CA AB98

Expands tied-house advertising exceptions under the Alcoholic Beverage Control Act by reducing the minimum seating capacity for fully enclosed arenas in San Jose from 15,000 seats to 4,000 seats.

Allows beer manufacturers, winegrowers, rectifiers, craft distillers, and distilled spirits manufacturers to purchase advertising space and time at qualifying arenas in San Jose under specified conditions.

Requires all advertising purchases to be conducted through written contracts and prohibits advertising from being placed outside the arena or on other retail premises.

Makes violations of the advertising provisions punishable as misdemeanors with imprisonment up to 6 months and fines equal to the contract value plus $10,000, plus potential license revocation.

Takes effect immediately as an urgency statute and incorporates contingent provisions to coordinate with Senate Bill 1280 and Assembly Bill 1330 if those bills are also enacted.