Section 25503.63 - [Effective 1/1/2025] Tied-house restrictions; historical cemeteries more than 100 years old(a) Notwithstanding any other provision of this chapter, a beer manufacturer, holder of a winegrower's license, winegrower's agent, holder of any importer's license that does not also hold a wholesaler or retail license as an additional license, distilled spirits manufacturer, holder of any rectifier's license, or a distilled spirits manufacturer's agent may sponsor events promoted by, and may purchase advertising space or time from, an operator of a for-profit cemetery subject to all of the following conditions: (1) The for-profit cemetery shall be more than 100 years old, be located in, and designated a Historic-Cultural Monument by, the City of Los Angeles, have an endowment care fund and a memorial care fund that are exempt from the payment of income taxes, and hold a valid special on-sale general license for historic cemetery (Type 88).(2) The sponsorship and the advertising space or time is purchased only in connection with the promotion of live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events permitted at the for-profit cemetery and permitted by the local jurisdiction.(3)(A) An on-sale licensee operating at a venue where live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural events are performed pursuant to a sponsorship or where advertising space or time is purchased shall serve other brands of beer, distilled spirits, and wine distributed by a competing wholesaler 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 any importer's license, distilled spirits manufacturer, holder of any rectifier's license, or a distilled spirits manufacturer's agent.(B) An on-sale retail licensee owned by the for-profit cemetery shall serve other brands of beer, distilled spirits, and wine distributed by a competing wholesaler 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 any importer's license, distilled spirits manufacturer, holder of any rectifier's license, or a distilled spirits manufacturer's agent.(4) Advertising space or time purchased shall not be placed in an on-sale licensed premises, other than where the cultural event will take place, where the on-sale retail licensee is also owned directly or indirectly by the operator of the for-profit cemetery, or any of its subsidiaries.(5) An agreement for the sponsorship of, or for the purchase of advertising space and time during, a live artistic, concert, musical, film screening, food, beverage, culinary, lifestyle, or other cultural 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 any importer's license, distilled spirits manufacturer, holder of any rectifier's license, or a distilled spirits manufacturer's agent by the for-profit cemetery.(b) A 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 any importer's license, distilled spirits manufacturer, holder of any rectifier's license, or a distilled spirits manufacturer's agent and the for-profit cemetery operator.(c) A beer manufacturer, holder of a winegrower's license, winegrower's agent, holder of any importer's license, distilled spirits manufacturer, holder of any rectifier's 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 suspension or revocation pursuant to Section 24200.(d) A 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 any importer's license, distilled spirits manufacturer, holder of any rectifier's 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 suspension or revocation pursuant to Section 24200.(e) Nothing in this section shall authorize a beer manufacturer, holder of a winegrower's license, winegrower's agent, holder of any importer's license, distilled spirits manufacturer, holder of any rectifier's 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 a provision of this division.(f) 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 license that does not also hold a wholesaler or retail license as an additional license.Ca. Bus. and Prof. Code § 25503.63
Added by Stats 2024 ch 137 (SB 1495),s 1, eff. 1/1/2025.