Tied-house restrictions: advertising exceptions: City of San Jose.

(1) Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, including a fully enclosed arena with a fixed seating capacity of more than 15,000 seats located in the City of San Jose. Existing law makes specified violations of these advertising provisions punishable as a misdemeanor. This bill would expand the above-described exception to tied-house restrictions that allows for the purchase of advertising by extending it to a fully enclosed arena with a fixed seating capacity of more than 4,000 seats located in the City of San Jose. By expanding the scope of a crime, this bill would impose a state-mandated local program. (2) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Jose. (3) This bill would incorporate additional changes to Section 25503.6 of the Business and Professions Code proposed by SB 1280 and AB 1330 to be operative only if this bill and SB 1280, AB 1330, or both are enacted and this bill is enacted last. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would declare that it is to take effect immediately as an urgency statute.