BILL NUMBER: AB 2413 CHAPTERED 09/16/02 CHAPTER 579 FILED WITH SECRETARY OF STATE SEPTEMBER 16, 2002 APPROVED BY GOVERNOR SEPTEMBER 14, 2002 PASSED THE SENATE AUGUST 28, 2002 PASSED THE ASSEMBLY MAY 2, 2002 AMENDED IN ASSEMBLY APRIL 3, 2002 INTRODUCED BY Committee on Governmental Organization (Horton (Chair), Strickland (Vice Chair), Canciamilla, Chavez, Harman, Maldonado, Nation, Reyes, Wesson, Wiggins, and Wright) FEBRUARY 21, 2002 An act to amend Sections 23055 and 24045.7 of the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGEST AB 2413, Committee on Governmental Organization. Department of Alcoholic Beverage Control. The Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the department to make an annual report to the Legislature on the department's activities, including information for the previous calendar year on the number and type of enforcement activities conducted by the department. This bill would also require that report to include information on the number and type of enforcement activities conducted by local law enforcement agencies in conjunction with the department. Under the Alcoholic Beverage Control Act, the Department of Alcoholic Beverage Control may issue a special on-sale general license to any nonprofit theater company that meets specified requirements. Existing law permits a licensed manufacturer, winegrower, manufacturer's agent, California winegrower's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, to serve on the board of trustees of a nonprofit theater company operating a theater in Napa County licensed pursuant to these provisions. This bill would also permit any of the above persons or entities to serve as an officer, director or employee of that theater company. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 23055 of the Business and Professions Code is amended to read: 23055. On or before March 1 of each year, the director shall prepare and submit to the Legislature an annual report on the department's activities. The report shall include, but not be limited to, the following information for the previous calendar year: (a) The amount of funds allocated and spent by the department for licensing, enforcement, and administration. (b) The number of licenses issued, renewed, denied, suspended, and revoked, by license category. (c) The average time for processing license applications, by license category. (d) The number and type of enforcement activities conducted by the department and by local law enforcement agencies in conjunction with the department. (e) The number, type, and amount of penalties, fines, and other disciplinary actions taken by the department. (f) Recommendations for legislation to improve the ability of the department to expeditiously and effectively administer this division. SEC. 2. Section 24045.7 of the Business and Professions Code is amended to read: 24045.7. (a) (1) The department may issue a special on-sale general license to any nonprofit theater company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company pursuant to this subdivision shall be for a single specified premises only. (2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours prior to and one hour after, a bona fide theater performance of the company. (3) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturer's agent, California winegrower's agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating a theater in Napa County licensed pursuant to this subdivision. (4) An applicant for such a license shall accompany the application with an original issuance fee of one thousand dollars ($1,000) and shall pay an annual renewal fee as provided in Section 23320. (5) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly. (b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which has been in existence for at least eight years, which for at least six years has performed in facilities leased or rented from a local county fair association, and which is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. (2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours prior to, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits a theater company to sell beer or wine during the run of a county fair. (3) An applicant for a license under this subdivision shall accompany the application with an original issuance fee equal to the annual renewal fee and shall pay an annual renewal fee as provided in Section 23320.