CA AB840

Expands exceptions to tied-house restrictions in alcoholic beverage law to permit beer manufacturers, winegrowers, rectifiers, craft distillers, and distilled spirits manufacturers to purchase advertising at venues on California State University campuses in San Luis Obispo, Fresno, Sacramento, Monterey, Orange, Santa Clara, and Los Angeles counties, and at St. Mary's College of California in Contra Costa County.

Reduces minimum seating capacity requirement for motorsports entertainment complexes in San Bernardino County from 50,000 to 25,000 seats to qualify for the advertising purchase exception.

Requires all advertising purchases to be made through written contracts and permits contracts to be executed with venue owners, long-term tenants, or licensees regardless of whether they hold on-sale licenses.

Establishes misdemeanor penalties including up to six months county jail, fines, and potential license revocation for manufacturers who coerce wholesalers into fulfilling advertising contracts, or for retailers who coerce wholesalers to solicit advertising purchases.

Approved by Governor October 7, 2023, and effective immediately with no state reimbursement required to local agencies.