25500. (a) No manufacturer, winegrower, manufacturer's agent,
rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person shall:
(1) Hold the ownership, directly or indirectly, of any interest in
any on-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any on-sale premises where
alcoholic beverages are sold for consumption on the premises.
(3) Own any interest, directly or indirectly, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in or of any premises operated or maintained under any on-sale
license for the sale of alcoholic beverages for consumption on the
premises where sold; or own any interest, directly or indirectly, in
realty acquired after June 13, 1935, upon which on-sale premises are
maintained unless the holding of the interest is permitted in
accordance with rules of the department.
(b) This section does not apply to the holding by one person of a
wholesaler's license and an on-sale license in counties not to exceed
15,000 population.
(c) This section does not apply to the financial or representative
relationship between a manufacturer, winegrower, manufacturer's
agent, rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of such
person, and a person holding only one of the following types of
licenses:
(1) On-sale general license for a bona fide club.
(2) Club license issued under Article 4 (commencing with Section
23425) of Chapter 3.
(3) Veterans' club license issued under Article 5 (commencing with
Section 23450) of Chapter 3.
(4) On-sale license for boats, trains, sleeping cars, or airplanes
where the alcoholic beverages produced or sold by the manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, bottler, importer, or wholesaler or any officer, director, or
agent of the person are not sold, furnished, or given, directly or
indirectly to the on-sale licensee.
(d) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
(e) Notwithstanding any other provision of this division or
regulation of the department, this section does not apply to an
employee of a licensee referred to in subdivision (a) who is the
spouse of an on-sale licensee, so long as the on-sale licensee does
not purchase, offer for sale, or promote, regardless of source, any
of the brands of alcoholic beverages that are produced, bottled,
processed, imported, rectified, distributed, represented, or sold by
any licensee referred to in subdivision (a) that employs the spouse
of the on-sale licensee.
(f) Nothing in this division prohibits the holder of any retail
on-sale or off-sale license from purchasing, for fair consideration,
advertising in any publication published by any manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, distiller, bottler, importer, or wholesaler, or any person who
directly or indirectly holds the ownership of any interest in the
premises of the retail licensee.
25500.1. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling wine, brandy, or both wine and brandy and operating and
licensed as bona fide public eating places pursuant to Section 23038
selling the wine, brandy, or both wine and brandy produced,
distributed, imported, or both distributed and imported by a
nonretail industry member in response to a direct inquiry from a
consumer received by telephone, by mail, by electronic inquiry or in
person does not constitute a thing of value or prohibited inducement
to the listed on-sale retailer, provided:
(1) The listing does not also contain the retail price of the
product, and
(2) The listing is the only reference to the on-sale retailers in
the direct communication, and
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer, and
(4) The listing is made by, produced by, or paid for, or any
combination thereof, exclusively by the nonretail industry member
making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, winegrower, distiller of wine, brandy,
or both, regardless of any other licenses held directly or indirectly
by such person. Except as specifically provided above, any payment
for, making or production, either directly or indirectly, listing the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of on-sale retailers otherwise authorized by this
section by a wholesaler or by a wholesaler that also holds an
importer's license shall constitute the furnishing of a thing of
value or inducement to the listed on-sale retailers in violation of
this division.
25500.2. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling beer, wine, or distilled spirits, and operating and licensed
as bona fide public eating places pursuant to Section 23038 selling
the beer, wine, or distilled spirits produced, distributed, or
imported by a nonretail industry member in response to a direct
inquiry from a consumer received by telephone, by mail, by electronic
inquiry, or in person does not constitute a thing of value or
prohibited inducement to the listed on-sale retailer, provided all of
the following conditions are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the on-sale retailers in
the direct communication.
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages or an
agent of that entity, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25501. No manufacturer, bottler, importer, or wholesaler of
products of the brewing industry shall:
(a) Furnish, give, rent, lend, or sell, directly or indirectly,
any equipment, fixtures, or supplies, other than alcoholic beverages,
to any person engaged in operating, owning, or maintaining any
on-sale premises where alcoholic beverages are sold for consumption
on the premises. This subdivision shall not prohibit the furnishing
of draft beer pumps and iceboxes to those persons who operate on a
temporary basis. Notwithstanding any other provision of this
division, a manufacturer, bottler, importer, or wholesaler of
products of the brewing industry may furnish, give, rent, lend, or
sell, directly or indirectly, paper beverage coasters less than 25
square inches in size and having a value of less than five cents
($0.05) per coaster or brand-identified acrylic table tent holders to
any person engaged in operating, owning, or maintaining any on-sale
premises where alcoholic beverages are sold for consumption on the
premises.
(b) Directly or indirectly, hold the ownership or any interest, by
stock ownership or otherwise, in any firm, corporation, partnership,
or business, furnishing, supplying, or dealing in any office, store,
or restaurant furnishings or equipment, other than signs for
interior use or supplies authorized to be given under this division
to any person engaged in operating, owning, or maintaining any
on-sale premises.
(c) Notwithstanding any provision of this section, the holder of a
beer and wine wholesaler's license may manufacture, distribute, and
sell any lawful product to any person engaged in operating, owning,
or maintaining any on-sale premises where alcoholic beverages are
sold for consumption on the premises, provided that these products
are sold by the holder of the beer and wine wholesaler's license to
the on-sale licensee at a price not less than the current market
price for the product.
25502. (a) No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall, except as authorized by this division:
(1) Hold the ownership, directly or indirectly, of any interest in
an off-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any off-sale licensed premises.
(3) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, or trusteeship, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in premises licensed with an off-sale license.
(4) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, trusteeship, or mortgage of the
realty upon which an off-sale licensed premises is maintained.
(b) Any wholesaler in counties not to exceed 15,000 population
who holds both a beer and wine wholesaler's license and an off-sale
general license and who held such licenses prior to September 19,
1947, may continue to hold such licenses but may not transfer the
beer and wine wholesaler's license to another individual,
individuals, partnership, corporation or other legal entity. Where
the off-sale general license is transferred to an individual,
individuals, partnership, corporation or other legal entity, the
transfer shall be a person-to-person transfer only.
(c) Nothing in this section prohibits any holder of a distilled
spirits manufacturer's, manufacturer's agent's, California winegrower'
s agent, rectifier's, or wholesaler's license, or any officer,
employee, or representative of any such licensee, from acting as a
trustee for any off-sale general licensee in any bankruptcy or other
proceedings for the benefit of the creditors of the off-sale general
licensee.
(d) Nothing in this section shall alter, change, or otherwise
affect, retroactively or prospectively, any of the rights or
privileges granted to a winegrower or brandy manufacturer by Section
23362, or by any other provision of this division.
(e) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
25502.1. (a) Notwithstanding Section 25502, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated off-sale retailers
selling the products produced, distributed or imported by a nonretail
industry member in response to a direct inquiry from a consumer
received by telephone, by mail, by electronic inquiry or in person
does not constitute a thing of value or prohibited inducement to the
listed off-sale retailer, provided all of the following conditions
are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the off-sale retailers in
the direct communication.
(3) The listing does not refer only to one off-sale retailer or
only to off-sale retail establishments controlled directly or
indirectly by the same off-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages, or an
agent of those entities, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25503. No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall do any of the following:
(a) Directly or indirectly, deliver the possession of any
alcoholic beverages to any on- or off-sale licensee under an
agreement of consignment whereby title to the alcoholic beverages is
retained by the seller or whereby the licensee receiving the
alcoholic beverages has the right at any time prior to sale to
relinquish possession to or return them to the original seller.
(b) Directly or indirectly, give any licensee or any person any
alcoholic beverages as free goods as a part of any sale or
transaction involving alcoholic beverages.
(c) Give secret rebates or make any secret concessions to any
licensee or the employees or agents of any licensee, and no licensee
shall request or knowingly accept from another licensee secret
rebates or secret concessions.
(d) Give or furnish, directly or indirectly, to any employee of
any holder of a retail on-sale or off-sale license only anything of
value for the purpose or with the intent to solicit, acquire, or
obtain the help or assistance of the employee to encourage or promote
either the purchase or the sale of the alcoholic beverage sold or
manufactured by the licensee giving or furnishing anything of value,
and any employee who accepts or acquires anything of value contrary
to the provisions of this subdivision is guilty of a misdemeanor.
(e) Willfully or knowingly discriminate, in the same trading area,
either directly or indirectly, in the price of any brand of
distilled spirits sold to different retail licensees purchasing under
like terms and conditions.
(f) Pay, credit, or compensate a retailer or retailers for
advertising, display, or distribution service in connection with the
advertising and sale of distilled spirits.
(g) Furnish, give, lend, or rent, directly or indirectly, to any
person any decorations, paintings, or signs, other than signs
advertising their own products as permitted by Section 25611.1.
(h) Pay money or give or furnish anything of value for the
privilege of placing or painting a sign or advertisement, or window
display, on or in any premises selling alcoholic beverages at retail.
25503.1. (a) Anything in this division to the contrary
notwithstanding, any manufacturer, winegrower, manufacturer's agent,
rectifier, distiller, bottler, importer, or wholesaler, or any
officer, director, or agent of any such person is authorized:
(1) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to install, service and set up
window displays, promotional materials, and temporary floor displays
holding merchandise in the premises of an off-sale retail licensee.
(2) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to furnish, give, lend, rent or
sell decorations and decorative materials, including holiday
decorations, paintings and pictures, to an off-sale retail licensee
for use in the windows and elsewhere in the interior of the retail
premises in connection with advertising and promotional material or
displays in the premises of such retailer; provided, that the
advertising and promotional material shall have no intrinsic value
other than as advertising and that the total original cost of all
such decorations and decorative materials, including holiday
decorations, paintings and pictures furnished by any licensee and in
use at any one time in any one off-sale retail premise shall not
exceed the amount established by rules of the department; and
provided, that the licensee or any officer, director or agent of such
licensee shall not directly or indirectly pay or credit the retailer
for the display of such decorations or decorative materials or for
any expense incidental to their operation.
(3) To furnish, give, lend, rent or sell to an off-sale retailer
who sells the alcoholic beverages of such licensee, newspaper cuts,
mats, or engraved blocks for use in the retailer's advertisements
relating to such alcoholic beverages.
(b) Anything in this chapter to the contrary notwithstanding, any
holder of a wholesaler's license may manufacture, and distribute,
sell, or rent any lawful product to any person engaged in operating,
owning, or maintaining any retail premises where alcoholic beverages
are sold; provided, however, that such products are sold or rented by
the holder of the wholesaler's license to the licensee at a price
not less than the current market price for such product; and
provided, further, that the manufacturer and importer of alcoholic
beverages shall be controlled by the other applicable provisions of
this division.
25503.2. (a) Notwithstanding any other provision in this division,
any winegrower, wine blender, beer manufacturer, brandy manufacturer,
distilled spirits manufacturer, distilled spirits manufacturer's
agent, rectifier, distilled spirits wholesaler, and beer and wine
wholesaler, or the authorized agent or agents or representative or
representatives of that licensee, may perform any of the following
services for off-sale retail licensees at or on the premises of the
off-sale retail licensee with the retail licensee's permission:
(1) Stack or arrange cases of the brand or brands of alcoholic
beverages owned or sold by the licensee performing the service in the
storeroom or warehouse where the off-sale retail licensee stores the
brand or brands.
(2) Rotate the brand or brands owned or sold by the licensee
performing the service on shelves and in refrigerated boxes, and
rearrange bottles or packages of the brand or brands by moving the
bottles or packages horizontally or vertically from shelf to shelf in
the space and shelves allocated to the brand or brands. This
paragraph does not permit the removal of any brand or brands of
alcoholic beverages, except beer, which are owned or sold by the
licensee performing the service, from the storeroom or other place
belonging to an off-sale retailer for the purpose of replacing
alcoholic beverages on or restocking shelves or refrigerated boxes.
(3) Take an inventory of an off-sale retailer's stock of a brand
or brands of alcoholic beverages which are owned or sold by the
licensee performing the service and which are in the stockroom or
other place belonging to the off-sale retailer.
(4) Service the brand or brands of alcoholic beverages owned or
sold by the licensee performing the service which are on shelves,
fixtures, or other display pieces at the off-sale retail premises,
including, but not limited to dusting bottles and shelves and
refrigerated boxes allocated to the brand or brands at the retail
premises. The licensees authorized to render services by this section
and their agents and representatives may not price-mark individual
containers of the brand of alcoholic beverages, except beer, owned or
sold by the licensee performing the service, except for individual
bottles used on floor displays.
(5) Rotate or rearrange the brand or brands of wine or distilled
spirits owned or sold by the licensee on, in, or among permanent
shelves, permanent fixtures, refrigerated boxes, or floor or other
displays or display pieces; stock the brand or brands onto or into
floor or other displays or display pieces; and stock the brand or
brands onto or into permanent shelves, permanent fixtures, or
refrigerated boxes for the sole purposes of the introduction of new
products, the resetting or rearrangement of existing products, or the
setting or arranging of new stores. Incidental touching or
rearrangement of the brand or brands of another licensee by a
licensee performing any of the services authorized by this paragraph
for the sole purpose of accessing permanent shelves, permanent
fixtures, and other spaces allocated to the licensee performing the
service shall not be deemed to be a violation of any provision of
this division provided the other licensee's brands are not removed
from spaces allocated to that licensee. Nothing in this paragraph
permits stocking permanent shelves, permanent fixtures, or
refrigerated boxes for regular inventory replenishment.
(b) Notwithstanding any other provision in this division, any beer
manufacturer or beer and wine wholesaler, or the authorized agent or
agents or representative or representatives of that licensee, may
perform any of the services specified in paragraphs (1) to (4),
inclusive, of subdivision (a), with respect to beer, for on-sale
retail licensees at or on the premises of the on-sale retail licensee
with the retail licensee's permission.
25503.3. (a) Anything in this division to the contrary
notwithstanding, any winegrower, beer manufacturer, brandy
manufacturer, distilled spirits manufacturer, or distilled spirits
manufacturer's agent may, at parties held, or in hospitality rooms
maintained, in conjunction with meetings, conventions, or combined
conventions and trade shows of bona fide trade associations of retail
licensees, serve and provide free of charge, food, alcoholic and
nonalcoholic beverages, entertainment, and recreational activities to
the retail licensees and their guests while attending those
meetings, conventions, or combined conventions and trade shows.
Additionally, any person specified in this section may pay a fee to
the bona fide trade association for the privilege of providing food,
alcoholic or nonalcoholic beverages, entertainment, or recreational
activities, or for display booth space, as long as the fee is at the
same rate charged all suppliers.
(b) Any person specified in this section may advertise in any
regular publication of a bona fide trade association the members of
which are food or alcoholic beverage retailers, if that publication
does not advertise on behalf of, or directly benefit, any individual
retail licensee. The advertising fee paid to the bona fide trade
association or its agent shall be at the same rate charged all
advertisers.
(c) Any person specified in this section may pay membership dues
to a bona fide trade association as long as the dues are at the same
rate charged all nonretail members of the association.
25503.4. (a) Notwithstanding any other provision of this division,
a winegrower, California winegrower's agent, wine importer, or any
director, partner, officer, agent, or representative of that person,
may conduct or participate in, and serve wine at, an instructional
event for consumers held at a retailer's premises featuring wines
produced by or for the winegrower or, imported by the wine importer,
subject to the following conditions:
(1) No premium, gift, free goods, or other thing of value may be
given away in connection with the instructional event by the
winegrower, California winegrower's agent, wine importer, or
retailer, except as authorized by this division.
(2) No alcoholic beverages may be given away in connection with
the instructional event except that minimal amounts of wine, taken
from barrels or from tanks, may be supplied and provided as samples
at the instructional event. A person authorized by subdivision (a)
may also provide no more than three one-ounce tastes of wine per
consumer at the instructional event from bottles of wine provided by
the authorized person. For purposes of this section, minimal amounts
of the samples or tastes provided at the instructional event do not
constitute a thing of value. Following the instructional event, any
unused wine provided by the authorized person shall be removed from
the retailer's premises by the authorized person.
(3) No alcoholic beverages may be sold at the instructional event,
except that orders for the sale of wine may be accepted by the
winegrower if the sales transaction is completed at the winegrower's
premises.
(b) Notwithstanding any other provision of this division, a
winegrower, California winegrower's agent, or wine importer, in
advance of an instructional event for consumers being held at a
retailer's premises, may list in an advertisement the name and
address of the retailer, the names of the wines being featured at the
instructional event, and the time, date, and location of, and other
information about, the instructional event, provided:
(1) The advertisement does not also contain the retail price of
the wines.
(2) The listing of the retailer's name and address is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole. Pictures
or illustrations of the retailer's premises and laudatory references
to the retailer in these advertisements are not hereby authorized.
(c) Notwithstanding any other provision of this division, the name
and address of a winegrower, wine importer, or winegrower's agent
licensee, the brand names of wine being featured, and the time, date,
location, and other identifying information of a wine promotional
lecture at retail premises may be listed in advance of the event in
an advertisement of the off-sale or on-sale retail licensee.
(d) Nothing in this section authorizes a winegrower, wine
importer, or winegrower's agent licensee to share in the costs, if
any, of the retailer licensee's advertisement.
(e) Nothing in this section authorizes any person to consume any
alcoholic beverage on any premises licensed with an off-sale retail
license.
25503.5. (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including but not limited
to, the history, nature, values, and characteristics of wine or beer,
the use of wine lists, and the methods of presenting and serving
wine or beer. The winegrower, beer manufacturer, or beer and wine
wholesaler may furnish wine or beer and the equipment, materials and
utensils that may be required for use in connection with the
instruction or courses of instruction.
(b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
(c) A winegrower or distilled spirits manufacturer, or its
authorized agent may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
product and the methods of presenting and serving the product. The
instruction of consumers may include the furnishing of not more than
three tastings to any individual in one day. A single tasting of
distilled spirits may not exceed one-fourth of one ounce and a single
tasting of wine may not exceed one ounce. The winegrower or
distilled spirits manufacturer, or its authorized agent shall remove
any unfinished alcoholic beverages that he or she provided following
the instruction. Nothing in this subdivision shall limit the giving
away of samples pursuant to subdivision (a) of Section 23386.
(d) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer or of a licensee, including an on-sale retail licensee, or
elsewhere.
25503.55. (a) A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may instruct
consumers or conduct courses of instruction for consumers, on the
subject of beer, including, but not limited to, the history, nature,
values, and characteristics of beer, and the methods of presenting
and serving beer. A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may conduct
such instructions at the premises of a retail on-sale licensee
authorized to sell beer.
(b) The instruction of consumers regarding beer may include the
furnishing of tastes of beer to an individual of legal drinking age.
Beer tastes at any individual course of instruction shall not exceed
eight ounces of beer per person, per day. The tasting portion of a
course of instruction shall not exceed one hour at any individual
licensed retail premises. Tastes of beer may not be served to a
consumer in their original container but must be served in an
individual glass or cup.
(c) All tastes of beer served to a consumer as authorized in
subdivision (b) shall be served only as part of the course of
instruction and shall be served to the consumer by an employee of the
on-sale retail licensee.
(d) A beer manufacturer, a licensed beer and wine importer
general, or a licensed beer and wine wholesaler may not hold more
than six courses of instruction per calendar year at any individual
on-sale retail licensed premises if the courses of instruction
includes consumer tastes of beer.
(e) (1) A representative of a beer manufacturer, a licensed beer
and wine importer general, or a licensed beer and wine wholesaler,
except as provided in paragraph (2), must be present and authorize
any tastes of beer conducted at an on-sale retail licensed premises
pursuant to this section. The representative shall be responsible for
paying the retailer for the tastes of beer served at any course of
instruction. Such payment shall not exceed the retail price of the
beer.
(2) For purposes of this subdivision, a licensed beer and wine
wholesaler shall not be a representative of a beer manufacturer or a
licensed beer and wine importer general.
(f) No on-sale retail licensee shall require one or more courses
of instruction pursuant to this section as a requirement to carry a
brand or brands of any beer manufacturer, licensed beer and wine
importer general, or licensed beer and wine wholesaler.
(g) No premium, gift, free goods, or other thing of value may be
given away in connection with an authorized course of instruction
that includes beer tastes, except as authorized by this division.
Failure to comply with the provisions of this section shall be
presumed to be a violation of Section 25500.
(h) A retail licensee may advertise the instructional tasting
event using interior signs visible only within the establishment.
(i) (1) A beer manufacturer, a licensed beer and wine importer
general, and a licensed beer and wine wholesaler shall maintain an
individual record of each course of instruction involving tastes of
beer for three years.
(2) Records shall include the date of the tasting, the name and
address of the retail licensee, and the brand, quantity, and payment
made for the beer furnished by the beer manufacturer, the licensed
beer and wine importer general, or the licensed beer and wine
wholesaler.
25503.56. (a) An authorized licensee, or a designated
representative of an authorized licensee acting as an agent of the
authorized licensee, may conduct, on the area specified by paragraph
(1) of subdivision (c) of Section 23396.6, an instructional tasting
event for consumers on the subject of wine, beer, or distilled
spirits, including, but not limited to, the history, nature, values,
and characteristics of wine, beer, or distilled spirits, and the
methods of presenting and serving wine, beer, or distilled spirits.
(1) (A) Except as provided in subparagraph (B), the instructional
tasting event may include the serving of alcoholic beverages to an
attendee of legal drinking age. An instructional tasting event on the
subject of wine or distilled spirits shall be limited to not more
than three tastings per person per day. A single tasting of distilled
spirits shall not exceed one-fourth of one ounce and a single
tasting of wine shall not exceed one ounce. An instructional tasting
event on the subject of beer shall be limited to not more than the
tasting of eight ounces of beer per person per day. The wine, beer,
or distilled spirits tasted shall be limited to the products that are
authorized to be sold by the authorized licensee and the
licenseholder under its off-sale license.
(B) A beer and wine wholesaler may conduct an instructional
tasting event but shall not serve tastes of beer unless the beer and
wine wholesaler also holds a beer manufacturer's license, an
out-of-state beer manufacturer's certificate, or more than six
distilled spirits wholesaler's licenses.
(C) No charge of any sort shall be made for the tastings.Except
for the purposes of Section 23985, the serving of tastings shall not
be deemed a sale of products pursuant to this division.
(D) A person under 21 years of age shall not serve wine, beer, or
distilled spirits at the instructional tasting event.
(E) All tastes shall be served by an employee of the authorized
licensee, the designated representative of the authorized licensee,
or by an employee of the designated representative of the authorized
licensee.
(F) An authorized licensee, or a designated representative of an
authorized licensee, shall either supply the wine or distilled
spirits to be tasted during the instructional tasting event or
purchase the wine or distilled spirits from the licenseholder at the
original invoiced cost. An authorized licensee, or a designated
representative of an authorized licensee, shall purchase beer to be
tasted during the instructional tasting event from the licenseholder
at the original invoiced cost.
(G) Any unused wine, beer, or distilled spirits remaining from the
tasting shall be removed from the off-sale licensed premises by the
authorized licensee or its designated representative.
(2) If the instructional tasting event is conducted by a
designated representative of an authorized licensee, the designated
representative shall not be owned, controlled, or employed directly
or indirectly by the licenseholder on whose premises the
instructional tasting event is held.
(3) An instructional tasting event shall be limited to a single
type of alcoholic beverage. For purposes of this paragraph, "type of
alcoholic beverage" means distilled spirits, wine, or beer.
(b) For purposes of this section:
(1) "Authorized licensee" means a winegrower, California
winegrower's agent, beer and wine importer general, beer and wine
wholesaler, wine rectifier, distilled spirits manufacturer, distilled
spirits manufacturer's agent, distilled spirits importer general,
distilled spirits rectifier, distilled spirits general rectifier,
rectifier, out-of-state distilled spirits shipper's certificate
holder, distilled spirits wholesaler, brandy manufacturer, brandy
importer, California brandy wholesaler, beer manufacturer, or an
out-of-state beer manufacturer certificate holder. "Authorized
licensee" shall not include an entity that solely holds a combination
of a beer and wine wholesale license and an off-sale beer and wine
retail license or holds those licences solely in combination with any
license not listed in this paragraph.
(2) "Licenseholder" means an off-sale retail licensee issued an
instructional tasting license pursuant to Section 23396.6.
(3) "Location" means the total contiguous area encompassed by the
off-sale and on-sale licenses.
(c) Notwithstanding subparagraph (E) of paragraph (1) of
subdivision (a), a licenseholder may conduct an instructional tasting
event that includes the serving of tastings only when an authorized
licensee or its designated representative are unable to conduct an
instructional tasting event previously advertised pursuant to this
section and scheduled by the authorized licensee or its designated
representative, provided the licenseholder supplies the wine, beer,
or distilled spirits used in the instructional tasting event and
provides or pays for a person to serve the wine, beer, or distilled
spirits. Instructional tasting events conducted by a licenseholder
pursuant to this subdivision are subject to the provisions of this
section and Section 23396.6.
(d) No more than one authorized licensee, or its designated
representative, may conduct an instructional tasting event that
includes the serving of tastes of wine, beer, or distilled spirits at
any one individual licensed premises of a licenseholder per day.
(e) A licenseholder that also holds an on-sale beer and wine
license, an on-sale beer and wine eating place license, or an on-sale
general license shall not allow an authorized licensee, or its
designated representative, to conduct an instructional tasting event
on the same day and at the same location as any instructional tasting
event held pursuant to subdivision (b) of Section 23386, Section
25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f) A licenseholder shall not condition the allowance of an
instructional tasting event upon the use of a particular designated
representative of an authorized licensee.
(g) (1) In addition to any point of sale advertising or other
advertising items allowed under this division or under rules of the
department, an authorized licensee or its designated representative,
in his or her absolute discretion and with permission of the
licenseholder upon whose premises the instructional tasting event
will be held, may list in an advertisement to the general public the
name and address of the licenseholder, the names of the alcoholic
beverages being featured at the instructional tasting event, and the
time, date, and location of, and other information about, the
instructional tasting event, provided that both of the following
apply:
(A) The advertisement does not contain the retail price of the
alcoholic beverages.
(B) The listing of the licenseholder's name and address is the
only reference to the licenseholder in the advertisement.
(2) Pictures or illustrations of the licenseholder's licensed
premises and laudatory references to the licenseholder in these
advertisements are not authorized. Nothing in this section shall
authorize an authorized licensee or its designated representative to
share in the costs, if any, of the licenseholder.
(h) A licenseholder may advertise an instructional tasting event
to the general public. The costs of this advertising shall be borne
solely by the licenseholder. Advertising permitted by this
subdivision includes flyers, newspaper ads, Internet communications,
and interior signage.
(i) Except as otherwise provided in this division or rules of the
department, no premium, gift, free goods, or other thing of value
shall be given away by an authorized licensee or its designated
representative in connection with an instructional tasting event that
includes tastings of an alcoholic beverage.
(j) The licenseholder or the authorized licensee or its designated
representative are authorized to perform set up and break down of
the instructional tasting event area. The authorized licensee or its
designated representative may provide, free of charge to the
licenseholder, the equipment, materials, and utensils as may be
required for use in connection with the instructional tasting event.
(k) (1) A licenseholder shall not require, or enter into a
collusive scheme with an authorized licensee or its designated
representative to conduct one or more instructional tasting events as
a condition of the licenseholder carrying or continuing to carry a
brand or brands of the authorized licensee or as a condition for
display or other merchandising plan which is based on an agreement to
provide shelf space. An authorized licensee or its designated
representative shall not require any preferential treatment or
benefit from, or enter into a collusive scheme with, a licenseholder
as a condition of conducting one or more instructional tasting
events, require a licenseholder to carry or continue to carry a brand
or brands of the authorized licensee as a condition of conducting
one or more instructional tasting events, or condition display or
other merchandising plans that are based on agreements for the
provision of shelf space on the conducting of one or more
instructional tasting events. Any agreement, whether written or oral,
entered into by and between a licenseholder and an authorized
licensee or its designated representative that precludes the
conducting of instructional tasting events on the premises of the
licenseholder by any other authorized licensee is prohibited. A
licenseholder or authorized licensee, or its designated
representative, shall not use an instructional tasting event to
circumvent any other requirements of this division.
(2) In addition to any other remedies available under this
division, upon a finding by the department of a failure to comply
with this subdivision, the department shall suspend the instructional
tasting license of the licenseholder and the privilege of the
authorized licensee to conduct instructional events for not less than
six months but for no more than one year.
(l) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exception
established by this section to the general prohibition against tied
interests must be limited to its express terms so as not to undermine
the general prohibition, and intends that this section be construed
accordingly.
25503.6. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a distilled
spirits rectifier, a distilled spirits manufacturer, or distilled
spirits manufacturer's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee subject to all of
the following conditions:
(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
(B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
(D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
(E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.
(H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
(I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located within San
Bernardino County.
(J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
(K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within the City of Carson in Los Angeles County.
(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park.
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.7. A winegrower, beer manufacturer, or beer and wine
wholesaler may serve food and alcoholic beverages to any person,
including a person licensed under this division and his or her
employees and representatives, who is attending a meeting held upon
or who is visiting the premises of the winegrower, beer manufacturer,
or beer and wine wholesaler.
25503.8. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a distilled spirits rectifier, a
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent may purchase advertising space and time from, or on behalf of,
an on-sale retail licensee if all of the following conditions are
met:
(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
(B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
(C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
(D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance
by the public on a ticketed basis only, with a fixed seating
capacity in excess of 6,000 seats, located in Los Angeles County
within the area subject to the Los Angeles Sports and Entertainment
District Specific Plan adopted by the City of Los Angeles pursuant to
ordinance number 174225, as approved on September 6, 2001.
(F) A fully enclosed arena with a fixed seating capacity in excess
of 15,000 seats located in Santa Clara County. With respect to the
arena described in this subparagraph, advertising space may also be
purchased from, or on behalf of, a lessee or manager of the arena.
(2) The advertising space or time is purchased only in connection
with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
(B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
(C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
(D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
(E) In the case of the fully enclosed theater described in
subparagraph (E) of paragraph (1) of subdivision (a), in connection
with events conducted at the theater.
(F) In the case of a fully enclosed arena described in
subparagraph (F) of paragraph (1) of subdivision (a), interior
advertising in connection with events conducted within the arena.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Any purchase of advertising space or time conducted pursuant
to subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the California winegrower's agent, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent, and the
on-sale licensee, which contract shall not in any way involve the
holder of a wholesaler's license.
(c) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent, who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (b) shall be guilty of a
misdemeanor and shall be punished by imprisonment in the county jail
not exceeding six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces, directly or indirectly, a holder of a
wholesaler's license to solicit a beer manufacturer, distilled
spirits manufacturer, or distilled spirits manufacturer's agent,
holder of a winegrower's license, or California winegrower's agent to
purchase advertising space or time pursuant to subdivision (a) or
(b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.85. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, distilled spirits manufacturer, distilled
spirits manufacturer's agent, holder of a winegrower's license, or
California winegrower's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee, that shall be
limited to small notices, plaques, or signs that portray partial or
full sponsorship or funding of educational programs, special
fundraising and promotional events, improvements in capital projects,
and the development of exhibits or facilities, if all of the
following conditions are met:
(1) The on-sale licensee is a zoo or aquarium operated by a
nonprofit organization that is accredited by the American Association
of Zoological Parks and Aquariums.
(2) The advertising space or time is purchased only in connection
with the sponsorship of activities that are held on the premises or
grounds owned, leased, or controlled by the on-sale licensee.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Nothing in this section shall be construed to permit the
purchase of billboards or bench advertisements as "advertising space."
(c) Any purchase of advertising space or time pursuant to
subdivision (a) shall be accomplished by a written contract entered
into by the beer manufacturer, the distilled spirits manufacturer,
the distilled spirits manufacturer's agent, a holder of the
winegrower's license, or the California winegrower's agent, and the
on-sale licensee. That contract shall not in any way involve the
holder of a wholesaler's license.
(d) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (c) is guilty of a misdemeanor
and shall be punished by imprisonment in the county jail for a period
not to exceed six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(e) Any on-sale licensee who, directly or indirectly, solicits or
coerces a holder of a wholesaler's license to solicit a beer
manufacturer, distilled spirits manufacturer, distilled spirits
manufacturer's agent, holder of a winegrower's license, or a
California winegrower's agent to purchase advertising space or time
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(f) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.9. (a) Nothing in this division prohibits a winegrower or a
beer and wine wholesaler that also holds an off-sale beer and wine
retail license and only sells wine from giving or selling wine, a
beer manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or an importer general
licensee from giving or selling beer, wine, or distilled spirits at
prices other than those contained in schedules filed with the
department, to any of the following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g,
23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation
Code. Wine, beer, and distilled spirits given or sold by a
winegrower, beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, or importer general licensee
pursuant to this subdivision may be furnished only in connection with
public service or fundraising activities including picnics, parades,
fairs, amateur sporting events, agricultural exhibitions, or similar
events.
(b) Nothing in this division prohibits a winegrower or a beer and
wine wholesaler that also holds an off-sale beer and wine retail
license and only sells wine from giving or selling wine, a beer
manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or a beer and wine
wholesaler that also holds an importer's license from giving or
selling beer, wine, or distilled spirits at prices other than those
contained in schedules filed with the department, to any of the
following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the
Revenue and Taxation Code. Wine, beer, and distilled spirits given or
sold by a winegrower, beer manufacturer, distilled spirits
manufacturer, distilled spirits manufacturer's agent, or licensed
importer pursuant to this subdivision may be furnished only in
connection with public service or fundraising activities including
picnics, parades, fairs, amateur sporting events, agricultural
exhibitions, or similar events.
25503.10. (a) Notwithstanding any other provision of this division,
the department may approve a lease or sublease, or amendments to
such lease or sublease, where a manufacturer, manufacturer's agent,
winegrower, California winegrower's agent, rectifier, importer, or
wholesaler is the lessor and a retailer is the lessee when each of
the following conditions are incorporated in the lease:
(1) The lease is confined to real property and improvements
thereon which have become part of the real property.
(2) No trade fixtures or other personal property are included in
the lease.
(3) The rent to be paid by the lessee is not less than the current
value for such a lease, which the lessor shall establish by
submission of competent proof to the department.
(4) The rent is due and payable monthly beginning with the first
month of occupancy.
(5) Any money received by the lessor from the lessee when the rent
is due shall be first applied by the lessor to the payment of the
rent.
(6) The lessee shall purchase from the lessor no more than 10
perce
25500. (a) No manufacturer, winegrower, manufacturer's agent,
rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person shall:
(1) Hold the ownership, directly or indirectly, of any interest in
any on-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any on-sale premises where
alcoholic beverages are sold for consumption on the premises.
(3) Own any interest, directly or indirectly, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in or of any premises operated or maintained under any on-sale
license for the sale of alcoholic beverages for consumption on the
premises where sold; or own any interest, directly or indirectly, in
realty acquired after June 13, 1935, upon which on-sale premises are
maintained unless the holding of the interest is permitted in
accordance with rules of the department.
(b) This section does not apply to the holding by one person of a
wholesaler's license and an on-sale license in counties not to exceed
15,000 population.
(c) This section does not apply to the financial or representative
relationship between a manufacturer, winegrower, manufacturer's
agent, rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of such
person, and a person holding only one of the following types of
licenses:
(1) On-sale general license for a bona fide club.
(2) Club license issued under Article 4 (commencing with Section
23425) of Chapter 3.
(3) Veterans' club license issued under Article 5 (commencing with
Section 23450) of Chapter 3.
(4) On-sale license for boats, trains, sleeping cars, or airplanes
where the alcoholic beverages produced or sold by the manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, bottler, importer, or wholesaler or any officer, director, or
agent of the person are not sold, furnished, or given, directly or
indirectly to the on-sale licensee.
(d) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
(e) Notwithstanding any other provision of this division or
regulation of the department, this section does not apply to an
employee of a licensee referred to in subdivision (a) who is the
spouse of an on-sale licensee, so long as the on-sale licensee does
not purchase, offer for sale, or promote, regardless of source, any
of the brands of alcoholic beverages that are produced, bottled,
processed, imported, rectified, distributed, represented, or sold by
any licensee referred to in subdivision (a) that employs the spouse
of the on-sale licensee.
(f) Nothing in this division prohibits the holder of any retail
on-sale or off-sale license from purchasing, for fair consideration,
advertising in any publication published by any manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, distiller, bottler, importer, or wholesaler, or any person who
directly or indirectly holds the ownership of any interest in the
premises of the retail licensee.
25500.1. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling wine, brandy, or both wine and brandy and operating and
licensed as bona fide public eating places pursuant to Section 23038
selling the wine, brandy, or both wine and brandy produced,
distributed, imported, or both distributed and imported by a
nonretail industry member in response to a direct inquiry from a
consumer received by telephone, by mail, by electronic inquiry or in
person does not constitute a thing of value or prohibited inducement
to the listed on-sale retailer, provided:
(1) The listing does not also contain the retail price of the
product, and
(2) The listing is the only reference to the on-sale retailers in
the direct communication, and
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer, and
(4) The listing is made by, produced by, or paid for, or any
combination thereof, exclusively by the nonretail industry member
making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, winegrower, distiller of wine, brandy,
or both, regardless of any other licenses held directly or indirectly
by such person. Except as specifically provided above, any payment
for, making or production, either directly or indirectly, listing the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of on-sale retailers otherwise authorized by this
section by a wholesaler or by a wholesaler that also holds an
importer's license shall constitute the furnishing of a thing of
value or inducement to the listed on-sale retailers in violation of
this division.
25500.2. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling beer, wine, or distilled spirits, and operating and licensed
as bona fide public eating places pursuant to Section 23038 selling
the beer, wine, or distilled spirits produced, distributed, or
imported by a nonretail industry member in response to a direct
inquiry from a consumer received by telephone, by mail, by electronic
inquiry, or in person does not constitute a thing of value or
prohibited inducement to the listed on-sale retailer, provided all of
the following conditions are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the on-sale retailers in
the direct communication.
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages or an
agent of that entity, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25501. No manufacturer, bottler, importer, or wholesaler of
products of the brewing industry shall:
(a) Furnish, give, rent, lend, or sell, directly or indirectly,
any equipment, fixtures, or supplies, other than alcoholic beverages,
to any person engaged in operating, owning, or maintaining any
on-sale premises where alcoholic beverages are sold for consumption
on the premises. This subdivision shall not prohibit the furnishing
of draft beer pumps and iceboxes to those persons who operate on a
temporary basis. Notwithstanding any other provision of this
division, a manufacturer, bottler, importer, or wholesaler of
products of the brewing industry may furnish, give, rent, lend, or
sell, directly or indirectly, paper beverage coasters less than 25
square inches in size and having a value of less than five cents
($0.05) per coaster or brand-identified acrylic table tent holders to
any person engaged in operating, owning, or maintaining any on-sale
premises where alcoholic beverages are sold for consumption on the
premises.
(b) Directly or indirectly, hold the ownership or any interest, by
stock ownership or otherwise, in any firm, corporation, partnership,
or business, furnishing, supplying, or dealing in any office, store,
or restaurant furnishings or equipment, other than signs for
interior use or supplies authorized to be given under this division
to any person engaged in operating, owning, or maintaining any
on-sale premises.
(c) Notwithstanding any provision of this section, the holder of a
beer and wine wholesaler's license may manufacture, distribute, and
sell any lawful product to any person engaged in operating, owning,
or maintaining any on-sale premises where alcoholic beverages are
sold for consumption on the premises, provided that these products
are sold by the holder of the beer and wine wholesaler's license to
the on-sale licensee at a price not less than the current market
price for the product.
25502. (a) No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall, except as authorized by this division:
(1) Hold the ownership, directly or indirectly, of any interest in
an off-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any off-sale licensed premises.
(3) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, or trusteeship, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in premises licensed with an off-sale license.
(4) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, trusteeship, or mortgage of the
realty upon which an off-sale licensed premises is maintained.
(b) Any wholesaler in counties not to exceed 15,000 population
who holds both a beer and wine wholesaler's license and an off-sale
general license and who held such licenses prior to September 19,
1947, may continue to hold such licenses but may not transfer the
beer and wine wholesaler's license to another individual,
individuals, partnership, corporation or other legal entity. Where
the off-sale general license is transferred to an individual,
individuals, partnership, corporation or other legal entity, the
transfer shall be a person-to-person transfer only.
(c) Nothing in this section prohibits any holder of a distilled
spirits manufacturer's, manufacturer's agent's, California winegrower'
s agent, rectifier's, or wholesaler's license, or any officer,
employee, or representative of any such licensee, from acting as a
trustee for any off-sale general licensee in any bankruptcy or other
proceedings for the benefit of the creditors of the off-sale general
licensee.
(d) Nothing in this section shall alter, change, or otherwise
affect, retroactively or prospectively, any of the rights or
privileges granted to a winegrower or brandy manufacturer by Section
23362, or by any other provision of this division.
(e) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
25502.1. (a) Notwithstanding Section 25502, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated off-sale retailers
selling the products produced, distributed or imported by a nonretail
industry member in response to a direct inquiry from a consumer
received by telephone, by mail, by electronic inquiry or in person
does not constitute a thing of value or prohibited inducement to the
listed off-sale retailer, provided all of the following conditions
are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the off-sale retailers in
the direct communication.
(3) The listing does not refer only to one off-sale retailer or
only to off-sale retail establishments controlled directly or
indirectly by the same off-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages, or an
agent of those entities, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25503. No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall do any of the following:
(a) Directly or indirectly, deliver the possession of any
alcoholic beverages to any on- or off-sale licensee under an
agreement of consignment whereby title to the alcoholic beverages is
retained by the seller or whereby the licensee receiving the
alcoholic beverages has the right at any time prior to sale to
relinquish possession to or return them to the original seller.
(b) Directly or indirectly, give any licensee or any person any
alcoholic beverages as free goods as a part of any sale or
transaction involving alcoholic beverages.
(c) Give secret rebates or make any secret concessions to any
licensee or the employees or agents of any licensee, and no licensee
shall request or knowingly accept from another licensee secret
rebates or secret concessions.
(d) Give or furnish, directly or indirectly, to any employee of
any holder of a retail on-sale or off-sale license only anything of
value for the purpose or with the intent to solicit, acquire, or
obtain the help or assistance of the employee to encourage or promote
either the purchase or the sale of the alcoholic beverage sold or
manufactured by the licensee giving or furnishing anything of value,
and any employee who accepts or acquires anything of value contrary
to the provisions of this subdivision is guilty of a misdemeanor.
(e) Willfully or knowingly discriminate, in the same trading area,
either directly or indirectly, in the price of any brand of
distilled spirits sold to different retail licensees purchasing under
like terms and conditions.
(f) Pay, credit, or compensate a retailer or retailers for
advertising, display, or distribution service in connection with the
advertising and sale of distilled spirits.
(g) Furnish, give, lend, or rent, directly or indirectly, to any
person any decorations, paintings, or signs, other than signs
advertising their own products as permitted by Section 25611.1.
(h) Pay money or give or furnish anything of value for the
privilege of placing or painting a sign or advertisement, or window
display, on or in any premises selling alcoholic beverages at retail.
25503.1. (a) Anything in this division to the contrary
notwithstanding, any manufacturer, winegrower, manufacturer's agent,
rectifier, distiller, bottler, importer, or wholesaler, or any
officer, director, or agent of any such person is authorized:
(1) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to install, service and set up
window displays, promotional materials, and temporary floor displays
holding merchandise in the premises of an off-sale retail licensee.
(2) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to furnish, give, lend, rent or
sell decorations and decorative materials, including holiday
decorations, paintings and pictures, to an off-sale retail licensee
for use in the windows and elsewhere in the interior of the retail
premises in connection with advertising and promotional material or
displays in the premises of such retailer; provided, that the
advertising and promotional material shall have no intrinsic value
other than as advertising and that the total original cost of all
such decorations and decorative materials, including holiday
decorations, paintings and pictures furnished by any licensee and in
use at any one time in any one off-sale retail premise shall not
exceed the amount established by rules of the department; and
provided, that the licensee or any officer, director or agent of such
licensee shall not directly or indirectly pay or credit the retailer
for the display of such decorations or decorative materials or for
any expense incidental to their operation.
(3) To furnish, give, lend, rent or sell to an off-sale retailer
who sells the alcoholic beverages of such licensee, newspaper cuts,
mats, or engraved blocks for use in the retailer's advertisements
relating to such alcoholic beverages.
(b) Anything in this chapter to the contrary notwithstanding, any
holder of a wholesaler's license may manufacture, and distribute,
sell, or rent any lawful product to any person engaged in operating,
owning, or maintaining any retail premises where alcoholic beverages
are sold; provided, however, that such products are sold or rented by
the holder of the wholesaler's license to the licensee at a price
not less than the current market price for such product; and
provided, further, that the manufacturer and importer of alcoholic
beverages shall be controlled by the other applicable provisions of
this division.
25503.2. (a) Notwithstanding any other provision in this division,
any winegrower, wine blender, beer manufacturer, brandy manufacturer,
distilled spirits manufacturer, distilled spirits manufacturer's
agent, rectifier, distilled spirits wholesaler, and beer and wine
wholesaler, or the authorized agent or agents or representative or
representatives of that licensee, may perform any of the following
services for off-sale retail licensees at or on the premises of the
off-sale retail licensee with the retail licensee's permission:
(1) Stack or arrange cases of the brand or brands of alcoholic
beverages owned or sold by the licensee performing the service in the
storeroom or warehouse where the off-sale retail licensee stores the
brand or brands.
(2) Rotate the brand or brands owned or sold by the licensee
performing the service on shelves and in refrigerated boxes, and
rearrange bottles or packages of the brand or brands by moving the
bottles or packages horizontally or vertically from shelf to shelf in
the space and shelves allocated to the brand or brands. This
paragraph does not permit the removal of any brand or brands of
alcoholic beverages, except beer, which are owned or sold by the
licensee performing the service, from the storeroom or other place
belonging to an off-sale retailer for the purpose of replacing
alcoholic beverages on or restocking shelves or refrigerated boxes.
(3) Take an inventory of an off-sale retailer's stock of a brand
or brands of alcoholic beverages which are owned or sold by the
licensee performing the service and which are in the stockroom or
other place belonging to the off-sale retailer.
(4) Service the brand or brands of alcoholic beverages owned or
sold by the licensee performing the service which are on shelves,
fixtures, or other display pieces at the off-sale retail premises,
including, but not limited to dusting bottles and shelves and
refrigerated boxes allocated to the brand or brands at the retail
premises. The licensees authorized to render services by this section
and their agents and representatives may not price-mark individual
containers of the brand of alcoholic beverages, except beer, owned or
sold by the licensee performing the service, except for individual
bottles used on floor displays.
(5) Rotate or rearrange the brand or brands of wine or distilled
spirits owned or sold by the licensee on, in, or among permanent
shelves, permanent fixtures, refrigerated boxes, or floor or other
displays or display pieces; stock the brand or brands onto or into
floor or other displays or display pieces; and stock the brand or
brands onto or into permanent shelves, permanent fixtures, or
refrigerated boxes for the sole purposes of the introduction of new
products, the resetting or rearrangement of existing products, or the
setting or arranging of new stores. Incidental touching or
rearrangement of the brand or brands of another licensee by a
licensee performing any of the services authorized by this paragraph
for the sole purpose of accessing permanent shelves, permanent
fixtures, and other spaces allocated to the licensee performing the
service shall not be deemed to be a violation of any provision of
this division provided the other licensee's brands are not removed
from spaces allocated to that licensee. Nothing in this paragraph
permits stocking permanent shelves, permanent fixtures, or
refrigerated boxes for regular inventory replenishment.
(b) Notwithstanding any other provision in this division, any beer
manufacturer or beer and wine wholesaler, or the authorized agent or
agents or representative or representatives of that licensee, may
perform any of the services specified in paragraphs (1) to (4),
inclusive, of subdivision (a), with respect to beer, for on-sale
retail licensees at or on the premises of the on-sale retail licensee
with the retail licensee's permission.
25503.3. (a) Anything in this division to the contrary
notwithstanding, any winegrower, beer manufacturer, brandy
manufacturer, distilled spirits manufacturer, or distilled spirits
manufacturer's agent may, at parties held, or in hospitality rooms
maintained, in conjunction with meetings, conventions, or combined
conventions and trade shows of bona fide trade associations of retail
licensees, serve and provide free of charge, food, alcoholic and
nonalcoholic beverages, entertainment, and recreational activities to
the retail licensees and their guests while attending those
meetings, conventions, or combined conventions and trade shows.
Additionally, any person specified in this section may pay a fee to
the bona fide trade association for the privilege of providing food,
alcoholic or nonalcoholic beverages, entertainment, or recreational
activities, or for display booth space, as long as the fee is at the
same rate charged all suppliers.
(b) Any person specified in this section may advertise in any
regular publication of a bona fide trade association the members of
which are food or alcoholic beverage retailers, if that publication
does not advertise on behalf of, or directly benefit, any individual
retail licensee. The advertising fee paid to the bona fide trade
association or its agent shall be at the same rate charged all
advertisers.
(c) Any person specified in this section may pay membership dues
to a bona fide trade association as long as the dues are at the same
rate charged all nonretail members of the association.
25503.4. (a) Notwithstanding any other provision of this division,
a winegrower, California winegrower's agent, wine importer, or any
director, partner, officer, agent, or representative of that person,
may conduct or participate in, and serve wine at, an instructional
event for consumers held at a retailer's premises featuring wines
produced by or for the winegrower or, imported by the wine importer,
subject to the following conditions:
(1) No premium, gift, free goods, or other thing of value may be
given away in connection with the instructional event by the
winegrower, California winegrower's agent, wine importer, or
retailer, except as authorized by this division.
(2) No alcoholic beverages may be given away in connection with
the instructional event except that minimal amounts of wine, taken
from barrels or from tanks, may be supplied and provided as samples
at the instructional event. A person authorized by subdivision (a)
may also provide no more than three one-ounce tastes of wine per
consumer at the instructional event from bottles of wine provided by
the authorized person. For purposes of this section, minimal amounts
of the samples or tastes provided at the instructional event do not
constitute a thing of value. Following the instructional event, any
unused wine provided by the authorized person shall be removed from
the retailer's premises by the authorized person.
(3) No alcoholic beverages may be sold at the instructional event,
except that orders for the sale of wine may be accepted by the
winegrower if the sales transaction is completed at the winegrower's
premises.
(b) Notwithstanding any other provision of this division, a
winegrower, California winegrower's agent, or wine importer, in
advance of an instructional event for consumers being held at a
retailer's premises, may list in an advertisement the name and
address of the retailer, the names of the wines being featured at the
instructional event, and the time, date, and location of, and other
information about, the instructional event, provided:
(1) The advertisement does not also contain the retail price of
the wines.
(2) The listing of the retailer's name and address is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole. Pictures
or illustrations of the retailer's premises and laudatory references
to the retailer in these advertisements are not hereby authorized.
(c) Notwithstanding any other provision of this division, the name
and address of a winegrower, wine importer, or winegrower's agent
licensee, the brand names of wine being featured, and the time, date,
location, and other identifying information of a wine promotional
lecture at retail premises may be listed in advance of the event in
an advertisement of the off-sale or on-sale retail licensee.
(d) Nothing in this section authorizes a winegrower, wine
importer, or winegrower's agent licensee to share in the costs, if
any, of the retailer licensee's advertisement.
(e) Nothing in this section authorizes any person to consume any
alcoholic beverage on any premises licensed with an off-sale retail
license.
25503.5. (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including but not limited
to, the history, nature, values, and characteristics of wine or beer,
the use of wine lists, and the methods of presenting and serving
wine or beer. The winegrower, beer manufacturer, or beer and wine
wholesaler may furnish wine or beer and the equipment, materials and
utensils that may be required for use in connection with the
instruction or courses of instruction.
(b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
(c) A winegrower or distilled spirits manufacturer, or its
authorized agent may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
product and the methods of presenting and serving the product. The
instruction of consumers may include the furnishing of not more than
three tastings to any individual in one day. A single tasting of
distilled spirits may not exceed one-fourth of one ounce and a single
tasting of wine may not exceed one ounce. The winegrower or
distilled spirits manufacturer, or its authorized agent shall remove
any unfinished alcoholic beverages that he or she provided following
the instruction. Nothing in this subdivision shall limit the giving
away of samples pursuant to subdivision (a) of Section 23386.
(d) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer or of a licensee, including an on-sale retail licensee, or
elsewhere.
25503.55. (a) A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may instruct
consumers or conduct courses of instruction for consumers, on the
subject of beer, including, but not limited to, the history, nature,
values, and characteristics of beer, and the methods of presenting
and serving beer. A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may conduct
such instructions at the premises of a retail on-sale licensee
authorized to sell beer.
(b) The instruction of consumers regarding beer may include the
furnishing of tastes of beer to an individual of legal drinking age.
Beer tastes at any individual course of instruction shall not exceed
eight ounces of beer per person, per day. The tasting portion of a
course of instruction shall not exceed one hour at any individual
licensed retail premises. Tastes of beer may not be served to a
consumer in their original container but must be served in an
individual glass or cup.
(c) All tastes of beer served to a consumer as authorized in
subdivision (b) shall be served only as part of the course of
instruction and shall be served to the consumer by an employee of the
on-sale retail licensee.
(d) A beer manufacturer, a licensed beer and wine importer
general, or a licensed beer and wine wholesaler may not hold more
than six courses of instruction per calendar year at any individual
on-sale retail licensed premises if the courses of instruction
includes consumer tastes of beer.
(e) (1) A representative of a beer manufacturer, a licensed beer
and wine importer general, or a licensed beer and wine wholesaler,
except as provided in paragraph (2), must be present and authorize
any tastes of beer conducted at an on-sale retail licensed premises
pursuant to this section. The representative shall be responsible for
paying the retailer for the tastes of beer served at any course of
instruction. Such payment shall not exceed the retail price of the
beer.
(2) For purposes of this subdivision, a licensed beer and wine
wholesaler shall not be a representative of a beer manufacturer or a
licensed beer and wine importer general.
(f) No on-sale retail licensee shall require one or more courses
of instruction pursuant to this section as a requirement to carry a
brand or brands of any beer manufacturer, licensed beer and wine
importer general, or licensed beer and wine wholesaler.
(g) No premium, gift, free goods, or other thing of value may be
given away in connection with an authorized course of instruction
that includes beer tastes, except as authorized by this division.
Failure to comply with the provisions of this section shall be
presumed to be a violation of Section 25500.
(h) A retail licensee may advertise the instructional tasting
event using interior signs visible only within the establishment.
(i) (1) A beer manufacturer, a licensed beer and wine importer
general, and a licensed beer and wine wholesaler shall maintain an
individual record of each course of instruction involving tastes of
beer for three years.
(2) Records shall include the date of the tasting, the name and
address of the retail licensee, and the brand, quantity, and payment
made for the beer furnished by the beer manufacturer, the licensed
beer and wine importer general, or the licensed beer and wine
wholesaler.
25503.56. (a) An authorized licensee, or a designated
representative of an authorized licensee acting as an agent of the
authorized licensee, may conduct, on the area specified by paragraph
(1) of subdivision (c) of Section 23396.6, an instructional tasting
event for consumers on the subject of wine, beer, or distilled
spirits, including, but not limited to, the history, nature, values,
and characteristics of wine, beer, or distilled spirits, and the
methods of presenting and serving wine, beer, or distilled spirits.
(1) (A) Except as provided in subparagraph (B), the instructional
tasting event may include the serving of alcoholic beverages to an
attendee of legal drinking age. An instructional tasting event on the
subject of wine or distilled spirits shall be limited to not more
than three tastings per person per day. A single tasting of distilled
spirits shall not exceed one-fourth of one ounce and a single
tasting of wine shall not exceed one ounce. An instructional tasting
event on the subject of beer shall be limited to not more than the
tasting of eight ounces of beer per person per day. The wine, beer,
or distilled spirits tasted shall be limited to the products that are
authorized to be sold by the authorized licensee and the
licenseholder under its off-sale license.
(B) A beer and wine wholesaler may conduct an instructional
tasting event but shall not serve tastes of beer unless the beer and
wine wholesaler also holds a beer manufacturer's license, an
out-of-state beer manufacturer's certificate, or more than six
distilled spirits wholesaler's licenses.
(C) No charge of any sort shall be made for the tastings.Except
for the purposes of Section 23985, the serving of tastings shall not
be deemed a sale of products pursuant to this division.
(D) A person under 21 years of age shall not serve wine, beer, or
distilled spirits at the instructional tasting event.
(E) All tastes shall be served by an employee of the authorized
licensee, the designated representative of the authorized licensee,
or by an employee of the designated representative of the authorized
licensee.
(F) An authorized licensee, or a designated representative of an
authorized licensee, shall either supply the wine or distilled
spirits to be tasted during the instructional tasting event or
purchase the wine or distilled spirits from the licenseholder at the
original invoiced cost. An authorized licensee, or a designated
representative of an authorized licensee, shall purchase beer to be
tasted during the instructional tasting event from the licenseholder
at the original invoiced cost.
(G) Any unused wine, beer, or distilled spirits remaining from the
tasting shall be removed from the off-sale licensed premises by the
authorized licensee or its designated representative.
(2) If the instructional tasting event is conducted by a
designated representative of an authorized licensee, the designated
representative shall not be owned, controlled, or employed directly
or indirectly by the licenseholder on whose premises the
instructional tasting event is held.
(3) An instructional tasting event shall be limited to a single
type of alcoholic beverage. For purposes of this paragraph, "type of
alcoholic beverage" means distilled spirits, wine, or beer.
(b) For purposes of this section:
(1) "Authorized licensee" means a winegrower, California
winegrower's agent, beer and wine importer general, beer and wine
wholesaler, wine rectifier, distilled spirits manufacturer, distilled
spirits manufacturer's agent, distilled spirits importer general,
distilled spirits rectifier, distilled spirits general rectifier,
rectifier, out-of-state distilled spirits shipper's certificate
holder, distilled spirits wholesaler, brandy manufacturer, brandy
importer, California brandy wholesaler, beer manufacturer, or an
out-of-state beer manufacturer certificate holder. "Authorized
licensee" shall not include an entity that solely holds a combination
of a beer and wine wholesale license and an off-sale beer and wine
retail license or holds those licences solely in combination with any
license not listed in this paragraph.
(2) "Licenseholder" means an off-sale retail licensee issued an
instructional tasting license pursuant to Section 23396.6.
(3) "Location" means the total contiguous area encompassed by the
off-sale and on-sale licenses.
(c) Notwithstanding subparagraph (E) of paragraph (1) of
subdivision (a), a licenseholder may conduct an instructional tasting
event that includes the serving of tastings only when an authorized
licensee or its designated representative are unable to conduct an
instructional tasting event previously advertised pursuant to this
section and scheduled by the authorized licensee or its designated
representative, provided the licenseholder supplies the wine, beer,
or distilled spirits used in the instructional tasting event and
provides or pays for a person to serve the wine, beer, or distilled
spirits. Instructional tasting events conducted by a licenseholder
pursuant to this subdivision are subject to the provisions of this
section and Section 23396.6.
(d) No more than one authorized licensee, or its designated
representative, may conduct an instructional tasting event that
includes the serving of tastes of wine, beer, or distilled spirits at
any one individual licensed premises of a licenseholder per day.
(e) A licenseholder that also holds an on-sale beer and wine
license, an on-sale beer and wine eating place license, or an on-sale
general license shall not allow an authorized licensee, or its
designated representative, to conduct an instructional tasting event
on the same day and at the same location as any instructional tasting
event held pursuant to subdivision (b) of Section 23386, Section
25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f) A licenseholder shall not condition the allowance of an
instructional tasting event upon the use of a particular designated
representative of an authorized licensee.
(g) (1) In addition to any point of sale advertising or other
advertising items allowed under this division or under rules of the
department, an authorized licensee or its designated representative,
in his or her absolute discretion and with permission of the
licenseholder upon whose premises the instructional tasting event
will be held, may list in an advertisement to the general public the
name and address of the licenseholder, the names of the alcoholic
beverages being featured at the instructional tasting event, and the
time, date, and location of, and other information about, the
instructional tasting event, provided that both of the following
apply:
(A) The advertisement does not contain the retail price of the
alcoholic beverages.
(B) The listing of the licenseholder's name and address is the
only reference to the licenseholder in the advertisement.
(2) Pictures or illustrations of the licenseholder's licensed
premises and laudatory references to the licenseholder in these
advertisements are not authorized. Nothing in this section shall
authorize an authorized licensee or its designated representative to
share in the costs, if any, of the licenseholder.
(h) A licenseholder may advertise an instructional tasting event
to the general public. The costs of this advertising shall be borne
solely by the licenseholder. Advertising permitted by this
subdivision includes flyers, newspaper ads, Internet communications,
and interior signage.
(i) Except as otherwise provided in this division or rules of the
department, no premium, gift, free goods, or other thing of value
shall be given away by an authorized licensee or its designated
representative in connection with an instructional tasting event that
includes tastings of an alcoholic beverage.
(j) The licenseholder or the authorized licensee or its designated
representative are authorized to perform set up and break down of
the instructional tasting event area. The authorized licensee or its
designated representative may provide, free of charge to the
licenseholder, the equipment, materials, and utensils as may be
required for use in connection with the instructional tasting event.
(k) (1) A licenseholder shall not require, or enter into a
collusive scheme with an authorized licensee or its designated
representative to conduct one or more instructional tasting events as
a condition of the licenseholder carrying or continuing to carry a
brand or brands of the authorized licensee or as a condition for
display or other merchandising plan which is based on an agreement to
provide shelf space. An authorized licensee or its designated
representative shall not require any preferential treatment or
benefit from, or enter into a collusive scheme with, a licenseholder
as a condition of conducting one or more instructional tasting
events, require a licenseholder to carry or continue to carry a brand
or brands of the authorized licensee as a condition of conducting
one or more instructional tasting events, or condition display or
other merchandising plans that are based on agreements for the
provision of shelf space on the conducting of one or more
instructional tasting events. Any agreement, whether written or oral,
entered into by and between a licenseholder and an authorized
licensee or its designated representative that precludes the
conducting of instructional tasting events on the premises of the
licenseholder by any other authorized licensee is prohibited. A
licenseholder or authorized licensee, or its designated
representative, shall not use an instructional tasting event to
circumvent any other requirements of this division.
(2) In addition to any other remedies available under this
division, upon a finding by the department of a failure to comply
with this subdivision, the department shall suspend the instructional
tasting license of the licenseholder and the privilege of the
authorized licensee to conduct instructional events for not less than
six months but for no more than one year.
(l) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exception
established by this section to the general prohibition against tied
interests must be limited to its express terms so as not to undermine
the general prohibition, and intends that this section be construed
accordingly.
25503.6. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a distilled
spirits rectifier, a distilled spirits manufacturer, or distilled
spirits manufacturer's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee subject to all of
the following conditions:
(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
(B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
(D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
(E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.
(H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
(I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located within San
Bernardino County.
(J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
(K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within the City of Carson in Los Angeles County.
(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park.
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.7. A winegrower, beer manufacturer, or beer and wine
wholesaler may serve food and alcoholic beverages to any person,
including a person licensed under this division and his or her
employees and representatives, who is attending a meeting held upon
or who is visiting the premises of the winegrower, beer manufacturer,
or beer and wine wholesaler.
25503.8. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a distilled spirits rectifier, a
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent may purchase advertising space and time from, or on behalf of,
an on-sale retail licensee if all of the following conditions are
met:
(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
(B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
(C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
(D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance
by the public on a ticketed basis only, with a fixed seating
capacity in excess of 6,000 seats, located in Los Angeles County
within the area subject to the Los Angeles Sports and Entertainment
District Specific Plan adopted by the City of Los Angeles pursuant to
ordinance number 174225, as approved on September 6, 2001.
(F) A fully enclosed arena with a fixed seating capacity in excess
of 15,000 seats located in Santa Clara County. With respect to the
arena described in this subparagraph, advertising space may also be
purchased from, or on behalf of, a lessee or manager of the arena.
(2) The advertising space or time is purchased only in connection
with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
(B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
(C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
(D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
(E) In the case of the fully enclosed theater described in
subparagraph (E) of paragraph (1) of subdivision (a), in connection
with events conducted at the theater.
(F) In the case of a fully enclosed arena described in
subparagraph (F) of paragraph (1) of subdivision (a), interior
advertising in connection with events conducted within the arena.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Any purchase of advertising space or time conducted pursuant
to subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the California winegrower's agent, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent, and the
on-sale licensee, which contract shall not in any way involve the
holder of a wholesaler's license.
(c) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent, who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (b) shall be guilty of a
misdemeanor and shall be punished by imprisonment in the county jail
not exceeding six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces, directly or indirectly, a holder of a
wholesaler's license to solicit a beer manufacturer, distilled
spirits manufacturer, or distilled spirits manufacturer's agent,
holder of a winegrower's license, or California winegrower's agent to
purchase advertising space or time pursuant to subdivision (a) or
(b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.85. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, distilled spirits manufacturer, distilled
spirits manufacturer's agent, holder of a winegrower's license, or
California winegrower's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee, that shall be
limited to small notices, plaques, or signs that portray partial or
full sponsorship or funding of educational programs, special
fundraising and promotional events, improvements in capital projects,
and the development of exhibits or facilities, if all of the
following conditions are met:
(1) The on-sale licensee is a zoo or aquarium operated by a
nonprofit organization that is accredited by the American Association
of Zoological Parks and Aquariums.
(2) The advertising space or time is purchased only in connection
with the sponsorship of activities that are held on the premises or
grounds owned, leased, or controlled by the on-sale licensee.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Nothing in this section shall be construed to permit the
purchase of billboards or bench advertisements as "advertising space."
(c) Any purchase of advertising space or time pursuant to
subdivision (a) shall be accomplished by a written contract entered
into by the beer manufacturer, the distilled spirits manufacturer,
the distilled spirits manufacturer's agent, a holder of the
winegrower's license, or the California winegrower's agent, and the
on-sale licensee. That contract shall not in any way involve the
holder of a wholesaler's license.
(d) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (c) is guilty of a misdemeanor
and shall be punished by imprisonment in the county jail for a period
not to exceed six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(e) Any on-sale licensee who, directly or indirectly, solicits or
coerces a holder of a wholesaler's license to solicit a beer
manufacturer, distilled spirits manufacturer, distilled spirits
manufacturer's agent, holder of a winegrower's license, or a
California winegrower's agent to purchase advertising space or time
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(f) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.9. (a) Nothing in this division prohibits a winegrower or a
beer and wine wholesaler that also holds an off-sale beer and wine
retail license and only sells wine from giving or selling wine, a
beer manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or an importer general
licensee from giving or selling beer, wine, or distilled spirits at
prices other than those contained in schedules filed with the
department, to any of the following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g,
23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation
Code. Wine, beer, and distilled spirits given or sold by a
winegrower, beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, or importer general licensee
pursuant to this subdivision may be furnished only in connection with
public service or fundraising activities including picnics, parades,
fairs, amateur sporting events, agricultural exhibitions, or similar
events.
(b) Nothing in this division prohibits a winegrower or a beer and
wine wholesaler that also holds an off-sale beer and wine retail
license and only sells wine from giving or selling wine, a beer
manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or a beer and wine
wholesaler that also holds an importer's license from giving or
selling beer, wine, or distilled spirits at prices other than those
contained in schedules filed with the department, to any of the
following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the
Revenue and Taxation Code. Wine, beer, and distilled spirits given or
sold by a winegrower, beer manufacturer, distilled spirits
manufacturer, distilled spirits manufacturer's agent, or licensed
importer pursuant to this subdivision may be furnished only in
connection with public service or fundraising activities including
picnics, parades, fairs, amateur sporting events, agricultural
exhibitions, or similar events.
25503.10. (a) Notwithstanding any other provision of this division,
the department may approve a lease or sublease, or amendments to
such lease or sublease, where a manufacturer, manufacturer's agent,
winegrower, California winegrower's agent, rectifier, importer, or
wholesaler is the lessor and a retailer is the lessee when each of
the following conditions are incorporated in the lease:
(1) The lease is confined to real property and improvements
thereon which have become part of the real property.
(2) No trade fixtures or other personal property are included in
the lease.
(3) The rent to be paid by the lessee is not less than the current
value for such a lease, which the lessor shall establish by
submission of competent proof to the department.
(4) The rent is due and payable monthly beginning with the first
month of occupancy.
(5) Any money received by the lessor from the lessee when the rent
is due shall be first applied by the lessor to the payment of the
rent.
(6) The lessee shall purchase from the lessor no more than 10
perce
25500. (a) No manufacturer, winegrower, manufacturer's agent,
rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person shall:
(1) Hold the ownership, directly or indirectly, of any interest in
any on-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any on-sale premises where
alcoholic beverages are sold for consumption on the premises.
(3) Own any interest, directly or indirectly, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in or of any premises operated or maintained under any on-sale
license for the sale of alcoholic beverages for consumption on the
premises where sold; or own any interest, directly or indirectly, in
realty acquired after June 13, 1935, upon which on-sale premises are
maintained unless the holding of the interest is permitted in
accordance with rules of the department.
(b) This section does not apply to the holding by one person of a
wholesaler's license and an on-sale license in counties not to exceed
15,000 population.
(c) This section does not apply to the financial or representative
relationship between a manufacturer, winegrower, manufacturer's
agent, rectifier, California winegrower's agent, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of such
person, and a person holding only one of the following types of
licenses:
(1) On-sale general license for a bona fide club.
(2) Club license issued under Article 4 (commencing with Section
23425) of Chapter 3.
(3) Veterans' club license issued under Article 5 (commencing with
Section 23450) of Chapter 3.
(4) On-sale license for boats, trains, sleeping cars, or airplanes
where the alcoholic beverages produced or sold by the manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, bottler, importer, or wholesaler or any officer, director, or
agent of the person are not sold, furnished, or given, directly or
indirectly to the on-sale licensee.
(d) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
(e) Notwithstanding any other provision of this division or
regulation of the department, this section does not apply to an
employee of a licensee referred to in subdivision (a) who is the
spouse of an on-sale licensee, so long as the on-sale licensee does
not purchase, offer for sale, or promote, regardless of source, any
of the brands of alcoholic beverages that are produced, bottled,
processed, imported, rectified, distributed, represented, or sold by
any licensee referred to in subdivision (a) that employs the spouse
of the on-sale licensee.
(f) Nothing in this division prohibits the holder of any retail
on-sale or off-sale license from purchasing, for fair consideration,
advertising in any publication published by any manufacturer,
winegrower, manufacturer's agent, rectifier, California winegrower's
agent, distiller, bottler, importer, or wholesaler, or any person who
directly or indirectly holds the ownership of any interest in the
premises of the retail licensee.
25500.1. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling wine, brandy, or both wine and brandy and operating and
licensed as bona fide public eating places pursuant to Section 23038
selling the wine, brandy, or both wine and brandy produced,
distributed, imported, or both distributed and imported by a
nonretail industry member in response to a direct inquiry from a
consumer received by telephone, by mail, by electronic inquiry or in
person does not constitute a thing of value or prohibited inducement
to the listed on-sale retailer, provided:
(1) The listing does not also contain the retail price of the
product, and
(2) The listing is the only reference to the on-sale retailers in
the direct communication, and
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer, and
(4) The listing is made by, produced by, or paid for, or any
combination thereof, exclusively by the nonretail industry member
making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, winegrower, distiller of wine, brandy,
or both, regardless of any other licenses held directly or indirectly
by such person. Except as specifically provided above, any payment
for, making or production, either directly or indirectly, listing the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of on-sale retailers otherwise authorized by this
section by a wholesaler or by a wholesaler that also holds an
importer's license shall constitute the furnishing of a thing of
value or inducement to the listed on-sale retailers in violation of
this division.
25500.2. (a) Notwithstanding Section 25500, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated on-sale retailers
selling beer, wine, or distilled spirits, and operating and licensed
as bona fide public eating places pursuant to Section 23038 selling
the beer, wine, or distilled spirits produced, distributed, or
imported by a nonretail industry member in response to a direct
inquiry from a consumer received by telephone, by mail, by electronic
inquiry, or in person does not constitute a thing of value or
prohibited inducement to the listed on-sale retailer, provided all of
the following conditions are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the on-sale retailers in
the direct communication.
(3) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages or an
agent of that entity, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25501. No manufacturer, bottler, importer, or wholesaler of
products of the brewing industry shall:
(a) Furnish, give, rent, lend, or sell, directly or indirectly,
any equipment, fixtures, or supplies, other than alcoholic beverages,
to any person engaged in operating, owning, or maintaining any
on-sale premises where alcoholic beverages are sold for consumption
on the premises. This subdivision shall not prohibit the furnishing
of draft beer pumps and iceboxes to those persons who operate on a
temporary basis. Notwithstanding any other provision of this
division, a manufacturer, bottler, importer, or wholesaler of
products of the brewing industry may furnish, give, rent, lend, or
sell, directly or indirectly, paper beverage coasters less than 25
square inches in size and having a value of less than five cents
($0.05) per coaster or brand-identified acrylic table tent holders to
any person engaged in operating, owning, or maintaining any on-sale
premises where alcoholic beverages are sold for consumption on the
premises.
(b) Directly or indirectly, hold the ownership or any interest, by
stock ownership or otherwise, in any firm, corporation, partnership,
or business, furnishing, supplying, or dealing in any office, store,
or restaurant furnishings or equipment, other than signs for
interior use or supplies authorized to be given under this division
to any person engaged in operating, owning, or maintaining any
on-sale premises.
(c) Notwithstanding any provision of this section, the holder of a
beer and wine wholesaler's license may manufacture, distribute, and
sell any lawful product to any person engaged in operating, owning,
or maintaining any on-sale premises where alcoholic beverages are
sold for consumption on the premises, provided that these products
are sold by the holder of the beer and wine wholesaler's license to
the on-sale licensee at a price not less than the current market
price for the product.
25502. (a) No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall, except as authorized by this division:
(1) Hold the ownership, directly or indirectly, of any interest in
an off-sale license.
(2) Furnish, give, or lend any money or other thing of value,
directly or indirectly, to, or guarantee the repayment of any loan or
the fulfillment of any financial obligation of, any person engaged
in operating, owning, or maintaining any off-sale licensed premises.
(3) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, or trusteeship, in the business,
furniture, fixtures, refrigeration equipment, signs, except signs for
interior use mentioned in subdivision (g) of Section 25503, or lease
in premises licensed with an off-sale license.
(4) Own or control any interest, directly or indirectly, by stock
ownership, interlocking directors, trusteeship, or mortgage of the
realty upon which an off-sale licensed premises is maintained.
(b) Any wholesaler in counties not to exceed 15,000 population
who holds both a beer and wine wholesaler's license and an off-sale
general license and who held such licenses prior to September 19,
1947, may continue to hold such licenses but may not transfer the
beer and wine wholesaler's license to another individual,
individuals, partnership, corporation or other legal entity. Where
the off-sale general license is transferred to an individual,
individuals, partnership, corporation or other legal entity, the
transfer shall be a person-to-person transfer only.
(c) Nothing in this section prohibits any holder of a distilled
spirits manufacturer's, manufacturer's agent's, California winegrower'
s agent, rectifier's, or wholesaler's license, or any officer,
employee, or representative of any such licensee, from acting as a
trustee for any off-sale general licensee in any bankruptcy or other
proceedings for the benefit of the creditors of the off-sale general
licensee.
(d) Nothing in this section shall alter, change, or otherwise
affect, retroactively or prospectively, any of the rights or
privileges granted to a winegrower or brandy manufacturer by Section
23362, or by any other provision of this division.
(e) This section does not apply to an employee of a licensee
referred to in subdivision (a) who is a nonadministrative and
nonsupervisorial employee.
25502.1. (a) Notwithstanding Section 25502, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated off-sale retailers
selling the products produced, distributed or imported by a nonretail
industry member in response to a direct inquiry from a consumer
received by telephone, by mail, by electronic inquiry or in person
does not constitute a thing of value or prohibited inducement to the
listed off-sale retailer, provided all of the following conditions
are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the off-sale retailers in
the direct communication.
(3) The listing does not refer only to one off-sale retailer or
only to off-sale retail establishments controlled directly or
indirectly by the same off-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages, or an
agent of those entities, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
25503. No manufacturer, winegrower, manufacturer's agent,
California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler, or any officer, director, or agent of any
such person, shall do any of the following:
(a) Directly or indirectly, deliver the possession of any
alcoholic beverages to any on- or off-sale licensee under an
agreement of consignment whereby title to the alcoholic beverages is
retained by the seller or whereby the licensee receiving the
alcoholic beverages has the right at any time prior to sale to
relinquish possession to or return them to the original seller.
(b) Directly or indirectly, give any licensee or any person any
alcoholic beverages as free goods as a part of any sale or
transaction involving alcoholic beverages.
(c) Give secret rebates or make any secret concessions to any
licensee or the employees or agents of any licensee, and no licensee
shall request or knowingly accept from another licensee secret
rebates or secret concessions.
(d) Give or furnish, directly or indirectly, to any employee of
any holder of a retail on-sale or off-sale license only anything of
value for the purpose or with the intent to solicit, acquire, or
obtain the help or assistance of the employee to encourage or promote
either the purchase or the sale of the alcoholic beverage sold or
manufactured by the licensee giving or furnishing anything of value,
and any employee who accepts or acquires anything of value contrary
to the provisions of this subdivision is guilty of a misdemeanor.
(e) Willfully or knowingly discriminate, in the same trading area,
either directly or indirectly, in the price of any brand of
distilled spirits sold to different retail licensees purchasing under
like terms and conditions.
(f) Pay, credit, or compensate a retailer or retailers for
advertising, display, or distribution service in connection with the
advertising and sale of distilled spirits.
(g) Furnish, give, lend, or rent, directly or indirectly, to any
person any decorations, paintings, or signs, other than signs
advertising their own products as permitted by Section 25611.1.
(h) Pay money or give or furnish anything of value for the
privilege of placing or painting a sign or advertisement, or window
display, on or in any premises selling alcoholic beverages at retail.
25503.1. (a) Anything in this division to the contrary
notwithstanding, any manufacturer, winegrower, manufacturer's agent,
rectifier, distiller, bottler, importer, or wholesaler, or any
officer, director, or agent of any such person is authorized:
(1) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to install, service and set up
window displays, promotional materials, and temporary floor displays
holding merchandise in the premises of an off-sale retail licensee.
(2) Only in connection with alcoholic beverages manufactured,
produced or sold by such licensee, to furnish, give, lend, rent or
sell decorations and decorative materials, including holiday
decorations, paintings and pictures, to an off-sale retail licensee
for use in the windows and elsewhere in the interior of the retail
premises in connection with advertising and promotional material or
displays in the premises of such retailer; provided, that the
advertising and promotional material shall have no intrinsic value
other than as advertising and that the total original cost of all
such decorations and decorative materials, including holiday
decorations, paintings and pictures furnished by any licensee and in
use at any one time in any one off-sale retail premise shall not
exceed the amount established by rules of the department; and
provided, that the licensee or any officer, director or agent of such
licensee shall not directly or indirectly pay or credit the retailer
for the display of such decorations or decorative materials or for
any expense incidental to their operation.
(3) To furnish, give, lend, rent or sell to an off-sale retailer
who sells the alcoholic beverages of such licensee, newspaper cuts,
mats, or engraved blocks for use in the retailer's advertisements
relating to such alcoholic beverages.
(b) Anything in this chapter to the contrary notwithstanding, any
holder of a wholesaler's license may manufacture, and distribute,
sell, or rent any lawful product to any person engaged in operating,
owning, or maintaining any retail premises where alcoholic beverages
are sold; provided, however, that such products are sold or rented by
the holder of the wholesaler's license to the licensee at a price
not less than the current market price for such product; and
provided, further, that the manufacturer and importer of alcoholic
beverages shall be controlled by the other applicable provisions of
this division.
25503.2. (a) Notwithstanding any other provision in this division,
any winegrower, wine blender, beer manufacturer, brandy manufacturer,
distilled spirits manufacturer, distilled spirits manufacturer's
agent, rectifier, distilled spirits wholesaler, and beer and wine
wholesaler, or the authorized agent or agents or representative or
representatives of that licensee, may perform any of the following
services for off-sale retail licensees at or on the premises of the
off-sale retail licensee with the retail licensee's permission:
(1) Stack or arrange cases of the brand or brands of alcoholic
beverages owned or sold by the licensee performing the service in the
storeroom or warehouse where the off-sale retail licensee stores the
brand or brands.
(2) Rotate the brand or brands owned or sold by the licensee
performing the service on shelves and in refrigerated boxes, and
rearrange bottles or packages of the brand or brands by moving the
bottles or packages horizontally or vertically from shelf to shelf in
the space and shelves allocated to the brand or brands. This
paragraph does not permit the removal of any brand or brands of
alcoholic beverages, except beer, which are owned or sold by the
licensee performing the service, from the storeroom or other place
belonging to an off-sale retailer for the purpose of replacing
alcoholic beverages on or restocking shelves or refrigerated boxes.
(3) Take an inventory of an off-sale retailer's stock of a brand
or brands of alcoholic beverages which are owned or sold by the
licensee performing the service and which are in the stockroom or
other place belonging to the off-sale retailer.
(4) Service the brand or brands of alcoholic beverages owned or
sold by the licensee performing the service which are on shelves,
fixtures, or other display pieces at the off-sale retail premises,
including, but not limited to dusting bottles and shelves and
refrigerated boxes allocated to the brand or brands at the retail
premises. The licensees authorized to render services by this section
and their agents and representatives may not price-mark individual
containers of the brand of alcoholic beverages, except beer, owned or
sold by the licensee performing the service, except for individual
bottles used on floor displays.
(5) Rotate or rearrange the brand or brands of wine or distilled
spirits owned or sold by the licensee on, in, or among permanent
shelves, permanent fixtures, refrigerated boxes, or floor or other
displays or display pieces; stock the brand or brands onto or into
floor or other displays or display pieces; and stock the brand or
brands onto or into permanent shelves, permanent fixtures, or
refrigerated boxes for the sole purposes of the introduction of new
products, the resetting or rearrangement of existing products, or the
setting or arranging of new stores. Incidental touching or
rearrangement of the brand or brands of another licensee by a
licensee performing any of the services authorized by this paragraph
for the sole purpose of accessing permanent shelves, permanent
fixtures, and other spaces allocated to the licensee performing the
service shall not be deemed to be a violation of any provision of
this division provided the other licensee's brands are not removed
from spaces allocated to that licensee. Nothing in this paragraph
permits stocking permanent shelves, permanent fixtures, or
refrigerated boxes for regular inventory replenishment.
(b) Notwithstanding any other provision in this division, any beer
manufacturer or beer and wine wholesaler, or the authorized agent or
agents or representative or representatives of that licensee, may
perform any of the services specified in paragraphs (1) to (4),
inclusive, of subdivision (a), with respect to beer, for on-sale
retail licensees at or on the premises of the on-sale retail licensee
with the retail licensee's permission.
25503.3. (a) Anything in this division to the contrary
notwithstanding, any winegrower, beer manufacturer, brandy
manufacturer, distilled spirits manufacturer, or distilled spirits
manufacturer's agent may, at parties held, or in hospitality rooms
maintained, in conjunction with meetings, conventions, or combined
conventions and trade shows of bona fide trade associations of retail
licensees, serve and provide free of charge, food, alcoholic and
nonalcoholic beverages, entertainment, and recreational activities to
the retail licensees and their guests while attending those
meetings, conventions, or combined conventions and trade shows.
Additionally, any person specified in this section may pay a fee to
the bona fide trade association for the privilege of providing food,
alcoholic or nonalcoholic beverages, entertainment, or recreational
activities, or for display booth space, as long as the fee is at the
same rate charged all suppliers.
(b) Any person specified in this section may advertise in any
regular publication of a bona fide trade association the members of
which are food or alcoholic beverage retailers, if that publication
does not advertise on behalf of, or directly benefit, any individual
retail licensee. The advertising fee paid to the bona fide trade
association or its agent shall be at the same rate charged all
advertisers.
(c) Any person specified in this section may pay membership dues
to a bona fide trade association as long as the dues are at the same
rate charged all nonretail members of the association.
25503.4. (a) Notwithstanding any other provision of this division,
a winegrower, California winegrower's agent, wine importer, or any
director, partner, officer, agent, or representative of that person,
may conduct or participate in, and serve wine at, an instructional
event for consumers held at a retailer's premises featuring wines
produced by or for the winegrower or, imported by the wine importer,
subject to the following conditions:
(1) No premium, gift, free goods, or other thing of value may be
given away in connection with the instructional event by the
winegrower, California winegrower's agent, wine importer, or
retailer, except as authorized by this division.
(2) No alcoholic beverages may be given away in connection with
the instructional event except that minimal amounts of wine, taken
from barrels or from tanks, may be supplied and provided as samples
at the instructional event. A person authorized by subdivision (a)
may also provide no more than three one-ounce tastes of wine per
consumer at the instructional event from bottles of wine provided by
the authorized person. For purposes of this section, minimal amounts
of the samples or tastes provided at the instructional event do not
constitute a thing of value. Following the instructional event, any
unused wine provided by the authorized person shall be removed from
the retailer's premises by the authorized person.
(3) No alcoholic beverages may be sold at the instructional event,
except that orders for the sale of wine may be accepted by the
winegrower if the sales transaction is completed at the winegrower's
premises.
(b) Notwithstanding any other provision of this division, a
winegrower, California winegrower's agent, or wine importer, in
advance of an instructional event for consumers being held at a
retailer's premises, may list in an advertisement the name and
address of the retailer, the names of the wines being featured at the
instructional event, and the time, date, and location of, and other
information about, the instructional event, provided:
(1) The advertisement does not also contain the retail price of
the wines.
(2) The listing of the retailer's name and address is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole. Pictures
or illustrations of the retailer's premises and laudatory references
to the retailer in these advertisements are not hereby authorized.
(c) Notwithstanding any other provision of this division, the name
and address of a winegrower, wine importer, or winegrower's agent
licensee, the brand names of wine being featured, and the time, date,
location, and other identifying information of a wine promotional
lecture at retail premises may be listed in advance of the event in
an advertisement of the off-sale or on-sale retail licensee.
(d) Nothing in this section authorizes a winegrower, wine
importer, or winegrower's agent licensee to share in the costs, if
any, of the retailer licensee's advertisement.
(e) Nothing in this section authorizes any person to consume any
alcoholic beverage on any premises licensed with an off-sale retail
license.
25503.5. (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including but not limited
to, the history, nature, values, and characteristics of wine or beer,
the use of wine lists, and the methods of presenting and serving
wine or beer. The winegrower, beer manufacturer, or beer and wine
wholesaler may furnish wine or beer and the equipment, materials and
utensils that may be required for use in connection with the
instruction or courses of instruction.
(b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
(c) A winegrower or distilled spirits manufacturer, or its
authorized agent may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
product and the methods of presenting and serving the product. The
instruction of consumers may include the furnishing of not more than
three tastings to any individual in one day. A single tasting of
distilled spirits may not exceed one-fourth of one ounce and a single
tasting of wine may not exceed one ounce. The winegrower or
distilled spirits manufacturer, or its authorized agent shall remove
any unfinished alcoholic beverages that he or she provided following
the instruction. Nothing in this subdivision shall limit the giving
away of samples pursuant to subdivision (a) of Section 23386.
(d) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer or of a licensee, including an on-sale retail licensee, or
elsewhere.
25503.55. (a) A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may instruct
consumers or conduct courses of instruction for consumers, on the
subject of beer, including, but not limited to, the history, nature,
values, and characteristics of beer, and the methods of presenting
and serving beer. A beer manufacturer, a licensed beer and wine
importer general, or a licensed beer and wine wholesaler may conduct
such instructions at the premises of a retail on-sale licensee
authorized to sell beer.
(b) The instruction of consumers regarding beer may include the
furnishing of tastes of beer to an individual of legal drinking age.
Beer tastes at any individual course of instruction shall not exceed
eight ounces of beer per person, per day. The tasting portion of a
course of instruction shall not exceed one hour at any individual
licensed retail premises. Tastes of beer may not be served to a
consumer in their original container but must be served in an
individual glass or cup.
(c) All tastes of beer served to a consumer as authorized in
subdivision (b) shall be served only as part of the course of
instruction and shall be served to the consumer by an employee of the
on-sale retail licensee.
(d) A beer manufacturer, a licensed beer and wine importer
general, or a licensed beer and wine wholesaler may not hold more
than six courses of instruction per calendar year at any individual
on-sale retail licensed premises if the courses of instruction
includes consumer tastes of beer.
(e) (1) A representative of a beer manufacturer, a licensed beer
and wine importer general, or a licensed beer and wine wholesaler,
except as provided in paragraph (2), must be present and authorize
any tastes of beer conducted at an on-sale retail licensed premises
pursuant to this section. The representative shall be responsible for
paying the retailer for the tastes of beer served at any course of
instruction. Such payment shall not exceed the retail price of the
beer.
(2) For purposes of this subdivision, a licensed beer and wine
wholesaler shall not be a representative of a beer manufacturer or a
licensed beer and wine importer general.
(f) No on-sale retail licensee shall require one or more courses
of instruction pursuant to this section as a requirement to carry a
brand or brands of any beer manufacturer, licensed beer and wine
importer general, or licensed beer and wine wholesaler.
(g) No premium, gift, free goods, or other thing of value may be
given away in connection with an authorized course of instruction
that includes beer tastes, except as authorized by this division.
Failure to comply with the provisions of this section shall be
presumed to be a violation of Section 25500.
(h) A retail licensee may advertise the instructional tasting
event using interior signs visible only within the establishment.
(i) (1) A beer manufacturer, a licensed beer and wine importer
general, and a licensed beer and wine wholesaler shall maintain an
individual record of each course of instruction involving tastes of
beer for three years.
(2) Records shall include the date of the tasting, the name and
address of the retail licensee, and the brand, quantity, and payment
made for the beer furnished by the beer manufacturer, the licensed
beer and wine importer general, or the licensed beer and wine
wholesaler.
25503.56. (a) An authorized licensee, or a designated
representative of an authorized licensee acting as an agent of the
authorized licensee, may conduct, on the area specified by paragraph
(1) of subdivision (c) of Section 23396.6, an instructional tasting
event for consumers on the subject of wine, beer, or distilled
spirits, including, but not limited to, the history, nature, values,
and characteristics of wine, beer, or distilled spirits, and the
methods of presenting and serving wine, beer, or distilled spirits.
(1) (A) Except as provided in subparagraph (B), the instructional
tasting event may include the serving of alcoholic beverages to an
attendee of legal drinking age. An instructional tasting event on the
subject of wine or distilled spirits shall be limited to not more
than three tastings per person per day. A single tasting of distilled
spirits shall not exceed one-fourth of one ounce and a single
tasting of wine shall not exceed one ounce. An instructional tasting
event on the subject of beer shall be limited to not more than the
tasting of eight ounces of beer per person per day. The wine, beer,
or distilled spirits tasted shall be limited to the products that are
authorized to be sold by the authorized licensee and the
licenseholder under its off-sale license.
(B) A beer and wine wholesaler may conduct an instructional
tasting event but shall not serve tastes of beer unless the beer and
wine wholesaler also holds a beer manufacturer's license, an
out-of-state beer manufacturer's certificate, or more than six
distilled spirits wholesaler's licenses.
(C) No charge of any sort shall be made for the tastings.Except
for the purposes of Section 23985, the serving of tastings shall not
be deemed a sale of products pursuant to this division.
(D) A person under 21 years of age shall not serve wine, beer, or
distilled spirits at the instructional tasting event.
(E) All tastes shall be served by an employee of the authorized
licensee, the designated representative of the authorized licensee,
or by an employee of the designated representative of the authorized
licensee.
(F) An authorized licensee, or a designated representative of an
authorized licensee, shall either supply the wine or distilled
spirits to be tasted during the instructional tasting event or
purchase the wine or distilled spirits from the licenseholder at the
original invoiced cost. An authorized licensee, or a designated
representative of an authorized licensee, shall purchase beer to be
tasted during the instructional tasting event from the licenseholder
at the original invoiced cost.
(G) Any unused wine, beer, or distilled spirits remaining from the
tasting shall be removed from the off-sale licensed premises by the
authorized licensee or its designated representative.
(2) If the instructional tasting event is conducted by a
designated representative of an authorized licensee, the designated
representative shall not be owned, controlled, or employed directly
or indirectly by the licenseholder on whose premises the
instructional tasting event is held.
(3) An instructional tasting event shall be limited to a single
type of alcoholic beverage. For purposes of this paragraph, "type of
alcoholic beverage" means distilled spirits, wine, or beer.
(b) For purposes of this section:
(1) "Authorized licensee" means a winegrower, California
winegrower's agent, beer and wine importer general, beer and wine
wholesaler, wine rectifier, distilled spirits manufacturer, distilled
spirits manufacturer's agent, distilled spirits importer general,
distilled spirits rectifier, distilled spirits general rectifier,
rectifier, out-of-state distilled spirits shipper's certificate
holder, distilled spirits wholesaler, brandy manufacturer, brandy
importer, California brandy wholesaler, beer manufacturer, or an
out-of-state beer manufacturer certificate holder. "Authorized
licensee" shall not include an entity that solely holds a combination
of a beer and wine wholesale license and an off-sale beer and wine
retail license or holds those licences solely in combination with any
license not listed in this paragraph.
(2) "Licenseholder" means an off-sale retail licensee issued an
instructional tasting license pursuant to Section 23396.6.
(3) "Location" means the total contiguous area encompassed by the
off-sale and on-sale licenses.
(c) Notwithstanding subparagraph (E) of paragraph (1) of
subdivision (a), a licenseholder may conduct an instructional tasting
event that includes the serving of tastings only when an authorized
licensee or its designated representative are unable to conduct an
instructional tasting event previously advertised pursuant to this
section and scheduled by the authorized licensee or its designated
representative, provided the licenseholder supplies the wine, beer,
or distilled spirits used in the instructional tasting event and
provides or pays for a person to serve the wine, beer, or distilled
spirits. Instructional tasting events conducted by a licenseholder
pursuant to this subdivision are subject to the provisions of this
section and Section 23396.6.
(d) No more than one authorized licensee, or its designated
representative, may conduct an instructional tasting event that
includes the serving of tastes of wine, beer, or distilled spirits at
any one individual licensed premises of a licenseholder per day.
(e) A licenseholder that also holds an on-sale beer and wine
license, an on-sale beer and wine eating place license, or an on-sale
general license shall not allow an authorized licensee, or its
designated representative, to conduct an instructional tasting event
on the same day and at the same location as any instructional tasting
event held pursuant to subdivision (b) of Section 23386, Section
25503.4, subdivision (c) of Section 25503.5, or Section 25503.55.
(f) A licenseholder shall not condition the allowance of an
instructional tasting event upon the use of a particular designated
representative of an authorized licensee.
(g) (1) In addition to any point of sale advertising or other
advertising items allowed under this division or under rules of the
department, an authorized licensee or its designated representative,
in his or her absolute discretion and with permission of the
licenseholder upon whose premises the instructional tasting event
will be held, may list in an advertisement to the general public the
name and address of the licenseholder, the names of the alcoholic
beverages being featured at the instructional tasting event, and the
time, date, and location of, and other information about, the
instructional tasting event, provided that both of the following
apply:
(A) The advertisement does not contain the retail price of the
alcoholic beverages.
(B) The listing of the licenseholder's name and address is the
only reference to the licenseholder in the advertisement.
(2) Pictures or illustrations of the licenseholder's licensed
premises and laudatory references to the licenseholder in these
advertisements are not authorized. Nothing in this section shall
authorize an authorized licensee or its designated representative to
share in the costs, if any, of the licenseholder.
(h) A licenseholder may advertise an instructional tasting event
to the general public. The costs of this advertising shall be borne
solely by the licenseholder. Advertising permitted by this
subdivision includes flyers, newspaper ads, Internet communications,
and interior signage.
(i) Except as otherwise provided in this division or rules of the
department, no premium, gift, free goods, or other thing of value
shall be given away by an authorized licensee or its designated
representative in connection with an instructional tasting event that
includes tastings of an alcoholic beverage.
(j) The licenseholder or the authorized licensee or its designated
representative are authorized to perform set up and break down of
the instructional tasting event area. The authorized licensee or its
designated representative may provide, free of charge to the
licenseholder, the equipment, materials, and utensils as may be
required for use in connection with the instructional tasting event.
(k) (1) A licenseholder shall not require, or enter into a
collusive scheme with an authorized licensee or its designated
representative to conduct one or more instructional tasting events as
a condition of the licenseholder carrying or continuing to carry a
brand or brands of the authorized licensee or as a condition for
display or other merchandising plan which is based on an agreement to
provide shelf space. An authorized licensee or its designated
representative shall not require any preferential treatment or
benefit from, or enter into a collusive scheme with, a licenseholder
as a condition of conducting one or more instructional tasting
events, require a licenseholder to carry or continue to carry a brand
or brands of the authorized licensee as a condition of conducting
one or more instructional tasting events, or condition display or
other merchandising plans that are based on agreements for the
provision of shelf space on the conducting of one or more
instructional tasting events. Any agreement, whether written or oral,
entered into by and between a licenseholder and an authorized
licensee or its designated representative that precludes the
conducting of instructional tasting events on the premises of the
licenseholder by any other authorized licensee is prohibited. A
licenseholder or authorized licensee, or its designated
representative, shall not use an instructional tasting event to
circumvent any other requirements of this division.
(2) In addition to any other remedies available under this
division, upon a finding by the department of a failure to comply
with this subdivision, the department shall suspend the instructional
tasting license of the licenseholder and the privilege of the
authorized licensee to conduct instructional events for not less than
six months but for no more than one year.
(l) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exception
established by this section to the general prohibition against tied
interests must be limited to its express terms so as not to undermine
the general prohibition, and intends that this section be construed
accordingly.
25503.6. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a distilled
spirits rectifier, a distilled spirits manufacturer, or distilled
spirits manufacturer's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee subject to all of
the following conditions:
(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.
(B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County or Los Angeles County.
(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
(D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.
(E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.
(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with a
fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.
(H) An outdoor stadium with a fixed seating capacity in excess of
1,500 seats located in Tulare County.
(I) A motorsports entertainment complex of not less than 50 acres
that includes within its boundaries an outdoor speedway with a fixed
seating capacity of at least 50,000 seats, located within San
Bernardino County.
(J) An exposition park, owned or operated by a bona fide nonprofit
organization, of not less than 400 acres with facilities including a
grandstand with a seating capacity of at least 8,000 people, at
least one exhibition hall greater than 100,000 square feet, and at
least four exhibition halls, each greater than 30,000 square feet,
located in the City of Pomona or the City of La Verne in Los Angeles
County.
(K) An outdoor soccer stadium with a fixed seating capacity of at
least 25,000 seats, an outdoor tennis stadium with a fixed capacity
of at least 7,000 seats, an outdoor track and field facility with a
fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January 1,
2005, within the City of Carson in Los Angeles County.
(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.
(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to an
exposition park as described in subparagraph (J) of paragraph (1)
that includes at least one hotel, the advertising space or time shall
not be displayed on or in any hotel located in the exposition park,
or purchased in connection with the operation of any hotel located in
the exposition park.
(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced by the winegrower, and other brands of distilled spirits
distributed by a competing distilled spirits wholesaler in addition
to the brand manufactured or marketed by the distilled spirits
rectifier, the distilled spirits manufacturer or the distilled
spirits manufacturer's agent that purchased the advertising space or
time.
(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the distilled spirits rectifier, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent and the
on-sale licensee.
(c) Any beer manufacturer or holder of a winegrower's license, any
distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space, time, or costs
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person shall
also be subject to license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler's license to solicit a beer manufacturer, a holder of a
winegrower's license, a distilled spirits rectifier, a distilled
spirits manufacturer, or a distilled spirits manufacturer's agent to
purchase advertising space or time pursuant to subdivision (a) or (b)
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.7. A winegrower, beer manufacturer, or beer and wine
wholesaler may serve food and alcoholic beverages to any person,
including a person licensed under this division and his or her
employees and representatives, who is attending a meeting held upon
or who is visiting the premises of the winegrower, beer manufacturer,
or beer and wine wholesaler.
25503.8. (a) Notwithstanding any other provision of this chapter, a
beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a distilled spirits rectifier, a
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent may purchase advertising space and time from, or on behalf of,
an on-sale retail licensee if all of the following conditions are
met:
(1) The on-sale licensee is the owner of any of the following:
(A) A fully enclosed auditorium or theater with a fixed seating
capacity in excess of 6,000 seats, at least 60 percent of the use of
which is for plays or musical concerts, not including sporting
events.
(B) A motion picture studio facility at which public tours are
conducted for at least four million people per year.
(C) A retail, entertainment development adjacent to, and under
common ownership with, a theme park, amphitheater, and motion picture
production studio.
(D) A theme or amusement park and the adjacent retail, dining, and
entertainment area located in the City of Los Angeles, Los Angeles
County, or Orange County.
(E) A fully enclosed theater, with box office sales and attendance
by the public on a ticketed basis only, with a fixed seating
capacity in excess of 6,000 seats, located in Los Angeles County
within the area subject to the Los Angeles Sports and Entertainment
District Specific Plan adopted by the City of Los Angeles pursuant to
ordinance number 174225, as approved on September 6, 2001.
(F) A fully enclosed arena with a fixed seating capacity in excess
of 15,000 seats located in Santa Clara County. With respect to the
arena described in this subparagraph, advertising space may also be
purchased from, or on behalf of, a lessee or manager of the arena.
(2) The advertising space or time is purchased only in connection
with one of the following:
(A) In the case of a fully enclosed auditorium or theater, in
connection with sponsorship of plays or musical concerts to be held
on the premises of the auditorium or theater owned by the on-sale
licensee.
(B) In the case of a motion picture studio facility, in connection
with sponsorship of the public tours or special events conducted at
the studio facility.
(C) In the case of a retail, entertainment development, in
connection with sponsorship of public tours or special events
conducted at the development.
(D) In the case of a theme or amusement park and the adjacent
retail, dining, and entertainment area, located in the City of Los
Angeles, Los Angeles County, or Orange County, in connection with
daily activities and events at the theme or amusement park and the
adjacent retail, dining, and entertainment area.
(E) In the case of the fully enclosed theater described in
subparagraph (E) of paragraph (1) of subdivision (a), in connection
with events conducted at the theater.
(F) In the case of a fully enclosed arena described in
subparagraph (F) of paragraph (1) of subdivision (a), interior
advertising in connection with events conducted within the arena.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Any purchase of advertising space or time conducted pursuant
to subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the winegrower's
license, the California winegrower's agent, the distilled spirits
manufacturer, or the distilled spirits manufacturer's agent, and the
on-sale licensee, which contract shall not in any way involve the
holder of a wholesaler's license.
(c) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent, who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (b) shall be guilty of a
misdemeanor and shall be punished by imprisonment in the county jail
not exceeding six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces, directly or indirectly, a holder of a
wholesaler's license to solicit a beer manufacturer, distilled
spirits manufacturer, or distilled spirits manufacturer's agent,
holder of a winegrower's license, or California winegrower's agent to
purchase advertising space or time pursuant to subdivision (a) or
(b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(e) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.85. (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, distilled spirits manufacturer, distilled
spirits manufacturer's agent, holder of a winegrower's license, or
California winegrower's agent may purchase advertising space and time
from, or on behalf of, an on-sale retail licensee, that shall be
limited to small notices, plaques, or signs that portray partial or
full sponsorship or funding of educational programs, special
fundraising and promotional events, improvements in capital projects,
and the development of exhibits or facilities, if all of the
following conditions are met:
(1) The on-sale licensee is a zoo or aquarium operated by a
nonprofit organization that is accredited by the American Association
of Zoological Parks and Aquariums.
(2) The advertising space or time is purchased only in connection
with the sponsorship of activities that are held on the premises or
grounds owned, leased, or controlled by the on-sale licensee.
(3) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand manufactured
or marketed by the beer manufacturer, other brands of wine
distributed by a competing wine wholesaler in addition to the brand
produced or marketed by the winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brand
manufactured or marketed by the distilled spirits manufacturer or
distilled spirits manufacturer's agent purchasing the advertising
space or time.
(b) Nothing in this section shall be construed to permit the
purchase of billboards or bench advertisements as "advertising space."
(c) Any purchase of advertising space or time pursuant to
subdivision (a) shall be accomplished by a written contract entered
into by the beer manufacturer, the distilled spirits manufacturer,
the distilled spirits manufacturer's agent, a holder of the
winegrower's license, or the California winegrower's agent, and the
on-sale licensee. That contract shall not in any way involve the
holder of a wholesaler's license.
(d) Any beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, holder of a winegrower's
license, or California winegrower's agent who, through coercion or
other illegal means, induces, directly or indirectly, a holder of a
wholesaler's license to fulfill those contractual obligations entered
into pursuant to subdivision (a) or (c) is guilty of a misdemeanor
and shall be punished by imprisonment in the county jail for a period
not to exceed six months, or by a fine in an amount equal to the
entire value of the advertising space or time involved in the
contract, whichever is greater, plus ten thousand dollars ($10,000),
or by both imprisonment and fine. The person shall also be subject to
license revocation pursuant to Section 24200.
(e) Any on-sale licensee who, directly or indirectly, solicits or
coerces a holder of a wholesaler's license to solicit a beer
manufacturer, distilled spirits manufacturer, distilled spirits
manufacturer's agent, holder of a winegrower's license, or a
California winegrower's agent to purchase advertising space or time
shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.
(f) For the purposes of this section, "beer manufacturer" includes
any holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
25503.9. (a) Nothing in this division prohibits a winegrower or a
beer and wine wholesaler that also holds an off-sale beer and wine
retail license and only sells wine from giving or selling wine, a
beer manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or an importer general
licensee from giving or selling beer, wine, or distilled spirits at
prices other than those contained in schedules filed with the
department, to any of the following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g,
23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation
Code. Wine, beer, and distilled spirits given or sold by a
winegrower, beer manufacturer, distilled spirits manufacturer,
distilled spirits manufacturer's agent, or importer general licensee
pursuant to this subdivision may be furnished only in connection with
public service or fundraising activities including picnics, parades,
fairs, amateur sporting events, agricultural exhibitions, or similar
events.
(b) Nothing in this division prohibits a winegrower or a beer and
wine wholesaler that also holds an off-sale beer and wine retail
license and only sells wine from giving or selling wine, a beer
manufacturer from giving or selling beer, a distilled spirits
manufacturer, rectifier, or a distilled spirits manufacturer's agent
from giving or selling distilled spirits, or a beer and wine
wholesaler that also holds an importer's license from giving or
selling beer, wine, or distilled spirits at prices other than those
contained in schedules filed with the department, to any of the
following:
(1) A nonprofit charitable corporation or association exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2) A nonprofit incorporated trade association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and Chapter 4 (commencing with Section
23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and
the members of which trade association are licensed under this
division. However, the wine, beer, and distilled spirits shall be
used solely for a convention or meeting of the nonprofit incorporated
trade association.
(3) A nonprofit corporation or association that is exempt from
payment of income taxes under the provisions of the Internal Revenue
Code of the United States and is defined as a tax exempt organization
under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the
Revenue and Taxation Code. Wine, beer, and distilled spirits given or
sold by a winegrower, beer manufacturer, distilled spirits
manufacturer, distilled spirits manufacturer's agent, or licensed
importer pursuant to this subdivision may be furnished only in
connection with public service or fundraising activities including
picnics, parades, fairs, amateur sporting events, agricultural
exhibitions, or similar events.
25503.10. (a) Notwithstanding any other provision of this division,
the department may approve a lease or sublease, or amendments to
such lease or sublease, where a manufacturer, manufacturer's agent,
winegrower, California winegrower's agent, rectifier, importer, or
wholesaler is the lessor and a retailer is the lessee when each of
the following conditions are incorporated in the lease:
(1) The lease is confined to real property and improvements
thereon which have become part of the real property.
(2) No trade fixtures or other personal property are included in
the lease.
(3) The rent to be paid by the lessee is not less than the current
value for such a lease, which the lessor shall establish by
submission of competent proof to the department.
(4) The rent is due and payable monthly beginning with the first
month of occupancy.
(5) Any money received by the lessor from the lessee when the rent
is due shall be first applied by the lessor to the payment of the
rent.
(6) The lessee shall purchase from the lessor no more than 10
perce
