Loading chat...
CA SB430
Bill
AI Summary
-
Creates a new exception to tied-house restrictions allowing authorized licensees (manufacturers, importers, brewers, distillers) to purchase advertising services from advertising subsidiaries under common ownership with retail licensees, subject to specific conditions.
-
Requires the common parent company to be publicly traded, have previously owned at least 50 retail licensees, and have contracts with professional sports leagues for streaming services.
-
Imposes strict operational requirements including separate financial records, separately staffed departments, commercially reasonable rates not based on sales percentages, and prohibition on advertising appearing at retail locations or referencing the retail licensee.
-
Requires advertising subsidiaries to submit semiannual reports to the Department of Alcoholic Beverage Control detailing products advertised, authorized licensees purchasing services, time periods, and connected events.
-
Makes it a misdemeanor punishable by up to six months imprisonment and/or a fine equal to the advertising value plus $10,000 for authorized licensees or retail subsidiaries that coerce wholesalers or others to participate in these advertising arrangements.
Legislative Description
Tied-house exceptions: advertising: common parent company.
Last Action
September 1 hearing: Held in committee and under submission.
9/1/2023