Chapter 15Tied-House Restrictions
Section § 25500
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.
Section § 25500.1
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.
Section § 25501
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.
Section § 25502
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.
Section § 25502.2
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.
Section § 25503
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.
Section § 25503.1
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.
Section § 25503.10
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.
Section § 25503.11
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.
Section § 25503.12
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.
Section § 25503.13
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.
Section § 25503.14
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.
Section § 25503.15
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.
Section § 25503.16
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.
Section § 25503.17
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.
Section § 25503.18
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.
Section § 25503.19
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.
Section § 25503.2
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.
Section § 25503.20
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.
Section § 25503.21
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.
Section § 25503.22
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.
Section § 25503.23
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.
Section § 25503.24
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.
Section § 25503.26
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.
Section § 25503.27
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.
Section § 25503.28
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.
Section § 25503.29
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.
Section § 25503.3
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.
Section § 25503.30
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.
Section § 25503.31
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.
Section § 25503.32
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.
Section § 25503.33
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.
Section § 25503.34
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.
Section § 25503.35
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.
Section § 25503.36
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.
Section § 25503.37
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.
Section § 25503.38
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.
Section § 25503.39
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.
Section § 25503.4
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.
Section § 25503.41
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.
Section § 25503.42
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.
Section § 25503.45
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.
Section § 25503.5
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.
Section § 25503.51
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.
Section § 25503.55
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.
Section § 25503.56
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.
Section § 25503.57
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.
Section § 25503.6
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.
Section § 25503.61
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.
Section § 25503.62
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.
Section § 25503.63
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.
Section § 25503.7
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.
Section § 25503.8
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.
Section § 25503.85
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.
Section § 25503.9
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.
Section § 25504
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.
Section § 25504.5
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.
Section § 25505
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.
Section § 25506
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.
Section § 25507
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.
Section § 25508
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.
Section § 25509
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.
Section § 25509.1
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.
Section § 25510
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.
Section § 25511
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.
Section § 25512
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.