law generally restricts certain alcoholic beverage
licensees, including manufacturers and winegrowers, from paying,
crediting, or compensating a retailer for advertising in connection
with the advertising and sale of alcoholic beverages but expressly
authorizes specified licensees to purchase advertising space or time
from specified fully enclosed venues located in Los Angeles County
that have a patronage capacity in excess of 2,000, as described,
under specified conditions.
This bill would limit the patronage capacity allowed in the
described venues to at least 2,000, but not more than 3,000.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 23433.5 is added to the Business and
Professions Code, to read:
23433.5. (a) For the purposes of this article, "club" also means
any nonprofit lawn bowls club.
(b) No license shall be issued to any nonprofit lawn bowls club
qualifying as a club pursuant to this section if the nonprofit lawn
bowls club in any manner restricts membership or the use of its
facilities on the basis of age or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.
SEC. 2. 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 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 pursuant to this subdivision shall be for a
single specified premises only.
(2) Theater 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 and one hour after,
a bona fide theater performance of the company.
(3) Notwithstanding any other provision in this division, a
licensed manufacturer, winegrower, manufacturer's agent, California
winegrower's 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 operating a
theater in Napa County or the City of Livermore licensed pursuant to
this subdivision.
(4) An applicant for such a license shall accompany the
application with an original issuance fee of one thousand dollars
($1,000) and shall pay an annual renewal fee as provided in Section
23320.
(5) 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 has been in existence
for at least eight years, which for at least six years has performed
in facilities leased or rented from a local county fair association,
and which 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, a bona fide
theater performance of the company. Beer and wine may be sold from an
open-air concession stand which 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 a theater company to sell
beer or wine during the run of a county fair.
(3) An applicant for a license under this subdivision shall
accompany the application with an original issuance fee equal to the
annual renewal fee and shall pay an annual renewal fee as provided in
Section 23320.
SEC. 3. Section 25503.42 of the Business and Professions Code is
amended to read:
25503.42. (a) Notwithstanding any other provision of this
chapter, a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a holder of a distilled spirits
rectifiers general license, a distilled spirits manufacturer, or a
distilled spirits manufacturer's agent may purchase indoor
advertising space or time at a fully enclosed venue with box office
sales and attendance by the public on a ticketed basis only, with a
patronage capacity in excess of 2,000, but not more than 3,000,
located in Los Angeles County within the area subject to the Los
Angeles Sports and Entertainment District Specific Plan adopted by
the City of Los Angeles pursuant to ordinance number 174225, as
approved on September 6, 2001, where the owner of the venue is not
the on-sale retail licensee. The purchase of the indoor advertising
space or time shall be subject to all of the following conditions:
(1) The indoor advertising space or time is purchased only at the
venue specified in this subdivision.
(2) The purchase of indoor advertising space or time shall be
conducted pursuant to a written agreement entered into by the beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, holder of a distilled spirits rectifiers general license,
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent and the owner of the venue described in this subdivision. A
holder of a wholesale license shall not be a party to the written
agreement or otherwise have any direct or indirect obligations under
the agreement, including an obligation to share in the costs or
contribute to the costs of the indoor advertising space or time
purchased pursuant to this section.
(3) An agreement for the purchase of indoor advertising space or
time pursuant to this section shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the advertising
beer manufacturer, holder of a winegrower's license, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent by any on-sale retail licensee.
(4) An on-sale licensee operating at a venue described in this
subdivision where indoor advertising space or time is purchased shall
serve other brands of beer distributed by a competing beer
wholesaler in addition to the brands manufactured or marketed by the
advertising beer manufacturer, other brands of wine distributed by a
competing wine wholesaler in addition to the brands produced or
marketed by the advertising winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brands
manufactured or marketed by the advertising distilled spirits
manufacturer, the distilled spirits manufacturer's agent, or a holder
of a distilled spirits rectifiers general license.
(5) No more than 15 percent of the retail licensee's monetary
expenditures for distilled spirits and wine for sale on its licensed
premises in any calendar year shall be for products manufactured,
produced, or distributed by the holder of a winegrower's license,
California winegrower's agent, distilled spirits manufacturer, holder
of a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent that has purchased indoor advertising
space.
(b) A beer manufacturer, holder of a winegrower's license,
California winegrower's agent, holder of a distilled spirits
rectifiers general license, distilled spirits manufacturer, or a
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 those contractual obligations entered
into pursuant to subdivision (a) shall be guilty of a misdemeanor
and shall be punished by imprisonment in the county jail not
exceeding six months, or by a fine equal to the greater of an amount
equal to the entire value of the advertising space or time involved
in the contract or ten thousand dollars ($10,000), or by both
imprisonment and fine. The person shall also be subject to license
revocation pursuant to Section 24200.
(c) An on-sale retail licensee who, directly or indirectly,
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent to purchase indoor advertising time or space
pursuant to subdivision (a) shall be guilty of a misdemeanor and
shall be punished by imprisonment in the county jail not exceeding
six months, or by a fine equal to the greater of an amount equal to
the entire value of the advertising space or time involved in the
contract or 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) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
(e) Nothing in this section shall authorize the purchasing of
indoor advertising space or time pursuant to subdivision (a) by any
beer manufacturer, holder of a winegrower's license, a California
winegrower's agent, a distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent directly or indirectly from any on-sale
licensee.
(f) A venue owner that meets the description provided in
subdivision (a) and that enters into a written agreement pursuant to
this section shall obtain an annual certificate from the department.
The director shall prepare, as part of the annual report required by
Section 23055 for submission to the Legislature, a listing of the
number of certifications made pursuant to this section or the absence
of any certifications. Where there have been no certifications made
pursuant to this section for two consecutive years, this information
shall be included in the report.
(g) 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 exception
established by this section to the general prohibition against tied
interests shall be limited to its express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
SEC. 4. The Legislature finds and declares that a special law is
necessary and that a general law 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 Livermore.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.
