2010 California Code
Business and Professions Code
Chapter 15. Tied-house Restrictions

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
percent of his yearly supply of the type of alcoholic beverages sold
on his licensed premises. The percentage shall be computed on a
calendar-year basis.
   (b) The original lease and any amendments to the original lease or
to an amended lease shall be submitted to the department for its
approval.
   (c) The department may suspend or revoke the license of the lessor
or the lessee for violations of any of the above conditions or for
any misrepresentation in the terms of the lease.
   (d) The ownership of shares of stock in a corporation licensed as
a retailer under the provisions of this division, when such shares of
stock are sold to the general public on any national or local stock
exchange, shall not be deemed to be the ownership, either in whole or
in part, of the land upon which a retail license issued to such
corporation is located. The person who holds such shares of stock
shall not be held to be a lessor under the provisions of this
section.



25503.11.  Notwithstanding any other provision of this division, a
manufacturer, manufacturer's agent, winegrower, rectifier, importer,
or wholesaler may hold a diminutive amount of stock in a corporate
retail licensee or serve on the board of directors of a corporate
off-sale retail licensee, provided the stock ownership or service on
the board of directors, as determined by the department, does not
result in the exercise of control over the retail licensee's business
and does not result in the exclusion of any competitor's brand of
alcoholic beverages, and provided further that the stock is listed on
the New York Stock Exchange, the American Stock Exchange, or NASDAQ,
and the department is notified of the stock ownership or service on
the board of directors.



25503.12.  Notwithstanding any other provision of this division, a
retail licensee may hold a diminutive amount of stock in a corporate
licensed manufacturer, manufacturer's agent, winegrower, rectifier,
importer, or wholesaler, provided that the purpose of the stock
ownership by the retail licensee, as determined by the department, is
not to violate any of the provisions of this chapter, and provided
further that the stock is listed on the New York Stock Exchange, the
American Stock Exchange, or on NASDAQ, and the department is notified
of the stock ownership.



25503.13.  (a) In order to alleviate the adverse economic and social
consequences of high unemployment in identifiable urban and rural
areas of California, the Legislature finds it in the public interest
to encourage the private sector to create new employment and
job-training opportunities for low-income persons and establish
business enterprises owned and managed by such persons. To provide
such opportunities it is necessary for companies with sufficient
financial resources, management experience and marketing strength to
establish as a principal operating objective the creation of
definitive programs for obtaining these goals.
   (b) Notwithstanding any other provision of this division, a
manufacturer, rectifier, distiller, winegrower or bottler of wine who
produces and sells only wine in an area outside of the United
States, its territories or possessions and outside of foreign
countries having common boundaries with any state of the United
States, and who is not licensed in the United States, its territories
or possessions, or any officer, director or agent of any such person
or a person holding the ownership, directly or indirectly, of any
interest in any such manufacturer, rectifier, distiller, winegrower
or bottler of wine may have an interest in a person holding an
on-sale license, provided, that the wine produced or sold by such
manufacturer, rectifier, distiller, winegrower or bottler of wine is
not sold, furnished or given, directly or indirectly to such on-sale
licensee, provided further, that food shall also be sold at the
on-sale premises, and, provided further, that any on-sale license
that may be granted under this section shall be conditioned so as to
promote, where feasible, the following objectives in accordance with
the public policy set forth in subdivision (a) above:
   (1) The location of a significant number of on-sale premises in or
accessible to areas of high unemployment,
   (2) The employment and management training of low-income
individuals, particularly those who, because of race, sex, age or
national origin, suffer a rate of unemployment significantly higher
than the statewide average and
   (3) The minority ownership of licensed businesses operating
on-sale premises pursuant to a franchise agreement.
   The department, after consultation with the Secretary of Business
and Transportation, the Department of Business and Economic
Development, the Chief of the Division of Fair Employment Practices,
and the Director of the Employment Development Department, shall
adopt such rules as it determines to be necessary for the
administration of this section.


25503.14.  Notwithstanding any provision of this division, any
retail off-sale general licensee who holds at least 30 such licenses
in this state and who also operates at least 50 wholesale grocery
warehouses not licensed under this division may hold a beer and wine
wholesale license in a state with a population not exceeding 700,000,
provided that such licensed wholesale operation does not sell or
transfer any alcoholic beverages to licensees of this state.



25503.15.  (a) Notwithstanding any other provision of this division,
a winegrower who manufactures, produces, bottles, processes,
imports, or sells wine only, or any officer, director, or agent of
that person, may hold the ownership of any interest in any on-sale
license, if both of the following conditions exist:
   (1) Neither that person, nor any officer, director, or agent of
that person, sells or furnishes to the holder of the license any
wine, or permits the sale pursuant to that license of any wine,
manufactured, produced, wholesaled, bottled, processed, imported, or
sold by that person or that person's principal for as long as that
ownership continues.
   (2) Neither that person, nor any officer, director, or agent of
that person, enters into any collusive scheme, whereby he or she
unfairly sells or promotes, in his or her on-sale businesses, the
wine of another winegrower who manufactures, produces, bottles,
processes, imports, or sells wine only, in return for his or her wine
being unfairly sold or promoted in the on-sale businesses of that
winegrower.
   (b) Notwithstanding any other provision of this division, any
licensed winegrower or any winegrower who has a wholesale license, or
any officer, director, or agent of that person, may hold, directly
or indirectly, the ownership of any interest in an on-sale license,
provided that each of the following conditions is met:
   (1) The on-sale licensed premises are licensed as a bona fide
public eating place as defined in Section 23038, or as a bona fide
bed and breakfast inn as defined in Section 24045.11.
   (2) The on-sale licensed premises purchases all alcoholic
beverages sold and served at the on-sale licensed premises only from
California wholesale licensees, other than the licensed winegrower
who has a wholesale license and an interest in an on-sale license,
unless one of the following conditions is met:
   (A) The wine purchased is produced or bottled by, or produced and
packaged for, the same licensed winegrower that holds an interest in
the on-sale license.
   (B) The wine is produced or bottled by, and is purchased from, a
licensed winegrower who sells no more than 125,000 gallons of wine
per year for distribution in this state under all brands or trade
names owned by that winegrower.
   (C) The wine is purchased by an on-sale licensee in whose on-sale
license a licensed winegrower holds an interest, provided that the
winegrower sells no more than 125,000 gallons of wine per year for
distribution in this state under all brands or trade names owned by
that winegrower.
   (3) The licensed winegrower and any officer, director, or agent of
that person, whether individually or in the aggregate, do not sell
and serve the wine products produced or bottled under any brand or
trade name owned by that winegrower through more than two on-sale
licensed premises in which any of them holds an ownership interest.
   (4) The number of wine items by brand offered for sale by the
on-sale licensed premises that are produced, bottled, processed,
imported, or sold by the licensed winegrower or by any person holding
any interest in the winegrower does not exceed 15 percent of the
total wine items by brand listed and offered for sale in the licensed
bona fide public eating place selling and serving that wine. This
paragraph does not apply to a bona fide bed and breakfast inn.
   (c) 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 exceptions
established by this section to the general prohibition against tied
interests must be limited to their express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.


25503.16.  (a) Nothing in this division shall prohibit the issuance
or transfer of any retail on-sale or off-sale license to any person
with respect to premises which are an integral part of the operations
of a hotel, motel, or marine park owned by, or operated by or on
behalf of, the licensee notwithstanding that a manufacturer,
winegrower, manufacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler has any
interest, directly or indirectly, in the premises, in the retail
license, or in the retail licensee, and notwithstanding that the
issuance or transfer would otherwise result in a violation of
subdivision (a) of Section 25500, subdivision (a) or (b) of Section
25501, or Section 25502, if each of the following conditions is met:
   (1) In the case of a hotel or motel, the hotel or motel consists
of not less than 100 guestroom accommodations.
   (2) No more than one-quarter of the total gross annual revenues of
the hotel, motel, or marine park is derived from the sale by the
hotel, motel, or marine park of alcoholic beverages.
   (3) (A) The retail licensee shall purchase no beer or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee, except as otherwise provided in subparagraph
(B), shall purchase no alcoholic beverages for sale in this state
from any wholesale licensee that has any interest, directly or
indirectly, in the premises, in the retail license, or in the retail
licensee.
   (B) Notwithstanding subparagraph (A), a marine park may purchase
beer or malt beverages for sale in this state from a wholesale
licensee regardless of whether the wholesale licensee has any
interest, directly or indirectly, in the premises, in the retail
license, or in the retail licensee.
   (4) The retail licensee serves other brands of beer, wine, and
distilled spirits in addition to the brands manufactured by the beer
or distilled spirits manufacturer or produced by the winegrower
holding an interest in the retail license.
   (5) No marine park shall sell or offer for sale any distilled
spirits, except during private events or private functions held at
the marine park.
   (b) For purposes of this section, "hotel" and "motel" shall mean
an establishment containing guestroom accommodations with respect to
which the predominant relationship existing between the occupants
thereof and the owner or operator of the establishment is that of
innkeeper and guest; for purposes of this subdivision, the existence
of other legal relationships as between some occupants and the owner
or operator thereof shall be immaterial.
   (c) For purposes of this section, "marine park" means an
establishment with not less than 125 contiguous acres, located in San
Diego County, the predominant purpose of which is the education or
entertainment of the public through the display of marine animals and
related aquatic, food service, and amusement activities, which holds
permits issued by state and federal regulatory agencies authorizing
the keeping of marine animals or endangered species or both, and
which has an annual paid attendance of at least 2,000,000 people.
   (d) 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 shall be limited to its express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.



25503.17.  Nothing in this division shall prohibit the issuance or
transfer of any retail onsale general license to any person with
respect to premises which are an integral part of the operations of a
school for professional chefs owned by, or operated by or on behalf
of, the licensee, notwithstanding that a manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler holds the ownership of
any interest, directly or indirectly, in the premises or in the
retail licensee, provided that each of the following conditions is
met:
   (a) The school is operated in conjunction with a bona fide eating
place open to the public.
   (b) The school has been in operation in a city with a population
of less than one million for at least five years prior to the
effective date of this section.
   (c) The retail licensee shall purchase no beer or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages for
sale in this state from any wholesale licensee holding the ownership
of any interest, directly or indirectly, in the premises or in the
retail licensee.
   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.


25503.18.  Nothing in this division shall prohibit the issuance or
transfer of any retail offsale beer and wine license to any person
with respect to premises which are an integral part of the operations
of a school for professional chefs owned by, or operated by or on
behalf of, the licensee notwithstanding that a manufacturer,
winegrower, manufacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler holds the
ownership of any interest, directly or indirectly, in the premises or
in the retail licensee, provided that each of the following
conditions is met:
   (a) The school is operated in conjunction with a bona fide eating
place open to the public.
   (b) The school has been in operation in a city with a population
of less than one million for at least five years prior to the
effective date of this section.
   (c) The retail licensee shall purchase no beer or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages for
sale in this state from any wholesale licensee holding the ownership
of any interest, directly or indirectly, in the premises or in the
retail licensee.
   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.


25503.19.  (a) Nothing in this division shall prohibit the issuance
or transfer of any retail on-sale general license to any person with
respect to passenger cruise ships or lines owned by, or operated by
or on behalf of, the licensee, notwithstanding that a manufacturer,
winegrower, manfacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler holds the
ownership of any interest, directly or indirectly, in the cruise
ships or lines or in the retail licensee, subject to the following
conditions:
   (1) Not more than 10 percent of the total gross annual revenues of
the cruise ships or lines is derived from the sale of alcoholic
beverages.
   (2) The manufacturer, winegrower, manufacturer's agent, California
winegrower's agent, rectifier, distiller, bottler, importer, or
wholesaler shall not influence or attempt to influence decisions
concerning the purchase and sale of alcoholic beverages by the retail
licensee and those decisions are made solely by the retail licensee.
   (3) The retail licensee is not required, by agreement or
otherwise, to exclude from sale on board its vessels competitive
alcoholic beverage products.
   (4) The retail licensee shall purchase no beer, wine, or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages for
sale in this state from any wholesale licensee holding the ownership
of any interest, directly or indirectly, in the cruise ships or lines
or in the retail licensee.
   (b) 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 verticle 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.


25503.20.  Notwithstanding any other provision of this division, a
manufacturer, winegrower, manufacturer's agent, California winegrower'
s agent, rectifier, distiller, bottler, importer, or wholesaler may
hold the ownership of any interest, directly or indirectly in the
premises or in the retail licensee, may serve as an officer,
director, employee, or agent of that licensee, and may sponsor or
fund educational programs, special fundraising and promotional
events, improvements in capital projects, and the development of
exhibits or facilities of and for the licensee, provided that each of
the following conditions is met:
   (a) The retail license is for a nonprofit school for professional
chefs located in Napa County which is operated in conjunction with a
bona fide eating place open to the public.
   (b) The school's educational program has been accredited by the
Board of Regents of the University of California, the State
Department of Education, or the Council for Private Postsecondary and
Vocational Education or other state-authorized accrediting
commission.
   (c) The number of items of beer, wine, or distilled spirits by
brand offered for sale by the retail licensee, which are produced,
bottled, rectified, distilled, processed, imported, or sold by the
licensees holding an interest in, serving as an officer or director
of, or sponsoring or funding the programs and projects of the retail
licensee, does not exceed 15 percent of the total items of beer,
wine, or distilled spirits by brand listed and offered for sale in
the bona fide public eating place.



25503.21.  Notwithstanding any other provision of this division, a
licensed 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,
who prior to July 1, 1987, has entered into an active lease of
premises to any holder of an off-sale license, may continue to lease
premises or renew or otherwise modify such lease with any holder of
an off-sale license so long as the lessor holds no financial interest
other than such lease in the business of the lessee.



25503.22.  (a) Nothing in this division shall prohibit the issuance,
transfer, or renewal of any retail license to any person with
respect to premises which are owned by, or operated by or on behalf
of, the licensee, notwithstanding that a wholesaler licensed to sell
alcoholic beverages in states other than California has an interest,
directly or indirectly, in the premises, in the retail license or in
the retail licensee, provided that each of the following conditions
are met:
   (1) The retail licensee shall purchase no alcoholic beverages for
sale in this state other than from a California wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages from
any manufacturer or wholesale licensee holding the ownership of any
interest, directly or indirectly, in the premises, in the retail
license or in the retail licensee.
   (2) Not more than 40 percent of the gross annual revenues of the
retailer are derived from the sale of alcoholic beverages.
   (b) 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 expressed terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.


25503.23.  Notwithstanding any other provision of this chapter, a
beer manufacturer or winegrower may purchase advertising space and
time from, or on behalf of, an on-sale retail licensee who is the
owner of a stadium with a seating capacity in excess of 3,000 seats
during the use of the stadium for an annual water ski show.




25503.24.  (a) Notwithstanding any other provision of this chapter,
any manufacturer, winegrower, rectifier, distiller, distilled spirits
wholesaler, or any officer, director, agent, or representative of
any of those entities, may conduct market research and, in connection
with that research, the entity conducting the market research may
purchase from licensed off-sale retailers data regarding purchases
and sales of alcoholic beverage products at the customary rates that
those retailers sell similar data for nonalcoholic beverage products
subject to the following limitations:
   (1) No licensed retailer shall be obligated to purchase or sell
the alcoholic beverage products of that manufacturer, winegrower,
rectifier, or distiller.
   (2) No retail premises shall participate in more than one research
project conducted by any single manufacturer, winegrower, rectifier,
distiller, or distilled spirits wholesaler during a calendar year. A
research project may involve multiple onsite surveys.
   (3) Nothing in this section shall allow a licensed retailer to
require a manufacturer, winegrower, rectifier, distiller, or
distilled spirits wholesaler to conduct any market research as a
condition for selling alcoholic beverage products to that licensed
retailer.
   (b) Any holder of a beer manufacturer's license or winegrower's
license who, through coercion or other illegal means, induces,
directly or indirectly, a holder of a beer or wine wholesaler's
license to fulfill obligations entered into pursuant to subdivision
(a) 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 market research or
time involved in the project, 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.
   (c) Any retail licensee who, directly or indirectly, solicits or
coerces a holder of a beer or wine wholesaler's license to solicit a
beer manufacturer, or holder of a winegrower's license to fulfill
obligations entered into pursuant to subdivision (a) 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 market research or time involved in the project,
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) 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.



25503.26.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a manufacturer of distilled spirits,
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, or is the lessee, or is a
wholly owned subsidiary of the lessee, of an arena with a fixed
seating capacity in excess of 10,000 seats, at least 60 percent of
the use of which is for horseracing events, and which is located
within Los Angeles County, Alameda County, or San Mateo County.
   (2) The advertising space or time is purchased only in connection
with events to be held on the premises of the arena owned or leased
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) 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 California winegrower's agent, the manufacturer of
distilled spirits, or distilled spirits manufacturer's agent, and the
on-sale licensee.
   (c) Any beer manufacturer, holder of a winegrower's license,
California winegrower's agent, manufacturer of distilled spirits, or
the 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 the contractual obligations entered
into pursuant to subdivision (a) or (b) is 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 licensee 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 California
winegrower's agent, a distilled spirits manufacturer, or a distilled
spirits manufacturer'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.
   (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.



25503.27.  (a) Anything in this division to the contrary
notwithstanding, any manufacturer, winegrower, manufacturer's agent,
rectifier, California winegrower's agent, distiller, bottler,
importer, wholesaler, or any officer, director, agent, or
representative of any such person, may provide to licensed retailers
and the employees of those retailers who are involved in the business
decisions of those retailers, both of the following:
   (1) Food and beverages for consumption at a meeting at which the
primary purpose is the discussion of business, and local ground
transportation to and from those meetings.
   (2) Tickets or admission to athletic activities or to other forms
of entertainment, food and beverages for consumption at those
activities, and local ground transportation to and from those
activities.
   (b) For purposes of this section, any allowable expenditure shall
be for an activity for which some portion of the expenditure is
deductible as a business entertainment expense under the Internal
Revenue Code. The value of any food, beverage, local ground
transportation, or tickets or admission to activities or other forms
of entertainment provided under subdivision (a) shall not be
considered the advancement of moneys or other things of value within
the meaning of Sections 25500, 25502, and 25600.



25503.28.  (a) Notwithstanding any other provision of this division,
the holder of no more than six on-sale licenses, or any officer,
director, employee, or agent of that licensee, may own a licensed
beer manufacturer holding a license pursuant to paragraph (a) of
subdivision (1) of Section 23320, and may serve on the board of
directors and as an officer or employee of a licensed beer
manufacturer.
   (b) An on-sale licensee specified in subdivision (a) shall
purchase no alcoholic beverages for sale in this state other than
from a wholesale or winegrower licensee, except for any alcoholic
beverages manufactured by the licensed beer manufacturer at a single
location contiguous or adjacent to the premises of the on-sale
licensee.
   (c) 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 expressed terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
   (d) This section shall become operative on January 1, 1998.



25503.29.  (a) Nothing in this division shall prohibit the issuance,
transfer, or renewal of any retail on-sale license to any person
with respect to premises that are either an integral part of, or
adjacent to, the operations of a motion picture or television
production facility or an affiliated motion picture or television
theme park, which premises are owned by, or operated by or on behalf
of, the licensee, notwithstanding that a manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler has any interest,
directly or indirectly, in the premises, in the retail license, or in
the retail licensee, if all of the following conditions are met:
   (1) No more than 10 percent of the total gross annual revenues of
the motion picture or television production facility and any
affiliated theme park is derived from the sale of alcoholic
beverages.
   (2) The retail licensee shall purchase no beer, wine, or distilled
spirits for sale in this state other than from a wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages for
sale in this state from any wholesale licensee that has any interest,
directly or indirectly, in the premises, in the retail licensee, or
in the retail license.
   (3) The retail licensee serves other brands of beer, wine, and
distilled spirits in addition to the brands manufactured or
distributed by the beer or distilled spirits manufacturer or produced
or distributed by the winegrower which has any interest, directly or
indirectly, in the premises, in the retail licensee, or in the
retail license.
   (4) No more than 15 percent of the retail licensee's purchases of
alcoholic beverages for sale on its licensed premises shall be
products manufactured or distributed by the beer or distilled spirits
manufacturer or produced or distributed by the winegrower which has
any interest, directly or indirectly, in the premises, in the retail
licensee, or in the retail license.
   (b) For purposes of this section:
   (1) "Motion picture or television production facility" means an
establishment where motion pictures or television programs are
produced.
   (2) "Motion picture or television theme park" means an
establishment with not less than 25 contiguous acres, located in Los
Angeles County, the predominant purpose of which is the entertainment
of the public through activities related to motion pictures and
television programs, that has an annual paid attendance of at least
three million people.
   (3) "Adjacent to" means located on commonly owned property, or
contiguous to, or in close proximity.
   (c) 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 shall be
construed accordingly.



25503.30.  (a) Notwithstanding any other provision of this division,
a winegrower or one or more of its direct or indirect subsidiaries
of which the winegrower owns not less than a 51-percent interest, who
manufactures, produces, bottles, processes, imports, or sells wine
and distilled spirits made from grape wine or other grape products
only, under a winegrower's license or any other license issued
pursuant to this division, or any officer or director of, or any
person holding any interest in, those persons may serve as an officer
or director of, and may hold the ownership of any interest or any
financial or representative relationship in, any on-sale license, or
the business conducted under that license, provided that, except in
the case of a holder of on-sale general licenses for airplanes and
duplicate on-sale general licenses for air common carriers, all of
the following conditions are met:
   (1) The on-sale licensee purchases all alcoholic beverages sold
and served only from California wholesale licensees.
   (2) The number of wine items by brand offered for sale by the
on-sale licensee that are produced, bottled, processed, imported, or
sold by the licensed winegrower or by the subsidiary of which the
winegrower owns not less than 51 percent, or by any officer or
director of, or by any person holding any interest in, those persons
does not exceed 15 percent of the total wine items by brand listed
and offered for sale by the on-sale licensee selling and serving that
wine. Notwithstanding paragraph (1), wine sold pursuant to this
provision may be purchased from a California winegrower so long as
the wine purchased is produced or bottled by, or produced and
packaged for, the same licensed winegrower that holds an interest in
the on-sale license and such direct sales do not involve more than
two on-sale licenses in which the winegrower or any person holding an
interest in the winegrower holds any interest, directly or
indirectly, either individually or in combination or together with
each other in the aggregate.
   (3) None of the persons specified in this section may have any of
the interests specified in this section in more than two on-sale
licenses.
   (b) The Legislature finds that, while this section provides a
limited exception for licensed winegrowers, that limited exception is
granted for specific purposes, and that it is also necessary and
proper that licensed winegrowers maintain the authority granted under
this division to sell wine and brandy to any individual consumer or
any person holding a license authorizing the sale of wine or brandy.
   (c) 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 exceptions
established by this section to the general prohibition against tied
interests must be limited to their express terms so as not to
undermine the general prohibition, and the Legislature intends that
this section be construed accordingly.



25503.31.  (a) Notwithstanding any other provision of this division,
a beer manufacturer, holder of a winegrower's license, a California
winegrower's agent, a distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, a distilled spirits
manufacturer's agent, and a licensed retailer may make monetary
contributions or alcoholic beverage contributions of the type that
licensee is authorized to sell to a symphony association, if all the
following conditions are met:
   (1) The symphony association is 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) The symphony association has been incorporated in the City and
County of San Francisco by and through its predecessor organizations
for not less than 99 years and produces not less than 175 musical
events open to the general public per symphony season.
   (3) The symphony association holds a retail on-sale license in a
portion of its premises, provided that no contribution shall be used
in or for the benefit of the symphony association's retail on-sale
license.
   (4) The contribution shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, distilled spirits manufacturer, holder of a distilled
spirits rectifiers general license, a distilled spirits manufacturer'
s agent, or a licensed retailer by the symphony association.
   (b) The symphony association shall serve other brands of beer
distributed by a competing beer wholesaler in addition to the brand
manufactured or marketed by the contributing beer manufacturer, other
brands of wine distributed by a competing wine wholesaler in
addition to the brand produced or marketed by the contributing
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
contribution distilled spirits manufacturer or distilled spirits
manufacturer's agent.
   (c) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
   (d) 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 exceptions
established by this section to the general prohibition against tied
interests must be limited to their express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
   (e) This section shall remain in effect only until December 31,
2014, and as of that date is repealed.


25503.33.  (a) Notwithstanding any other provision of this division,
a beer manufacturer or winegrower may provide sponsorship funds for
or on behalf of a retail on-sale licensee provided each of the
following conditions are met:
   (1) The on-sale licensee is the owner and manager of outdoor fairs
in northern and southern California which have a history-based theme
and operate for 6 to 12 weekends in either or both venues and,
excluding rain-outs, have an average daily attendance exceeding
10,000 persons.
   (2) The sponsorship funds will be provided and used only in
connection with specific programs or activities at the outdoor fairs
described in paragraph (1).
   (3) The sponsorship funds are to sponsor the following programs or
activities only:
   (i) Signing program for the deaf.
   (ii) Docent program for the disabled.
   (iii) Public school history program.
   (iv) Scholarships and honoraria for the students of the College of
Performing Arts.
   (v) Contests involving sports, cooking, brewing, costumes, and
other skills related to arts and sciences.
   (vi) Equestrian exhibits and tournaments.
   (4) The on-sale licensee serves other brands of beer or wine in
addition to the brand manufactured by the beer manufacturer or
produced by the winegrower providing sponsorship funds.
   (b) Any provision of sponsorship funds pursuant to subdivision (a)
shall be conducted pursuant to a written contract entered into by
the beer manufacturer or winegrower and the on-sale licensee.
   (c) Any beer manufacturer or winegrower who, through coercion or
other illegal means, induces a beer or wine wholesaler to fulfill
those contractual obligations entered into pursuant to subdivision
(a), is guilty of a misdemeanor and is punishable by imprisonment in
a county jail not exceeding six months, or by a fine in an amount
equal to the entire value of the sponsorship funds involved in the
contract, plus ten thousand dollars ($10,000), or by both that
imprisonment and fine. This person shall also be subject to license
revocation pursuant to Section 24200.
   (d) 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.



25503.37.  (a) Nothing in this division shall prohibit the issuance,
transfer, or renewal of any retail on-sale license to any person
with respect to premises that are an integral part of an interactive
entertainment facility and are owned directly or indirectly, in whole
or in part, by, or operated by or on behalf of, the licensee,
notwithstanding that a manufacturer, winegrower, manufacturer's
agent, California winegrower's agent, rectifier, distiller, bottler,
importer, or wholesaler has any interest, directly or indirectly, in
the premises, in the retail license, or in the retail licensee, if
all of the following conditions are met:
   (1) The principal business conducted within the facility is
providing interactive entertainment, not the sale of alcoholic
beverages.
   (2) Other than as permitted in Sections 23358 and 23360 with
respect to wine and brandy, the retail licensee shall purchase no
beer, wine, or distilled spirits for sale in this state other than
from a wholesale licensee, and the retail licensee shall purchase no
alcoholic beverages for sale in this state from any wholesale
licensee that has any interest, directly or indirectly, in the
premises, in the retail licensee, or in the retail license.
   (3) The retail licensee shall serve other brands of beer, wine,
and distilled spirits in addition to the brands manufactured,
produced, or distributed by any manufacturer, winegrower,
manufacturer's agent, California winegrower's agent, rectifier,
distiller, bottler, importer, or wholesaler which has any interest,
directly or indirectly, in the premises, in the retail licensee, or
in the retail license.
   (4) No more than 15 percent of the retail licensee's purchases of
alcoholic beverages for sale on its licensed premises shall be
products manufactured, produced, or distributed by any manufacturer,
winegrower, manufacturer's agent, California winegrower's agent,
rectifier, distiller, bottler, importer, or wholesaler which has any
interest, directly or indirectly, in the premises, in the retail
licensee, or in the retail license.
   (b) For purposes of this section, "interactive entertainment
facility" means premises which feature interactive computer and video
entertainment attractions, themed merchandise, and food and
beverages.
   (c) 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. Notwithstanding the foregoing, having considered the
public welfare, the economic impact on the state, and the entirety of
the circumstances involved, the Legislature further finds that the
purpose and intent of the general prohibition against tied interests
is not violated by granting the exception established by this
section.


25503.38.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer may sponsor or purchase advertising space and
time from, or on behalf of, an off-sale retail licensee subject to
all of the following conditions:
   (1) The off-sale retail licensee is an owner or coowner of a
professional sports team.
   (2) The professional sports team owned or coowned by the off-sale
retail licensee is a tenant of, and plays its home games in, an arena
with a fixed seating capacity in excess of 10,000 seats located in
San Joaquin County.
   (3) The advertising space or time is sponsored or purchased only
in connection with the professional sports team's events held on the
premises of the arena.
   (4) The owner or coowner of the professional sports team does not
hold or have an interest in more than two off-sale retail licenses.
   (b) Any sponsorship or 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
off-sale retail licensee, and all other coowners, where applicable.
   (c) Any beer manufacturer 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 off-sale retail licensee described in subdivision (a) who,
directly or indirectly, solicits or coerces a holder of a wholesaler'
s license to solicit a beer manufacturer to sponsor or purchase
advertising time or space 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) Nothing in this section shall authorize the purchasing of
advertising space or time from, or on behalf of, any on-sale licensee
that is the owner, manager, agent of the owner, assignee of the
owner's advertising rights, or a tenant of the arena described in
paragraph (2) of subdivision (a).
   (f) Nothing in this section shall authorize a beer manufacturer to
furnish, give, or lend anything of value to an off-sale retail
licensee described in subdivision (a) except as expressly authorized
by this section or any other provision of this division.
   (g) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license, selling beer only.



25503.39.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, holder of a winegrower's license, winegrower's
agent, holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifiers general
license, or a distilled spirits manufacturer's agent may sponsor
events promoted by, and may purchase advertising space and time from,
or on behalf of, a live entertainment marketing company subject to
all of the following conditions:
   (1) The live entertainment marketing company is a wholly owned
subsidiary of a live entertainment company that has its principal
place of business in the County of Los Angeles, whose shares of stock
are sold to the general public on a national stock exchange, and
also owns subsidiaries that hold on-sale retail licenses.
   (2) The sponsorship and the advertising space or time is purchased
only in connection with the promotion of live artistic, musical,
sports, or cultural entertainment events at entertainment facilities,
auditoriums, or arenas that are designed and used for live artistic,
musical, sports, or cultural entertainment events.
   (3) (A) Any on-sale licensee operating at a venue where live
artistic, musical, sports, or cultural entertainment events are
performed pursuant to a sponsorship described in this section or
where advertising is purchased as described in this section shall
serve other brands of beer, distilled spirits, and wine in addition
to any brand manufactured or distributed by the sponsoring or
advertising beer manufacturer, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifiers general license, or a distilled spirits manufacturer's
agent.
   (B) Any on-sale retail licensee owned by the live entertainment
company described in paragraph (1) shall serve other brands of beer,
distilled spirits, and wine in addition to any brand manufactured or
distributed by the sponsoring or advertising beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent.
   (4) (A) Advertising space or time purchased pursuant to this
section shall not be placed in any on-sale licensed premises where
the on-sale retail licensee is owned by the live entertainment
company, or any of its subsidiaries, described in paragraph (1).
   (B) Sponsorship provided pursuant to this section shall not be
allowed if the event or activity is held at or in any on-sale
licensed premises where the on-sale retail licensee is owned by the
live entertainment company, or any of its subsidiaries, described in
paragraph (1).
   (5) An agreement for the sponsorship of, or for the purchase of
advertising space and time during, a live artistic, musical, sports,
or cultural entertainment event shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the advertising or
sponsoring beer manufacturer, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifiers general license, or a distilled spirits manufacturer's
agent by the live entertainment company described in paragraph (1) or
by any on-sale retail licensee that is owned by the live
entertainment company.
   (b) Any sponsorship of events or 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,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent and the live entertainment marketing
company.
   (c) Any beer manufacturer, holder of a winegrower's license,
winegrower's agent, holder of an importer's general license,
distilled spirits manufacturer, holder of a distilled spirits
rectifiers general license, or a 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 those
contractual obligations entered into pursuant to subdivision (a)
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 who, directly or indirectly,
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, winegrower's
agent, holder of an importer's general license, distilled spirits
manufacturer, holder of a distilled spirits rectifiers general
license, or a distilled spirits manufacturer's agent to purchase
advertising time or space pursuant to subdivision (a) 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 purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
   (f) Nothing in this section shall authorize the purchasing of
advertising space or time directly from, or on behalf of, any on-sale
licensee.
   (g) Nothing in this section shall authorize a beer manufacturer,
holder of a winegrower's license, winegrower's agent, holder of an
importer's general license, distilled spirits manufacturer, holder of
a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent to furnish, give, or lend anything of
value to an on-sale retail licensee described in subdivision (a)
except as expressly authorized by this section or any other provision
of this division.


25503.41.  (a) Notwithstanding any other provision of this division,
any person that both operates a winery in another state and produces
distilled spirits in another state may hold an interest in no more
than 12 brewpub-restaurant licenses, provided that all of the
following conditions are met:
   (1) The out-of-state distilling operations occur only on premises
where the licensee also conducts brewpub-restaurant operations, and
do not exceed 12,000 gallons of distilled spirits annually at any
licensed location.
   (2) The out-of-state winery operations occur only on premises
where the licensee also conducts brewpub-restaurant operations.
   (3) The distilled spirits and wine that are manufactured out of
state by the licensee are not imported into or sold in this state. If
the licensee imports beer into this state that is produced in its
out-of-state brewpub, it shall do so only through a licensed beer and
wine wholesaler.
   (b) 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 expressed terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.



25503.42.  (a) Notwithstanding any other provision of this chapter,
a beer manufacturer, the holder of a winegrower's license, a
California winegrower's agent, a holder of a distilled spirits
rectifiers general license, a distilled spirits manufacturer, or a
distilled spirits manufacturer's agent may purchase indoor
advertising space or time at a fully enclosed venue with box office
sales and attendance by the public on a ticketed basis only, with a
patronage capacity in excess of 2,000, but not more than 3,000,
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, where the owner of the venue is not
the on-sale retail licensee. The purchase of the indoor advertising
space or time shall be subject to all of the following conditions:
   (1) The indoor advertising space or time is purchased only at the
venue specified in this subdivision.
   (2) The purchase of indoor advertising space or time shall be
conducted pursuant to a written agreement entered into by the beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, holder of a distilled spirits rectifiers general license,
distilled spirits manufacturer, or a distilled spirits manufacturer's
agent and the owner of the venue described in this subdivision. A
holder of a wholesale license shall not be a party to the written
agreement or otherwise have any direct or indirect obligations under
the agreement, including an obligation to share in the costs or
contribute to the costs of the indoor advertising space or time
purchased pursuant to this section.
   (3) An agreement for the purchase of indoor advertising space or
time pursuant to this section shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the advertising
beer manufacturer, holder of a winegrower's license, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent by any on-sale retail licensee.
   (4) An on-sale licensee operating at a venue described in this
subdivision where indoor advertising space or time is purchased shall
serve other brands of beer distributed by a competing beer
wholesaler in addition to the brands manufactured or marketed by the
advertising beer manufacturer, other brands of wine distributed by a
competing wine wholesaler in addition to the brands produced or
marketed by the advertising winegrower or California winegrower's
agent, and other brands of distilled spirits distributed by a
competing distilled spirits wholesaler in addition to the brands
manufactured or marketed by the advertising distilled spirits
manufacturer, the distilled spirits manufacturer's agent, or a holder
of a distilled spirits rectifiers general license.
   (5) No more than 15 percent of the retail licensee's monetary
expenditures for distilled spirits and wine for sale on its licensed
premises in any calendar year shall be for products manufactured,
produced, or distributed by the holder of a winegrower's license,
California winegrower's agent, distilled spirits manufacturer, holder
of a distilled spirits rectifiers general license, or a distilled
spirits manufacturer's agent that has purchased indoor advertising
space.
   (b) A beer manufacturer, holder of a winegrower's license,
California winegrower's agent, holder of a distilled spirits
rectifiers general license, distilled spirits manufacturer, or a
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 those contractual obligations entered
into pursuant to subdivision (a) shall be guilty of a misdemeanor
and shall be punished by imprisonment in the county jail not
exceeding six months, or by a fine equal to the greater of an amount
equal to the entire value of the advertising space or time involved
in the contract or ten thousand dollars ($10,000), or by both
imprisonment and fine. The person shall also be subject to license
revocation pursuant to Section 24200.
   (c) An on-sale retail licensee who, directly or indirectly,
solicits or coerces a holder of a wholesaler's license to solicit a
beer manufacturer, holder of a winegrower's license, California
winegrower's agent, holder of a distilled spirits rectifiers general
license, distilled spirits manufacturer, or a distilled spirits
manufacturer's agent to purchase indoor advertising time or space
pursuant to subdivision (a) shall be guilty of a misdemeanor and
shall be punished by imprisonment in the county jail not exceeding
six months, or by a fine equal to the greater of an amount equal to
the entire value of the advertising space or time involved in the
contract or 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) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
   (e) Nothing in this section shall authorize the purchasing of
indoor advertising space or time pursuant to subdivision (a) by any
beer manufacturer, holder of a winegrower's license, a California
winegrower's agent, a distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, or a distilled spirits
manufacturer's agent directly or indirectly from any on-sale
licensee.
   (f) A venue owner that meets the description provided in
subdivision (a) and that enters into a written agreement pursuant to
this section shall obtain an annual certificate from the department.
The director shall prepare, as part of the annual report required by
Section 23055 for submission to the Legislature, a listing of the
number of certifications made pursuant to this section or the absence
of any certifications. Where there have been no certifications made
pursuant to this section for two consecutive years, this information
shall be included in the report.
   (g) The Legislature finds that it is necessary and proper to
require a separation among 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 shall be limited to its express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.


25503.45.  (a) Notwithstanding any other provision of this division,
a licensed beer manufacturer or a holder of beer and wine importer's
general license, or any director, partner, officer, agent, or
representative of that person, may instruct consumers at an on-sale
retail licensed premises authorized to sell its product with the
permission of the on-sale retail licensee. The instruction may
include serving beer sold by the on-sale retail licensee to the
consumer and providing information on the history, nature, values,
and characteristics of the beer, and methods of presenting and
serving the beer. Orders for the sale of beer may be accepted by the
beer manufacturer conducting an instructional event if the sales
transaction is completed at the beer manufacturer's licensed
premises.
   (b) A person authorized by subdivision (a), in advance of an
authorized instructional event, may list in an advertisement the name
and address of the on-sale retail licensee, the names of the beers
being featured at the instructional event, and the time, date, and
location of, and other information about, the instructional event,
subject to the following limitations:
   (1) The advertisement does not also contain the retail price of
the beers.
   (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) An on-sale retail licensee's advertisement of an authorized
instructional event may include the name, address, and brand names of
the person authorized by subdivision (a), however nothing in this
section allows that person to share in the costs of the on-sale
retail licensee's advertisement.
   (d) For purposes of this section, a licensed beer and wine
wholesaler shall not be a representative of a beer manufacturer or a
holder of a beer and wine importer's general license.
   (e) Notwithstanding any other provision of this division, no
alcoholic beverage may be given away in connection with the
instructional event authorized by this section.



25504.  Any person violating any provision of Sections 25500 to
25503, inclusive, is guilty of a misdemeanor, and any holder of any
retail on-sale or retail off-sale license who solicits any such
violation or accepts or permits to be accepted on his behalf and with
his consent any of the prohibited matters, articles, or acts is
guilty of a misdemeanor.
   The provisions of Sections 25500 to 25503, inclusive, do not apply
to any equipment, fixtures, or supplies furnished, given, lent, or
sold prior to June 13, 1935, so long as the equipment, fixtures, or
supplies remain in the premises in which installed prior to that
time, nor do they apply to carbonic acid gas or tapping accessories
furnished to any one on-sale licensee to a limit of not exceeding a
value of five dollars ($5) per tap in any one calendar year.




25504.5.  The provisions of Sections 25500 to 25503, inclusive, and
of Section 25600 do not apply to the occasional inspection and
cleaning by beer manufacturers and wholesalers of beer taps and
tapping equipment installed in retail on-sale premises.
   This section does not constitute a change in, but is declaratory
of, the pre-existing law.



25505.  No on-sale licensee, or any officer, director, employee, or
agent of that licensee, shall hold any ownership or interest,
directly or indirectly, in any manufacturer's, winegrower's,
rectifier's, importer's, or wholesaler's license, the business
conducted under that license, or the property used in the business.
   The provisions of this section shall not apply to the holding by
one person of a wholesaler's license and an on-sale license in a
county with a population that does not exceed 15,000.
   The provisions of this section shall not apply to the financial or
representative relationship between a manufacturer, winegrower,
manufacturer's agent, rectifier, distiller, bottler, importer, or
wholesaler, or any officer, director, or agent of that person, and,
except as otherwise specified, a person holding only one of the
following types of licenses:
   (a) On-sale general license for a bona fide club.
   (b) Club license (issued under Article 4 (commencing with Section
23425) of Chapter 3 of this division).
   (c) Veterans' club license (issued under Article 5 (commencing
with Section 23450) of Chapter 3 of this division).
   (d) On-sale license for boats, trains, sleeping cars or airplanes,
except as provided in subdivision (e), where the alcoholic beverages
produced or sold by that manufacturer, winegrower, manufacturer's
agent, rectifier, bottler, importer, or wholesaler or any officer,
director, or agent of that person are not sold, furnished or given,
directly or indirectly to the on-sale licensee.
   The provisions of this section shall not prohibit the leasing of
property by an on-sale licensee to a manufacturer, winegrower,
rectifier, importer or wholesaler provided that the lease agreement
is first approved by the department. The department shall approve the
lease agreement unless it finds that the rent payable is not the
fair rental value of the property or that the purpose of the lease is
to violate any of the provisions of this chapter.
   The provisions of this section shall not prohibit the holding of
any ownership or interest by an on-sale licensee, or any officer,
director, employee, or agent of any on-sale licensee, in any
winegrower's license, which winegrower manufactures, produces,
bottles, processes, imports, or sells wine only, or in the business
conducted under any winegrower's license, provided the on-sale
licensee, or the officer, director, employee, or agent thereof does
not sell pursuant to that on-sale license any wine manufactured,
produced, processed, imported, or sold by the licensed winegrower for
so long as the holding of the ownership or interest continues.
   (e) Any and all of the licenses specifically enumerated,
mentioned, or described in Section 25503.30, either singly or in
combination.


25506.  Except as authorized by this division, no off-sale general
licensee, or any officer, director, employee, or agent of such
licensee, shall hold any ownership or interest, directly or
indirectly, in the business, property, or license of any distilled
spirits wholesaler, rectifier, distilled spirits manufacturer, or
distilled spirits manufacturer's agent.



25507.  The provisions of Section 25506 do not prohibit a licensed
wine grower or brandy manufacturer holding an off-sale general
license permitted by Section 23362, or any officer, director, or
employee of such licensee, from holding any ownership or interest in
any distilled spirits manufacturer's, distilled spirits manufacturer'
s agent's, rectifier's, or distilled spirits wholesaler's license,
business, or property.



25508.  Any person who held an interest in, or was a member of, a
cooperative wholesale grocery company on May 1, 1947, which
cooperative holds a distilled spirits wholesaler's license, may hold
and renew his off-sale general license and may acquire an off-sale
general license or licenses for bona fide retail grocery store or
stores. Any person who is admitted to membership, or acquires an
interest, in such a cooperative after May 1, 1947, may hold or
acquire off-sale general licenses and shall operate a bona fide
retail grocery store at each location at which he holds or acquires
an off-sale general license. Any cooperative wholesale grocery
company which held a distilled spirits wholesale license on May 1,
1937, may hold and renew the license, notwithstanding its members or
some of them hold off-sale general licenses pursuant to this section.



25509.  (a) A distilled spirits manufacturer, a brandy manufacturer,
a beer manufacturer, a winegrower, a wine blender, a distilled
spirits rectifier, a wine rectifier, a distilled spirits wholesaler
or a beer and wine wholesaler who sold and delivered beer, wine, or
distilled spirits to a retailer and who did not receive payment for
such beer, wine, or distilled spirits by the expiration of the 42nd
day from date of delivery shall charge the retailer 1 percent of the
unpaid balance for such beer, wine, and distilled spirits on the 43rd
day from date of delivery and an additional 1 percent for each 30
days thereafter.
   (b) A distilled spirits manufacturer, a brandy manufacturer, a
beer manufacturer, a winegrower, a wine blender, distilled spirits
rectifier, a wine rectifier, distilled spirits wholesaler or beer and
wine wholesaler who sold and delivered beer, wine, or distilled
spirits to a retailer and who did not receive payment in full by the
expiration of the 30th day from date of delivery or who has not
received payment of the 1 percent charge at the expiration of the
30th day from the day the charge became due shall thereafter sell
beer, wine, or distilled spirits to said retailer either for cash or
by receiving payment in advance of delivery until such time as all
payments are received for the beer, wine, or distilled spirits sold
and delivered to the said retailer more than 30 days previously.
   (c) The 42-day period and the 30-day period provided for in this
section shall commence with the day immediately following the date of
invoice and shall include all successive days including Sundays and
holidays to and including the 42nd or 30th day as the case may be.
When the 42nd day from date of invoice or the expiration of each
additional 30-day period falls on Saturday, Sunday, or legal holiday,
the next business day shall be deemed to be the expiration day.
   (d) All moneys received from a retailer in payment for any beer,
wine, or distilled spirits sold and delivered to him or her shall be
first applied to the payment of the oldest balance on beer, wine, or
distilled spirits. All checks received for such payments shall be
deposited for collection not later than the second business day
following receipt of said check. A promissory note, postdated check
or check dishonored on presentation shall not be deemed payment.
   (e) In enacting the act that amends this section by adding this
subdivision, the Legislature finds that it is necessary and proper to
remove the retailer from financial or business obligations to
suppliers or wholesalers by the extension of credit beyond the terms
contained in this section. The Legislature further finds that the
exception established by this section to the general prohibition
against tied interests shall be limited to its express terms so as
not to undermine the general prohibition, and intends that this
section shall be construed accordingly.



25510.  Notwithstanding any other provision of this chapter, a
manufacturer may furnish to a licensed wholesaler, and a licensed
wholesaler or manufacturer may furnish to an on-sale licensee, only
the following specified items of alcoholic beverage tapping
equipment: kegs, tapping heads, air lines, alcoholic beverage lines,
clamps, washers, coupling devices, rods, vents, valves, keg spacers,
and filters for an initial installation in a new on-sale licensed
account or for a changeover of equipment from one tapping system to
another. A supplier may service, repair, and replace the
above-specified items of alcoholic beverage tapping equipment as
necessary. This section shall not permit a supplier to furnish or
repair alcoholic beverage equipment not specified in this section to
an on-sale licensee. Alcoholic beverage tapping equipment furnished
by a supplier shall remain the property of the supplier.



25511.  Notwithstanding any other provision of this division, a beer
manufacturer or beer wholesaler, or any officer, director, or agent
of any of those persons may furnish, give, rent, lend, or sell,
directly or indirectly, any equipment, fixtures, or supplies, other
than alcoholic beverages, to a retailer whose equipment, fixtures, or
supplies were lost or damaged as a result of a natural disaster and
whose premises are located in an area proclaimed to be in a state of
disaster by the Governor.
   This section does not apply to transactions that occur three
months or more after the Governor proclaims an area to be in a state
of disaster.
   Nothing in this section is intended to affect or otherwise limit
Section 23104.1, 23104.2, or 23104.3.



25512.  (a) Notwithstanding any other provision of this division,
any licensee or officer, director, employee, or agent of a licensee
that holds no more than eight on-sale licenses may also hold not more
than 16.67 percent of the stock of a corporation that holds beer
manufacturer licenses issued pursuant to paragraph (1) of subdivision
(a) of Section 23320 that are located in Sacramento, Placer, Contra
Costa, San Joaquin, or Napa County, and may serve on the board of
directors and as an officer or employee of that corporate licensed
beer manufacturer.
   (b) An on-sale licensee specified in subdivision (a) shall
purchase no alcoholic beverages for sale in this state other than
from a licensed wholesaler or winegrower.
   (c) In enacting this section, 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-house interests must be limited to
its expressed terms so as not to undermine the general prohibition,
and intends that this section be construed accordingly.