SB 2163

This bill authorizes a celebrity to enter into a celebrity endorsement agreement if the celebrity meets all of the following criteria:  Is at least 21.  Is a citizen of the United States.  Is not a member or employee of the alcoholic beverage commission.  Does not hold a public office and is not a public employee, other than uncompensated appointees to municipal boards and commissions where the boards or commissions on which such appointees serve have no duty to vote for, overlook, or in any manner superintend the sale of alcoholic beverages.  Has not been convicted within the 10-year period preceding entering the celebrity endorsement agreement of any offense under this title, or of any similar law of any other state or of the United States, prohibiting or regulating the sale, possession, transportation, storing, manufacturing, or otherwise handling alcoholic beverages or beer, or who has, during such period, been engaged in business alone or with others, in violation of any of such laws or rules promulgated pursuant to such laws.  Has not been convicted of a felony involving moral turpitude within the 10-year period preceding entering the celebrity endorsement agreement.  Has never had a license related to the manufacture, sale, or distribution of any form of alcoholic beverages or beer revoked for cause. This bill provides that a celebrity endorsement agreement, including compensation received by a celebrity under a celebrity endorsement agreement and any personal promotional activities pursuant to a celebrity endorsement agreement, does not constitute a direct or indirect ownership interest in the alcoholic beverage brand or on-premise establishment and does not constitute property, if the celebrity does not have any ownership interest in the entity that is a party to the celebrity endorsement agreement a nd the celebrity is not directly involved in the operations, management, or control of the entity that is the party to the celebrity endorsement agreement. This bill provides that neither of the following constitutes involvement in the operations, management, or control of the alcoholic beverage brand or on-premise establishment:  The right to approve use of intellectual property, marketing, brand manufacturing methods, brand taste profiles, and other brand criteria, food, and beverage menus, décor, and other trade dress.  Personal promotional activities or occasional performances by the celebrity at the on-premise establishment or on behalf of the on-premise establishment or alcoholic beverage brand. This bill authorizes the alcoholic beverage commission to require a questionnaire and valid government identification from a celebrity that receives 5% or more of the proceeds from the sale of alcoholic beverages under a celebrity endorsement agreement t o establish that the celebrity meets the criteria above. Any questionnaire, government identification form, celebrity endorsement agreement, or related document provided by a celebrity constitutes proprietary information and is not a public record. ON APRIL 6, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2272, AS AMENDED. AMENDMENT #1 rewrites this bill to change present law concerning common ownership of entities involved in the alcoholic beverages industry. Present law authorizes a licensed manufacturer of alcoholic beverages to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that such interest is held in an irrevocable trust by a n independent trustee This amendment changes present law to authorize a licensed manufacturer, winery, or a non-resident seller or a non-manufacturer, licensed non-resident seller, including, but not limited to, a person with a direct or indirect interest in any of the forego ing, to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that the person's interest is held in an irrevocable trust by an independent trustee. This amendment prohibits a person whose interest in a brand or business is held in an irrevocable trust by an independent trustee from participating in the management or operation of the brand or business for which the interest was placed in the irrevoca ble trust. This amendment authorizes person whose interest is held in an irrevocable trust by an independent trustee to enter into a licensing agreement through the trust for the use of the person's name, image, or likeness, and such person may participate in adve rtising or promotional activities for the brand or business held in the trust. Any such licensing agreement may provide for compensation payable to the trust that is based on one or more of the following: (1) A fixed fee; or (2) A percentage of sales or profits that does not exceed 10%. Any licensing agreement or related document provided to the alcoholic beverage commission pursuant to this amendment constitutes proprietary information for purposes of the open records law. ON APRIL 9, 2026, THE SENATE SUBSTITUTED HOUSE BILL 2272 FOR SENATE BILL 2163, ADOPTED AMENDMENT #2, AND PASSED HOUSE BILL 2272, AS AMENDED. AMENDMENT #2 r ewrites this bill to change present law concerning common ownership of entities involved in the alcoholic beverages industry. Present law authorizes a licensed manufacturer of alcoholic beverages to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that such interest is held in an irrevocable trust by a n independent trustee . This amendment changes present law to authorize a licensed manufacturer, winery, or a non-resident seller or a non-manufacturer, licensed non-resident seller, including, but not limited to, a person with a direct or indirect interest in any of the foregoing, to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages ; provided, that the person's interest is held in an irrevocable trust by an independent trustee. This amendment prohibits a person whose interest in a brand or business is held in an irrevocable trust by an independent trustee from participat ing in the management or operation of the brand or business for which the interest was placed in the irrevocable trust. This amendment authorizes person whose interest is held in an irrevocable trust by an independent trustee to enter into a licensing agreement through the trust for the use of the person's name, image, or likeness, and such person may participate in advertising or promotional activities for the brand or business held in the trust. A ny such licensing agreement may provide for compensation payable to the trust that is based on one or more of the following: ( 1 ) A fixed fee; or ( 2 ) A percentage of sales or profits that does not exceed 10%. Any licensing agreement or related document provided to the alcoholic beverage c ommission pursuant to this amendment constitutes proprietary information for purposes of the open records law .