Bill Text: CA AB2896 | 2023-2024 | Regular Session | Introduced
Bill Title: Alcoholic beverages: tied-house restrictions: advertising.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-04 - Referred to Com. on G.O. [AB2896 Detail]
Download: California-2023-AB2896-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2896
| Introduced by Assembly Member Valencia |
February 15, 2024 |
An act to amend Section 25503.8 of the Business and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 2896, as introduced, Valencia.
Alcoholic beverages: tied-house restrictions: advertising.
Existing law, 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 specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner of certain spaces, including a theme or amusement park, as specified, located in the City of Los Angeles, Los Angeles County, or Orange County, subject to specified conditions. Existing law requires the advertising space or time to be purchased only in connection with daily activities and events at the theme or amusement park, as specified, located in the City of Los Angeles, Los Angeles County, or Orange County. Existing law makes it a crime for an on-sale
licensee to coerce certain licensees to purchase advertising space or time, as specified.
This bill would expand the exceptions described above to additionally permit, in the case of a theme or amusement park located in Orange County, the advertising space or time to be purchased from or on behalf of an entity that is under common ownership with the theme or amusement park in connection with the activities of the entity. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for Orange County.
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: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 25503.8 of the Business and Professions Code is amended to read:25503.8.
(a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrower’s license, a California winegrower’s agent, a rectifier, a distilled spirits manufacturer, or a distilled spirits manufacturer’s agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee if all of the following conditions are met:(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating capacity in excess of 6,000 seats, at least 60 percent of the use of which is for plays or musical concerts, not including sporting events.
(B) A motion picture studio facility at which public tours are conducted for at least four million people per year.
(C) A
retail, entertainment development adjacent to, and under common ownership with, a theme park, amphitheater, and motion picture production studio.
(D) A theme or amusement park and the adjacent retail, dining, and entertainment area located in the City of Los Angeles, Los Angeles County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance by the public on a ticketed basis only, with a fixed seating capacity in excess of 6,000 seats, 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.
(2) The advertising space or time is purchased only in connection with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in connection with sponsorship of plays or musical concerts to
be held on the premises of the auditorium or theater owned by the on-sale licensee.
(B) In the case of a motion picture studio facility, in connection with sponsorship of the public tours or special events conducted at the studio facility.
(C) In the case of a retail, entertainment development, in connection with sponsorship of public tours or special events conducted at the development.
(D) (i) In the case of a theme or amusement park and the adjacent retail, dining, and entertainment area, located in the City of Los Angeles, Los Angeles County, or Orange County, in connection with daily activities and events at the theme or amusement park and the adjacent retail, dining, and entertainment
area.
(ii) In the case of a theme or amusement park located in Orange County, the advertising space or time may also be purchased from or on behalf of an entity that is under a common ownership with the theme or amusement park in connection with the activities of that entity.
(E) In the case of the fully enclosed theater described in subparagraph (E) of paragraph (1) of subdivision (a), in connection with events conducted at the theater.
(3) 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 or marketed by the winegrower or California winegrower’s agent, 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 manufacturer or distilled spirits manufacturer’s agent purchasing the advertising space or time.
(b) Any purchase of advertising space or time conducted 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 California winegrower’s agent, the rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent, and the on-sale licensee, which contract shall not in any way involve the holder of a wholesaler’s license.
(c) Any beer manufacturer, rectifier, distilled spirits manufacturer, distilled spirits manufacturer’s agent, holder of a winegrower’s license, or California winegrower’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) 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.
(d) Any on-sale retail licensee, as described in subdivision (a), who solicits or coerces, directly or indirectly, a holder of a wholesaler’s license to solicit a beer manufacturer, rectifier, distilled spirits manufacturer, or distilled spirits manufacturer’s agent, holder of a winegrower’s license, or California winegrower’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.
