Amended in Assembly September 10, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1441


Introduced by Assembly Member Gray

February 27, 2015


An act tobegin delete amend Section 25664 of the Business and Professions Code, relating to alcoholic beverages.end deletebegin insert add Chapter 4.6 (commencing with Section 19720) to Division 8 of the Business and Professions Code, and to amend Sections 336.9 and 337a of the Penal Code, relating to gambling.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1441, as amended, Gray. begin deleteAlcoholic beverages: minors: purchase. end deletebegin insertGambling: end insertbegin insertsports wagering.end insert

begin insert

The California Constitution prohibits various gaming activities within the state, including casino-style gaming, but authorizes the Governor, subject to ratification by the Legislature, to negotiate and conclude compacts for the operation of slot machines and the conduct of lottery games and banking and percentage card games by federally recognized Indian tribes on Indian lands in California in accordance with federal law. The California Constitution also authorizes the Legislature to provide for the regulation of horse racing, charitable bingo games, the California State Lottery, and charitable raffles.

end insert
begin insert

Existing federal law, referred to as the Professional and Amateur Sports Protection Act, prohibits a governmental entity or a person from conducting a lottery, sweepstakes, or other betting, gambling, or wagering scheme based, directly or indirectly, on competitive games or performances in which amateur or professional athletes participate.

end insert
begin insert

Existing law prohibits a person, whether or not for gain, hire, or reward, from placing a bet or wager on the result of any contest of skill, speed, or power of endurance of person, as specified, and prohibits a person from pool selling or bookmaking.

end insert
begin insert

The Gambling Control Act provides for the licensure of certain individuals and establishments that conduct controlled games, as defined, and for the regulation of these gambling activities by the California Gambling Control Commission. Existing law provides for the enforcement of those regulations by the Department of Justice. Any willful violation of these provisions for which a punishment is not expressly provided, is punishable as a misdemeanor.

end insert
begin insert

The Horse Racing Law provides for the licensure of every person who participates in, or has anything to do with, the racing of horses, and every employee of a parimutuel department by the California Horse Racing Board. The board is responsible for adopting rules and regulations for the protection of the public, the control of horse racing, and parimutuel wagering, as well as enforcing all laws, rules, and regulations dealing with horse racing and parimutuel wagering. The law permits the board to authorize an association licensed to conduct a racing meeting to also operate a satellite wagering facility at its racetrack inclosure, and for fairs to locate a satellite wagering facility at their fairgrounds, under specified conditions. Any violation of these provisions is punishable as a misdemeanor.

end insert
begin insert

This bill would enact the California Interactive Sports Wagering Consumer Protection Act, which would authorize the owner or operator of a card room that holds a state gambling license, a racing association or racing fair with a current license, or a federally recognized California Indian tribe that operates a gaming facility pursuant to a facility license issued in accordance with a tribal gaming ordinance, to accept and facilitate wagering on a sports event, as defined, by any legal system or method of wagering, including, but not limited to, exchange wagering, parlays, over-under, moneyline, and straight bets, by applying to the Department of Justice for a license and authorization to conduct sports wagering, as defined. The bill would require sports wagering to be accepted and executed only using telephone, computer, or another method of electronic wagering communication. The bill would require each licensed operator to pay an annual fee of $_____ to the State Department of Public Health for deposit in the Gambling Addiction Program Fund. The bill would require each licensed operator to remit to the Treasurer on a quarterly basis for deposit in the ______ Fund an amount equal to _____ from the total win amount from the facilitation of a sports event wager. The bill would require the department to adopt regulations to implement these provisions, including authority to adopt regulations establishing fees in a reasonable amount necessary to recover the costs incurred by the department relating to the administration of these provisions.

end insert
begin insert

This bill would require the department to, among other things, monitor the conduct of all licensed operators. The bill would prohibit a licensed operator from, among other things, accepting a wager from any person who is under 21 years of age or whose name appears on a self-exclusion list. Any willful violation of these provisions would be punishable as a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program.

end insert
begin insert

This bill would provide that its provisions would become operative only if the federal Professional and Amateur Sports Protection Act is amended or repealed to allow sports wagering in California and a state constitutional amendment to authorize sports wagering has been approved by the voters.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

end insert
begin delete

(1) The Alcoholic Beverage Control Act regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. The act prohibits an advertisement of alcoholic beverages from using subject matter or language addressed to minors and intended to encourage them to drink alcoholic beverages. The act provides that a person convicted of a violation of its provisions is guilty of a misdemeanor unless another penalty or punishment is specifically provided.

end delete
begin delete

This bill would prohibit an advertisement of alcoholic beverages from using subject matter or language addressed to minors and intended to encourage them to purchase alcoholic beverages. By expanding the scope of a crime, this bill would impose a state-mandated local program.

end delete
begin delete

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete
begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

The Legislature finds and declares all of the
2following:

end insert
begin insert

3(a) Since January 1, 1993, the federal Professional and Amateur
4Sports Protection Act (28 U.S.C. Sec. 3701 et seq.), known as
5PASPA, has prohibited most states and local governments from
6authorizing sports wagering.

end insert
begin insert

7(b) Under PASPA, Nevada is the only state where full-scale
8sports wagering is currently legally conducted, and this activity
9has resulted in great direct and indirect revenues to that state’s
10economy.

end insert
begin insert

11(c) It has been reported that more than 30 million people visit
12Nevada every year and place a sports bet. Betting on sporting
13events rose 7.7 percent to $3.9 billion in 2014, and revenue hit a
14record, jumping 11.8 percent to $227 million, according to the
15Nevada Gaming Control Board.

end insert
begin insert

16(d) There is no solid data on the volume of illegal sports betting
17activity occurring in the United States, but some estimate that
18nearly $400 billion is illegally wagered on sports each year.

end insert
begin insert

19(e) In January 2015, the American Gaming Association
20estimated that Americans were expected to make $3.8 billion worth
21of illegal bets on the 2015 Super Bowl between the New England
22Patriots and the Seattle Seahawks. That figure stands in stark
23contrast to the approximately $100 million bet legally on the Super
24Bowl each year. In fact, the illegal market is 38 times greater than
25the legal market for sports wagering.

end insert
begin insert

26(f) If the federal sports wagering ban is changed to allow sports
27wagering across the country, state gaming enforcement agencies
28would be required to properly regulate and enforce this activity.

end insert
begin insert

29(g) If the federal sports wagering ban is ever lifted, it is in the
30best interests of this State that legalized sports wagering be
P5    1authorized to be conducted by licensed card rooms, licensed horse
2racing associations, and federally recognized Indian tribes, under
3regulation and control by the Department of Justice.

end insert
4begin insert

begin insertSEC. 2.end insert  

end insert

begin insertChapter 4.6 (commencing with Section 19720) is added
5to Division 8 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert, to read:end insert

begin insert

6 

7Chapter  begin insert4.6.end insert California Interactive Sports Wagering
8Consumer Protection Act
9

 

10

begin insert19720.end insert  

This chapter shall be known, and may be cited, as the
11California Interactive Sports Wagering Consumer Protection Act.

12

begin insert19721.end insert  

(a) Subject to a state constitutional amendment that
13has been approved by the voters and a change in federal law, the
14following entities may be licensed by the department to accept and
15facilitate wagering on sports events as authorized pursuant to this
16chapter:

17(1) A card room that operates pursuant to Chapter 5
18(commencing with Section 19800) whose owner or owners have
19been authorized, subject to oversight by, and are in good standing
20with, the applicable state regulatory authorities.

21(2) A racing association or racing fair, with a current license
22issued by the California Horse Racing Board pursuant to Chapter
234 (commencing with Section 19400). A licensed racing association
24 or licensed racing fair may conduct sports wagering only if it has
25an agreement in place with the organization recognized by the
26board that is responsible for negotiating purse agreements, satellite
27wagering agreements, and all other business agreements on behalf
28of horsemen and horsewomen participating in a racing meeting.

29(3) A federally recognized California Indian tribe that operates
30a gaming facility pursuant to a facility license issued in accordance
31with a tribal gaming ordinance approved by the Chair of the
32National Indian Gaming Commission.

33(b) The entities listed in subdivision (a) that are eligible for
34licensure pursuant to this chapter may form a partnership, joint
35venture, or any other affiliation in order to further the purposes
36of this chapter.

37

begin insert19722.end insert  

As used in this chapter, the following definitions shall
38apply:

39(a) “Board” means the California Horse Racing Board.

P6    1(b) “Card room” means a gambling enterprise, as defined in
2subdivision (m) of Section 19805.

3(c) “Department” means the Department of Justice.

4(d) “Licensed operator” means any of the entities listed in
5subdivision (a) of Section 19721 that are authorized pursuant to
6this chapter to conduct sports wagering.

7(e) “Prohibited sports event” means any collegiate sport or
8athletic event that takes place in California, or a sports event in
9which any California college team participates, regardless of
10where the event takes place.

11(f) “Sports event” shall include any professional sports or
12athletic event, and any collegiate sports or athletic event, except
13a prohibited sports event.

14(g) “Sports wagering” means the business of accepting wagers
15on a sports event by any legal system or method of wagering,
16including, but not limited to, exchange wagering, parlays,
17over-under, moneyline, and straight bets.

18(h) “Internet” means the international computer network of
19both federal and nonfederal interoperable packet-switched data
20networks.

21(i) “Licensed service provider” means a person who is licensed
22pursuant to this chapter to provide goods or services to a licensed
23operator for use in the operation of an authorized sports wagering
24Internet Web site.

25

begin insert19723.end insert  

(a) An entity listed in subdivision (a) of Section 19721
26that is seeking to conduct sports wagering shall apply to the
27department for authorization to conduct sports wagering.

28(b) (1) The department shall hear and decide, and in reasonable
29order, all applications to conduct sports wagering from licensed
30card rooms, licensed racing associations or racing fairs, federally
31recognized Indian tribes, and service providers.

32(2) Authorization to conduct sports wagering shall not be
33unreasonably withheld from any applicant that is in good standing
34and has a current license issued pursuant to Chapter 4
35(commencing with Section 19400) or Chapter 5 (commencing with
36 Section 19800).

37(c) Each licensed operator shall pay an annual fee of _____
38($_____) to the State Department of Public Health for deposit in
39the Gambling Addiction Program Fund.

P7    1(d) In consideration of the substantial value of each license,
2each licensed operator shall remit to the Treasurer on a quarterly
3basis for deposit in the _______ Fund an amount equal to _____
4from the total win amount from the facilitation of a sports event
5wager.

6

begin insert19724.end insert  

Within 270 days after the operative date of this chapter,
7the department shall adopt regulations for the administration of
8this chapter and may adopt regulations establishing fees in a
9reasonable amount necessary to recover the costs incurred by the
10department relating to the administration of this chapter.

11

begin insert19725.end insert  

The regulations adopted by the department shall do
12both of the following:

13(a) Provide for the approval of wagering rules and equipment
14by the department to ensure fairness to the public and compliance
15with state law, including, but not limited to, all of the following:

16(1) Acceptance of wagers on a series of sports events.

17(2) Types of wagering tickets that may be used.

18(3) The method of issuing tickets.

19(b) Govern all of the following:

20(1) The extension of credit.

21(2) The cashing, deposit, and redemption of checks or other
22negotiable instruments.

23(3) The amount of cash reserves to be maintained by licensed
24operators to cover winning wagers.

25(4) The provision of reliable records, accounts, and reports of
26transactions, operations, and events, the method of accounting to
27be used by licensed operators, and the types of records required
28to be maintained.

29

begin insert19726.end insert  

The sports wagering authorized pursuant to this chapter
30shall be accepted and executed only using telephone, computer,
31or another method of electronic wagering communication.

32

begin insert19727.end insert  

A licensed operator shall not do any of the following:

33(a) Accept a wager from a person who is under 21 years of age.

34(b) Accept a sports wager unless the transmission of a wager
35is initiated from within the State of California.

36(c) Accept a wager from any person whose name appears on
37any self-exclusion list.

38

begin insert19728.end insert  

Each licensed operator’s sports wagering Internet Web
39site shall contain information relating to problem gambling,
P8    1including a telephone number that an individual may call to seek
2information and assistance for a potential gambling addiction.

3

begin insert19729.end insert  

A licensed operator shall establish the odds it will pay
4on wagers placed on sports events.

5

begin insert19730.end insert  

(a) A licensed operator shall not conduct any sports
6wagering in violation of this chapter, any regulation adopted
7pursuant to this chapter, or any governing local ordinance.

8(b) Any person who willfully violates this chapter is guilty of a
9misdemeanor.

10

begin insert19731.end insert  

(a) The department shall have all of the following
11responsibilities:

12(1) To monitor the conduct of all licensed operators and other
13persons having a material involvement, directly or indirectly, with
14a sports wagering operation.

15(2) To investigate suspected violations of this chapter.

16(3) To investigate complaints that are lodged against licensed
17operators, or other persons associated with a sports wagering
18operation, by members of the public.

19(4) To initiate, when appropriate, disciplinary actions. In
20connection with any disciplinary action pursuant to this chapter,
21the department may seek restriction, limitation, suspension, or
22revocation of any license, permit, authorization, or approval
23pursuant to this chapter, Chapter 4 (commencing with Section
2419400), or Chapter 5 (commencing with Section 19800), or the
25imposition of a fine upon a person licensed, permitted, authorized,
26or approved pursuant to those chapters.

27(5) To adopt regulations related to its functions and duties as
28specified in this chapter.

29(6) To adopt regulations establishing fees in the reasonable
30amount necessary to recover costs incurred by the department
31relating to the enforcement of this chapter.

32(b) The department has all powers necessary and proper to
33enable it to carry out fully and effectually its duties and
34responsibilities as specified in this chapter.

35

begin insert19732.end insert  

(a) The department shall make appropriate
36investigations as follows:

37(1) To determine whether there has been any violation of this
38chapter or of any regulation adopted under this chapter.

P9    1(2) To determine any facts, conditions, practices, or matters
2that it may deem necessary or proper to aid in the enforcement of
3this chapter or of any regulation adopted under this chapter.

4(3) To aid in adopting regulations.

5(b) If, after any investigation pursuant to this chapter, the
6department is satisfied that a license, permit, authorization, or
7approval issued pursuant to this chapter, Chapter 4 (commencing
8with Section 19400), or Chapter 5 (commencing with Section
919800) should be suspended or revoked, it shall file an accusation
10in accordance with Chapter 5 (commencing with Section 11500)
11of Part 1 of Division 3 of Title 2 of the Government Code.

12(c) In addition to any action that it may take against a license,
13permit, finding of suitability, or approval, the department may
14also require the payment of fines or penalties. However, any fine
15imposed shall not exceed twenty thousand dollars ($20,000) for
16each separate violation of this chapter or of any regulation adopted
17under this chapter.

18

begin insert19733.end insert  

The department shall have the authority to regulate
19sports wagering to the same extent that the department currently
20regulates other legal gambling in this state, including the ability
21to audit the books and records of a licensed operator.

22

begin insert19734.end insert  

(a) This chapter shall become operative only if both
23of the following occur:

24(1) The federal Professional and Amateur Sports Protection
25Act (28 U.S.C. Sec. 3701 et seq.) is amended or repealed to allow
26sports wagering in California.

27(2) A state constitutional amendment to authorize sports
28wagering has been approved by the voters.

29(b) This chapter shall become operative on the date that the
30Attorney General executes a declaration, which shall be retained
31by the Attorney General, stating that both of the events described
32in subdivision (a) have occurred.

33(c) In addition to the requirements specified in subdivision (b),
34the Attorney General shall post the declaration on the department’s
35Internet Web site and the Attorney General shall send the
36declaration to the appropriate policy committees of the Legislature
37and to the Legislative Counsel.

end insert
38begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 336.9 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

39

336.9.  

(a) Notwithstanding Section 337a, and except as
40provided in subdivision (b), any person who, not for gain, hire, or
P10   1reward other than that at stake under conditions available to every
2participant, knowingly participates in any of the ways specified in
3paragraph (2), (3), (4), (5), or (6) of subdivision (a) of Section
4337a in any bet, bets, wager, wagers, or betting pool or pools made
5between the person and any other person or group of persons who
6are not acting for gain, hire, or reward, other than that at stake
7under conditions available to every participant, upon the result of
8any lawful trial, or purported trial, or contest, or purported contest,
9of skill, speed, or power of endurance of person or animal, or
10between persons, animals, or mechanical apparatus, is guilty of
11an infraction, punishable by a fine not to exceed two hundred fifty
12dollars ($250).

13(b) Subdivision (a) does not apply tobegin delete eitherend deletebegin insert anyend insert of the following
14situations:

15(1) Any bet, bets, wager, wagers, or betting pool or pools made
16online.

17(2) Betting pools with more than two thousand five hundred
18dollars ($2,500) at stake.

begin insert

19(3) Any sports wagering authorized pursuant to Chapter 4.6
20(commencing with Section 19720) of Division 8 of the Business
21and Professions Code.

end insert
22begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 337a of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

23

337a.  

(a) Except as provided in Section 336.9,begin insert and as
24authorized pursuant to Chapter 4.6 (commencing with Section
2519720) of Division 8 of the Business and Professions Code,end insert
every
26person who engages in one of the followingbegin delete offenses,end deletebegin insert offensesend insert
27 shall be punished for a first offense by imprisonment in a county
28jail for a period of not more than one year or in the state prison,
29or by a fine not to exceed five thousand dollars ($5,000), or by
30both imprisonment and fine:

31(1) Pool selling or bookmaking, with or without writing, at any
32time or place.

33(2) Whether for gain, hire, reward, or gratuitously, or otherwise,
34keeps or occupies, for any period of time whatsoever, any room,
35shed, tenement, tent, booth, building, float, vessel, place, stand or
36enclosure, of any kind, or any part thereof, with a book or books,
37paper or papers, apparatus, device or paraphernalia, for the purpose
38of recording or registering any bet or bets, any purported bet or
39bets, wager or wagers, any purported wager or wagers, selling
40pools, or purported pools, upon the result, or purported result, of
P11   1any trial, purported trial, contest, or purported contest, of skill,
2begin delete speedend deletebegin insert speed,end insert or power of endurance of person or animal, or between
3persons, animals, or mechanical apparatus, or upon the result, or
4purported result, of any lot, chance, casualty,begin insert orend insert unknown or
5contingent event whatsoever.

6(3) Whether for gain, hire, reward, or gratuitously, or otherwise,
7receives, holds, or forwards, or purports or pretends to receive,
8hold, or forward, in any manner whatsoever, any money, thing or
9consideration of value, or the equivalent or memorandum thereof,
10staked, pledged, bet or wagered, or to be staked, pledged, bet or
11wagered, or offered for the purpose of being staked, pledged, bet
12or wagered, upon the result, or purported result, of any trial, or
13purported trial, or contest, or purported contest, of skill,begin delete speedend delete
14begin insert speed,end insert or power of endurance of person or animal, or between
15persons, animals, or mechanical apparatus, or upon the result, or
16purported result, of any lot, chance, casualty,begin insert orend insert unknown or
17contingent event whatsoever.

18(4) Whether for gain, hire, reward, or gratuitously, or otherwise,
19at any time or place, records, or registers any bet or bets, wager
20or wagers, upon the result, or purported result, of any trial, or
21purported trial, or contest, or purported contest, of skill,begin delete speedend delete
22begin insert speed,end insert or power of endurance of person or animal, or between
23persons, animals, or mechanical apparatus, or upon the result, or
24purported result, of any lot, chance, casualty,begin insert orend insert unknown or
25contingent event whatsoever.

26(5) Being the owner, lessee or occupant of any room, shed,
27tenement, tent, booth, building, float, vessel, place, stand, enclosure
28or grounds, or any part thereof, whether for gain, hire, reward, or
29gratuitously, or otherwise, permits that space to be used or occupied
30for any purpose, or in any manner prohibited by paragraph (1),
31(2), (3), or (4).

32(6) Lays, makes, offers or accepts any bet or bets, or wager or
33wagers, upon the result, or purported result, of any trial, or
34purported trial, or contest, or purported contest, of skill, speed or
35power of endurance of person or animal, or between persons,
36animals, or mechanical apparatus.

37(b) In any accusatory pleading charging a violation of this
38section, if the defendant has been once previously convicted of a
39violation of any subdivision of this section, the previous conviction
40shall be charged in the accusatory pleading, and, if the previous
P12   1conviction is found to be true by the jury, upon a jury trial, or by
2the court, upon a court trial, or is admitted by the defendant, the
3defendant shall, if he or she is not imprisoned in the state prison,
4be imprisoned in the county jail for a period of not more than one
5year and pay a fine of not less than one thousand dollars ($1,000)
6and not to exceed ten thousand dollars ($10,000). Nothing in this
7paragraph shall prohibit a court from placing a person subject to
8this subdivision on probation. However, that person shall be
9required to pay a fine of not less than one thousand dollars ($1,000)
10nor more than ten thousand dollars ($10,000) or be imprisoned in
11the county jail for a period of not more than one year, as a condition
12thereof. In no event does the court have the power to absolve a
13person convicted pursuant to this subdivision from either being
14imprisoned or from paying a fine of not less than one thousand
15dollars ($1,000) and not more than ten thousand dollars ($10,000).

16(c) In any accusatory pleading charging a violation of this
17section, if the defendant has been previously convicted two or
18more times of a violation of any subdivision of this section, each
19previous conviction shall be charged in the accusatory pleadings.
20If two or more of the previous convictions are found to be true by
21the jury, upon a jury trial, or by the court, upon a court trial, or are
22admitted by the defendant, the defendant shall, if he or she is not
23imprisoned in the state prison, be imprisoned inbegin delete theend deletebegin insert aend insert county jail
24for a period of not more than one year or pay a fine of not less than
25one thousand dollars ($1,000) nor more than fifteen thousand
26dollars ($15,000), or be punished by both imprisonment and fine.
27Nothing in this paragraph shall prohibit a court from placing a
28person subject to this subdivision on probation. However, that
29person shall be required to pay a fine of not less than one thousand
30dollars ($1,000) nor more than fifteen thousand dollars ($15,000),
31or be imprisoned inbegin delete theend deletebegin insert aend insert county jail for a period of not more than
32one year as a condition thereof. In no event does the court have
33the power to absolve a person convicted and subject to this
34subdivision from either being imprisoned or from paying a fine of
35not more than fifteen thousand dollars ($15,000).

36(d) Except where the existence of a previous conviction of any
37subdivision of this section was not admitted or not found to be true
38pursuant to this section, or the court finds that a prior conviction
39was invalid, the court shall not strike or dismiss any prior
40convictions alleged in the information or indictment.

P13   1(e) This section applies not only to persons who commit any of
2the acts designated in paragraphs (1) to (6), inclusive, of
3subdivision (a), as a business or occupation, but also applies to
4every person who in a single instance engages in any one of the
5acts specified in paragraphs (1) to (6), inclusive, of subdivision
6(a).

7begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
8Section 6 of Article XIII B of the California Constitution because
9the only costs that may be incurred by a local agency or school
10district will be incurred because this act creates a new crime or
11infraction, eliminates a crime or infraction, or changes the penalty
12for a crime or infraction, within the meaning of Section 17556 of
13the Government Code, or changes the definition of a crime within
14the meaning of Section 6 of Article XIII B of the California
15Constitution.

end insert
begin delete
16

SECTION 1.  

Section 25664 of the Business and Professions
17Code
is amended to read:

18

25664.  

(a) (1) The use, in any advertisement of alcoholic
19beverages, of any subject matter, language, or slogan addressed
20to and intended to encourage minors to purchase or drink the
21alcoholic beverages, is prohibited.

22(2) Signage or flyers advertising an establishment that serves
23alcoholic beverages to individuals under the age of 21 years are
24prohibited under paragraph (1) if one of the establishment’s
25principal business activities is the selling of alcoholic beverages,
26and the advertisement expressly states that the jurisdiction in which
27the establishment is located has a legal drinking age of under 21
28 years or that individuals under the age of 21 years may patronize
29the establishment.

30(3) Nothing in this section shall be deemed to restrict or prohibit
31any advertisement of alcoholic beverages to those persons of legal
32drinking age.

33(b) The department may adopt rules as it determines to be
34necessary for the administration of this section.

35

SEC. 2.  

No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution because
37the only costs that may be incurred by a local agency or school
38district will be incurred because this act creates a new crime or
39infraction, eliminates a crime or infraction, or changes the penalty
40for a crime or infraction, within the meaning of Section 17556 of
P14   1the Government Code, or changes the definition of a crime within
2the meaning of Section 6 of Article XIII B of the California
3Constitution.

end delete


O

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