AB 440 Summary

• Expands exceptions to tied-house restrictions to allow beer manufacturers, winegrowers, distilled spirits rectifiers, and manufacturers to purchase advertising at specified facilities in the City of San Jose, including a convention center with more than 130,000 square feet of exhibit space and an auditorium with fixed seating capacity exceeding 2,500 seats.

• Requires on-sale retail licensees entering into advertising agreements under this exception to obtain an annual certificate from the Department of Alcoholic Beverage Control.

• Directs the Department of Alcoholic Beverage Control to include information about certifications issued under this section in its annual report to the Legislature.

• Makes violations of the new advertising agreement requirements subject to criminal penalties including misdemeanor charges, imprisonment up to six months, and fines up to the advertising value plus $10,000, with potential license revocation.

• Declares a special law necessary for San Jose facilities and specifies that no reimbursement is required because the act only creates new crimes or changes penalties for existing crimes.