Section § 25500

Explanation

This law prohibits alcohol manufacturers, importers, and certain related parties from having a financial stake or any ownership interest in businesses that sell alcohol directly to consumers, such as bars or restaurants. They're also barred from lending money or providing valuable items to these businesses. However, there are exceptions for businesses in small counties or certain types of organizations like clubs and for places like boats or airplanes where the manufacturers' products aren't sold. Employees who don't have administrative roles or whose spouses own an on-sale business are also exceptions if they don't push their brands. Retail license holders can purchase ads from various publications of nonretail businesses, including their online properties.

(a)CA Business and Professions Code § 25500(a) No manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any such person shall:
(1)CA Business and Professions Code § 25500(a)(1) Hold the ownership, directly or indirectly, of any interest in any on-sale license.
(2)CA Business and Professions Code § 25500(a)(2) Furnish, give, or lend any money or other thing of value, directly or indirectly, to, or guarantee the repayment of any loan or the fulfillment of any financial obligation of, any person engaged in operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold for consumption on the premises.
(3)CA Business and Professions Code § 25500(a)(3) Own any interest, directly or indirectly, in the business, furniture, fixtures, refrigeration equipment, signs, except signs for interior use mentioned in subdivision (g) of Section 25503, or lease in or of any premises operated or maintained under any on-sale license for the sale of alcoholic beverages for consumption on the premises where sold; or own any interest, directly or indirectly, in realty acquired after June 13, 1935, upon which on-sale premises are maintained unless the holding of the interest is permitted in accordance with rules of the department.
(b)CA Business and Professions Code § 25500(b) This section does not apply to the holding by one person of a wholesaler’s license and an on-sale license in counties not to exceed 15,000 population.
(c)CA Business and Professions Code § 25500(c) This section does not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of such person, and a person holding only one of the following types of licenses:
(1)CA Business and Professions Code § 25500(c)(1) On-sale general license for a bona fide club.
(2)CA Business and Professions Code § 25500(c)(2) Club license issued under Article 4 (commencing with Section 23425) of Chapter 3.
(3)CA Business and Professions Code § 25500(c)(3) Veterans’ club license issued under Article 5 (commencing with Section 23450) of Chapter 3.
(4)CA Business and Professions Code § 25500(c)(4) On-sale license for boats, trains, sleeping cars, or airplanes where the alcoholic beverages produced or sold by the manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, bottler, importer, or wholesaler or any officer, director, or agent of the person are not sold, furnished, or given, directly or indirectly to the on-sale licensee.
(d)CA Business and Professions Code § 25500(d) This section does not apply to an employee of a licensee referred to in subdivision (a) who is a nonadministrative and nonsupervisorial employee.
(e)CA Business and Professions Code § 25500(e) Notwithstanding any other provision of this division or regulation of the department, this section does not apply to an employee of a licensee referred to in subdivision (a) who is the spouse of an on-sale licensee, so long as the on-sale licensee does not purchase, offer for sale, or promote, regardless of source, any of the brands of alcoholic beverages that are produced, bottled, processed, imported, rectified, distributed, represented, or sold by any licensee referred to in subdivision (a) that employs the spouse of the on-sale licensee.
(f)Copy CA Business and Professions Code § 25500(f)
(1)Copy CA Business and Professions Code § 25500(f)(1) Nothing in this division prohibits the holder of any retail on-sale or off-sale license from purchasing advertising in any publication published by a nonretail licensee.
(2)CA Business and Professions Code § 25500(f)(2) For purposes of this subdivision:
(A)CA Business and Professions Code § 25500(f)(2)(A) “Nonretail licensee” means any manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, or wholesaler, or any person who does not directly or indirectly hold the ownership of any interest in a retail license.
(B)CA Business and Professions Code § 25500(f)(2)(B) “Publication published by a nonretail licensee” includes Internet Web sites and social media feeds operated and maintained by or for a nonretail licensee under an account or Internet Web site address owned by the nonretail licensee.

Section § 25500.1

Explanation

This section outlines that when nonretail industry members like manufacturers or wholesalers list information about multiple unrelated retailers who sell their alcoholic beverages, it isn’t considered a form of unfair advantage, as long as certain conditions are met. These conditions include not listing retail prices, only mentioning retailers in this particular communication, not focusing on one retailer or retailers under common control, and ensuring the listing is only produced by the industry member. It also defines what nonretail industry members are and emphasizes maintaining the separation between manufacturing, wholesale, and retail businesses to avoid market dominance and excessive alcohol sales due to aggressive marketing.

(a)CA Business and Professions Code § 25500.1(a) The listing of the names, addresses, telephone numbers, email addresses, or Internet Web site addresses, or other electronic media, of two or more unaffiliated on-sale or off-sale retailers selling beer, wine, or distilled spirits produced, distributed, or imported by a nonretail industry member does not constitute a thing of value or prohibited inducement to the listed on-sale or off-sale retailer, provided all of the following conditions are met:
(1)CA Business and Professions Code § 25500.1(a)(1) The listing does not also contain the retail price of the product.
(2)CA Business and Professions Code § 25500.1(a)(2) The listing is the only reference to the on-sale or off-sale retailers in the direct communication.
(3)CA Business and Professions Code § 25500.1(a)(3) The listing does not refer only to one on-sale or off-sale retailer or only to on-sale or off-sale retail establishments controlled directly or indirectly by the same retailer.
(4)CA Business and Professions Code § 25500.1(a)(4) The listing is made, or produced, or paid for, exclusively by the nonretail industry member.
(b)CA Business and Professions Code § 25500.1(b) For the purposes of this section, “nonretail industry member” is defined as a manufacturer, including, but not limited to, a beer manufacturer, winegrower, brandy manufacturer, rectifier, or distiller of alcoholic beverages or an agent of that entity, or a wholesaler, regardless of any other licenses held directly or indirectly by that person.
(c)CA Business and Professions Code § 25500.1(c) 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 exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25501

Explanation

This law prevents businesses involved in brewing, like manufacturers and bottlers, from providing equipment or supplies (except alcohol) to places that sell alcohol for onsite drinking, unless under specific conditions. They can supply draft beer pumps and iceboxes for temporary use, and small-valued items like paper coasters and branded table tent holders. They are also not allowed to own businesses that provide supplies to alcohol-selling places, except certain authorized items. However, beer and wine wholesalers can sell lawful products at market prices to these venues.

No manufacturer, bottler, importer, or wholesaler of products of the brewing industry shall:
(a)CA Business and Professions Code § 25501(a) Furnish, give, rent, lend, or sell, directly or indirectly, any equipment, fixtures, or supplies, other than alcoholic beverages, to any person engaged in operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold for consumption on the premises. This subdivision shall not prohibit the furnishing of draft beer pumps and iceboxes to those persons who operate on a temporary basis. Notwithstanding any other provision of this division, a manufacturer, bottler, importer, or wholesaler of products of the brewing industry may furnish, give, rent, lend, or sell, directly or indirectly, paper beverage coasters less than 25 square inches in size and having a value of less than five cents ($0.05) per coaster or brand-identified acrylic table tent holders to any person engaged in operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold for consumption on the premises.
(b)CA Business and Professions Code § 25501(b) Directly or indirectly, hold the ownership or any interest, by stock ownership or otherwise, in any firm, corporation, partnership, or business, furnishing, supplying, or dealing in any office, store, or restaurant furnishings or equipment, other than signs for interior use or supplies authorized to be given under this division to any person engaged in operating, owning, or maintaining any on-sale premises.
(c)CA Business and Professions Code § 25501(c) Notwithstanding any provision of this section, the holder of a beer and wine wholesaler’s license may manufacture, distribute, and sell any lawful product to any person engaged in operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold for consumption on the premises, provided that these products are sold by the holder of the beer and wine wholesaler’s license to the on-sale licensee at a price not less than the current market price for the product.

Section § 25502

Explanation

This section outlines regulations for alcohol industry members like manufacturers, distributors, and agents, preventing them from having financial interests or control over off-sale license holders. Basically, if you produce or distribute alcohol, you can't own a part of a business that sells alcohol directly to the public for off-premise consumption, nor can you provide finances or assets to such a business. There are exceptions for certain longtime wholesalers and specific roles like trustees in bankruptcy cases. Importantly, this doesn't apply to regular employees who don't have administrative powers, and it doesn't affect previous rights granted to winegrowers or brandy manufacturers.

(a)CA Business and Professions Code § 25502(a) No manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any such person, shall, except as authorized by this division:
(1)CA Business and Professions Code § 25502(a)(1) Hold the ownership, directly or indirectly, of any interest in an off-sale license.
(2)CA Business and Professions Code § 25502(a)(2) Furnish, give, or lend any money or other thing of value, directly or indirectly, to, or guarantee the repayment of any loan or the fulfillment of any financial obligation of, any person engaged in operating, owning, or maintaining any off-sale licensed premises.
(3)CA Business and Professions Code § 25502(a)(3) Own or control any interest, directly or indirectly, by stock ownership, interlocking directors, or trusteeship, in the business, furniture, fixtures, refrigeration equipment, signs, except signs for interior use mentioned in subdivision (g) of Section 25503, or lease in premises licensed with an off-sale license.
(4)CA Business and Professions Code § 25502(a)(4) Own or control any interest, directly or indirectly, by stock ownership, interlocking directors, trusteeship, or mortgage of the realty upon which an off-sale licensed premises is maintained.
(b)CA Business and Professions Code § 25502(b) Any wholesaler in counties not to exceed 15,000 population who holds both a beer and wine wholesaler’s license and an off-sale general license and who held such licenses prior to September 19, 1947, may continue to hold such licenses but may not transfer the beer and wine wholesaler’s license to another individual, individuals, partnership, corporation or other legal entity. Where the off-sale general license is transferred to an individual, individuals, partnership, corporation or other legal entity, the transfer shall be a person-to-person transfer only.
(c)CA Business and Professions Code § 25502(c) Nothing in this section prohibits any holder of a distilled spirits manufacturer’s, manufacturer’s agent’s, California winegrower’s agent, rectifier’s, or wholesaler’s license, or any officer, employee, or representative of any such licensee, from acting as a trustee for any off-sale general licensee in any bankruptcy or other proceedings for the benefit of the creditors of the off-sale general licensee.
(d)CA Business and Professions Code § 25502(d) Nothing in this section shall alter, change, or otherwise affect, retroactively or prospectively, any of the rights or privileges granted to a winegrower or brandy manufacturer by Section 23362, or by any other provision of this division.
(e)CA Business and Professions Code § 25502(e) This section does not apply to an employee of a licensee referred to in subdivision (a) who is a nonadministrative and nonsupervisorial employee.

Section § 25502.2

Explanation

If you're someone hired by a company that holds a license to sell alcohol, you can attend a promotional event at a retail store to sign autographs under certain conditions. You can't require event guests to make a purchase or charge them an entrance fee. Autographs should be on promotional items from the licensee or personal items from attendees. The event must last no more than four hours and can't happen more than twice a year at the same store. Retailers and licensees can advertise the event in specific ways, but wholesalers generally can't cover event costs, unless they meet specific criteria. The licensee needs to notify authorities 30 days in advance and keep records to show they're following the rules. An 'authorized licensee' covers various types of alcohol producers and sellers, like manufacturers and importers.

(a)CA Business and Professions Code § 25502.2(a) A person employed or engaged by an authorized licensee may appear at a promotional event at the premises of an off-sale retail licensee for the purposes of providing autographs to consumers at the promotional event only under the following conditions:
(1)CA Business and Professions Code § 25502.2(a)(1) A purchase from the off-sale retail licensee is not required.
(2)CA Business and Professions Code § 25502.2(a)(2) A fee is not charged to attend the promotional event.
(3)CA Business and Professions Code § 25502.2(a)(3) Autographing may only be provided on consumer advertising specialities given by the authorized licensee to a consumer or on any item provided by the consumer.
(4)CA Business and Professions Code § 25502.2(a)(4) The promotional event does not exceed four hours in duration.
(5)CA Business and Professions Code § 25502.2(a)(5) There are no more than two promotional events per calendar year involving the same authorized licensee at a single premises of an off-sale retail licensee.
(6)CA Business and Professions Code § 25502.2(a)(6) The off-sale retail licensee may advertise the promotional event to be held at its licensed premises.
(7)CA Business and Professions Code § 25502.2(a)(7) An authorized licensee may advertise in advance of the promotional event only in publications of the authorized licensee, subject to the following conditions:
(A)CA Business and Professions Code § 25502.2(a)(7)(A) The advertising only lists the name and address of the off-sale retail licensee, the name of the alcoholic beverage product being featured at the promotional event, and the time, date, and location of the off-sale retail licensee location where the promotional event is being held.
(B)CA Business and Professions Code § 25502.2(a)(7)(B) The listing of the off-sale retail licensee’s name and address is the only reference to the off-sale retail licensee in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole, and the advertisement does not contain any pictures or illustrations of the off-sale retail licensee’s premises or laudatory references to the off-sale retail licensee.
(8)CA Business and Professions Code § 25502.2(a)(8) A wholesaler does not directly or indirectly underwrite, share in, or contribute to any costs related to the promotional event, except that a beer and wine wholesaler that holds at least six distilled spirits wholesaler licenses may directly or indirectly underwrite, share in, or contribute to any costs related to a promotional event for which the wholesaler employs or engages the person providing autographs to consumers at the promotional event.
(9)CA Business and Professions Code § 25502.2(a)(9) The authorized licensee notifies the department in writing of the promotional event at least 30 days in advance of the promotional event.
(10)CA Business and Professions Code § 25502.2(a)(10) The authorized licensee maintains records necessary to establish its compliance with this section.
(b)CA Business and Professions Code § 25502.2(b) For purposes of this section, “authorized licensee” means a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, importer, brandy manufacturer, brandy importer, or wholesaler.

Section § 25503

Explanation

This section outlines specific actions that people involved in the production or distribution of alcoholic beverages, such as manufacturers, wholesalers, and importers, are prohibited from doing. They can't give alcohol on consignment or offer it as free goods. Secret rebates or concessions between sellers and licensees are forbidden, as well as payments or gifts to retail employees to influence purchases. There should be no unfair price discrimination among retailers. Retailers also can't be compensated for promoting alcoholic beverages. Additionally, supplying decorations or signs for free or in exchange for advertisement privileges is restricted.

No manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, out-of-state beer manufacturer certificate holder, or wholesaler, or any officer, director, or agent of any such person, shall do any of the following:
(a)CA Business and Professions Code § 25503(a) Directly or indirectly, deliver the possession of any alcoholic beverages to any on- or off-sale licensee under an agreement of consignment whereby title to the alcoholic beverages is retained by the seller or whereby the licensee receiving the alcoholic beverages has the right at any time prior to sale to relinquish possession to or return them to the original seller.
(b)CA Business and Professions Code § 25503(b) Directly or indirectly, give any licensee or any person any alcoholic beverages as free goods as a part of any sale or transaction involving alcoholic beverages.
(c)CA Business and Professions Code § 25503(c) Give secret rebates or make any secret concessions to any licensee or the employees or agents of any licensee, and no licensee shall request or knowingly accept from another licensee secret rebates or secret concessions.
(d)CA Business and Professions Code § 25503(d) Give or furnish, directly or indirectly, to any employee of any holder of a retail on-sale or off-sale license only anything of value for the purpose or with the intent to solicit, acquire, or obtain the help or assistance of the employee to encourage or promote either the purchase or the sale of the alcoholic beverage sold or manufactured by the licensee giving or furnishing anything of value, and any employee who accepts or acquires anything of value contrary to the provisions of this subdivision is guilty of a misdemeanor.
(e)CA Business and Professions Code § 25503(e) Willfully or knowingly discriminate, in the same trading area, either directly or indirectly, in the price of any brand of distilled spirits sold to different retail licensees purchasing under like terms and conditions.
(f)CA Business and Professions Code § 25503(f) Pay, credit, or compensate a retailer or retailers for advertising, display, or distribution service in connection with the advertising and sale of alcoholic beverages.
(g)CA Business and Professions Code § 25503(g) Furnish, give, lend, or rent, directly or indirectly, to any person any decorations, paintings, or signs, other than signs advertising their own products as permitted by Section 25611.1.
(h)CA Business and Professions Code § 25503(h) Pay money, provide credit, rebate, or give or furnish anything of value for the privilege of placing or painting a sign or advertisement, floor or window display, on or in any premises selling alcoholic beverages at retail.

Section § 25503.1

Explanation

This section allows certain businesses involved in the alcohol industry, such as manufacturers and wholesalers, to provide advertising and promotional materials to retailers who sell their alcoholic beverages. They can set up displays or provide decorations to retailers, as long as these materials only serve for advertising purposes and do not have significant value otherwise. Additionally, wholesalers can sell or rent lawful products to retailers at market prices. This law ensures transparency by preventing manufacturers and wholesalers from indirectly compensating retailers for displaying their materials.

(a)CA Business and Professions Code § 25503.1(a) Anything in this division to the contrary notwithstanding, any manufacturer, winegrower, manufacturer’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any such person is authorized:
(1)CA Business and Professions Code § 25503.1(a)(1) Only in connection with alcoholic beverages manufactured, produced or sold by such licensee, to install, service and set up window displays, promotional materials, and temporary floor displays holding merchandise in the premises of an off-sale retail licensee.
(2)CA Business and Professions Code § 25503.1(a)(2) Only in connection with alcoholic beverages manufactured, produced or sold by such licensee, to furnish, give, lend, rent or sell decorations and decorative materials, including holiday decorations, paintings and pictures, to an off-sale retail licensee for use in the windows and elsewhere in the interior of the retail premises in connection with advertising and promotional material or displays in the premises of such retailer; provided, that the advertising and promotional material shall have no intrinsic value other than as advertising and that the total original cost of all such decorations and decorative materials, including holiday decorations, paintings and pictures furnished by any licensee and in use at any one time in any one off-sale retail premise shall not exceed the amount established by rules of the department; and provided, that the licensee or any officer, director or agent of such licensee shall not directly or indirectly pay or credit the retailer for the display of such decorations or decorative materials or for any expense incidental to their operation.
(3)CA Business and Professions Code § 25503.1(a)(3) To furnish, give, lend, rent or sell to an off-sale retailer who sells the alcoholic beverages of such licensee, newspaper cuts, mats, or engraved blocks for use in the retailer’s advertisements relating to such alcoholic beverages.
(b)CA Business and Professions Code § 25503.1(b) Anything in this chapter to the contrary notwithstanding, any holder of a wholesaler’s license may manufacture, and distribute, sell, or rent any lawful product to any person engaged in operating, owning, or maintaining any retail premises where alcoholic beverages are sold; provided, however, that such products are sold or rented by the holder of the wholesaler’s license to the licensee at a price not less than the current market price for such product; and provided, further, that the manufacturer and importer of alcoholic beverages shall be controlled by the other applicable provisions of this division.

Section § 25503.10

Explanation

This law allows manufacturers, winegrowers, and similar entities to lease real estate to retailers, but only if they follow strict conditions. The lease must be just for land and any permanent buildings on it, not any personal property. Importantly, the rent must be fair market value and paid monthly. The tenant can't buy more than 10% of their alcohol supply from the landlord annually. All leases and any changes to them need approval from the department. If conditions are broken or there are any false statements, licenses may be revoked. Owning publicly-traded stock in a retailer doesn't count as owning the land for these purposes.

(a)CA Business and Professions Code § 25503.10(a) Notwithstanding any other provision of this division, the department may approve a lease or sublease, or amendments to such lease or sublease, where a manufacturer, manufacturer’s agent, winegrower, California winegrower’s agent, rectifier, importer, or wholesaler is the lessor and a retailer is the lessee when each of the following conditions are incorporated in the lease:
(1)CA Business and Professions Code § 25503.10(a)(1) The lease is confined to real property and improvements thereon which have become part of the real property.
(2)CA Business and Professions Code § 25503.10(a)(2) No trade fixtures or other personal property are included in the lease.
(3)CA Business and Professions Code § 25503.10(a)(3) The rent to be paid by the lessee is not less than the current value for such a lease, which the lessor shall establish by submission of competent proof to the department.
(4)CA Business and Professions Code § 25503.10(a)(4) The rent is due and payable monthly beginning with the first month of occupancy.
(5)CA Business and Professions Code § 25503.10(a)(5) Any money received by the lessor from the lessee when the rent is due shall be first applied by the lessor to the payment of the rent.
(6)CA Business and Professions Code § 25503.10(a)(6) The lessee shall purchase from the lessor no more than 10 percent of his yearly supply of the type of alcoholic beverages sold on his licensed premises. The percentage shall be computed on a calendar-year basis.
(b)CA Business and Professions Code § 25503.10(b) The original lease and any amendments to the original lease or to an amended lease shall be submitted to the department for its approval.
(c)CA Business and Professions Code § 25503.10(c) The department may suspend or revoke the license of the lessor or the lessee for violations of any of the above conditions or for any misrepresentation in the terms of the lease.
(d)CA Business and Professions Code § 25503.10(d) The ownership of shares of stock in a corporation licensed as a retailer under the provisions of this division, when such shares of stock are sold to the general public on any national or local stock exchange, shall not be deemed to be the ownership, either in whole or in part, of the land upon which a retail license issued to such corporation is located. The person who holds such shares of stock shall not be held to be a lessor under the provisions of this section.

Section § 25503.11

Explanation

This law says that certain people involved in making or selling alcohol, like manufacturers and wholesalers, can own a small amount of stock or be a board member in a company that sells alcohol directly to customers. However, they can't control how the retail business runs or keep other alcohol brands out of the market. Also, the stock they own must be traded on major stock exchanges like the New York Stock Exchange, and they need to inform the relevant department about their stock ownership or board membership.

Notwithstanding any other provision of this division, a manufacturer, manufacturer’s agent, winegrower, rectifier, importer, or wholesaler may hold a diminutive amount of stock in a corporate retail licensee or serve on the board of directors of a corporate off-sale retail licensee, provided the stock ownership or service on the board of directors, as determined by the department, does not result in the exercise of control over the retail licensee’s business and does not result in the exclusion of any competitor’s brand of alcoholic beverages, and provided further that the stock is listed on the New York Stock Exchange, the American Stock Exchange, or NASDAQ, and the department is notified of the stock ownership or service on the board of directors.

Section § 25503.12

Explanation

This law allows a retail liquor license holder to own a small amount of stock in companies that make or distribute alcohol, like manufacturers or wholesalers. However, the stock has to be publicly traded on major stock exchanges like the NYSE, American Stock Exchange, or NASDAQ. The retail licensee must also inform the department about their stock ownership. The goal of owning the stock must not be to break any rules in this chapter.

Notwithstanding any other provision of this division, a retail licensee may hold a diminutive amount of stock in a corporate licensed manufacturer, manufacturer’s agent, winegrower, rectifier, importer, or wholesaler, provided that the purpose of the stock ownership by the retail licensee, as determined by the department, is not to violate any of the provisions of this chapter, and provided further that the stock is listed on the New York Stock Exchange, the American Stock Exchange, or on NASDAQ, and the department is notified of the stock ownership.

Section § 25503.13

Explanation

This law aims to tackle high unemployment in specific urban and rural areas of California by encouraging private businesses to create jobs and training opportunities for low-income people. Companies with strong financial backing should focus on developing programs to achieve this goal. For wine producers outside the U.S. who are not licensed in the U.S., they can have an interest in on-sale license holders if they don’t sell their wine to these licensees. These on-sale locations should also sell food and be in high-unemployment areas. The law also emphasizes job training for low-income individuals, especially those facing higher unemployment due to race, sex, or age, and promotes minority ownership of businesses through franchise agreements. Relevant departments will create rules to manage these initiatives.

(a)CA Business and Professions Code § 25503.13(a) In order to alleviate the adverse economic and social consequences of high unemployment in identifiable urban and rural areas of California, the Legislature finds it in the public interest to encourage the private sector to create new employment and job-training opportunities for low-income persons and establish business enterprises owned and managed by such persons. To provide such opportunities it is necessary for companies with sufficient financial resources, management experience and marketing strength to establish as a principal operating objective the creation of definitive programs for obtaining these goals.
(b)CA Business and Professions Code § 25503.13(b) Notwithstanding any other provision of this division, a manufacturer, rectifier, distiller, winegrower or bottler of wine who produces and sells only wine in an area outside of the United States, its territories or possessions and outside of foreign countries having common boundaries with any state of the United States, and who is not licensed in the United States, its territories or possessions, or any officer, director or agent of any such person or a person holding the ownership, directly or indirectly, of any interest in any such manufacturer, rectifier, distiller, winegrower or bottler of wine may have an interest in a person holding an on-sale license, provided, that the wine produced or sold by such manufacturer, rectifier, distiller, winegrower or bottler of wine is not sold, furnished or given, directly or indirectly to such on-sale licensee, provided further, that food shall also be sold at the on-sale premises, and, provided further, that any on-sale license that may be granted under this section shall be conditioned so as to promote, where feasible, the following objectives in accordance with the public policy set forth in subdivision (a) above:
(1)CA Business and Professions Code § 25503.13(b)(1) The location of a significant number of on-sale premises in or accessible to areas of high unemployment,
(2)CA Business and Professions Code § 25503.13(b)(2) The employment and management training of low-income individuals, particularly those who, because of race, sex, age or national origin, suffer a rate of unemployment significantly higher than the statewide average and
(3)CA Business and Professions Code § 25503.13(b)(3) The minority ownership of licensed businesses operating on-sale premises pursuant to a franchise agreement.
The department, after consultation with the Secretary of Business and Transportation, the Department of Business and Economic Development, the Chief of the Division of Fair Employment Practices, and the Director of the Employment Development Department, shall adopt such rules as it determines to be necessary for the administration of this section.

Section § 25503.14

Explanation

This law says that if a California business has at least 30 retail licenses for selling alcohol and runs at least 50 unlicensed grocery warehouses in the state, it can also have a license to sell beer and wine wholesale in a small state with less than 700,000 people. However, they can't sell or transfer alcohol from that operation to California licensees.

Notwithstanding any provision of this division, any retail off-sale general licensee who holds at least 30 such licenses in this state and who also operates at least 50 wholesale grocery warehouses not licensed under this division may hold a beer and wine wholesale license in a state with a population not exceeding 700,000, provided that such licensed wholesale operation does not sell or transfer any alcoholic beverages to licensees of this state.

Section § 25503.15

Explanation

This law permits wine producers and those with related roles to own a share in bars or restaurants with on-sale licenses, but only if they don't sell or promote their wine at those locations. There are restrictions designed to prevent unfair practices that favor one wine producer's products over another. For winegrowers with a wholesale license, they can have ownership in bars and restaurants if they are recognized as a genuine restaurant or bed and breakfast, follow specific buying rules, and limit the promotion of their own products. There's a broader intention to keep the separation clear between those who make, distribute, and sell alcohol to avoid any one party holding too much power or pushing aggressive sales techniques.

(a)CA Business and Professions Code § 25503.15(a) Notwithstanding any other provision of this division, a winegrower who manufactures, produces, bottles, processes, imports, or sells wine only, or any officer, director, or agent of that person, may hold the ownership of any interest in any on-sale license, if both of the following conditions exist:
(1)CA Business and Professions Code § 25503.15(a)(1) Neither that person, nor any officer, director, or agent of that person, sells or furnishes to the holder of the license any wine, or permits the sale pursuant to that license of any wine, manufactured, produced, wholesaled, bottled, processed, imported, or sold by that person or that person’s principal for as long as that ownership continues.
(2)CA Business and Professions Code § 25503.15(a)(2) Neither that person, nor any officer, director, or agent of that person, enters into any collusive scheme, whereby he or she unfairly sells or promotes, in his or her on-sale businesses, the wine of another winegrower who manufactures, produces, bottles, processes, imports, or sells wine only, in return for his or her wine being unfairly sold or promoted in the on-sale businesses of that winegrower.
(b)CA Business and Professions Code § 25503.15(b) Notwithstanding any other provision of this division, any licensed winegrower or any winegrower who has a wholesale license, or any officer, director, or agent of that person, may hold, directly or indirectly, the ownership of any interest in an on-sale license, provided that each of the following conditions is met:
(1)CA Business and Professions Code § 25503.15(b)(1) The on-sale licensed premises are licensed as a bona fide public eating place as defined in Section 23038, or as a bona fide bed and breakfast inn as defined in Section 24045.11.
(2)CA Business and Professions Code § 25503.15(b)(2) The on-sale licensed premises purchases all alcoholic beverages sold and served at the on-sale licensed premises only from California wholesale licensees, other than the licensed winegrower who has a wholesale license and an interest in an on-sale license, unless one of the following conditions is met:
(A)CA Business and Professions Code § 25503.15(b)(2)(A) The wine purchased is produced or bottled by, or produced and packaged for, the same licensed winegrower that holds an interest in the on-sale license.
(B)CA Business and Professions Code § 25503.15(b)(2)(B) The wine is produced or bottled by, and is purchased from, a licensed winegrower who sells no more than 125,000 gallons of wine per year for distribution in this state under all brands or trade names owned by that winegrower.
(C)CA Business and Professions Code § 25503.15(b)(2)(C) The wine is purchased by an on-sale licensee in whose on-sale license a licensed winegrower holds an interest, provided that the winegrower sells no more than 125,000 gallons of wine per year for distribution in this state under all brands or trade names owned by that winegrower.
(3)CA Business and Professions Code § 25503.15(b)(3) The licensed winegrower and any officer, director, or agent of that person, whether individually or in the aggregate, do not sell and serve the wine products produced or bottled under any brand or trade name owned by that winegrower through more than two on-sale licensed premises in which any of them holds an ownership interest.
(4)CA Business and Professions Code § 25503.15(b)(4) The number of wine items by brand offered for sale by the on-sale licensed premises that are produced, bottled, processed, imported, or sold by the licensed winegrower or by any person holding any interest in the winegrower does not exceed 15 percent of the total wine items by brand listed and offered for sale in the licensed bona fide public eating place selling and serving that wine. This paragraph does not apply to a bona fide bed and breakfast inn.
(c)CA Business and Professions Code § 25503.15(c) 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.

Section § 25503.16

Explanation

This law section says that retail on-sale or off-sale alcohol licenses can be granted or transferred to hotels, motels, or marine parks, even if alcohol producers and sellers have a stake in these places, under certain conditions. These conditions include having at least 25 guest rooms for hotels or motels, ensuring that less than a quarter of their revenue comes from alcohol, and buying alcohol from unrelated wholesalers, except if it's a marine park. Marine parks can buy beer regardless of wholesaler connections but can only sell spirits at private events. The law also emphasizes maintaining separation of manufacturing, wholesale, and retail interests to avoid market domination.

(a)CA Business and Professions Code § 25503.16(a) Nothing in this division shall prohibit the issuance or transfer of any retail on-sale or off-sale license to any person with respect to premises which are an integral part of the operations of a hotel, motel, or marine park owned by, or operated by or on behalf of, the licensee notwithstanding that a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, wholesaler, or out-of-state distilled spirits shipper has any interest, directly or indirectly, in the premises, in the retail license, or in the retail licensee, and notwithstanding that the issuance or transfer would otherwise result in a violation of subdivision (a) of Section 25500, subdivision (a) or (b) of Section 25501, or Section 25502, if each of the following conditions is met:
(1)CA Business and Professions Code § 25503.16(a)(1) In the case of a hotel or motel, the hotel or motel consists of not less than 25 guestroom accommodations.
(2)CA Business and Professions Code § 25503.16(a)(2) No more than one-quarter of the total gross annual revenues of the hotel, motel, or marine park is derived from the sale by the hotel, motel, or marine park of alcoholic beverages.
(3)Copy CA Business and Professions Code § 25503.16(a)(3)
(A)Copy CA Business and Professions Code § 25503.16(a)(3)(A) The retail licensee shall purchase no beer or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee, except as otherwise provided in subparagraph (B), shall purchase no alcoholic beverages for sale in this state from any wholesale licensee that has any interest, directly or indirectly, in the premises, in the retail license, or in the retail licensee.
(B)CA Business and Professions Code § 25503.16(a)(3)(A)(B) Notwithstanding subparagraph (A), a marine park may purchase beer or malt beverages for sale in this state from a wholesale licensee regardless of whether the wholesale licensee has any interest, directly or indirectly, in the premises, in the retail license, or in the retail licensee.
(4)CA Business and Professions Code § 25503.16(a)(4) The retail licensee serves other brands of beer, wine, and distilled spirits in addition to the brands manufactured by the beer or distilled spirits manufacturer or produced by the winegrower holding an interest in the retail license.
(5)CA Business and Professions Code § 25503.16(a)(5) No marine park shall sell or offer for sale any distilled spirits, except during private events or private functions held at the marine park.
(b)CA Business and Professions Code § 25503.16(b) For purposes of this section, “hotel” and “motel” shall mean an establishment containing guestroom accommodations with respect to which the predominant relationship existing between the occupants thereof and the owner or operator of the establishment is that of innkeeper and guest; for purposes of this subdivision, the existence of other legal relationships as between some occupants and the owner or operator thereof shall be immaterial.
(c)CA Business and Professions Code § 25503.16(c) For purposes of this section, “marine park” means an establishment with not less than 125 contiguous acres, located in San Diego County, the predominant purpose of which is the education or entertainment of the public through the display of marine animals and related aquatic, food service, and amusement activities, which holds permits issued by state and federal regulatory agencies authorizing the keeping of marine animals or endangered species or both, and which has an annual paid attendance of at least 2,000,000 people.
(d)CA Business and Professions Code § 25503.16(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 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.

Section § 25503.17

Explanation

This law says that it's okay for a school for professional chefs to get or transfer a retail liquor license, even if a liquor manufacturer or distributor owns part of the school or its liquor license, but only if certain rules are followed. Firstly, the school must have a restaurant that's open to the public. Secondly, the school must have been operating in a city with less than a million people for at least five years. Lastly, the school must buy alcohol only from authorized wholesalers, and not from any wholesaler who has an interest in the school or its liquor license. This law exists to ensure that manufacturers and distributors don't control local liquor markets or use aggressive marketing to push their products too heavily. The exception is very specific and shouldn't be used to get around other rules about separating different parts of the liquor industry.

Nothing in this division shall prohibit the issuance or transfer of any retail onsale general license to any person with respect to premises which are an integral part of the operations of a school for professional chefs owned by, or operated by or on behalf of, the licensee, notwithstanding that a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler holds the ownership of any interest, directly or indirectly, in the premises or in the retail licensee, provided that each of the following conditions is met:
(a)CA Business and Professions Code § 25503.17(a) The school is operated in conjunction with a bona fide eating place open to the public.
(b)CA Business and Professions Code § 25503.17(b) The school has been in operation in a city with a population of less than one million for at least five years prior to the effective date of this section.
(c)CA Business and Professions Code § 25503.17(c) The retail licensee shall purchase no beer or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee shall purchase no alcoholic beverages for sale in this state from any wholesale licensee holding the ownership of any interest, directly or indirectly, in the premises or in the retail licensee.
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 exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.18

Explanation

This law allows schools for professional chefs to have retail licenses to sell beer and wine, even if they have ties to alcoholic beverage manufacturers, under certain conditions. First, the school must run a public restaurant. Second, it's been around for at least five years in a city with fewer than a million people. Third, they can only buy beer and spirits from specific wholesalers, avoiding any direct manufacturer links. This is to ensure fair market practices and keep big suppliers from controlling local sales.

Nothing in this division shall prohibit the issuance or transfer of any retail offsale beer and wine license to any person with respect to premises which are an integral part of the operations of a school for professional chefs owned by, or operated by or on behalf of, the licensee notwithstanding that a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler holds the ownership of any interest, directly or indirectly, in the premises or in the retail licensee, provided that each of the following conditions is met:
(a)CA Business and Professions Code § 25503.18(a) The school is operated in conjunction with a bona fide eating place open to the public.
(b)CA Business and Professions Code § 25503.18(b) The school has been in operation in a city with a population of less than one million for at least five years prior to the effective date of this section.
(c)CA Business and Professions Code § 25503.18(c) The retail licensee shall purchase no beer or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee shall purchase no alcoholic beverages for sale in this state from any wholesale licensee holding the ownership of any interest, directly or indirectly, in the premises or in the retail licensee.
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 exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.19

Explanation

In this section, California law allows for retail licenses to sell alcohol on passenger cruise ships, even if companies involved in making or distributing alcohol own a part of the cruise line. However, there are rules they must follow. These include making sure that less than 10% of the cruise's revenue comes from alcohol sales and that the alcohol producers or distributors don't influence which drinks are sold on board. The retail licensee must be free to sell competitive alcohol brands and must buy alcohol only from authorized wholesalers, not from those who own part of the cruise line. Additionally, the law aims to keep separate the roles of manufacturing, wholesaling, and retailing to prevent market domination and vigorous marketing tactics. The exception for cruise ships is specific and not meant to weaken the usual rules about keeping these interests separate.

(a)CA Business and Professions Code § 25503.19(a) Nothing in this division shall prohibit the issuance or transfer of any retail on-sale general license to any person with respect to passenger cruise ships or lines owned by, or operated by or on behalf of, the licensee, notwithstanding that a manufacturer, winegrower, manfacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler holds the ownership of any interest, directly or indirectly, in the cruise ships or lines or in the retail licensee, subject to the following conditions:
(1)CA Business and Professions Code § 25503.19(a)(1) Not more than 10 percent of the total gross annual revenues of the cruise ships or lines is derived from the sale of alcoholic beverages.
(2)CA Business and Professions Code § 25503.19(a)(2) The manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler shall not influence or attempt to influence decisions concerning the purchase and sale of alcoholic beverages by the retail licensee and those decisions are made solely by the retail licensee.
(3)CA Business and Professions Code § 25503.19(a)(3) The retail licensee is not required, by agreement or otherwise, to exclude from sale on board its vessels competitive alcoholic beverage products.
(4)CA Business and Professions Code § 25503.19(a)(4) The retail licensee shall purchase no beer, wine, or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee shall purchase no alcoholic beverages for sale in this state from any wholesale licensee holding the ownership of any interest, directly or indirectly, in the cruise ships or lines or in the retail licensee.
(b)CA Business and Professions Code § 25503.19(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 verticle 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 must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.2

Explanation

This law allows certain alcohol-related businesses, like winegrowers and beer manufacturers, to assist retail stores with stocking and managing their inventory. They can organize and rotate products on shelves, take inventory, and service displays with the store's permission. But they can't regularly stock shelves for replenishments, except with beer and single-serve containers of spirits or wine. The law also permits these services at places where alcohol is consumed onsite, like bars. 'Single-serve containers' are small-sized containers meant to be consumed directly without mixing.

(a)CA Business and Professions Code § 25503.2(a) Notwithstanding any other provision in this division, any winegrower, wine blender, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, distilled spirits manufacturer’s agent, rectifier, distilled spirits wholesaler, and beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the following services for off-sale retail licensees at or on the licensed premises of the off-sale retail licensee where the licensee sells alcoholic beverages with the retail licensee’s permission:
(1)CA Business and Professions Code § 25503.2(a)(1) Stack or arrange cases of the brand or brands of alcoholic beverages owned or sold by the licensee performing the service in the storeroom or warehouse where the off-sale retail licensee stores the brand or brands.
(2)CA Business and Professions Code § 25503.2(a)(2) Rotate the brand or brands owned or sold by the licensee performing the service on shelves and in refrigerated boxes, and rearrange bottles or packages of the brand or brands by moving the bottles or packages horizontally or vertically from shelf to shelf in the space and shelves allocated to the brand or brands. This paragraph does not permit the removal of any brand or brands of alcoholic beverages, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers, which are owned or sold by the licensee performing the service, from the storeroom or other place belonging to an off-sale retailer for the purpose of replacing alcoholic beverages on or restocking shelves or refrigerated boxes.
(3)CA Business and Professions Code § 25503.2(a)(3) Take an inventory of an off-sale retailer’s stock of a brand or brands of alcoholic beverages which are owned or sold by the licensee performing the service and which are in the stockroom or other place belonging to the off-sale retailer.
(4)CA Business and Professions Code § 25503.2(a)(4) Service the brand or brands of alcoholic beverages owned or sold by the licensee performing the service which are on shelves, fixtures, or other display pieces at the off-sale retail premises, including, but not limited to, dusting bottles and shelves and refrigerated boxes allocated to the brand or brands at the retail premises. The licensees authorized to render services by this section and their agents and representatives shall not price-mark individual containers of the brand of alcoholic beverages, except beer, owned or sold by the licensee performing the service, except for individual bottles and packages used on floor displays.
(5)CA Business and Professions Code § 25503.2(a)(5) Rotate or rearrange the brand or brands of wine or distilled spirits owned or sold by the licensee on, in, or among permanent shelves, permanent fixtures, refrigerated boxes, or floor or other displays or display pieces; stock the brand or brands onto or into floor or other displays or display pieces; and stock the brand or brands onto or into permanent shelves, permanent fixtures, or refrigerated boxes for the sole purposes of the introduction of new products, the resetting or rearrangement of existing products, or the setting or arranging of new stores. Incidental touching or rearrangement of the brand or brands of another licensee by a licensee performing any of the services authorized by this paragraph for the sole purpose of accessing permanent shelves, permanent fixtures, and other spaces allocated to the licensee performing the service shall not be deemed to be a violation of any provision of this division provided the other licensee’s brands are not removed from spaces allocated to that licensee. Nothing in this paragraph permits stocking permanent shelves, permanent fixtures, or refrigerated boxes for regular inventory replenishment, except beer, and brands of distilled spirits in single-serve containers, and wine in single-serve containers.
(b)CA Business and Professions Code § 25503.2(b) Notwithstanding any other provision in this division, any beer manufacturer or beer and wine wholesaler, or the authorized agent or agents or representative or representatives of that licensee, may perform any of the services specified in paragraphs (1) to (4), inclusive, of subdivision (a), with respect to beer, for on-sale retail licensees at or on the premises of the on-sale retail licensee with the retail licensee’s permission.
(c)CA Business and Professions Code § 25503.2(c) For purposes of this section, “single-serve containers” means containers that have a standard of fill between 50 milliliters and 355 milliliters that is authorized for distilled spirits under Section 5.47a of Title 27 of the Code of Federal Regulations or a standard of fill between 187 milliliters and 355 milliliters that is authorized for wine under Section 4.72 of Title 27 of the Code of Federal Regulations, either individually or in multiple container packaging, and are intended to be consumed without mixing with any other substance.

Section § 25503.20

Explanation

This law allows certain alcohol-related businesses to own or be involved with a retail licensee, like a nonprofit chef school with a public restaurant in Napa County, under specific conditions. The school must be accredited by a recognized authority, and the sale of alcohol products they are involved with can only make up 15% of the total alcohol available at the restaurant.

Notwithstanding any other provision of this division, a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler may hold the ownership of any interest, directly or indirectly in the premises or in the retail licensee, may serve as an officer, director, employee, or agent of that licensee, and may sponsor or fund educational programs, special fundraising and promotional events, improvements in capital projects, and the development of exhibits or facilities of and for the licensee, provided that each of the following conditions is met:
(a)CA Business and Professions Code § 25503.20(a) The retail license is for a nonprofit school for professional chefs located in Napa County which is operated in conjunction with a bona fide eating place open to the public.
(b)CA Business and Professions Code § 25503.20(b) The school’s educational program has been accredited by the Board of Regents of the University of California, the State Department of Education, or the Council for Private Postsecondary and Vocational Education or other state-authorized accrediting commission.
(c)CA Business and Professions Code § 25503.20(c) The number of items of beer, wine, or distilled spirits by brand offered for sale by the retail licensee, which are produced, bottled, rectified, distilled, processed, imported, or sold by the licensees holding an interest in, serving as an officer or director of, or sponsoring or funding the programs and projects of the retail licensee, does not exceed 15 percent of the total items of beer, wine, or distilled spirits by brand listed and offered for sale in the bona fide public eating place.

Section § 25503.21

Explanation

This law says that certain alcohol-related businesses, like manufacturers, winegrowers, importers, and wholesalers, who had a lease agreement with an off-sale license holder before July 1, 1987, can continue or renew that lease. However, the landlord cannot have any financial interest in the tenant's business other than the lease itself.

Notwithstanding any other provision of this division, a licensed manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any such person, who prior to July 1, 1987, has entered into an active lease of premises to any holder of an off-sale license, may continue to lease premises or renew or otherwise modify such lease with any holder of an off-sale license so long as the lessor holds no financial interest other than such lease in the business of the lessee.

Section § 25503.22

Explanation

This law states that a retail license for selling alcohol in California can still be issued, transferred, or renewed even if a wholesaler from another state has an interest in it. However, the retailer must buy alcoholic beverages only from wholesalers in California, and must not buy from any manufacturer or wholesaler that has an interest in their business. Additionally, no more than 40% of the retailer's revenue should come from selling alcohol. This rule helps keep manufacturers, wholesalers, and retailers separate to prevent large suppliers from taking over local markets and to stop them from using aggressive marketing tactics to increase sales. This section is specifically designed to limit any exceptions to this general rule.

(a)CA Business and Professions Code § 25503.22(a) Nothing in this division shall prohibit the issuance, transfer, or renewal of any retail license to any person with respect to premises which are owned by, or operated by or on behalf of, the licensee, notwithstanding that a wholesaler licensed to sell alcoholic beverages in states other than California has an interest, directly or indirectly, in the premises, in the retail license or in the retail licensee, provided that each of the following conditions are met:
(1)CA Business and Professions Code § 25503.22(a)(1) The retail licensee shall purchase no alcoholic beverages for sale in this state other than from a California wholesale licensee, and the retail licensee shall purchase no alcoholic beverages from any manufacturer or wholesale licensee holding the ownership of any interest, directly or indirectly, in the premises, in the retail license or in the retail licensee.
(2)CA Business and Professions Code § 25503.22(a)(2) Not more than 40 percent of the gross annual revenues of the retailer are derived from the sale of alcoholic beverages.
(b)CA Business and Professions Code § 25503.22(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 exception established by this section to the general prohibition against tied interests must be limited to its expressed terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.23

Explanation

The law allows beer manufacturers and winegrowers to buy advertising space or time from the owner of a stadium with more than 3,000 seats. This is specifically permitted when the stadium is used for an annual water ski show.

Notwithstanding any other provision of this chapter, a beer manufacturer or winegrower may purchase advertising space and time from, or on behalf of, an on-sale retail licensee who is the owner of a stadium with a seating capacity in excess of 3,000 seats during the use of the stadium for an annual water ski show.

Section § 25503.24

Explanation

This law allows companies involved in making or selling alcoholic beverages to buy sales data from retailers to conduct market research. However, certain rules apply: retailers aren't required to sell specific products because of this research, and they can only take part in one research project per year from the same company. Retailers cannot force manufacturers to conduct market research to sell their products. If anyone uses coercion to make a wholesaler participate, it's a crime and can lead to jail time, a fine, and losing their license. This applies also to retailers who improperly influence wholesalers for the research. Beer manufacturers and importers are included under this definition.

(a)CA Business and Professions Code § 25503.24(a) Notwithstanding any other provision of this chapter, any manufacturer, winegrower, rectifier, distiller, distilled spirits wholesaler, or any officer, director, agent, or representative of any of those entities, may conduct market research and, in connection with that research, the entity conducting the market research may purchase from licensed off-sale retailers data regarding purchases and sales of alcoholic beverage products at the market rates that those retailers sell similar data for nonalcoholic beverage products subject to the following limitations:
(1)CA Business and Professions Code § 25503.24(a)(1) A licensed retailer shall not be obligated to purchase or sell the alcoholic beverage products of that manufacturer, winegrower, rectifier, distiller, or distilled spirits wholesaler.
(2)CA Business and Professions Code § 25503.24(a)(2) A retail premises shall not participate in more than one research project conducted by any single manufacturer, winegrower, rectifier, distiller, or distilled spirits wholesaler during a calendar year. A research project may involve multiple onsite surveys to gather feedback.
(3)CA Business and Professions Code § 25503.24(a)(3) Nothing in this section shall allow a licensed retailer to require a manufacturer, winegrower, rectifier, distiller, or distilled spirits wholesaler to conduct any market research as a condition for selling alcoholic beverage products to that licensed retailer.
(b)CA Business and Professions Code § 25503.24(b) Any holder of a beer manufacturer’s license or winegrower’s license who, through coercion or other illegal means, induces, directly or indirectly, a holder of a beer or wine wholesaler’s license to fulfill 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 in an amount equal to the entire value of the market research or time involved in the project, 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.
(c)CA Business and Professions Code § 25503.24(c) Any retail licensee who, directly or indirectly, solicits or coerces a holder of a beer or wine wholesaler’s license to solicit a beer manufacturer, or holder of a winegrower’s license to fulfill 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 in an amount equal to the entire value of the market research or time involved in the project, 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)CA Business and Professions Code § 25503.24(d) 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.

Section § 25503.26

Explanation

This law allows certain alcohol manufacturers and agents to buy advertising space in arenas located in LA, Alameda, or San Mateo County if the arena mainly hosts horse racing events, and the on-sale licensee serves competing brands as well. The arrangement must be documented in a written contract. Coercing or illegally persuading wholesalers to fulfill these contracts is a misdemeanor with potential fines, jail time, and license revocation. Similarly, if the on-sale licensee solicits wholesalers to get manufacturers to purchase the advertising, they can also face the same penalties.

(a)CA Business and Professions Code § 25503.26(a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrower’s license, a California winegrower’s agent, a manufacturer of distilled spirits, 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)CA Business and Professions Code § 25503.26(a)(1) The on-sale licensee is the owner, or is the lessee, or is a wholly owned subsidiary of the lessee, of an arena with a fixed seating capacity in excess of 10,000 seats, at least 60 percent of the use of which is for horseracing events, and which is located within Los Angeles County, Alameda County, or San Mateo County.
(2)CA Business and Professions Code § 25503.26(a)(2) The advertising space or time is purchased only in connection with events to be held on the premises of the arena owned or leased by the on-sale licensee.
(3)CA Business and Professions Code § 25503.26(a)(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)CA Business and Professions Code § 25503.26(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 California winegrower’s agent, the manufacturer of distilled spirits, or distilled spirits manufacturer’s agent, and the on-sale licensee.
(c)CA Business and Professions Code § 25503.26(c) Any beer manufacturer, holder of a winegrower’s license, California winegrower’s agent, manufacturer of distilled spirits, or the 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 the contractual obligations entered into pursuant to subdivision (a) or (b) is 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)CA Business and Professions Code § 25503.26(d) Any on-sale licensee 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 California winegrower’s agent, a distilled spirits manufacturer, or a distilled spirits manufacturer’s agent, to purchase advertising space or time 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)CA Business and Professions Code § 25503.26(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.

Section § 25503.27

Explanation

This law allows certain beverage industry professionals, like manufacturers and wholesalers, to offer food, drinks, transportation, and event tickets to licensed retailers and their decision-making employees, but only during business-related meetings or events. Any expenses for these activities must partially qualify as business entertainment deductions under tax rules. Also, these benefits aren't considered giving money or other valuable things, which certain laws prohibit.

(a)CA Business and Professions Code § 25503.27(a) Anything in this division to the contrary notwithstanding, any manufacturer, winegrower, manufacturer’s agent, rectifier, California winegrower’s agent, distiller, bottler, importer, wholesaler, or any officer, director, agent, or representative of any such person, may provide to licensed retailers and the employees of those retailers who are involved in the business decisions of those retailers, both of the following:
(1)CA Business and Professions Code § 25503.27(a)(1) Food and beverages for consumption at a meeting at which the primary purpose is the discussion of business, and local ground transportation to and from those meetings.
(2)CA Business and Professions Code § 25503.27(a)(2) Tickets or admission to athletic activities or to other forms of entertainment, food and beverages for consumption at those activities, and local ground transportation to and from those activities.
(b)CA Business and Professions Code § 25503.27(b) For purposes of this section, any allowable expenditure shall be for an activity for which some portion of the expenditure is deductible as a business entertainment expense under the Internal Revenue Code. The value of any food, beverage, local ground transportation, or tickets or admission to activities or other forms of entertainment provided under subdivision (a) shall not be considered the advancement of moneys or other things of value within the meaning of Sections 25500, 25502, and 25600.

Section § 25503.28

Explanation

This law allows someone who holds up to six 'on-sale' licenses, or their officers or employees, to also own or work in a licensed beer manufacturing business. However, beer manufacturers can't have retail privileges in more than eight locations total, and only up to six of these can be places where alcohol is sold for consumption on-site. On-sale licensees must buy alcoholic drinks only from wholesalers or winegrowers, except for beer made nearby by their own licensed beer manufacturer. The law aims to keep clear boundaries between alcohol manufacturing, wholesaling, and retailing to avoid dominance of local markets and over-promotion of alcohol brands.

(a)CA Business and Professions Code § 25503.28(a) Notwithstanding any other provision of this division, the holder of no more than six on-sale licenses, or any officer, director, employee, or agent of that licensee, may own a licensed beer manufacturer holding a license pursuant to Section 23357, and may serve on the board of directors and as an officer or employee of a licensed beer manufacturer. A beer manufacturer, regardless of how many beer manufacturer licenses are held by the beer manufacturer alone, under common ownership with any other licensed beer manufacturer, or under common ownership with any officer, director, employee, or agent of that beer manufacturer licensee who is operating as an on-sale retailer pursuant to this section, shall be prohibited from exercising alone or in common any combination of retail privileges authorized under this section and subdivision (c) of Section 23389 that would result in that beer manufacturer exercising retail privileges at more than eight locations, provided that, subject to the limitations of this section, no more than six of which may be on-sale licenses. This section shall not limit the number of licensed beer manufacturer locations or the exercise of retail privileges at those licensed beer manufacturer locations as authorized pursuant to Section 23357.
(b)CA Business and Professions Code § 25503.28(b) An on-sale licensee specified in subdivision (a) shall purchase no alcoholic beverages for sale in this state other than from a wholesale or winegrower licensee, except for any alcoholic beverages manufactured by the licensed beer manufacturer whose premises of production are located no more than five miles from the licensed on-sale premises.
(c)CA Business and Professions Code § 25503.28(c) 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 exception established by this section to the general prohibition against tied interests must be limited to its expressed terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.29

Explanation

This section allows motion picture or television production facilities, or their affiliated theme parks, to have a retail license to sell alcoholic beverages, even if alcohol producers or distributors have a stake in the business. However, there are strict conditions: not more than 10% of their revenue can come from alcohol sales; they must buy alcohol only from unrelated wholesale sources; they must offer various brands; and limited spending on alcohol from related manufacturers. They aim to prevent alcohol producers from controlling local markets through aggressive marketing or vertical integration.

(a)CA Business and Professions Code § 25503.29(a) Nothing in this division shall prohibit the issuance, transfer, or renewal of any retail on-sale license to any person with respect to premises that are either an integral part of, or adjacent to, the operations of a motion picture or television production facility or an affiliated motion picture or television theme park, which premises are owned by, or operated by or on behalf of, the licensee, notwithstanding that a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler has any interest, directly or indirectly, in the premises, in the retail license, or in the retail licensee, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.29(a)(1) No more than 10 percent of the total gross annual revenues of the motion picture or television production facility and any affiliated theme park is derived from the sale of alcoholic beverages.
(2)CA Business and Professions Code § 25503.29(a)(2) The retail licensee shall purchase no beer, wine, or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee shall purchase no alcoholic beverages for sale in this state from any wholesale licensee that has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(3)CA Business and Professions Code § 25503.29(a)(3) The retail licensee serves other brands of beer, wine, and distilled spirits in addition to the brands manufactured or distributed by the beer or distilled spirits manufacturer or produced or distributed by the winegrower which has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(4)CA Business and Professions Code § 25503.29(a)(4) No more than 15 percent of the retail licensee’s monetary expenditures for alcoholic beverages for sale on its licensed premises in a calendar year shall be for products manufactured or distributed by the beer or distilled spirits manufacturer or produced or distributed by the winegrower which has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(b)CA Business and Professions Code § 25503.29(b) For purposes of this section:
(1)CA Business and Professions Code § 25503.29(b)(1) “Motion picture or television production facility” means an establishment where motion pictures or television programs are produced.
(2)CA Business and Professions Code § 25503.29(b)(2) “Motion picture or television theme park” means an establishment with not less than 25 contiguous acres, located in Los Angeles County, the predominant purpose of which is the entertainment of the public through activities related to motion pictures and television programs, that has an annual paid attendance of at least three million people.
(3)CA Business and Professions Code § 25503.29(b)(3) “Adjacent to” means located on commonly owned property, or contiguous to, or in close proximity.
(c)CA Business and Professions Code § 25503.29(c) 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 exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section shall be construed accordingly.

Section § 25503.3

Explanation

This law lets wine and beer makers, as well as other alcohol producers, offer free food, drinks, entertainment, and activities at events for trade associations of retailers. They can also advertise in the association's publications, as long as it doesn't promote a specific retailer. Fees for advertising, providing amenities, or dues must be the same for everyone. Beer manufacturers can also serve their own beer at their trade association meetings.

(a)CA Business and Professions Code § 25503.3(a) Notwithstanding any other provision of this division, any winegrower, beer manufacturer, brandy manufacturer, distilled spirits manufacturer, craft distiller, or distilled spirits manufacturer’s agent may, at parties held, or in hospitality rooms maintained, in conjunction with meetings, conventions, or combined conventions and trade shows of bona fide trade associations of retail licensees, serve and provide free of charge, food, alcoholic and nonalcoholic beverages, entertainment, and recreational activities to the retail licensees and their guests while attending those meetings, conventions, or combined conventions and trade shows. Additionally, any person specified in this section may pay a fee to the bona fide trade association for the privilege of providing food, alcoholic or nonalcoholic beverages, entertainment, or recreational activities, or for display booth space, as long as the fee is at the same rate charged all suppliers.
(b)CA Business and Professions Code § 25503.3(b) Any person specified in subdivision (a) may advertise in any regular publication of a bona fide trade association the members of which are food or alcoholic beverage retailers, if that publication does not advertise on behalf of, or directly benefit, any individual retail licensee. The advertising fee paid to the bona fide trade association or its agent shall be at the same rate charged all advertisers.
(c)CA Business and Professions Code § 25503.3(c) Any person specified in subdivision (a) may pay membership dues to a bona fide trade association as long as the dues are at the same rate charged all nonretail members of the association.
(d)CA Business and Professions Code § 25503.3(d) A licensed beer manufacturer or a brewpub-restaurant licensee may serve, for consumption on the premises, beer produced by the licensed beer manufacturer or brewpub-restaurant licensee to attendees at a meeting of a bona fide beer manufacturer trade association or brewers’ guild held on the premises of a licensed beer manufacturer.

Section § 25503.30

Explanation

This law allows a California winegrower, or its subsidiary owned more than 51%, to be involved in a business with an on-sale license (like a restaurant or bar) under certain conditions. First, the restaurant or bar must buy all their alcohol from approved wholesalers. Second, only up to 15% of the wine they sell can be from the winegrower involved, and the wine sold must be bought from that specific winegrower. Also, this setup is only allowed for two such licensed businesses per interested winegrower. The law is designed to keep manufacturing, wholesale, and retail roles separate to avoid one party controlling the market too much. These rules are intended to manage competition fairly and avoid monopolies.

(a)CA Business and Professions Code § 25503.30(a) Notwithstanding any other provision of this division, a winegrower or one or more of its direct or indirect subsidiaries of which the winegrower owns not less than a 51-percent interest, who manufactures, produces, bottles, processes, imports, or sells wine and distilled spirits made from grape wine or other grape products only, under a winegrower’s license or any other license issued pursuant to this division, or any officer or director of, or any person holding any interest in, those persons may serve as an officer or director of, and may hold the ownership of any interest or any financial or representative relationship in, any on-sale license, or the business conducted under that license, provided that, except in the case of a holder of on-sale general licenses for airplanes and duplicate on-sale general licenses for air common carriers, all of the following conditions are met:
(1)CA Business and Professions Code § 25503.30(a)(1) The on-sale licensee purchases all alcoholic beverages sold and served only from California wholesale licensees.
(2)CA Business and Professions Code § 25503.30(a)(2) The number of wine items by brand offered for sale by the on-sale licensee that are produced, bottled, processed, imported, or sold by the licensed winegrower or by the subsidiary of which the winegrower owns not less than 51 percent, or by any officer or director of, or by any person holding any interest in, those persons does not exceed 15 percent of the total wine items by brand listed and offered for sale by the on-sale licensee selling and serving that wine. Notwithstanding paragraph (1), wine sold pursuant to this provision may be purchased from a California winegrower so long as the wine purchased is produced or bottled by, or produced and packaged for, the same licensed winegrower that holds an interest in the on-sale license and such direct sales do not involve more than two on-sale licenses in which the winegrower or any person holding an interest in the winegrower holds any interest, directly or indirectly, either individually or in combination or together with each other in the aggregate.
(3)CA Business and Professions Code § 25503.30(a)(3) None of the persons specified in this section may have any of the interests specified in this section in more than two on-sale licenses.
(b)CA Business and Professions Code § 25503.30(b) The Legislature finds that, while this section provides a limited exception for licensed winegrowers, that limited exception is granted for specific purposes, and that it is also necessary and proper that licensed winegrowers maintain the authority granted under this division to sell wine and brandy to any individual consumer or any person holding a license authorizing the sale of wine or brandy.
(c)CA Business and Professions Code § 25503.30(c) 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 the Legislature intends that this section be construed accordingly.

Section § 25503.31

Explanation

This law allows certain alcohol producers and retailers to donate money or alcoholic beverages to a San Francisco-based nonprofit symphony association, with several conditions. The symphony must be tax-exempt and have been around for at least 99 years, hosting at least 175 public performances each season. The donations can't influence the symphony's choice of alcohol brands, and if a beer, wine, or spirits brand is donated, the symphony must also offer competing brands. The law aims to maintain a separation between alcohol manufacturers, wholesalers, and retailers, and limit any exceptions to specific circumstances detailed in the law.

(a)CA Business and Professions Code § 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)CA Business and Professions Code § 25503.31(a)(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)CA Business and Professions Code § 25503.31(a)(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)CA Business and Professions Code § 25503.31(a)(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)CA Business and Professions Code § 25503.31(a)(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)CA Business and Professions Code § 25503.31(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)CA Business and Professions Code § 25503.31(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)CA Business and Professions Code § 25503.31(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.

Section § 25503.32

Explanation

This law states that certain alcohol producers can buy advertising at an historic opera house-turned-event venue in Napa, under strict rules. The venue must be run by a nonprofit that doesn't pay income taxes. The ads can only be linked to nonprofit events, and all payment must go to the nonprofit, not the venue's alcohol seller. Ads can't promote the venue's alcohol sales, although the venue's name can appear discreetly. Agreements can't force the venue to buy certain alcoholic products, and the venue must offer a variety of competitors' drinks. Ads can be included in event programs, broadcasts, or promotions, but only during the event.

(a)CA Business and Professions Code § 25503.32(a) Notwithstanding Sections 25500 and 25503, a beer manufacturer, winegrower, rectifier, distilled spirits manufacturer, craft distiller, or a distilled spirits manufacturer’s agent may purchase advertising space and time in connection with an on-sale retail licensed premises, if all the following conditions are met:
(1)CA Business and Professions Code § 25503.32(a)(1) The on-sale retail licensed premises is operated as an integral part of an opera house that was constructed in 1880, is listed in the National Register of Historic Places, and is located in the City of Napa.
(2)CA Business and Professions Code § 25503.32(a)(2) The administrator of the opera house is a nonprofit charitable corporation or association that is exempt from the payment of income taxes under 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.
(3)CA Business and Professions Code § 25503.32(a)(3) The advertising space and time is purchased only in connection with specific events that are conducted by and for the benefit of the nonprofit charitable corporation or association that administers the opera house and that are open to the public.
(4)CA Business and Professions Code § 25503.32(a)(4) All payments for the purchase of advertising space and time shall be made to the nonprofit charitable corporation or association that administers the opera house. Payments shall not be made, directly or indirectly, to the on-sale retail licensee.
(5)Copy CA Business and Professions Code § 25503.32(a)(5)
(A)Copy CA Business and Professions Code § 25503.32(a)(5)(A) Except as provided in subparagraph (B), purchased advertising space and time shall not promote or be for the benefit of the on-sale retail licensee.
(B)CA Business and Professions Code § 25503.32(a)(5)(A)(B) Purchased advertising space and time may identify the on-sale retail licensed premises for purposes of identifying the venue at which the event is being held. This identification shall be relatively inconspicuous in connection with the advertisement as a whole.
(6)CA Business and Professions Code § 25503.32(a)(6) An agreement to purchase advertising space and time shall not require, directly or indirectly, the purchase or sale of the advertiser’s products by the on-sale retail licensee. The on-sale retail licensee shall offer for sale, in a bona fide manner, alcoholic beverages manufactured, produced, or distributed by competing licensed beer manufacturers, winegrowers, rectifiers, distilled spirits manufacturers, craft distillers, or distilled spirits manufacturer’s agents.
(b)CA Business and Professions Code § 25503.32(b) Advertising space and time purchased pursuant to this section may be included in printed programs for the specific event and in announcements made during the event, as well as any internet, social media, or other media promotion of the event. The advertising may also be placed on or in the on-sale retail licensed premises, or on or in unlicensed areas within the opera house operated by the on-sale retail licensee, only during the time the specific event is taking place.
(c)CA Business and Professions Code § 25503.32(c) 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.

Section § 25503.33

Explanation

This law allows beer manufacturers or winegrowers to sponsor outdoor fairs managed by retail on-sale licensees in certain conditions. The fairs must have a historical theme, operate for 6 to 12 weekends, and have large attendance. Sponsorships can only fund specific activities like programs for the deaf, scholarships, and certain contests. Sponsorship requires a written contract, and the sponsored venue must serve other brands too. Coercion of wholesalers connected to such sponsorships is illegal, carrying criminal penalties, including fines and possible imprisonment. This law aims to maintain a separation between manufacturers, wholesalers, and retailers of alcoholic drinks to prevent any one party from controlling the market.

(a)CA Business and Professions Code § 25503.33(a) Notwithstanding any other provision of this division, a beer manufacturer or winegrower may provide sponsorship funds for or on behalf of a retail on-sale licensee provided each of the following conditions are met:
(1)CA Business and Professions Code § 25503.33(a)(1) The on-sale licensee is the owner and manager of outdoor fairs in northern and southern California which have a history-based theme and operate for 6 to 12 weekends in either or both venues and, excluding rain-outs, have an average daily attendance exceeding 10,000 persons.
(2)CA Business and Professions Code § 25503.33(a)(2) The sponsorship funds will be provided and used only in connection with specific programs or activities at the outdoor fairs described in paragraph (1).
(3)CA Business and Professions Code § 25503.33(a)(3) The sponsorship funds are to sponsor the following programs or activities only:
(i)CA Business and Professions Code § 25503.33(a)(3)(i) Signing program for the deaf.
(ii)CA Business and Professions Code § 25503.33(a)(3)(ii) Docent program for the disabled.
(iii)CA Business and Professions Code § 25503.33(a)(3)(iii) Public school history program.
(iv)CA Business and Professions Code § 25503.33(a)(3)(iv) Scholarships and honoraria for the students of the College of Performing Arts.
(v)CA Business and Professions Code § 25503.33(a)(3)(v) Contests involving sports, cooking, brewing, costumes, and other skills related to arts and sciences.
(vi)CA Business and Professions Code § 25503.33(a)(3)(vi) Equestrian exhibits and tournaments.
(4)CA Business and Professions Code § 25503.33(a)(4) The on-sale licensee serves other brands of beer or wine in addition to the brand manufactured by the beer manufacturer or produced by the winegrower providing sponsorship funds.
(b)CA Business and Professions Code § 25503.33(b) Any provision of sponsorship funds pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the beer manufacturer or winegrower and the on-sale licensee.
(c)CA Business and Professions Code § 25503.33(c) Any beer manufacturer or winegrower who, through coercion or other illegal means, induces a beer or wine wholesaler to fulfill those contractual obligations entered into pursuant to subdivision (a), is guilty of a misdemeanor and is punishable by imprisonment in a county jail not exceeding six months, or by a fine in an amount equal to the entire value of the sponsorship funds involved in the contract, plus ten thousand dollars ($10,000), or by both that imprisonment and fine. This person shall also be subject to license revocation pursuant to Section 24200.
(d)CA Business and Professions Code § 25503.33(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 exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.34

Explanation

This section allows certain alcohol manufacturers and distributors to donate products or money to a specific cultural entertainment complex at Sonoma State University. The complex, which hosts live events, must be a nonprofit and meet specific conditions. The donations should not be tied to the promotion of the donor's products at the complex. Moreover, the complex must serve competing brands, and donated items can only be used for fundraising with a temporary license. The section aims to keep manufacturing, wholesale, and retail interests separate to prevent market domination and aggressive marketing.

(a)CA Business and Professions Code § 25503.34(a) A holder of a winegrower’s license, a beer manufacturer as defined in subdivision (d), a distilled spirits rectifier, a distilled spirits manufacturer, or distilled spirits manufacturer’s agent may donate wine, beer, or spirits, and make monetary contributions to a complex dedicated to the presentation of live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural entertainment events or performances, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.34(a)(1) The permanent retail on-sale licensee in the complex is a nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)CA Business and Professions Code § 25503.34(a)(2) The complex is of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats.
(3)CA Business and Professions Code § 25503.34(a)(3) The complex has a permanent retail on-sale license that is a long-term tenant of the complex.
(4)CA Business and Professions Code § 25503.34(a)(4) The donation or monetary 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 holder of a winegrower’s license, the beer manufacturer, the distilled spirits rectifier, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent by the licensee of the complex.
(5)CA Business and Professions Code § 25503.34(a)(5) The permanent retail on-sale licensee in the complex shall:
(A)CA Business and Professions Code § 25503.34(a)(5)(A) Serve other brands of beer distributed by a competing beer wholesaler in addition to the brand manufactured or marketed by a contributing beer manufacturer.
(B)CA Business and Professions Code § 25503.34(a)(5)(B) Serve other brands of wine distributed by a competing wine wholesaler in addition to the brand produced or distributed by a contributing winegrower.
(C)CA Business and Professions Code § 25503.34(a)(5)(C) Serve other brands of distilled spirits distributed by a competing distilled spirits wholesaler in addition to the brand manufactured or marketed by the contributing distilled spirits manufacturer or distilled spirits manufacturer’s agent.
(6)CA Business and Professions Code § 25503.34(a)(6) Except as provided in paragraph (7), donated wine, beer, or spirits shall not be used or sold by the permanent retail licensee and a monetary contribution shall not be used in, or for the benefit of, the permanent retail on-sale licensee.
(7)CA Business and Professions Code § 25503.34(a)(7) Donated wine, beer, or spirits may only be used or sold in connection with fundraising activities held on or off the permanent licensed premises. Fundraising activities held in any area included in the licensed premises during which donated wine, beer, or spirits is used or sold shall not take place at the complex while the permanent retail licensee is exercising its license privileges and shall only be conducted pursuant to a temporary license issued by the department, provided however, that the permanent licensee shall surrender its license during the fundraising only for those areas of the complex where the fundraising activities are being presented and may continue to operate under its permanent license in other areas covered by the license where the fundraising is not taking place.
(b)CA Business and Professions Code § 25503.34(b) The complex may acknowledge and thank a donating winegrower, beer manufacturer as defined in subdivision (d), distilled spirits rectifier, distilled spirits manufacturer, or distilled spirits manufacturer’s agent in the complex’s event programs, on the complex’s Internet Web site, and on stage at the permanent licensed premises during an event or performance.
(c)CA Business and Professions Code § 25503.34(c) 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 exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.
(d)CA Business and Professions Code § 25503.34(d) 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.

Section § 25503.35

Explanation

This law allows beer, wine, and spirits manufacturers to buy advertising space in special theaters with a liquor license in San Francisco, but only under certain conditions. The theater must be for-profit, have 1,600 to 2,400 seats, be historic (built before 1927), and be in a recognized historic area. All advertising deals must be clearly outlined in a contract, and the ads can't require the theater to sell specific alcoholic products. Advertising can appear in theater programs, during shows, and on digital platforms. The law aims to keep a clear separation between alcohol producers and retailers to avoid market dominance.

(a)CA Business and Professions Code § 25503.35(a) Notwithstanding Sections 25500 and 25503, a beer manufacturer, winegrower, rectifier, distilled spirits manufacturer, craft distiller, or a distilled spirits manufacturer’s agent may purchase advertising space and time in connection with a special on-sale retail licensed premises, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.35(a)(1) The on-sale retail licensed premises is a for-profit theater licensed with a special on-sale general license pursuant to Section 24045.75.
(2)CA Business and Professions Code § 25503.35(a)(2) The on-sale retail licensed premises is configured with theatrical seating of at least 1,600 seats but no more than 2,400 seats.
(3)CA Business and Professions Code § 25503.35(a)(3) The on-sale retail licensed premises is a historic theater that is located in the City and County of San Francisco, that was built prior to 1927, and that is either within a historic district as designated by the National Register of Historic Places or is designated as a Landmark by the San Francisco Historic Preservation Commission.
(4)CA Business and Professions Code § 25503.35(a)(4) All payments for the purchase of advertising space and time shall be made pursuant to a written contract with the owner of the theater, the licensee, or the long-term tenant, as appropriate.
(5)CA Business and Professions Code § 25503.35(a)(5) No agreement for advertising authorized by this section shall be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the retail licensee to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the purchaser of the advertising space and time. The special on-sale general licensee shall offer for sale, in a bona fide manner, alcoholic beverages manufactured, produced, or distributed by competing licensed beer manufacturers, winegrowers, rectifiers, distilled spirits manufacturers, craft distillers, or distilled spirits manufacturer’s agents.
(6)CA Business and Professions Code § 25503.35(a)(6) Advertising space and time purchased pursuant to this section may be included in printed programs for specific theatrical performances and in announcements made during the theatrical performances, as well as any internet, social media, or other media promotion of the specific theatrical performance. The advertising may also be placed on or in the special on-sale general licensed premises.
(b)CA Business and Professions Code § 25503.35(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.

Section § 25503.36

Explanation

This law allows certain licensed alcohol manufacturers, like beer or wine producers, to sponsor events and buy advertising space connected to events held by a live entertainment marketing company at the San Diego County Fairgrounds. The events must be cultural, musical, artistic, or sports-related and can't last more than four days with at least 100 acts and 20,000 attendees. The company organizing these events must be Delaware-based and possibly linked to a private equity firm with winery interests, but the winery can't control the company's operations. Any deals must be in writing, and buying advertising cannot be tied to the purchase of specific alcoholic drinks. If any license holders try to unfairly pressure others into agreements, they could face fines, jail, or license suspension. Overall, these rules aim to keep the separation between producers, wholesalers, and retailers clear to avoid market domination and aggressive alcohol sales.

(a)CA Business and Professions Code § 25503.36(a) Notwithstanding any other provision of this division, an authorized licensee may sponsor events promoted by, and may purchase advertising space and time from, or on behalf of, a live entertainment marketing company in connection with events organized and conducted by the live entertainment marketing company on the premises of a permanent retail licensee located at the San Diego County Fairgrounds, located in the City of Del Mar in the County of San Diego, subject to all of the following conditions:
(1)CA Business and Professions Code § 25503.36(a)(1) The live entertainment marketing company operates and promotes live artistic, musical, sports, or cultural entertainment events only.
(2)CA Business and Professions Code § 25503.36(a)(2)  The events will take place over a period of no more than four consecutive days during which approximately 100 acts will perform before approximately 20,000 or more patrons.
(3)CA Business and Professions Code § 25503.36(a)(3) The live entertainment marketing company is a Delaware limited liability company that is under common ownership, management, or control by a private equity firm that may also have common ownership, management, or control of a licensed California winery, provided the winery represents not more than 25 percent of the assets under common ownership, management, or control by the private equity firm or its subsidiaries, and the live entertainment marketing company exercises no control over the operations of the winery. Any authorized licensee sponsoring an event or purchasing advertising space or time, pursuant to this section, shall obtain written verification of compliance with this subdivision prior to such sponsorship or the purchase of advertising space or time.
(4)CA Business and Professions Code § 25503.36(a)(4) Any on-sale licensee operating at the San Diego County Fairgrounds shall serve other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this section.
(5)CA Business and Professions Code § 25503.36(a)(5) An agreement pursuant to this section shall not be conditioned directly or indirectly on the purchase, sale, or distribution of any alcoholic beverage manufactured or distributed by any authorized licensee sponsoring or purchasing advertising space or time pursuant to this section.
(b)CA Business and Professions Code § 25503.36(b) Any sponsorship of events or purchase of advertising space or time conducted pursuant to subdivision (a) shall be conducted pursuant to a written contract entered into by the authorized licensee and the live entertainment marketing company.
(c)CA Business and Professions Code § 25503.36(c) Any authorized licensee 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 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 suspension or revocation pursuant to Section 24200.
(d)CA Business and Professions Code § 25503.36(d) Any on-sale retail licensee who, directly or indirectly, solicits or coerces a holder of a wholesaler’s license to solicit an authorized licensee to purchase 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 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 suspension or revocation pursuant to Section 24200.
(e)CA Business and Professions Code § 25503.36(e) Nothing in this section shall authorize the purchasing of advertising space or time directly from, or on behalf of, any on-sale licensee except as expressly authorized by this section or any other provision of this division.
(f)CA Business and Professions Code § 25503.36(f) Nothing in this section shall authorize an authorized licensee to furnish, give, or lend anything of value to an on-sale retail licensee described in subdivision (a) except as expressly authorized by this section or any other provision of this division.
(g)CA Business and Professions Code § 25503.36(g) For purposes of this section, the following definitions shall apply:
(1)CA Business and Professions Code § 25503.36(g)(1) “Authorized licensee” means the following licensees: beer manufacturer, out-of-state beer manufacturer’s certificate, winegrower, winegrower’s agent, importer, rectifier, distilled spirits manufacturer, distilled spirits rectifier general, distilled spirits manufacturer’s agent.
(2)CA Business and Professions Code § 25503.36(g)(2) Except for a licensee that holds only a beer and wine importer general license or a distilled spirits importer general license, “importer” does not include the holder of any importer license that does not also hold at least one other license specified as an authorized licensee.
(h)CA Business and Professions Code § 25503.36(h) 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 exception established by this section to the general prohibition against tied interests must be limited to its expressed terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.37

Explanation

This law allows a retail on-sale license for premises that are part of an interactive entertainment facility even if a manufacturer or wholesaler has an interest in the premises or license. However, certain conditions must be met. The main business must be interactive entertainment, not alcohol sales. Alcohol must be bought from wholesalers without ties to the premises. The retailer must offer a variety of alcoholic brands, and a maximum of 15% of their alcohol spending can be on products tied to any interested manufacturer or wholesaler. An 'interactive entertainment facility' includes video attractions, themed merchandise, and food and drinks. The law intends to prevent manufacturers from dominating the market while making an exception for these unique venues.

(a)CA Business and Professions Code § 25503.37(a) Nothing in this division shall prohibit the issuance, transfer, or renewal of any retail on-sale license to any person with respect to premises that are an integral part of an interactive entertainment facility and are owned directly or indirectly, in whole or in part, by, or operated by or on behalf of, the licensee, notwithstanding that a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler has any interest, directly or indirectly, in the premises, in the retail license, or in the retail licensee, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.37(a)(1) The principal business conducted within the facility is providing interactive entertainment, not the sale of alcoholic beverages.
(2)CA Business and Professions Code § 25503.37(a)(2) Other than as permitted in Sections 23358 and 23360 with respect to wine and brandy, the retail licensee shall purchase no beer, wine, or distilled spirits for sale in this state other than from a wholesale licensee, and the retail licensee shall purchase no alcoholic beverages for sale in this state from any wholesale licensee that has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(3)CA Business and Professions Code § 25503.37(a)(3) The retail licensee shall serve other brands of beer, wine, and distilled spirits in addition to the brands manufactured, produced, or distributed by any manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler which has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(4)CA Business and Professions Code § 25503.37(a)(4) No more than 15 percent of the retail licensee’s monetary expenditures for alcoholic beverages for sale on its licensed premises in a calendar year shall be for products manufactured, produced, or distributed by any manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler which has any interest, directly or indirectly, in the premises, in the retail licensee, or in the retail license.
(b)CA Business and Professions Code § 25503.37(b) For purposes of this section, “interactive entertainment facility” means premises which feature interactive computer and video entertainment attractions, themed merchandise, and food and beverages.
(c)CA Business and Professions Code § 25503.37(c) 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. Notwithstanding the foregoing, having considered the public welfare, the economic impact on the state, and the entirety of the circumstances involved, the Legislature further finds that the purpose and intent of the general prohibition against tied interests is not violated by granting the exception established by this section.

Section § 25503.38

Explanation

This law allows a beer company to sponsor or advertise with a retail liquor store owner who also owns a professional sports team, but only under specific conditions. The sports team must play its home games in a large arena in San Joaquin County, and the beer ads can only relate to events held there. The store owner can't have more than two liquor licenses. All advertising must be through a written contract between the beer company and the store owner. Coercing a wholesaler into participating is illegal and can lead to fines, jail time, and license loss. Lastly, advertising is only permitted with off-sale licensees, not with on-sale licensees like those involved with event arenas, and beer manufacturers can't provide anything of value to these retail owners except as authorized.

(a)CA Business and Professions Code § 25503.38(a) Notwithstanding any other provision of this chapter, a beer manufacturer may sponsor or purchase advertising space and time from, or on behalf of, an off-sale retail licensee subject to all of the following conditions:
(1)CA Business and Professions Code § 25503.38(a)(1) The off-sale retail licensee is an owner or coowner of a professional sports team.
(2)CA Business and Professions Code § 25503.38(a)(2) The professional sports team owned or coowned by the off-sale retail licensee is a tenant of, and plays its home games in, an arena with a fixed seating capacity in excess of 10,000 seats located in San Joaquin County.
(3)CA Business and Professions Code § 25503.38(a)(3) The advertising space or time is sponsored or purchased only in connection with the professional sports team’s events held on the premises of the arena.
(4)CA Business and Professions Code § 25503.38(a)(4) The owner or coowner of the professional sports team does not hold or have an interest in more than two off-sale retail licenses.
(b)CA Business and Professions Code § 25503.38(b) Any sponsorship or 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 off-sale retail licensee, and all other coowners, where applicable.
(c)CA Business and Professions Code § 25503.38(c) Any beer manufacturer 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)CA Business and Professions Code § 25503.38(d) Any off-sale retail licensee described in subdivision (a) who, directly or indirectly, solicits or coerces a holder of a wholesaler’s license to solicit a beer manufacturer to sponsor or purchase advertising time or space 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)CA Business and Professions Code § 25503.38(e) Nothing in this section shall authorize the purchasing of advertising space or time from, or on behalf of, any on-sale licensee that is the owner, manager, agent of the owner, assignee of the owner’s advertising rights, or a tenant of the arena described in paragraph (2) of subdivision (a).
(f)CA Business and Professions Code § 25503.38(f) Nothing in this section shall authorize a beer manufacturer to furnish, give, or lend anything of value to an off-sale retail licensee described in subdivision (a) except as expressly authorized by this section or any other provision of this division.
(g)CA Business and Professions Code § 25503.38(g) 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, selling beer only.

Section § 25503.39

Explanation

This law allows alcohol manufacturers to sponsor events or buy advertising from a live entertainment marketing company, as long as certain conditions are met. For example, the entertainment company must be based in Los Angeles and publicly traded, and events must be related to artistic, musical, sports, or cultural entertainment held at suitable venues. Venues must serve other alcohol brands in addition to those of the sponsor. Advertising can't be placed at venues owned by the entertainment company's subsidiaries, and there can be no conditions requiring the purchase of the sponsor's alcohol. Deals must be in writing, and any illegal coercion to fulfill contracts can lead to severe penalties, including fines and jail time.

(a)CA Business and Professions Code § 25503.39(a) Notwithstanding any other provision of this chapter, a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent may sponsor events promoted by, and may purchase advertising space and time from, or on behalf of, a live entertainment marketing company subject to all of the following conditions:
(1)CA Business and Professions Code § 25503.39(a)(1) The live entertainment marketing company is a wholly owned subsidiary of a live entertainment company that has its principal place of business in the County of Los Angeles, whose shares of stock are sold to the general public on a national stock exchange, and also owns subsidiaries that hold on-sale retail licenses.
(2)CA Business and Professions Code § 25503.39(a)(2) The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, musical, sports, or cultural entertainment events at entertainment facilities, auditoriums, or arenas that are designed and used for live artistic, musical, sports, or cultural entertainment events.
(3)Copy CA Business and Professions Code § 25503.39(a)(3)
(A)Copy CA Business and Professions Code § 25503.39(a)(3)(A) Any on-sale licensee operating at a venue where live artistic, musical, sports, or cultural entertainment events are performed pursuant to a sponsorship described in this section or where advertising is purchased as described in this section shall serve other brands of beer, distilled spirits, and wine in addition to any brand manufactured or distributed by the sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent.
(B)CA Business and Professions Code § 25503.39(a)(3)(A)(B) Any on-sale retail licensee owned by the live entertainment company described in paragraph (1) shall serve other brands of beer, distilled spirits, and wine in addition to any brand manufactured or distributed by the sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent.
(4)Copy CA Business and Professions Code § 25503.39(a)(4)
(A)Copy CA Business and Professions Code § 25503.39(a)(4)(A) Advertising space or time purchased pursuant to this section shall not be placed in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries, described in paragraph (1).
(B)CA Business and Professions Code § 25503.39(a)(4)(A)(B) Sponsorship provided pursuant to this section shall not be allowed if the event or activity is held at or in any on-sale licensed premises where the on-sale retail licensee is owned by the live entertainment company, or any of its subsidiaries, described in paragraph (1).
(5)CA Business and Professions Code § 25503.39(a)(5) An agreement for the sponsorship of, or for the purchase of advertising space and time during, a live artistic, musical, sports, or cultural entertainment event 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 or sponsoring beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent by the live entertainment company described in paragraph (1) or by any on-sale retail licensee that is owned by the live entertainment company.
(b)CA Business and Professions Code § 25503.39(b) Any sponsorship of events or 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, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent and the live entertainment marketing company.
(c)CA Business and Professions Code § 25503.39(c) Any beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, 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 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)CA Business and Professions Code § 25503.39(d) Any 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, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to purchase 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 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)CA Business and Professions Code § 25503.39(e) 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.
(f)CA Business and Professions Code § 25503.39(f) Nothing in this section shall authorize the purchasing of advertising space or time directly from, or on behalf of, any on-sale licensee.
(g)CA Business and Professions Code § 25503.39(g) Nothing in this section shall authorize a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer’s agent to furnish, give, or lend anything of value to an on-sale retail licensee described in subdivision (a) except as expressly authorized by this section or any other provision of this division.

Section § 25503.4

Explanation

This section allows winegrowers, their agents, or importers to host wine tasting events at a retailer's location under specific conditions. They can serve small samples of wine, but nothing of significant value can be given away during these events. Wine cannot be sold there, but orders can be placed to be completed at the winegrower's premises. They can also sign autographs without requiring a wine purchase. Ads can mention the retailer's details as long as they aren't prominently featured and don't include wine prices. However, they can't share ad costs with the retailer, and consumption of alcohol isn't allowed on sites only licensed for off-premise sales.

(a)CA Business and Professions Code § 25503.4(a) Notwithstanding any other provision of this division, a winegrower, California winegrower’s agent, wine importer, or any director, partner, officer, agent, or representative of that person, may conduct or participate in, and serve wine at, an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer, subject to the following conditions:
(1)CA Business and Professions Code § 25503.4(a)(1) No premium, gift, free goods, or other thing of value may be given away in connection with the instructional event by the winegrower, California winegrower’s agent, wine importer, or retailer, except as authorized by this division.
(2)CA Business and Professions Code § 25503.4(a)(2) No alcoholic beverages may be given away in connection with the instructional event except that minimal amounts of wine, taken from barrels or from tanks, may be supplied and provided as samples at the instructional event. A person authorized by subdivision (a) may also provide no more than three one-ounce tastes of wine per consumer at the instructional event from bottles of wine provided by the authorized person. For purposes of this section, minimal amounts of the samples or tastes provided at the instructional event do not constitute a thing of value. Following the instructional event, any unused wine provided by the authorized person shall be removed from the retailer’s premises by the authorized person.
(3)CA Business and Professions Code § 25503.4(a)(3) No alcoholic beverages may be sold at the instructional event, except that orders for the sale of wine may be accepted by the winegrower if the sales transaction is completed at the winegrower’s premises.
(b)CA Business and Professions Code § 25503.4(b) Notwithstanding Section 25502.2, a person identified in subdivision (a) appearing at an instructional event described in subdivision (a) may, in addition to other permitted activities, provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer. No purchase of any alcoholic beverage shall be required in connection with such autographing.
(c)CA Business and Professions Code § 25503.4(c) Notwithstanding any other provision of this division, in addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, a winegrower, California winegrower’s agent, or wine importer, in advance of an instructional event for consumers being held at a retailer’s premises, may list in any advertisement for the instructional event the name, address, telephone number, email address, internet website address, and any other electronic media of the retailer, the names of the wines being featured at the instructional event, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional event, provided:
(1)CA Business and Professions Code § 25503.4(c)(1) The advertisement does not also contain the retail price of the wines.
(2)CA Business and Professions Code § 25503.4(c)(2) The listing of the retailer’s name, address, telephone number, email address, internet website address, and any other electronic media in the advertisement, and any pictures, illustrations, or depictions, are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the retailer in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section.
(d)CA Business and Professions Code § 25503.4(d) Notwithstanding any other provision of this division, the name, address, telephone number, email address, internet website address, and any other electronic media of a winegrower, wine importer, or winegrower’s agent licensee, the brand names of wine being featured, and the time, date, location, and other identifying information of a wine promotional lecture at retail premises may be listed in advance of the event in an advertisement of the off-sale or on-sale retail licensee.
(e)CA Business and Professions Code § 25503.4(e) Nothing in this section authorizes a winegrower, wine importer, or winegrower’s agent licensee to share in the costs, if any, of the retailer licensee’s advertisement.
(f)CA Business and Professions Code § 25503.4(f) Nothing in this section authorizes any person to consume any alcoholic beverage on any premises licensed with an off-sale retail license.

Section § 25503.41

Explanation

This law allows a person who operates a winery and produces distilled spirits in another state to hold an interest in up to 12 brewpub-restaurant licenses in California. The law sets certain conditions: the out-of-state distilling must happen at the same place as the brewpub, with a cap of 12,000 gallons of spirits a year at any site; the winery operations must also be at the brewpub location; and none of the out-of-state distilled spirits or wine can be imported into or sold in California. Beer from the out-of-state brewpub can only be imported through a licensed wholesaler. This is to keep a balance between the different stages of alcohol production and sales, preventing any one company from controlling the entire market.

(a)CA Business and Professions Code § 25503.41(a) Notwithstanding any other provision of this division, any person that both operates a winery in another state and produces distilled spirits in another state may hold an interest in no more than 12 brewpub-restaurant licenses, provided that all of the following conditions are met:
(1)CA Business and Professions Code § 25503.41(a)(1) The out-of-state distilling operations occur only on premises where the licensee also conducts brewpub-restaurant operations, and do not exceed 12,000 gallons of distilled spirits annually at any licensed location.
(2)CA Business and Professions Code § 25503.41(a)(2) The out-of-state winery operations occur only on premises where the licensee also conducts brewpub-restaurant operations.
(3)CA Business and Professions Code § 25503.41(a)(3) The distilled spirits and wine that are manufactured out of state by the licensee are not imported into or sold in this state. If the licensee imports beer into this state that is produced in its out-of-state brewpub, it shall do so only through a licensed beer and wine wholesaler.
(b)CA Business and Professions Code § 25503.41(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 exception established by this section to the general prohibition against tied interests must be limited to its expressed terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.42

Explanation

This law allows specific alcohol producers and distributors to buy indoor advertising at certain venues in Los Angeles County, but with strict conditions. The venue must have a capacity between 2,000 and 3,000, and ads can't influence the purchase or sale of alcohol. A written agreement is needed, and wholesalers can't be involved. The venue must not be owned by a retail licensee, and there are rules ensuring the sale of competing brands. Misuse of agreements through coercion can lead to misdemeanor charges, fines, or jail time, and potential license revocation. The legislation aims to separate alcohol manufacturing, wholesale, and retail interests, ensuring no one party dominates the market.

(a)CA Business and Professions Code § 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 rectifier’s 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)CA Business and Professions Code § 25503.42(a)(1) The indoor advertising space or time is purchased only at the venue specified in this subdivision.
(2)CA Business and Professions Code § 25503.42(a)(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 rectifier’s 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)CA Business and Professions Code § 25503.42(a)(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 rectifier’s general license, distilled spirits manufacturer, or a distilled spirits manufacturer’s agent by any on-sale retail licensee.
(4)CA Business and Professions Code § 25503.42(a)(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 rectifier’s general license.
(5)CA Business and Professions Code § 25503.42(a)(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 rectifier’s general license, or a distilled spirits manufacturer’s agent that has purchased indoor advertising space.
(b)CA Business and Professions Code § 25503.42(b) A beer manufacturer, holder of a winegrower’s license, California winegrower’s agent, holder of a distilled spirits rectifier’s 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 a county jail for not more than 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 that imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(c)CA Business and Professions Code § 25503.42(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 rectifier’s 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 a county jail for not more than 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 that imprisonment and fine. The person shall also be subject to license revocation pursuant to Section 24200.
(d)CA Business and Professions Code § 25503.42(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)CA Business and Professions Code § 25503.42(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 rectifier’s general license, or a distilled spirits manufacturer’s agent directly or indirectly from any on-sale licensee.
(f)CA Business and Professions Code § 25503.42(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)CA Business and Professions Code § 25503.42(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.

Section § 25503.45

Explanation

This law allows beer manufacturers or beer and wine importers to teach consumers about their beer at certain places where beer is sold, with permission from the venue. They can serve their beer and discuss its history and qualities, but any sales must happen at their own facilities. They can also advertise these events, but ads can't show beer prices or praise the venue too much. Both parties can advertise these events, but they can't share advertising costs or give away alcohol for free. Also, beer wholesalers can't act as representatives at these events.

(a)CA Business and Professions Code § 25503.45(a) Notwithstanding any other provision of this division, a licensed beer manufacturer or a holder of beer and wine importer’s general license, or any director, partner, officer, agent, or representative of that person, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the on-sale retail licensee. The instruction may include serving beer sold by the on-sale retail licensee to the consumer and providing information on the history, nature, values, and characteristics of the beer, and methods of presenting and serving the beer. Orders for the sale of beer may be accepted by the beer manufacturer conducting an instructional event if the sales transaction is completed at the beer manufacturer’s licensed premises.
(b)CA Business and Professions Code § 25503.45(b) A person authorized by subdivision (a), in advance of an authorized instructional event, may list in an advertisement the name and address of the on-sale retail licensee, the names of the beers being featured at the instructional event, and the time, date, and location of, and other information about, the instructional event, subject to the following limitations:
(1)CA Business and Professions Code § 25503.45(b)(1) The advertisement does not also contain the retail price of the beers.
(2)CA Business and Professions Code § 25503.45(b)(2) The listing of the retailer’s name and address is the only reference to the retailer in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole. Pictures or illustrations of the retailer’s premises and laudatory references to the retailer in these advertisements are not hereby authorized.
(c)CA Business and Professions Code § 25503.45(c) An on-sale retail licensee’s advertisement of an authorized instructional event may include the name, address, and brand names of the person authorized by subdivision (a), however nothing in this section allows that person to share in the costs of the on-sale retail licensee’s advertisement.
(d)CA Business and Professions Code § 25503.45(d) For purposes of this section, a licensed beer and wine wholesaler shall not be a representative of a beer manufacturer or a holder of a beer and wine importer’s general license.
(e)CA Business and Professions Code § 25503.45(e) Notwithstanding any other provision of this division, no alcoholic beverage may be given away in connection with the instructional event authorized by this section.

Section § 25503.5

Explanation

This law allows winegrowers, beer manufacturers, beer and wine wholesalers, and similar entities in the alcohol industry to offer free educational courses about wine, beer, and distilled spirits to people who are licensed to sell these products and their employees. These courses can cover topics like history, characteristics, and serving techniques. The providers of the courses can also supply the necessary drinks and equipment for the instruction. These lessons can be conducted either at the premises of the provider or elsewhere, including at the retailer's location.

(a)CA Business and Professions Code § 25503.5(a) A winegrower, beer manufacturer, or a beer and wine wholesaler may, without charge, instruct licensees and their employees, or conduct courses of instruction for licensees and their employees, on the subject of wine or beer, including, but not limited to, the history, nature, values, composition, and characteristics of wine or beer, the use of wine lists, and the methods of presenting and serving wine or beer. The winegrower, beer manufacturer, or beer and wine wholesaler may furnish wine or beer and the equipment, materials, and utensils that may be required for use in connection with the instruction or courses of instruction.
(b)CA Business and Professions Code § 25503.5(b) A craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, distilled spirits general rectifier, or distilled spirits general importer may, without charge, instruct licensees and their employees, or conduct courses of instruction for licensees and their employees, on the subject of distilled spirits, including, but not limited to, the history, nature, values, and characteristics of distilled spirits, and the methods of presenting and serving distilled spirits. The craft distiller, distilled spirits manufacturer, or distilled spirits manufacturer’s agent may furnish distilled spirits and the equipment, materials, and utensils that may be required for use in connection with the instruction or courses of instruction.
(c)CA Business and Professions Code § 25503.5(c) The instruction or courses of instruction, authorized in subdivision (a) or (b), may be given at the premises of the winegrower, beer manufacturer, beer and wine wholesaler, craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, distilled spirits general rectifier, distilled spirits general importer, or of a licensee, including an on-sale retail licensee, or elsewhere.

Section § 25503.51

Explanation

This law allows businesses involved with distilled spirits, like wholesalers and manufacturers, to conduct free educational sessions for licensees and their staff about various aspects of distilled spirits. These sessions can cover topics such as the history and characteristics of spirits and how to serve them. The businesses can provide the necessary spirits and equipment for these lessons, which can take place at their own premises or at the licensee's location.

(a)CA Business and Professions Code § 25503.51(a) A distilled spirits wholesaler, rectifier, brandy manufacturer, or craft distiller may, without charge, instruct licensees and their employees, or conduct courses of instruction for licensees and their employees, on the subject of distilled spirits, including, but not limited to, the history, nature, values, characteristics, and related terminology of distilled spirits, and the methods of handling, presenting, and serving distilled spirits. The distilled spirits wholesaler, rectifier, brandy manufacturer, or craft distiller may furnish distilled spirits and the equipment, materials, and utensils that may be required for use in connection with the instruction or courses of instruction.
(b)CA Business and Professions Code § 25503.51(b) The instruction or courses of instruction, authorized pursuant to subdivision (a), may be given at the premises of the distilled spirits wholesaler, rectifier, brandy manufacturer, or craft distiller, or of a licensee, including an on-sale retail licensee, or elsewhere.

Section § 25503.55

Explanation

This law allows beer makers, beer and wine importers, and wholesalers to teach consumers about beer, which can include tasting sessions. These sessions can be held at licensed bars and restaurants. Each person can taste up to eight ounces of beer during an hour-long session. An employee of the bar must serve the beer for tasting, and this can occur up to six times a year at each location. A representative from the beer company must be present to oversee and pay for the beer, at regular retail prices. Bars cannot force these sessions as a condition to sell a particular brand, and no free gifts or bonuses can be given during the sessions. Any advertising of these tastings must be limited to inside the location. Beer businesses must keep records of each session for three years, documenting details like the date, brands served, and payments made.

(a)CA Business and Professions Code § 25503.55(a) A beer manufacturer, a licensed beer and wine importer general, or a licensed beer and wine wholesaler may instruct consumers or conduct courses of instruction for consumers, on the subject of beer, including, but not limited to, the history, nature, values, and characteristics of beer, and the methods of presenting and serving beer. A beer manufacturer, a licensed beer and wine importer general, or a licensed beer and wine wholesaler may conduct such instructions at the premises of a retail on-sale licensee authorized to sell beer.
(b)CA Business and Professions Code § 25503.55(b) The instruction of consumers regarding beer may include the furnishing of tastes of beer to an individual of legal drinking age. Beer tastes at any individual course of instruction shall not exceed eight ounces of beer per person, per day. The tasting portion of a course of instruction shall not exceed one hour at any individual licensed retail premises. Tastes of beer may not be served to a consumer in their original container but must be served in an individual glass or cup.
(c)CA Business and Professions Code § 25503.55(c) All tastes of beer served to a consumer as authorized in subdivision (b) shall be served only as part of the course of instruction and shall be served to the consumer by an employee of the on-sale retail licensee.
(d)CA Business and Professions Code § 25503.55(d) A beer manufacturer, a licensed beer and wine importer general, or a licensed beer and wine wholesaler may not hold more than six courses of instruction per calendar year at any individual on-sale retail licensed premises if the courses of instruction includes consumer tastes of beer.
(e)Copy CA Business and Professions Code § 25503.55(e)
(1)Copy CA Business and Professions Code § 25503.55(e)(1) A representative of a beer manufacturer, a licensed beer and wine importer general, or a licensed beer and wine wholesaler, except as provided in paragraph (2), must be present and authorize any tastes of beer conducted at an on-sale retail licensed premises pursuant to this section. The representative shall be responsible for paying the retailer for the tastes of beer served at any course of instruction. Such payment shall not exceed the retail price of the beer.
(2)CA Business and Professions Code § 25503.55(e)(2) For purposes of this subdivision, a licensed beer and wine wholesaler shall not be a representative of a beer manufacturer or a licensed beer and wine importer general.
(f)CA Business and Professions Code § 25503.55(f) No on-sale retail licensee shall require one or more courses of instruction pursuant to this section as a requirement to carry a brand or brands of any beer manufacturer, licensed beer and wine importer general, or licensed beer and wine wholesaler.
(g)CA Business and Professions Code § 25503.55(g) No premium, gift, free goods, or other thing of value may be given away in connection with an authorized course of instruction that includes beer tastes, except as authorized by this division. Failure to comply with the provisions of this section shall be presumed to be a violation of Section 25500.
(h)CA Business and Professions Code § 25503.55(h) A retail licensee may advertise the instructional tasting event using interior signs visible only within the establishment.
(i)Copy CA Business and Professions Code § 25503.55(i)
(1)Copy CA Business and Professions Code § 25503.55(i)(1) A beer manufacturer, a licensed beer and wine importer general, and a licensed beer and wine wholesaler shall maintain an individual record of each course of instruction involving tastes of beer for three years.
(2)CA Business and Professions Code § 25503.55(i)(2) Records shall include the date of the tasting, the name and address of the retail licensee, and the brand, quantity, and payment made for the beer furnished by the beer manufacturer, the licensed beer and wine importer general, or the licensed beer and wine wholesaler.

Section § 25503.56

Explanation

This law allows certain authorized licensees or their representatives to conduct instructional tasting events for wine, beer, or distilled spirits. These events can include teachings on the history and characteristics of the drinks, as well as tastings, within set limits (three wine or distilled spirit tastings per day, eight ounces of beer). The events must be free of charge, and any leftover alcohol must be removed from the premises. The organizer must be an authorized entity, like a winegrower or beer manufacturer. Employees must serve the drinks, and all advertisements must be discreet without mentioning the price. Importantly, no sales schemes should be tied to these tastings, and any violation can result in suspending the tasting license. The law supports keeping different alcohol industry sectors separate to avoid market domination through aggressive marketing.

(a)CA Business and Professions Code § 25503.56(a) An authorized licensee, or a designated representative of an authorized licensee acting as an agent of the authorized licensee, may conduct, on the area specified by paragraph (1) of subdivision (c) of Section 23396.6, an instructional tasting event for consumers on the subject of wine, beer, or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of wine, beer, or distilled spirits, and the methods of presenting and serving wine, beer, or distilled spirits.
(1)Copy CA Business and Professions Code § 25503.56(a)(1)
(A)Copy CA Business and Professions Code § 25503.56(a)(1)(A) Except as provided in subparagraph (B), the instructional tasting event may include the serving of alcoholic beverages to an attendee of legal drinking age. An instructional tasting event on the subject of wine or distilled spirits shall be limited to not more than three tastings per person per day. A single tasting of distilled spirits shall not exceed one-fourth of one ounce and a single tasting of wine shall not exceed one ounce. An instructional tasting event on the subject of beer shall be limited to not more than the tasting of eight ounces of beer per person per day. The wine, beer, or distilled spirits tasted shall be limited to the products that are authorized to be sold by the authorized licensee and the licenseholder under its off-sale license.
(B)CA Business and Professions Code § 25503.56(a)(1)(A)(B) A beer and wine wholesaler may conduct an instructional tasting event but shall not serve tastes of beer unless the beer and wine wholesaler also holds a beer manufacturer’s license, an out-of-state beer manufacturer’s certificate, or more than six distilled spirits wholesaler’s licenses.
(C)CA Business and Professions Code § 25503.56(a)(1)(A)(C) No charge of any sort shall be made for the tastings. Except for the purposes of Section 23985, the serving of tastings shall not be deemed a sale of products pursuant to this division.
(D)CA Business and Professions Code § 25503.56(a)(1)(A)(D) A person under 21 years of age shall not serve wine, beer, or distilled spirits at the instructional tasting event.
(E)CA Business and Professions Code § 25503.56(a)(1)(A)(E) All tastes shall be served by an employee of the authorized licensee, the designated representative of the authorized licensee, or by an employee of the designated representative of the authorized licensee.
(F)CA Business and Professions Code § 25503.56(a)(1)(A)(F) An authorized licensee, or a designated representative of an authorized licensee, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the licenseholder at the original invoiced cost. An authorized licensee, or a designated representative of an authorized licensee, shall purchase beer to be tasted during the instructional tasting event from the licenseholder at the original invoiced cost.
(G)CA Business and Professions Code § 25503.56(a)(1)(A)(G) Any unused wine, beer, or distilled spirits remaining from the tasting shall be removed from the off-sale licensed premises by the authorized licensee or its designated representative.
(2)CA Business and Professions Code § 25503.56(a)(2) If the instructional tasting event is conducted by a designated representative of an authorized licensee, the designated representative shall not be owned, controlled, or employed directly or indirectly by the licenseholder on whose premises the instructional tasting event is held.
(3)CA Business and Professions Code § 25503.56(a)(3) An instructional tasting event shall be limited to a single type of alcoholic beverage. For purposes of this paragraph, “type of alcoholic beverage” means distilled spirits, wine, or beer.
(b)CA Business and Professions Code § 25503.56(b) For purposes of this section:
(1)CA Business and Professions Code § 25503.56(b)(1) “Authorized licensee” means a winegrower, California winegrower’s agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shipper’s certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, California brandy wholesaler, beer manufacturer, or an out-of-state beer manufacturer certificate holder. “Authorized licensee” shall not include an entity that solely holds a combination of a beer and wine wholesale license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or holds a limited off-sale retail wine license.
(2)CA Business and Professions Code § 25503.56(b)(2) “Licenseholder” means an off-sale retail licensee issued an instructional tasting license pursuant to Section 23396.6.
(3)CA Business and Professions Code § 25503.56(b)(3) “Location” means the total contiguous area encompassed by the off-sale and on-sale licenses.
(c)CA Business and Professions Code § 25503.56(c) Notwithstanding subparagraph (E) of paragraph (1) of subdivision (a), a licenseholder may conduct an instructional tasting event that includes the serving of tastings only when an authorized licensee or its designated representative are unable to conduct an instructional tasting event previously advertised pursuant to this section and scheduled by the authorized licensee or its designated representative, provided that the licenseholder supplies the wine, beer, or distilled spirits used in the instructional tasting event and provides or pays for a person to serve the wine, beer, or distilled spirits. Instructional tasting events conducted by a licenseholder pursuant to this subdivision are subject to the provisions of this section and Section 23396.6.
(d)CA Business and Professions Code § 25503.56(d) No more than one authorized licensee, or its designated representative, may conduct an instructional tasting event that includes the serving of tastes of wine, beer, or distilled spirits at any one individual licensed premises of a licenseholder per day.
(e)CA Business and Professions Code § 25503.56(e) A licenseholder that also holds an on-sale beer and wine license, an on-sale beer and wine eating place license, or an on-sale general license shall not allow an authorized licensee, or its designated representative, to conduct an instructional tasting event on the same day and at the same location as any instructional tasting event held pursuant to subdivision (b) of Section 23386, Section 25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f)CA Business and Professions Code § 25503.56(f) A licenseholder shall not condition the allowance of an instructional tasting event upon the use of a particular designated representative of an authorized licensee.
(g)CA Business and Professions Code § 25503.56(g) In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in their absolute discretion and with permission of the licenseholder upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting event the name, address, telephone number, email address, internet website address, and any other electronic media of the licenseholder, the names of the alcoholic beverages being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)CA Business and Professions Code § 25503.56(g)(1) The advertisement does not contain the retail price of the alcoholic beverages.
(2)CA Business and Professions Code § 25503.56(g)(2) The listing of the licenseholder’s name, address, telephone number, email address, internet website address, and any other electronic media in the advertisement, and any pictures, illustrations, or depictions, are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(h)CA Business and Professions Code § 25503.56(h) A licenseholder may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the licenseholder. Advertising permitted by this subdivision includes flyers, newspaper ads, internet communications, and interior signage.
(i)CA Business and Professions Code § 25503.56(i) Except as otherwise provided in this division or rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event that includes tastings of an alcoholic beverage.
(j)CA Business and Professions Code § 25503.56(j) The licenseholder or the authorized licensee or its designated representative is authorized to perform setup and breakdown of the instructional tasting event area. The authorized licensee or its designated representative may provide, free of charge to the licenseholder, the equipment, materials, and utensils as may be required for use in connection with the instructional tasting event.
(k)Copy CA Business and Professions Code § 25503.56(k)
(1)Copy CA Business and Professions Code § 25503.56(k)(1) A licenseholder shall not require, or enter into a collusive scheme with, an authorized licensee or its designated representative to conduct one or more instructional tasting events as a condition of the licenseholder’s carrying or continuing to carry a brand or brands of the authorized licensee or as a condition for display or other merchandising plan which is based on an agreement to provide shelf space. An authorized licensee or its designated representative shall not require any preferential treatment or benefit from, or enter into a collusive scheme with, a licenseholder as a condition of conducting one or more instructional tasting events, require a licenseholder to carry or continue to carry a brand or brands of the authorized licensee as a condition of conducting one or more instructional tasting events, or condition display or other merchandising plans that are based on agreements for the provision of shelf space on the conducting of one or more instructional tasting events. Any agreement, whether written or oral, entered into by and between a licenseholder and an authorized licensee or its designated representative that precludes the conducting of instructional tasting events on the premises of the licenseholder by any other authorized licensee is prohibited. A licenseholder or authorized licensee, or its designated representative, shall not use an instructional tasting event to circumvent any other requirements of this division.
(2)CA Business and Professions Code § 25503.56(k)(2) In addition to any other remedies available under this division, upon a finding by the department of a failure to comply with this subdivision, the department shall suspend the instructional tasting license of the licenseholder and the privilege of the authorized licensee to conduct instructional events for not less than six months but for no more than one year.
(l)CA Business and Professions Code § 25503.56(l) 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 exception established by this section to the general prohibition against tied interests must be limited to its express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.

Section § 25503.57

Explanation

This California law section allows authorized alcohol producers or their representatives to give instructional tastings of wine or spirits at retail locations that sell alcohol for consumption on site. Each person can taste up to three samples, with specific size limits for wine and spirits. Authorized parties must provide or purchase the alcohol for tasting and ensure any leftovers are removed. They can advertise these events but cannot provide any gifts or benefits related to the tastings. Advertising must not highlight the retail prices, and social media posts can be shared if they follow the rules. The cost for advertising by the retail location has to be covered by the retailer, not the producer. Additionally, only one producer can hold an instructional tasting event at a time at any venue, and representatives cannot represent multiple producers at the same event.

(a)Copy CA Business and Professions Code § 25503.57(a)
(1)Copy CA Business and Professions Code § 25503.57(a)(1) An authorized licensee, or its designated representative, may instruct consumers at an on-sale retail licensed premises authorized to sell its product with the permission of the retail on-sale licensee. The instruction may include, without limitation, the history, nature, values, and characteristics of the wine or distilled spirits and the methods of presenting and serving the wine or distilled spirits.
(2)CA Business and Professions Code § 25503.57(a)(2) The instruction of consumers may include the furnishing of not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-fourth of one ounce and a single tasting of wine may not exceed one ounce.
(3)CA Business and Professions Code § 25503.57(a)(3) The authorized licensee, or its designated representative, shall either supply the wine or distilled spirits to be tasted during the instructional tasting event or purchase the wine or distilled spirits from the retail on-sale licensee at the original invoiced cost.
(4)CA Business and Professions Code § 25503.57(a)(4) The authorized licensee, or its designated representative, shall remove any unfinished alcoholic beverages that were supplied by the authorized licensee, or its designated representative, following the instruction.
(5)CA Business and Professions Code § 25503.57(a)(5) Nothing in this subdivision shall limit the giving away of samples pursuant to subdivision (a) of Section 23386.
(b)CA Business and Professions Code § 25503.57(b) For purposes of this section, “authorized licensee” means a winegrower, California winegrower’s agent, beer and wine importer general, beer and wine wholesaler, wine rectifier, craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, distilled spirits importer general, distilled spirits rectifier, distilled spirits general rectifier, rectifier, out-of-state distilled spirits shipper’s certificate holder, distilled spirits wholesaler, brandy manufacturer, brandy importer, or California brandy wholesaler. “Authorized licensee” shall not include any person that solely holds a combination of a beer and wine wholesaler license and an off-sale beer and wine retail license or holds those licenses solely in combination with any license not listed in this paragraph, or in combination with a beer and wine importer general license, or holds a limited off-sale retail wine license.
(c)CA Business and Professions Code § 25503.57(c) Except as otherwise provided in this division or by the rules of the department, no premium, gift, free goods, or other thing of value shall be given away by an authorized licensee or its designated representative in connection with an instructional tasting event conducted pursuant to this section that includes tastings of wine or distilled spirits.
(d)CA Business and Professions Code § 25503.57(d) In addition to any point-of-sale advertising or other advertising items allowed under this division or under rules of the department, an authorized licensee or its designated representative, in their absolute discretion and with permission of the retail on-sale licensee upon whose premises the instructional tasting event will be held, may list in any advertisement to the general public for the instructional tasting the name, address, telephone number, email address, internet website address, and any other electronic media of the on-sale retail licensee, the names of the wines or distilled spirits being featured at the instructional tasting event, pictures, illustrations, and depictions of the retailer’s premises, personnel, and customers, and the time, date, and location of, and other information about, the instructional tasting event, provided that both of the following apply:
(1)CA Business and Professions Code § 25503.57(d)(1) The advertisement does not contain the retail price of the alcoholic beverages.
(2)CA Business and Professions Code § 25503.57(d)(2) The listing of the licenseholder’s name, address, telephone number, email address, internet website address, and any other electronic media in the advertisement, and any pictures, illustrations, or depictions, are relatively inconspicuous in relation to the advertisement as a whole. Laudatory references to the licenseholder in these advertisements are not authorized. Pictures, illustrations, or depictions shall be still pictures, illustrations, or depictions only and shall not include any video. The reposting of social media posts, including posts by the retailer, is permitted provided that the reposting complies with all the requirements of this section. Nothing in this section shall authorize an authorized licensee or its designated representative to share in the costs, if any, of the licenseholder.
(e)CA Business and Professions Code § 25503.57(e) An on-sale retail licensee may advertise an instructional tasting event to the general public. The costs of this advertising shall be borne solely by the on-sale retail licensee. Advertising permitted by this subdivision includes flyers, newspaper ads, internet communications, and interior signage.
(f)CA Business and Professions Code § 25503.57(f) No more than one authorized licensee or its designated representative shall conduct an instructional tasting pursuant to this section at the on-sale retail licensed premises of an on-sale retail licensee at any time, and a person shall not act as the designated representative for more than one authorized licensee at that instructional tasting.

Section § 25503.6

Explanation

This section allows certain alcoholic beverage manufacturers to buy advertising space or time from businesses that sell alcohol at large venues like stadiums and arenas. These venues must meet specific seating capacity requirements and be located in designated counties in California. To ensure fairness, the law requires these venues to sell products from multiple competing alcohol brands, not just from the advertisers. Moreover, these transactions must be conducted through written contracts. The law strictly prohibits coercion or unfair practices by manufacturers or retailers in obtaining these advertising deals, and violations can result in misdemeanor charges, fines, and even license revocation. Ultimately, the law aims to maintain a healthy separation between manufacturers, wholesalers, and retailers in the alcohol industry, to avoid market domination and aggressive sales tactics.

(a)CA Business and Professions Code § 25503.6(a) Notwithstanding any other provision of this chapter, a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, 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)CA Business and Professions Code § 25503.6(a)(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)CA Business and Professions Code § 25503.6(a)(1)(A) An outdoor stadium or a fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Sacramento or the County of Alameda.
(B)Copy CA Business and Professions Code § 25503.6(a)(1)(B)
(i)Copy CA Business and Professions Code § 25503.6(a)(1)(B)(i) A fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Los Angeles.
(ii)CA Business and Professions Code § 25503.6(a)(1)(B)(i)(ii) An outdoor stadium of at least 70,000 seats located in the County of Los Angeles operated by a joint powers authority.
(C)CA Business and Professions Code § 25503.6(a)(1)(C) An outdoor stadium or fully enclosed arena with a fixed seating capacity in excess of 8,500 seats located in the County of Kern.
(D)CA Business and Professions Code § 25503.6(a)(1)(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 the County of San Bernardino.
(E)CA Business and Professions Code § 25503.6(a)(1)(E) An outdoor stadium with a fixed seating capacity in excess of 10,000 seats located in the County of Yolo.
(F)CA Business and Professions Code § 25503.6(a)(1)(F) An outdoor stadium and a fully enclosed arena with fixed seating capacities in excess of 10,000 seats located in the County of Fresno.
(G)CA Business and Professions Code § 25503.6(a)(1)(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 in the County of Riverside.
(H)CA Business and Professions Code § 25503.6(a)(1)(H) An outdoor stadium with a fixed seating capacity in excess of 1,500 seats located in the County of Tulare.
(I)CA Business and Professions Code § 25503.6(a)(1)(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 25,000 seats, located in the County of San Bernardino.
(J)CA Business and Professions Code § 25503.6(a)(1)(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 the County of Los Angeles.
(K)CA Business and Professions Code § 25503.6(a)(1)(K) An outdoor soccer stadium with a fixed seating capacity of at least 25,000 seats, an outdoor tennis stadium with a fixed seating 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, in the City of Carson in the County of Los Angeles.
(L)CA Business and Professions Code § 25503.6(a)(1)(L) An outdoor professional sports facility with a fixed seating capacity of at least 4,200 seats located in the County of San Joaquin.
(M)CA Business and Professions Code § 25503.6(a)(1)(M) A fully enclosed arena with a fixed seating capacity in excess of 13,000 seats located in the City of Inglewood.
(N)Copy CA Business and Professions Code § 25503.6(a)(1)(N)
(i)Copy CA Business and Professions Code § 25503.6(a)(1)(N)(i) An outdoor stadium with a fixed seating capacity of at least 68,000 seats located in the City of Santa Clara.
(ii)CA Business and Professions Code § 25503.6(a)(1)(N)(i)(ii) A beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits manufacturer’s agent may purchase advertising space and time from, or on behalf of, a major tenant of an outdoor stadium described in clause (i), provided the major tenant does not hold a retail license, and the advertising may include the placement of advertising in an on-sale licensed premises operated at the outdoor stadium.
(O)CA Business and Professions Code § 25503.6(a)(1)(O) A complex of not more than 50 acres located on the campus of, and owned by, Sonoma State University dedicated to presenting live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances with venues that include a concert hall with a seating capacity of approximately 1,500 seats, a second concert hall with a seating capacity of up to 300 seats, an outdoor area with a seating capacity of up to 5,000 seats, and a further outdoor area with a seating capacity of up to 10,000 seats. With respect to this complex, advertising space and time may also be purchased from or on behalf of the owner of the complex, a long-term tenant or licensee of the venue, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(P)CA Business and Professions Code § 25503.6(a)(1)(P) A fairgrounds with a horse racetrack and equestrian and sports facilities located in the County of San Diego.
(Q)Copy CA Business and Professions Code § 25503.6(a)(1)(Q)
(i)Copy CA Business and Professions Code § 25503.6(a)(1)(Q)(i) A stadium with a fixed seating capacity of at least 70,000 seats located in the City of Inglewood and a performance venue with a seating capacity of at least 5,000 seats adjacent to the stadium. Advertising authorized by this clause may be placed in areas within the retail, entertainment, commercial, and mixed-use development which includes the stadium and performance venue, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the stadium or performance venue.
(ii)CA Business and Professions Code § 25503.6(a)(1)(Q)(i)(ii) A fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood. Advertising authorized by this clause may be placed on or in the fully enclosed arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and band shell, provided that the advertising shall not be placed on or in, or otherwise promote, any permanently licensed retail premises other than the fully enclosed arena or a permanently licensed retail premises located within the main entry area that is wholly owned by and operated by or for the owner of the arena.
(R)CA Business and Professions Code § 25503.6(a)(1)(R) An outdoor stadium with a fixed seating capacity of at least 40,000 seats located in the City and County of San Francisco.
(S)CA Business and Professions Code § 25503.6(a)(1)(S) An indoor arena with a fixed seating capacity of at least 13,000 seats located in the City and County of San Francisco.
(T)CA Business and Professions Code § 25503.6(a)(1)(T) An outdoor stadium with a fixed seating capacity in excess of 20,000 seats located in the City of Los Angeles.
(U)CA Business and Professions Code § 25503.6(a)(1)(U) An outdoor stadium with a fixed seating capacity of at least 43,000 seats located in the City of San Diego.
(V)CA Business and Professions Code § 25503.6(a)(1)(V) An outdoor professional sports stadium with a fixed seating capacity of at least 3,000 seats located in the City of San Jose.
(W)CA Business and Professions Code § 25503.6(a)(1)(W) An outdoor professional sports stadium with a fixed seating capacity of at least 15,000 seats located in the City of San Jose.
(X)CA Business and Professions Code § 25503.6(a)(1)(X) A fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.
(Y)CA Business and Professions Code § 25503.6(a)(1)(Y) A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats located in the County of Riverside.
(Z)CA Business and Professions Code § 25503.6(a)(1)(Z) Any of the following facilities that are situated on the campus of San Diego State University (SDSU), including the SDSU Mission Valley site, located in the County of San Diego.
(i)CA Business and Professions Code § 25503.6(a)(1)(Z)(i) An outdoor multipurpose stadium with a fixed seating capacity of at least 30,000 seats.
(ii)CA Business and Professions Code § 25503.6(a)(1)(Z)(ii) A fully enclosed arena with a fixed seating capacity in excess of 10,000 seats.
(iii)CA Business and Professions Code § 25503.6(a)(1)(Z)(iii) An outdoor baseball stadium with a fixed seating capacity of at least 1,800 seats.
(iv)CA Business and Professions Code § 25503.6(a)(1)(Z)(iv) An outdoor softball stadium with a fixed seating capacity of at least 300 seats.
(v)CA Business and Professions Code § 25503.6(a)(1)(Z)(v) An open-air amphitheater with a fixed seating capacity of at least 4,000 seats.
(AA) Any of the following facilities that are situated on the campus of California Polytechnic State University, San Luis Obispo, located in the County of San Luis Obispo:
(i)CA Business and Professions Code § 25503.6(AA)(i) An outdoor stadium with a fixed seating capacity of at least 11,000 seats.
(ii)CA Business and Professions Code § 25503.6(AA)(ii) A fully enclosed arena with a fixed seating capacity of at least 3,000 seats.
(iii)CA Business and Professions Code § 25503.6(AA)(iii) An outdoor stadium with a fixed seating capacity of at least 3,000 seats.
(iv)CA Business and Professions Code § 25503.6(AA)(iv) An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)CA Business and Professions Code § 25503.6(AA)(v) An indoor performing arts venue with two concert halls and a theater with a combined fixed seating capacity of at least 1,800 seats.
(AB) Any of the following facilities that are situated on the campus of California State University, Fresno, located in the County of Fresno:
(i)CA Business and Professions Code § 25503.6(AB)(i) An outdoor stadium with a fixed seating capacity of at least 40,000 seats.
(ii)CA Business and Professions Code § 25503.6(AB)(ii) An outdoor stadium with a fixed seating capacity of at least 5,000 seats.
(iii)CA Business and Professions Code § 25503.6(AB)(iii) An outdoor stadium with a fixed seating capacity of at least 2,400 seats.
(iv)CA Business and Professions Code § 25503.6(AB)(iv) An outdoor stadium with a fixed seating capacity of at least 2,000 seats.
(AC) Any of the following facilities that are situated on the campus of California State University, Sacramento, located in the County of Sacramento:
(i)CA Business and Professions Code § 25503.6(AC)(i) An outdoor stadium with a fixed seating capacity of at least 20,000 seats.
(ii)CA Business and Professions Code § 25503.6(AC)(ii) A fully enclosed arena with a fixed seating capacity of at least 1,000 seats.
(iii)CA Business and Professions Code § 25503.6(AC)(iii) An outdoor stadium with a fixed seating capacity of at least 1,200 seats.
(iv)CA Business and Professions Code § 25503.6(AC)(iv) An outdoor stadium with a fixed seating capacity of at least 800 seats.
(v)CA Business and Professions Code § 25503.6(AC)(v) An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(AD) An outdoor stadium with a fixed seating capacity of at least 6,000 seats that is situated on the campus of California State University, Monterey Bay, located in the County of Monterey.
(AE) Any of the following facilities that are situated on the campus of California State University, Fullerton, located in the County of Orange:
(i)CA Business and Professions Code § 25503.6(AE)(i) A fully enclosed arena with a fixed seating capacity of at least 4,000 seats.
(ii)CA Business and Professions Code § 25503.6(AE)(ii) An outdoor stadium with a fixed seating capacity of at least 3,500 seats.
(iii)CA Business and Professions Code § 25503.6(AE)(iii) An outdoor stadium with a fixed seating capacity of at least 1,000 seats.
(iv)CA Business and Professions Code § 25503.6(AE)(iv) An outdoor stadium with a fixed seating capacity of at least 10,000 seats.
(AF) Any of the following facilities that are situated on the campus of San Jose State University, located in the County of Santa Clara:
(i)CA Business and Professions Code § 25503.6(AF)(i) An outdoor stadium with a fixed seating capacity of at least 17,000 seats.
(ii)CA Business and Professions Code § 25503.6(AF)(ii) A fully enclosed arena with a fixed seating capacity of at least 5,000 seats.
(AG) Any of the following facilities that are situated on the campus of California State University, Northridge, located in the County of Los Angeles:
(i)CA Business and Professions Code § 25503.6(AG)(i) An indoor performing arts center with a fixed seating capacity of at least 1,700 seats.
(ii)CA Business and Professions Code § 25503.6(AG)(ii) A fully enclosed arena with a fixed seating capacity of at least 2,000 seats.
(AH) Any of the following facilities that are situated on the campus of St. Mary’s College of California, located in the County of Contra Costa:
(i)CA Business and Professions Code § 25503.6(AH)(i) A fully enclosed arena with a fixed seating capacity in excess of 3,500 seats located in the Town of Moraga.
(ii)CA Business and Professions Code § 25503.6(AH)(ii) An outdoor stadium with a fixed seating capacity of at least 5,500 seats located in the Town of Moraga.
(iii)CA Business and Professions Code § 25503.6(AH)(iii) An outdoor stadium with a fixed seating capacity of at least 650 seats located in the Town of Moraga.
(AI) A fully enclosed arena with a fixed seating capacity in excess of 5,000 seats located in the City of Oceanside.
(2)CA Business and Professions Code § 25503.6(AI)(2) The outdoor stadium or fully enclosed arena described in paragraph (1) is not owned by a community college district.
(3)CA Business and Professions Code § 25503.6(AI)(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. With respect to the complex described in subparagraph (O) of paragraph (1), the advertising space or time shall be purchased only in connection with live artistic, musical, sports, food, beverage, culinary, lifestyle, or other cultural and entertainment events and performances to be held on the premises of the complex. With respect to a fully enclosed arena described in subparagraph (X) of paragraph (1), advertising space or time shall be purchased only for interior advertising in connection with events conducted within the arena.
(4)CA Business and Professions Code § 25503.6(AI)(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 rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent that purchased the advertising space or time.
(b)CA Business and Professions Code § 25503.6(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 rectifier, the craft distiller, the distilled spirits manufacturer, or the distilled spirits manufacturer’s agent and any of the following:
(1)CA Business and Professions Code § 25503.6(b)(1) The on-sale licensee.
(2)CA Business and Professions Code § 25503.6(b)(2) With respect to clause (ii) of subparagraph (N) of paragraph (1) of subdivision (a), the major tenant of the outdoor stadium.
(3)CA Business and Professions Code § 25503.6(b)(3) With respect to subparagraphs (O), (Q), (R), (T), (Y), (Z), (AA), (AB), (AC), (AD), (AE), (AF), (AG), (AH), and (AI) of paragraph (1) of subdivision (a), the owner, a long-term tenant of the complex, or licensee of the complex, whether or not the owner, long-term tenant, or licensee holds an on-sale license.
(c)CA Business and Professions Code § 25503.6(c) Any beer manufacturer or holder of a winegrower’s license, any rectifier, any craft distiller, 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)CA Business and Professions Code § 25503.6(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 rectifier, a craft distiller, 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)CA Business and Professions Code § 25503.6(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.
(f)CA Business and Professions Code § 25503.6(f) 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 exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.

Section § 25503.61

Explanation

This law allows alcohol manufacturers and certain license holders to sponsor events and buy advertising from businesses in specific mixed-use districts in Orange County, provided certain conditions are met. The district must be over 90 acres, with diverse facilities, including a large arena. Advertising is limited to activities within the district, and venues must offer multiple brands of alcohol. Sponsorships must be documented in written contracts, and coercion in these deals can lead to misdemeanor charges and fines. Ads can only be placed in specified locations, like hotel lobbies or external common areas, and not in restaurants or bars. Direct monetary exchanges with retailers are restricted to prevent market domination and excessive marketing.

(a)CA Business and Professions Code § 25503.61(a) Notwithstanding any other provision of this chapter, a beer manufacturer, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent, regardless of any other licenses held by the foregoing, may sponsor events promoted by, and may purchase advertising space and time from, or on behalf of, an on-sale licensee that is the owner, operator, agent of the operator, or assignee of the operator’s advertising rights of a mixed-use district subject to all of the following conditions:
(1)CA Business and Professions Code § 25503.61(a)(1) The owner, operator, agent of the operator, or sole assignee of the operator’s advertising rights of the mixed-use district has its principal place of business in the County of Orange.
(2)CA Business and Professions Code § 25503.61(a)(2) The mixed-use district consists of not less than 90 acres that include office, residential, hotel, retail, dining, public gathering, and performing arts facilities, as well as a public intermodal transportation center, all of which are situated on land surrounding a fully enclosed arena with a fixed seating capacity in excess of 18,000 seats located in the County of Orange.
(3)CA Business and Professions Code § 25503.61(a)(3) The advertising space or time is purchased only in connection with retail, dining, entertainment, and events conducted on the grounds of the mixed-use district. Nothing in this section shall authorize advertising or promoting of any retail licensee or premises other than an on-sale licensee or premises owned by the person described in paragraph (1). Nothing in this section shall authorize the placement of advertising space or time outside of the mixed-use district.
(4)CA Business and Professions Code § 25503.61(a)(4) Any on-sale licensee, including any on-sale licensee owned by the person described in paragraph (1), operating at a venue on the grounds of the mixed-use district shall serve other brands of beer, distilled spirits, and wine in addition to any brand manufactured or distributed by the sponsoring or advertising beer manufacturer, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent.
(5)CA Business and Professions Code § 25503.61(a)(5) An agreement for the sponsorship of, or for the purchase of advertising space and time in connection with, the retail, dining, entertainment, and events conducted on the grounds of the mixed-use district 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 sponsoring or advertising beer manufacturer, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent, or by any on-sale retail licensee.
(6)CA Business and Professions Code § 25503.61(a)(6) Advertising authorized by this section may be placed in areas within the mixed-use district, provided that the advertising shall not be placed on or in or otherwise promote any permanently licensed retail premises, except as authorized in subdivision (g).
(7)CA Business and Professions Code § 25503.61(a)(7) Except as authorized in subdivision (g), a person, including the person described in paragraph (1) or any on-sale licensee owned by the person described in paragraph (1), shall not establish conditions, directly or indirectly, on any retail licensee or retail licensed business in the mixed-use district, or as a condition for any retail licensee or retail licensed business to lease, rent, or purchase property in the mixed-use district, that require or authorize the retail licensee or retail licensed business to display advertisements authorized by this section.
(b)CA Business and Professions Code § 25503.61(b) Any sponsorship of events or 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, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent and any of the following:
(1)CA Business and Professions Code § 25503.61(b)(1) The person described in paragraph (1) of subdivision (a).
(2)CA Business and Professions Code § 25503.61(b)(2) Any on-sale licensee owned by the person described in paragraph (1) of subdivision (a).
(c)CA Business and Professions Code § 25503.61(c) Any beer manufacturer, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or 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 this section 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)CA Business and Professions Code § 25503.61(d) Any 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, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent to purchase advertising time or space pursuant to this section 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)CA Business and Professions Code § 25503.61(e) For purposes of this section, “beer manufacturer” includes a holder of a beer manufacturer’s license, holder of an out-of-state beer manufacturer’s certificate, or holder of a beer and wine importer’s general license.
(f)CA Business and Professions Code § 25503.61(f) Nothing in this section shall authorize the purchasing of advertising space or time directly from, or on behalf of, any on-sale licensee other than the person described in paragraph (1) of subdivision (a) or an on-sale licensee owned by that person.
(g)CA Business and Professions Code § 25503.61(g) Nothing in this section shall authorize the placement of advertising space or time directly in, or on the exterior of, the premises of any on-sale licensee in the mixed-use district except as follows:
(1)CA Business and Professions Code § 25503.61(g)(1) An on-sale licensee that is wholly owned by the person described in paragraph (1) of subdivision (a).
(2)Copy CA Business and Professions Code § 25503.61(g)(2)
(A)Copy CA Business and Professions Code § 25503.61(g)(2)(A) Subject to the limitations described in subparagraphs (B) to (E), inclusive, the lobby areas of hotels, performing arts venues, and entertainment venues, that are not owned by the person described in paragraph (1) of subdivision (a).
(B)CA Business and Professions Code § 25503.61(g)(2)(A)(B) Placement of advertising space or time is not authorized in parts of a lobby area that contain a bar or restaurant.
(C)CA Business and Professions Code § 25503.61(g)(2)(A)(C) Placement of advertising space or time that is customized to the particular lobby area is not authorized.
(D)CA Business and Professions Code § 25503.61(g)(2)(A)(D) Placement of advertising space or time in more than one location in a lobby area is not authorized.
(E)CA Business and Professions Code § 25503.61(g)(2)(A)(E) Placement of advertising space or time on a sign or other display that is not owned by the person described in paragraph (1) of subdivision (a) is not authorized.
(3)CA Business and Professions Code § 25503.61(g)(3) The common area-facing exteriors of hotels, performing art venues, entertainment venues, and buildings with multiple tenants including an on-sale licensed premises that is not owned by the person described in paragraph (1) of subdivision (a).
(4)CA Business and Professions Code § 25503.61(g)(4) The authorization provided by this subdivision is subject to the limitations provided in subdivisions (h) and (i).
(h)CA Business and Professions Code § 25503.61(h) Nothing in this section shall authorize a beer manufacturer, holder of a winegrower’s license, rectifier, winegrower’s agent, holder of an importer’s general license, distilled spirits manufacturer, craft distiller, holder of a distilled spirits rectifier’s general license, or distilled spirits manufacturer’s agent to furnish, give, or lend anything of value to an on-sale retail licensee, either directly or indirectly, other than the person described in paragraph (1) of subdivision (a) or an on-sale licensee owned by that person and except as expressly authorized by this section or this division.
(i)CA Business and Professions Code § 25503.61(i) No funds, revenue, or other consideration from any sponsorship of events or purchase of advertising space or time conducted pursuant to this section shall be furnished, given, or lent, either directly or indirectly, by the person described in paragraph (1) of subdivision (a), or by an on-sale licensee owned by that person, to any licensee other than an on-sale licensee owned by the person described in paragraph (1) of subdivision (a).
(j)CA Business and Professions Code § 25503.61(j) Nothing in this section shall be construed to limit or abrogate the provisions of Chapter 2 (commencing with Section 5200) of Division 3.
(k)CA Business and Professions Code § 25503.61(k) 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 exceptions established by this section to the general prohibition against tied interests shall be limited to their express terms so as not to undermine the general prohibition and intends that this section be construed accordingly.

Section § 25503.62

Explanation

This law allows certain alcohol-related businesses, like beer or wine manufacturers, to sponsor events and buy advertising at a facility with a wave basin located in Kings County, California, under specific conditions. The wave basin must have a capacity of at least 9,000 people, and any sponsorship or advertisement must be agreed upon in a written contract. Importantly, these agreements cannot require the facility to sell or promote the sponsors' products. Additionally, the facility must also offer other brands of beer, spirits, and wine for sale, aside from those of the sponsor. The law aims to maintain a fair separation between manufacturers and retailers to avoid market domination.

(a)CA Business and Professions Code § 25503.62(a) Notwithstanding any other provision of this chapter, an authorized licensee may sponsor events promoted by, and purchase advertising space and time from or on behalf of, a company that owns a facility that includes a wave basin located in the County of Kings in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.62(a)(1) The premises of the permanent retail licensee includes a wave basin facility with a capacity of at least 9,000 individuals located in the County of Kings.
(2)CA Business and Professions Code § 25503.62(a)(2) The sponsorship or advertising space or time is purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.
(3)CA Business and Professions Code § 25503.62(a)(3) Any sponsorship or purchase of advertising space or time pursuant to this subdivision shall be accomplished by a written contract entered into by the authorized licensee and a company that owns a facility that includes a wave basin in the County of Kings.
(4)CA Business and Professions Code § 25503.62(a)(4) An agreement for advertising authorized by this subdivision shall not be contingent upon or otherwise require, directly or indirectly, implicitly or explicitly, the permanent retail licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced, manufactured, imported, distributed, or otherwise represented by the event sponsor or purchaser of the advertising space and time.
(5)CA Business and Professions Code § 25503.62(a)(5) The permanent retail licensee at the wave basin facility shall offer for sale, in a bona fide manner, other brands of beer, distilled spirits, and wine distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time pursuant to this subdivision.
(b)CA Business and Professions Code § 25503.62(b) For purposes of this section, the following definitions apply:
(1)CA Business and Professions Code § 25503.62(b)(1) “Authorized licensee” means a beer manufacturer, winegrower, rectifier, wine rectifier, distilled spirits manufacturer, craft distiller, distilled spirits manufacturer’s agent, winegrower’s agent, beer and wine importer, distilled spirits importer, distilled spirits importer general, beer and wine importer general, out-of-state distilled spirits shipper certificate holder, or out-of-state beer manufacturer certificate holder. “Authorized licensee” does not include any person who holds a distilled spirits importer license or distilled spirits importer general license together with a distilled spirits wholesaler’s license, or any person who holds a beer and wine importer license or beer and wine importer general license together with a beer and wine wholesaler’s license.
(2)CA Business and Professions Code § 25503.62(b)(2) “Wave basin” has the same meaning as defined in Section 115960.1 of the Health and Safety Code.
(c)CA Business and Professions Code § 25503.62(c) 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.

Section § 25503.63

Explanation

This law allows beer, wine, and spirits manufacturers to sponsor events and buy advertising from operators of certain historic cemeteries in Los Angeles, with strict conditions. The cemetery must be over 100 years old and host cultural events like concerts or film screenings. Any advertising can't be tied to alcohol sales and must include brands from competing wholesalers. Contracts must be in writing, and using coercion in these deals or pressuring wholesalers can lead to criminal charges. This law also ensures that beverages served include various brands, not just those involved in the sponsorship or advertising agreement.

(a)CA Business and Professions Code § 25503.63(a) Notwithstanding any other provision of this chapter, a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license that does not also hold a wholesaler or retail license as an additional license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent may sponsor events promoted by, and may purchase advertising space or time from, an operator of a for-profit cemetery subject to all of the following conditions:
(1)CA Business and Professions Code § 25503.63(a)(1) The for-profit cemetery shall be more than 100 years old, be located in, and designated a Historic-Cultural Monument by, the City of Los Angeles, have an endowment care fund and a memorial care fund that are exempt from the payment of income taxes, and hold a valid special on-sale general license for historic cemetery (Type 88).
(2)CA Business and Professions Code § 25503.63(a)(2) The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events permitted at the for-profit cemetery and permitted by the local jurisdiction.
(3)Copy CA Business and Professions Code § 25503.63(a)(3)
(A)Copy CA Business and Professions Code § 25503.63(a)(3)(A) An on-sale licensee operating at a venue where live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events are performed pursuant to a sponsorship or where advertising space or time is purchased shall serve other brands of beer, distilled spirits, and wine distributed by a competing wholesaler in addition to any brand manufactured or distributed by the sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent.
(B)CA Business and Professions Code § 25503.63(a)(3)(A)(B) An on-sale retail licensee owned by the for-profit cemetery shall serve other brands of beer, distilled spirits, and wine distributed by a competing wholesaler in addition to any brand manufactured or distributed by the sponsoring or advertising beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent.
(4)CA Business and Professions Code § 25503.63(a)(4) Advertising space or time purchased shall not be placed in an on-sale licensed premises, other than where the cultural event will take place, where the on-sale retail licensee is also owned directly or indirectly by the operator of the for-profit cemetery, or any of its subsidiaries.
(5)CA Business and Professions Code § 25503.63(a)(5) An agreement for the sponsorship of, or for the purchase of advertising space and time during, a live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural event 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 or sponsoring beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent by the for-profit cemetery.
(b)CA Business and Professions Code § 25503.63(b) A sponsorship of events or 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, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent and the for-profit cemetery operator.
(c)CA Business and Professions Code § 25503.63(c) A beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, 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 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 suspension or revocation pursuant to Section 24200.
(d)CA Business and Professions Code § 25503.63(d) A 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, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent to purchase 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 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 suspension or revocation pursuant to Section 24200.
(e)CA Business and Professions Code § 25503.63(e) Nothing in this section shall authorize a beer manufacturer, holder of a winegrower’s license, winegrower’s agent, holder of any importer’s license, distilled spirits manufacturer, holder of any rectifier’s license, or a distilled spirits manufacturer’s agent to furnish, give, or lend anything of value to an on-sale retail licensee described in subdivision (a) except as expressly authorized by this section or a provision of this division.
(f)CA Business and Professions Code § 25503.63(f) 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 license that does not also hold a wholesaler or retail license as an additional license.

Section § 25503.7

Explanation

This law allows winegrowers, beer makers, or those who distribute both beer and wine to serve food and drinks, including alcohol, to anyone visiting or attending a meeting on their property. This includes other licensed individuals, their employees, and representatives.

A winegrower, beer manufacturer, or beer and wine wholesaler may serve food and alcoholic beverages to any person, including a person licensed under this division and his or her employees and representatives, who is attending a meeting held upon or who is visiting the premises of the winegrower, beer manufacturer, or beer and wine wholesaler.

Section § 25503.8

Explanation

This law lets beer, wine, and spirits makers buy ad space from certain big entertainment venues as long as specific rules are followed. These venues must meet certain criteria like being large theaters or theme parks in specified areas, and the ads should sponsor certain events at those locations. The law ensures that these venues offer a variety of brands, not just the ones advertised. Contracts must be written and cannot involve wholesalers. There are strict penalties, including fines and possible jail time, for using illegal means to influence these advertising deals, and licenses may be revoked.

(a)CA Business and Professions Code § 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)CA Business and Professions Code § 25503.8(a)(1) The on-sale licensee is the owner of any of the following:
(A)CA Business and Professions Code § 25503.8(a)(1)(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)CA Business and Professions Code § 25503.8(a)(1)(B) A motion picture studio facility at which public tours are conducted for at least four million people per year.
(C)CA Business and Professions Code § 25503.8(a)(1)(C) A retail, entertainment development adjacent to, and under common ownership with, a theme park, amphitheater, and motion picture production studio.
(D)CA Business and Professions Code § 25503.8(a)(1)(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)CA Business and Professions Code § 25503.8(a)(1)(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)CA Business and Professions Code § 25503.8(a)(2) The advertising space or time is purchased only in connection with one of the following:
(A)CA Business and Professions Code § 25503.8(a)(2)(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)CA Business and Professions Code § 25503.8(a)(2)(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)CA Business and Professions Code § 25503.8(a)(2)(C) In the case of a retail, entertainment development, in connection with sponsorship of public tours or special events conducted at the development.
(D)CA Business and Professions Code § 25503.8(a)(2)(D) 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.
(E)CA Business and Professions Code § 25503.8(a)(2)(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)CA Business and Professions Code § 25503.8(a)(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)CA Business and Professions Code § 25503.8(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)CA Business and Professions Code § 25503.8(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)CA Business and Professions Code § 25503.8(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)CA Business and Professions Code § 25503.8(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.

Section § 25503.85

Explanation

This law allows beer, wine, or spirits makers and their agents to buy small ads from nonprofit zoos or aquariums to sponsor educational events, fundraisers, or exhibit improvements. The zoo or aquarium must serve competing brands of alcohol. Large ads like billboards aren't allowed, and agreements must be in writing without involving wholesalers. If anyone tries to push wholesalers into participating illegally, they face fines, jail time, and possible license loss. The same penalties apply to zoos or aquariums that pressure wholesalers into arranging these ads.

(a)CA Business and Professions Code § 25503.85(a) Notwithstanding any other provision of this chapter, a beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturer’s agent, holder of a winegrower’s license, or California winegrower’s agent may purchase advertising space and time from, or on behalf of, an on-sale retail licensee, that shall be limited to small notices, plaques, or signs that portray partial or full sponsorship or funding of educational programs, special fundraising and promotional events, improvements in capital projects, and the development of exhibits or facilities, if all of the following conditions are met:
(1)CA Business and Professions Code § 25503.85(a)(1) The on-sale licensee is a zoo or aquarium operated by a nonprofit organization that is accredited by the American Association of Zoological Parks and Aquariums.
(2)CA Business and Professions Code § 25503.85(a)(2) The advertising space or time is purchased only in connection with the sponsorship of activities that are held on the premises or grounds owned, leased, or controlled by the on-sale licensee.
(3)CA Business and Professions Code § 25503.85(a)(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)CA Business and Professions Code § 25503.85(b) Nothing in this section shall be construed to permit the purchase of billboards or bench advertisements as “advertising space.”
(c)CA Business and Professions Code § 25503.85(c) Any purchase of advertising space or time pursuant to subdivision (a) shall be accomplished by a written contract entered into by the beer manufacturer, the distilled spirits manufacturer, the distilled spirits manufacturer’s agent, a holder of the winegrower’s license, or the California winegrower’s agent, and the on-sale licensee. That contract shall not in any way involve the holder of a wholesaler’s license.
(d)CA Business and Professions Code § 25503.85(d) Any beer manufacturer, 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 (c) is guilty of a misdemeanor and shall be punished by imprisonment in the county jail for a period not to exceed 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)CA Business and Professions Code § 25503.85(e) Any on-sale licensee who, directly or indirectly, solicits or coerces a holder of a wholesaler’s license to solicit a beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturer’s agent, holder of a winegrower’s license, or a California winegrower’s agent to purchase advertising space or time 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.
(f)CA Business and Professions Code § 25503.85(f) 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.

Section § 25503.9

Explanation

This section of the law allows certain alcohol producers and distributors to give or sell alcoholic beverages to nonprofit organizations and trade associations at prices different from those usually filed with the department. These nonprofits and associations must be tax-exempt and can only use the alcohol for specific activities like public service events or their conventions. The law also clarifies that nonprofits with a permanent retail license cannot use these donated or purchased beverages as part of their regular business operations.

(a)CA Business and Professions Code § 25503.9(a) Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a craft distiller, a distilled spirits manufacturer, rectifier, or a distilled spirits manufacturer’s agent from giving or selling distilled spirits, or a distilled spirits wholesaler that also holds a beer and wine wholesaler license or importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)CA Business and Professions Code § 25503.9(a)(1) 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)CA Business and Professions Code § 25503.9(a)(2) A nonprofit incorporated trade association that is 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, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)CA Business and Professions Code § 25503.9(a)(3) A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, distilled spirits wholesaler, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(4)CA Business and Professions Code § 25503.9(a)(4) A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
(b)CA Business and Professions Code § 25503.9(b) Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a craft distiller, distilled spirits manufacturer, rectifier, a distilled spirits wholesaler, or a distilled spirits manufacturer’s agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importer’s license from giving or selling beer or wine at prices other than those contained in schedules filed with the department, to any of the following:
(1)CA Business and Professions Code § 25503.9(b)(1) 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)CA Business and Professions Code § 25503.9(b)(2) A nonprofit incorporated trade association that is 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, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)CA Business and Professions Code § 25503.9(b)(3) A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturer’s agent, a distilled spirits wholesaler, beer and wine wholesaler, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)CA Business and Professions Code § 25503.9(c) A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.

Section § 25504

Explanation

If someone breaks rules found in Sections 25500 to 25503, they are committing a minor crime known as a misdemeanor. This also applies to retailers who encourage or allow these rule violations. However, these rules don’t cover certain items given or sold before June 13, 1935, if they stayed in the same place. Additionally, they don’t apply to small-value items like carbonic acid gas or tap accessories that are worth $5 or less annually per tap.

Any person violating any provision of Sections 25500 to 25503, inclusive, is guilty of a misdemeanor, and any holder of any retail on-sale or retail off-sale license who solicits any such violation or accepts or permits to be accepted on his behalf and with his consent any of the prohibited matters, articles, or acts is guilty of a misdemeanor.
The provisions of Sections 25500 to 25503, inclusive, do not apply to any equipment, fixtures, or supplies furnished, given, lent, or sold prior to June 13, 1935, so long as the equipment, fixtures, or supplies remain in the premises in which installed prior to that time, nor do they apply to carbonic acid gas or tapping accessories furnished to any one on-sale licensee to a limit of not exceeding a value of five dollars ($5) per tap in any one calendar year.

Section § 25504.5

Explanation

This law says that certain rules regulating manufacturers and wholesalers don't apply when they occasionally clean and inspect taps and tapping equipment at places where alcohol is sold in person.

The provisions of Sections 25500 to 25503, inclusive, and of Section 25600 do not apply to the occasional inspection and cleaning by manufacturers and wholesalers of taps and tapping equipment installed in retail on-sale premises.

Section § 25505

Explanation

This law basically says that if you have a license to sell alcohol where it's consumed on-site (like a bar or restaurant), you can't also have an interest in any part of the alcohol supply chain, like being a manufacturer, importer, or wholesaler. This is to avoid conflicts of interest. However, there are exceptions: In small counties with populations under 15,000, it’s okay to hold both a wholesaler’s and an on-site license. Also, certain licenses like those for clubs, boats, or airplanes are not restricted in the same way. You can rent property to anyone in the alcohol business if the lease is fair and approved. Additionally, if you’re involved in the wine business and don’t sell that wine on your own premises, you can have a stake in a winegrower’s license.

No on-sale licensee, or any officer, director, employee, or agent of that licensee, shall hold any ownership or interest, directly or indirectly, in any manufacturer’s, winegrower’s, rectifier’s, importer’s, or wholesaler’s license, the business conducted under that license, or the property used in the business.
The provisions of this section shall not apply to the holding by one person of a wholesaler’s license and an on-sale license in a county with a population that does not exceed 15,000.
The provisions of this section shall not apply to the financial or representative relationship between a manufacturer, winegrower, manufacturer’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of that person, and, except as otherwise specified, a person holding only one of the following types of licenses:
(a)CA Business and Professions Code § 25505(a) On-sale general license for a bona fide club.
(b)CA Business and Professions Code § 25505(b) Club license (issued under Article 4 (commencing with Section 23425) of Chapter 3 of this division).
(c)CA Business and Professions Code § 25505(c) Veterans’ club license (issued under Article 5 (commencing with Section 23450) of Chapter 3 of this division).
(d)CA Business and Professions Code § 25505(d) On-sale license for boats, trains, sleeping cars or airplanes, except as provided in subdivision (e), where the alcoholic beverages produced or sold by that manufacturer, winegrower, manufacturer’s agent, rectifier, bottler, importer, or wholesaler or any officer, director, or agent of that person are not sold, furnished or given, directly or indirectly to the on-sale licensee.
The provisions of this section shall not prohibit the leasing of property by an on-sale licensee to a manufacturer, winegrower, rectifier, importer or wholesaler provided that the lease agreement is first approved by the department. The department shall approve the lease agreement unless it finds that the rent payable is not the fair rental value of the property or that the purpose of the lease is to violate any of the provisions of this chapter.
The provisions of this section shall not prohibit the holding of any ownership or interest by an on-sale licensee, or any officer, director, employee, or agent of any on-sale licensee, in any winegrower’s license, which winegrower manufactures, produces, bottles, processes, imports, or sells wine only, or in the business conducted under any winegrower’s license, provided the on-sale licensee, or the officer, director, employee, or agent thereof does not sell pursuant to that on-sale license any wine manufactured, produced, processed, imported, or sold by the licensed winegrower for so long as the holding of the ownership or interest continues.
(e)CA Business and Professions Code § 25505(e) Any and all of the licenses specifically enumerated, mentioned, or described in Section 25503.30, either singly or in combination.

Section § 25506

Explanation

This law says that if you have a license to sell alcohol for people to take away, you can't have any ownership or interest in a business that makes or wholesales distilled spirits, unless the law specifically allows it.

Except as authorized by this division, no off-sale general licensee, or any officer, director, employee, or agent of such licensee, shall hold any ownership or interest, directly or indirectly, in the business, property, or license of any distilled spirits wholesaler, rectifier, distilled spirits manufacturer, or distilled spirits manufacturer’s agent.

Section § 25507

Explanation

This law says that if you're a licensed wine grower or brandy maker with a particular type of retail license, you are allowed to own or have an interest in businesses related to distilled spirits, like manufacturers or wholesalers. It's essentially saying you can be involved in both the wine/brandy side and the distilled spirits side of the alcohol business.

The provisions of Section 25506 do not prohibit a licensed wine grower or brandy manufacturer holding an off-sale general license permitted by Section 23362, or any officer, director, or employee of such licensee, from holding any ownership or interest in any distilled spirits manufacturer's, distilled spirits manufacturer’s agent's, rectifier's, or distilled spirits wholesaler’s license, business, or property.

Section § 25508

Explanation

If someone was part of a cooperative wholesale grocery company with a distilled spirits wholesaler's license on May 1, 1947, they can keep their off-sale general license to sell liquor and can get new ones for real retail grocery stores. If they join the cooperative after that date, they must run a retail store at each location where they have a license. A cooperative that had a spirits wholesale license on May 1, 1937, can also keep it, even if its members have off-sale licenses. Basically, this law outlines who can have and keep licenses to sell liquor at grocery stores based on when they joined certain cooperatives.

Any person who held an interest in, or was a member of, a cooperative wholesale grocery company on May 1, 1947, which cooperative holds a distilled spirits wholesaler’s license, may hold and renew his off-sale general license and may acquire an off-sale general license or licenses for bona fide retail grocery store or stores. Any person who is admitted to membership, or acquires an interest, in such a cooperative after May 1, 1947, may hold or acquire off-sale general licenses and shall operate a bona fide retail grocery store at each location at which he holds or acquires an off-sale general license. Any cooperative wholesale grocery company which held a distilled spirits wholesale license on May 1, 1937, may hold and renew the license, notwithstanding its members or some of them hold off-sale general licenses pursuant to this section.

Section § 25509

Explanation

This law outlines the payment terms between manufacturers or wholesalers of alcohol (like wine, beer, and distilled spirits) and retailers. If a retailer doesn't pay their bill for these products within 42 days of delivery, an extra 1% charge is added each month the payment is late. After 30 days of non-payment, the retailer must pay in advance for any new orders until the old debt is settled. Payment periods start the day after the invoice and count every day, even holidays. Money received is applied to the oldest unpaid balance first, and only valid payments count—bad checks don't. The aim is to prevent retailers from overextending their credit with suppliers beyond the limits set here. This law takes effect in 2026.

(a)CA Business and Professions Code § 25509(a) A distilled spirits manufacturer, a brandy manufacturer, a beer manufacturer, a winegrower, a wine blender, a distilled spirits rectifier, a wine rectifier, a distilled spirits wholesaler, or a beer and wine wholesaler who sold and delivered beer, wine, or distilled spirits to a retailer and who did not receive payment for that beer, wine, or distilled spirits by the expiration of the 42nd day from date of delivery shall charge the retailer 1 percent of the unpaid balance for that beer, wine, and distilled spirits on the 43rd day from date of delivery and an additional 1 percent for each 30 days thereafter.
(b)CA Business and Professions Code § 25509(b) A distilled spirits manufacturer, a brandy manufacturer, a beer manufacturer, a winegrower, a wine blender, distilled spirits rectifier, a wine rectifier, distilled spirits wholesaler, or beer and wine wholesaler who sold and delivered beer, wine, or distilled spirits to a retailer and who did not receive payment in full by the expiration of the 30th day from date of delivery or who has not received payment of the 1 percent charge at the expiration of the 30th day from the day the charge became due shall thereafter sell beer, wine, or distilled spirits to that retailer by receiving payment in advance of delivery until such time as all payments are received for the beer, wine, or distilled spirits sold and delivered to the said retailer more than 30 days previously.
(c)CA Business and Professions Code § 25509(c) The 42-day period and the 30-day period provided for in this section shall commence with the day immediately following the date of invoice and shall include all successive days including Sundays and holidays to and including the 42nd or 30th day as the case may be. When the 42nd day from date of invoice or the expiration of each additional 30-day period falls on Saturday, Sunday, or legal holiday, the next business day shall be deemed to be the expiration day.
(d)CA Business and Professions Code § 25509(d) All moneys received from a retailer in payment for any beer, wine, or distilled spirits sold and delivered to them shall be first applied to the payment of the oldest balance on beer, wine, or distilled spirits. All checks received for such payments shall be deposited for collection not later than the second business day following receipt of said check. A promissory note, postdated check, or check dishonored on presentation shall not be deemed payment.
(e)CA Business and Professions Code § 25509(e) In enacting the act that amends this section by adding this subdivision, the Legislature finds that it is necessary and proper to remove the retailer from financial or business obligations to suppliers or wholesalers by the extension of credit beyond the terms contained in this section. 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 shall be construed accordingly.
(f)CA Business and Professions Code § 25509(f) This section shall become operative on January 1, 2026.

Section § 25509.1

Explanation

Starting January 1, 2026, retailers in California must pay wholesalers for beer, wine, or spirits via electronic funds transfer (EFT), which allows money to move between bank accounts electronically. The wholesaler is responsible for initiating this process, and payments must be made within 30 days of delivery. Both parties need to pay any costs they incur for the electronic payment services. A wholesaler cannot pay for fees incurred by the retailer and vice versa. Payments can still be made using cash, check, or money order in specific situations, such as insufficient EFT funds or during service disruptions. Wholesalers have control over which payment processor to use unless an agreement can't be reached, in which case the retailer's processor as of July 1, 2025, is used. Credit card payments are allowed, but retailers must cover transaction costs. Retailers can't accept incentives from payment processors for making these payments.

(a)CA Business and Professions Code § 25509.1(a) Commencing January 1, 2026, and except as provided in subdivision (b) and paragraph (3) of subdivision (c), payment from a retailer licensee to a wholesaler licensee for delivery of beer, wine, or distilled spirits shall be made by electronic funds transfer in accordance with the following requirements:
(1)CA Business and Professions Code § 25509.1(a)(1) The wholesaler licensee shall initiate the electronic funds transfer by initiating the withdrawal of funds from the retailer licensee’s bank account.
(2)CA Business and Professions Code § 25509.1(a)(2) The electronic funds transfer shall occur by the expiration of the 30th day from the date of delivery of the beer, wine, or distilled spirits.
(3)CA Business and Professions Code § 25509.1(a)(3) Any costs related to electronic payment services shall be paid by the party that incurred those costs.
(A)CA Business and Professions Code § 25509.1(a)(3)(A) Any service fees related to electronic payment transactions shall be applied in an equitable manner to each subscribing wholesaler and retailer and shall justifiably match the services they receive from the electronic payment service provider.
(B)CA Business and Professions Code § 25509.1(a)(3)(B) The wholesaler shall not pay, directly or indirectly, for electronic payment service fees incurred by a retailer.
(C)CA Business and Professions Code § 25509.1(a)(3)(C) The retailer shall not pay, directly or indirectly, for electronic payment service fees incurred by a wholesaler.
(b)CA Business and Professions Code § 25509.1(b) A payment may be made using cash, check, or money order only in the following instances:
(1)CA Business and Professions Code § 25509.1(b)(1) If accepting payment following an electronic funds transfer of insufficient funds.
(2)CA Business and Professions Code § 25509.1(b)(2) If the retailer licensee holds an interim operating permit pursuant to Section 24044.5 or a temporary permit pursuant to Section 24045.5.
(3)CA Business and Professions Code § 25509.1(b)(3) During temporary service interruption of the third-party payment processor.
(4)CA Business and Professions Code § 25509.1(b)(4) During the first 30 days following the issuance of a license to the retailer licensee.
(c)Copy CA Business and Professions Code § 25509.1(c)
(1)Copy CA Business and Professions Code § 25509.1(c)(1) To maintain control of its ability to receive payment for delivery, a wholesaler licensee shall be responsible for selecting the third-party payment processor used to facilitate an electronic funds transfer pursuant to this section. The wholesaler and retailer may agree on the third-party payment processor. If the parties are unable to agree, the parties shall use the third-party payment processor used by the retailer as of July 1, 2025, to pay for wholesale alcohol purchases. If by July 1, 2025, the retailer does not use a third-party payment processor, the parties shall use the third-party payment processor selected by the wholesaler.
(2)CA Business and Professions Code § 25509.1(c)(2) A wholesaler licensee shall not select a third-party payment processor that does not meet the requirements of this section or that requires more than 30 days’ notice from the wholesaler licensee to terminate the processor’s agreement with the wholesaler licensee.
(3)CA Business and Professions Code § 25509.1(c)(3) Notwithstanding subdivision (a), a wholesaler may choose to accept credit card payments. If payment is made using a credit card, the retailer shall bear the cost of the transaction, so as to mitigate the value of secondary benefits realized by the retailer using the credit card.
(d)CA Business and Professions Code § 25509.1(d) A retailer shall not accept a rebate, incentive, or other thing of value from a third-party payment processor for a payment made pursuant to this section.
(e)CA Business and Professions Code § 25509.1(e) For purposes of this section, “electronic funds transfer” or “EFT” means the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems.

Section § 25510

Explanation

This law allows manufacturers to provide specific items of beer tapping equipment, like kegs and air lines, to wholesalers, who can then supply them to bars or restaurants. These items can be used only for setting up new taps or when changing the tapping system. Suppliers can also service or replace these items but cannot provide or fix equipment not listed here. The equipment remains the supplier's property, even after being furnished to a bar or restaurant.

Notwithstanding any other provision of this chapter, a manufacturer may furnish to a licensed wholesaler, and a licensed wholesaler or manufacturer may furnish to an on-sale licensee, only the following specified items of alcoholic beverage tapping equipment: kegs, tapping heads, air lines, alcoholic beverage lines, clamps, washers, coupling devices, rods, vents, valves, keg spacers, and filters for an initial installation in a new on-sale licensed account or for a changeover of equipment from one tapping system to another. A supplier may service, repair, and replace the above-specified items of alcoholic beverage tapping equipment as necessary. This section shall not permit a supplier to furnish or repair alcoholic beverage equipment not specified in this section to an on-sale licensee. Alcoholic beverage tapping equipment furnished by a supplier shall remain the property of the supplier.

Section § 25511

Explanation

This law allows manufacturers or wholesalers to help retailers who have lost or damaged equipment, fixtures, or supplies because of a natural disaster. They can provide these items in various ways, like giving, selling, or lending them, but not alcoholic beverages. This assistance is only available within three months of the Governor officially declaring a state of disaster in the area.

Notwithstanding any other provision of this division, a manufacturer or wholesaler, or any officer, director, or agent of any of those persons may furnish, give, rent, lend, or sell, directly or indirectly, any equipment, fixtures, or supplies, other than alcoholic beverages, to a retailer whose equipment, fixtures, or supplies were lost or damaged as a result of a natural disaster and whose premises are located in an area proclaimed to be in a state of disaster by the Governor.
This section does not apply to transactions that occur three months or more after the Governor proclaims an area to be in a state of disaster.
Nothing in this section is intended to affect or otherwise limit Section 23104.1, 23104.2, or 23104.3.

Section § 25512

Explanation

This law allows certain alcohol license holders with up to eight licenses to own a small percentage (up to 16.67%) of a company with a specific type of beer manufacturer license in certain California counties (Sacramento, Placer, Contra Costa, San Joaquin, Napa). These individuals can also serve on the company's board or as an officer or employee. However, they must buy alcoholic beverages for sale only from licensed wholesalers or winegrowers. This law aims to keep manufacturing, wholesale, and retail interests separate to prevent market domination and excessive alcohol sales due to aggressive marketing.

(a)CA Business and Professions Code § 25512(a) Notwithstanding any other provision of this division, any licensee or officer, director, employee, or agent of a licensee that holds no more than eight on-sale licenses may also hold not more than 16.67 percent of the stock of a corporation that holds a Type 01 or Type 23 beer manufacturer license as specified in subdivision (b) of Section 23320 that are located in Sacramento, Placer, Contra Costa, San Joaquin, or Napa County, and may serve on the board of directors and as an officer or employee of that corporate licensed beer manufacturer.
(b)CA Business and Professions Code § 25512(b) An on-sale licensee specified in subdivision (a) shall purchase no alcoholic beverages for sale in this state other than from a licensed wholesaler or winegrower.
(c)CA Business and Professions Code § 25512(c) In enacting this section, 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 exception established by this section to the general prohibition against tied-house interests must be limited to its expressed terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.