Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law, known as tied-house restrictions, generally prohibits specified licensees, or their officers, directors, or agents, from giving or lending money or a thing of value to a person operating, owning, or maintaining any on-sale premises where alcoholic beverages are sold. In this regard, existing law specifically prohibits paying a retailer for advertising. Existing law creates a variety of exceptions to this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, agent or assignee of the owner, or major tenant of certain venues, subject to specified conditions. Existing law requires the purchase of advertising space or time, in this context, to be conducted pursuant to a written contract. In this context, existing law makes certain acts of coercion crimes, including when an on-sale licensee coerces other specified licensees to purchase advertising space or time.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles, San Bernardino, and San Diego.