(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.
(Amended by Stats. 1974, Ch. 699.)
Last modified: October 25, 2018