Bill Text: CA AB600 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Alcoholic beverages: tied-house restrictions: advertising.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-07-18 - Chaptered by Secretary of State - Chapter 139, Statutes of 2014. [AB600 Detail]

Download: California-2013-AB600-Amended.html

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BILL NUMBER: AB 600	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 17, 2014
	AMENDED IN ASSEMBLY  MAY 28, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Bonta
    (   Principal coauthor:   Assembly Member
  Wieckowski   ) 
    (   Principal coauthor:   Senator 
 Corbett   ) 

                        FEBRUARY 20, 2013

   An act to amend Section  22928   25503.6
 of the Business and Professions Code, relating to 
business   alcoholic beverage control, and declaring the
urgency thereof, to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 600, as amended, Bonta.  Intermodal marine terminals.
  Alcoholic beverages: tied-house restrictions:
advertising.  
   Existing law generally prohibits a manufacturer of alcoholic
beverages and a winegrower from paying, crediting, or compensating a
retailer for advertising or paying or giving anything of value for
the privilege of placing a sign or advertisement with a retail
licensee. It authorizes, as an exception, the holder of a winegrower'
s license, a beer manufacturer, a distilled spirits manufacturer, or
a distilled spirits manufacturer's agent, to purchase advertising
space and time from, or on behalf of, an on-sale retail licensee,
under certain conditions, if the on-sale retail licensee is the
owner, manager, agent of the owner, assignee of the owner's
advertising rights, or major tenant of specified facilities. Existing
law specifies that any coercion or other illegal means to induce the
purchase of advertising, permitted under this section by a specified
licensee, is a crime.  
   This bill would expand the exceptions to existing law to allow
beer manufacturers, winegrowers, distilled spirits rectifiers,
distilled spirits manufacturers, or distilled spirits manufacturer's
agents to purchase advertising space and time from, or on behalf of,
on-sale retail licensees at specified facilities located in the City
of Santa Clara, as provided.  
    This bill would expand the scope of an existing crime thus
imposing a state-mandated local program.  
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of Santa Clara. 

   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.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   Existing law prohibits an intermodal marine equipment provider or
marine terminal operator from imposing per diem, detention, or
demurrage charges, as defined, on an intermodal motor carrier
relative to transactions involving cargo shipped by intermodal
transport under certain circumstances. Existing law also prohibits an
intermodal marine equipment provider from terminating, suspending,
or restricting equipment interchange rights of a motor carrier for
specified reasons and from charging back, deducting, or offsetting
per diem or certain other charges from the motor carrier's freight
bill.  
   This bill would recast these provisions to prohibit a party
signatory to an interchange agreement involving intermodal marine
equipment from unilaterally terminating, suspending, or restricting
the equipment interchange rights of any other signatory to the same
interchange agreement. This bill would modify the circumstances under
which an intermodal marine equipment provider or an intermodal
marine terminal operator is prohibited from imposing per diem,
detention, demurrage charges, or citations for parking violations.
 
   This bill would specify that an "intermodal marine terminal" does
not include a railroad, warehouse, or any other domestic terminal
facility that may handle intermodal marine equipment, but where cargo
shipped by intermodal marine transport is not transferred to or from
ocean-going vessels. The bill would declare that certain of its
provisions are not a change in, but are declaratory of, existing law.

   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   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) An outdoor stadium with a fixed seating capacity of at least
68,000 seats located in the City of Santa Clara. 
   (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 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.
   (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.
   SEC. 2.    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 unique circumstances and
concerns applicable to certain facilities in the City of Santa Clara.

   SEC. 3.   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. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to ensure the fair and efficient application of the
alcoholic beverage control licensing laws with respect to eligible
facilities in the City of Santa Clara, it is necessary that this act
take immediate effect.  
  SECTION 1.    Section 22928 of the Business and
Professions Code is amended to read:
   22928.  (a) The Legislature finds and declares all of the
following:
   (1) That no party who is a signatory to an interchange agreement
involving intermodal marine equipment shall unilaterally terminate,
suspend, or restrict the equipment interchange rights of any other
party signatory to the same interchange agreement, as specified in
this section.
   (2) Nothing in this section shall restrict any parties from
entering into contracts with enforceable contractual and commercial
terms to provide drayage services if the contract is consistent with
Part 2 (commencing with Section 1549) of Division 3 of Civil Code.
   (3) If the parties to a contract to provide drayage services are
mutual signatories to an interchange agreement, then the terms of
that agreement are binding except to the extent that they otherwise
conflict with this section, other provisions of law, or otherwise by
agreement of the contracting parties.
   (b) An intermodal marine equipment provider or intermodal marine
terminal operator shall not impose per diem or detention charges on
an intermodal motor carrier relating to transactions involving cargo
shipped by intermodal marine transport under any of the following
circumstances:
   (1) When the intermodal marine terminal truck gate is closed
during posted normal working hours, including any gate closures that
occur on a weekend or holiday, during a labor disruption period, or
during any other period involving an act of God, or any other planned
or unplanned action that closes the truck gate.
   (2) When the intermodal marine terminal or intermodal marine
equipment provider decides to divert the return of equipment from the
point at which it was interchanged without 48 hours' electronic or
written notification to the intermodal motor carrier having
possession of the equipment.
   (3) When the intermodal marine terminal is assessed a fine
pursuant to Section 40720 of the Health and Safety Code.
   (4) When the intermodal equipment is not compliant with Section
34505.9 of the Vehicle Code or is placed out of service.
   (5) When the intermodal marine terminal is too congested to safely
or reasonably accept the intermodal marine equipment and the
intermodal marine terminal turns away the intermodal motor carrier.
   (c) An intermodal marine equipment provider shall not take any of
the following actions:
   (1) Charge back, deduct, or offset per diem or detention charges,
maintenance and repair charges, or peak hour pricing from an
intermodal motor carrier's freight bill.
   (2) Unilaterally terminate, suspend, or restrict the equipment
interchange rights of an intermodal motor carrier that utilizes the
dispute resolution process contained in the Uniform Intermodal
Interchange and Facilities Access Agreement to contest a charge, fee,
or fine, including a charge for maintenance and repairs imposed by
the intermodal marine terminal, while the dispute resolution process
is ongoing or after a challenge is resolved, solely on the basis that
the dispute resolution process was utilized by the intermodal motor
carrier.
   (3) Unilaterally terminate, suspend, or restrict the equipment
interchange rights of an intermodal motor carrier for late payment of
an undisputed invoice from the intermodal marine terminal, provided
that the payment is no more than 60 days late.
   (d) Except as otherwise included in a terminal tariff agreement
filed with the federal Maritime Commission, an intermodal marine
terminal shall not take any of the following actions:
   (1) Require an intermodal motor carrier to pay for any parking
violation or to pay for any parking citation issued by the marine
terminal unless the citation remains unpaid more than 60 days after
the intermodal motor carrier is in actual physical receipt of the
citation. For the purposes of this subdivision, delivery by certified
mail or other recorded delivery service shall constitute evidence
that the intermodal motor carrier is in actual physical custody of a
parking violation citation.
   (2) Issue a parking citation to an intermodal motor carrier for a
parking violation if the assigned parking space at issue was occupied
and the trouble window or terminal administration was unable to
immediately provide a place to park, or if the driver was instructed
to park the equipment in a different spot by marine terminal
personnel or security.
   (3) Issue a parking violation citation more than five business
days after the date that the violation occurred.
   (e) (1) Other than what is specified in an agreement or the
governing port tariff, a party shall not collect cargo demurrage
unless it is due and payable in a manner that is consistent with this
section.
   (2) An intermodal motor carrier shall not be liable for any
portion of cargo demurrage that is solely for the account of the
beneficial owner or the owner's agent.
   (3) Except as otherwise agreed to in writing, an intermodal motor
carrier shall not be required by a cargo owner, or an owner's agent,
to pick up a loaded container that has any outstanding cargo charges,
including, but not limited to, demurrage charges.
   (4) Commencing January 1, 2015, an intermodal marine terminal
shall require that any outstanding cargo charges, including, but not
limited to, all cargo demurrage charges, imposed relative to
transactions involving intermodal marine cargo be paid electronically
by the responsible party, or that party's agent, before a container
is released.
   (5) If a loaded container is not made available for pickup when an
intermodal motor carrier arrives at the intermodal marine terminal,
and all current charges have been paid as set forth in paragraph (4),
the intermodal marine terminal operator shall not impose any further
cargo demurrage charges on the intermodal motor carrier.
   (f) As used in this chapter:
   (1) "Per diem," or "detention," means a charge imposed by an
equipment provider or marine terminal operator for late return or
pickup of an empty or a loaded intermodal container and chassis.
   (2) "Closed" means not open or available to receive equipment. The
intermodal marine terminal shall have posted working hours, and
"closed" shall mean that the terminal is not open to release or
accept intermodal marine equipment during those posted working hours.

   (3) "Divert equipment" means the motor carrier has been directed
to return the equipment to a location different from the location
where the equipment was picked up by the motor carrier.
   (4) "Intermodal marine equipment" means equipment commonly used in
the road transport of intermodal cargo by an intermodal motor
carrier to or from an intermodal marine terminal, including trailers,
chassis, containers, and associated devices, but excluding tractors.

   (5)  "Intermodal marine terminal" means a terminal location or
facility that engages in discharging or receiving intermodal marine
equipment owned, operated, or controlled by an intermodal marine
equipment provider. This definition does not apply to any railroad,
warehouse, or any other domestic terminal facility that may handle
intermodal marine equipment, but where cargo shipped by intermodal
marine transport is not transferred to or from ocean-going vessels.
   (6) "Written or electronic notification" means any communication
by postal letter, facsimile, electronic mail, or other electronic
notification.
   (7) "Intermodal marine equipment provider" means the party
providing intermodal marine equipment to an intermodal motor carrier
at an intermodal marine terminal pursuant to the Uniform Intermodal
Interchange and Facilities Access Agreement or any other interchange
agreement.
   (8) "Cargo demurrage" means a charge including, but not limited
to, any "wharf demurrage" applied against cargo that results from the
storage of the cargo on an intermodal terminal beyond the end of the
allowable free time as established by tariff or agreement. 

  SEC. 2.    The amendment of subdivision (b) of
Section 22928 of the Business and Professions Code made by Section 1
of this act does not constitute a change in, but is declaratory of,
existing law relative to the prohibition on the imposition of per
diem and retention charges by intermodal marine equipment providers
in the instances identified therein.