Bill Text: CA SB131 | 2009-2010 | Regular Session | Chaptered

California Senate Bill 131 (Prior Session Legislation)

Bill Title: Alcoholic beverages: tied-house restrictions: symphony

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2009-11-02 - Chaptered by Secretary of State. Chapter 638, Statutes of 2009. [SB131 Detail]

Download: California-2009-SB131-Chaptered.html

BILL NUMBER: SB 131	CHAPTERED
	BILL TEXT

	CHAPTER  638
	FILED WITH SECRETARY OF STATE  NOVEMBER 2, 2009
	APPROVED BY GOVERNOR  NOVEMBER 2, 2009
	PASSED THE SENATE  OCTOBER 14, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2009
	AMENDED IN ASSEMBLY  SEPTEMBER 10, 2009
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2009
	AMENDED IN SENATE  APRIL 29, 2009

INTRODUCED BY   Senators Wiggins and Yee

                        FEBRUARY 9, 2009

   An act to add and repeal Section 25503.31 of the Business and
Professions Code, relating to alcoholic beverages, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 131, Wiggins. Alcoholic beverages: tied-house restrictions:
symphony associations.
   The Alcoholic Beverage Control Act contains limitations on sales
commonly known as "tied-house" restrictions, which generally prohibit
a manufacturer, winegrower, manufacturer's agent, California
winegrower's agent, rectifier, distiller, bottler, importer, or
wholesaler from furnishing, giving, or lending any money or other
thing of value to any person engaged in operating, owning, or
maintaining any on-sale licensed premises. Existing law authorizes
specific exceptions to this prohibition, including exceptions for
donations and sales to nonprofit corporations.
   This bill would additionally, until December 31, 2014, authorize
monetary contributions and contributions of alcoholic beverages by
specified alcoholic beverage licensees to a symphony association
under specified circumstances, including that the symphony
association has been incorporated in the City and County of San
Francisco by and through its predecessor organizations for a
specified amount of time. This bill would make findings regarding the
need for special legislation.
   The Alcoholic Beverage Control Act provides that a violation of
any of its provisions for which another penalty or punishment is not
specifically provided is a misdemeanor. This bill would expand
existing crimes by imposing additional requirements on a licensee
under the act, thus, the bill would impose a state-mandated local
program.
   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.


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

  SECTION 1.  Section 25503.31 is added to the Business and
Professions Code, to read:
   25503.31.  (a) Notwithstanding any other provision of this
division, a 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, a distilled
spirits manufacturer's agent, and a licensed retailer may make
monetary contributions or alcoholic beverage contributions of the
type that licensee is authorized to sell to a symphony association,
if all the following conditions are met:
   (1) The symphony association is a nonprofit charitable corporation
or association exempt from payment of income taxes under the
provisions of the Internal Revenue Code of the United States and
Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of
the Revenue and Taxation Code.
   (2) The symphony association has been incorporated in the City and
County of San Francisco by and through its predecessor organizations
for not less than 99 years and produces not less than 175 musical
events open to the general public per symphony season.
   (3) The symphony association holds a retail on-sale license in a
portion of its premises, provided that no contribution shall be used
in or for the benefit of the symphony association's retail on-sale
license.
   (4) The contribution 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 beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, distilled spirits manufacturer, holder of a distilled
spirits rectifiers general license, a distilled spirits manufacturer'
s agent, or a licensed retailer by the symphony association.
   (b) The symphony association shall serve other brands of beer
distributed by a competing beer wholesaler in addition to the brand
manufactured or marketed by the contributing beer manufacturer, other
brands of wine distributed by a competing wine wholesaler in
addition to the brand produced or marketed by the contributing
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
contribution distilled spirits manufacturer or distilled spirits
manufacturer's agent.
   (c) 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.
   (d) 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.
   (e) This section shall remain in effect only until December 31,
2014, and as of that date is repealed.
  SEC. 2.  The Legislature finds and declares that, because of the
unique circumstances, and the cultural importance of the San
Francisco Symphony, a statute of general applicability cannot be
enacted within the meaning of subdivision (b) of Section 16 of
Article IV of the California Constitution, and, therefore, this
special statute is necessary.
  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 allow the San Francisco Symphony to continue to
provide performing arts and to authorize the receipt of donations to
facilitate that provision, it is necessary that this act take effect
immediately.