BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1896
                                                                  Page  1

          Date of Hearing:   April 12, 2010

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                   Joe Coto, Chair
                AB 1896 (Jeffries) - As Introduced:  February 16, 2010
           
          SUBJECT  :   Alcoholic beverage control: licensees: proof of age.

           SUMMARY  :   Clarifies the Alcoholic Beverage Control Act (Act)  
          regarding proof of age, and creates a new Internet wine license.  
           Specifically,  this bill  :  

          1)Revises the provision relating to the use of military  
            identification cards as proof of age for purposes of  
            purchasing or consuming of alcoholic beverages, to directly  
            specify that a valid identification card issued to a member of  
            the Armed Forces, that includes the date of birth and a photo  
            of the person would, under all circumstances, constitute bona  
            fide evidence of age, as defined.

          2)Authorizes the issuance of a limited off-sale retail wine  
            license that would allow the licensee to sell wine only via  
            direct mail, telephone, or Internet, as specified. This bill  
            would impose an original fee and an annual renewal fee in  
            specified amounts, and would allow the Department of Alcoholic  
            Beverage Control (ABC) to impose reasonable conditions upon  
            the licensee, as specified.

           EXISTING LAW  :

          1)Establishes ABC and grants it the exclusive authority to  
            administer the provisions of the Act in accordance with laws  
            enacted by the Legislature.

          2)Provides that, if a military identification card lacks a  
            physical description, but does include date of birth and  
            photo, further proof of majority shall not be required to  
            purchase or consume any alcoholic beverage, as specified.

          3)Authorizes the acceptance of a valid passport, issued by the  
            United States government or a foreign government, as bona fide  
            evidence that a person is 21 years of age or older.

          4)Subjects a holder of a license to sell alcoholic beverages to  
            criminal prosecution and suspension or revocation of that  








                                                                  AB 1896
                                                                  Page  2

            license if the licensee sells any alcoholic beverages to any  
            person under the age of 21 years.  Makes it a misdemeanor for  
            any person under the age of 21 years to purchase any alcoholic  
            beverage or consume any alcoholic beverage in any on-sale  
            premises.

          5)Establishes a beer and wine wholesaler license.  Authorizes a  
            beer and wine wholesaler licensee to obtain an off-sale beer  
            and wine license, but limits sales to those accepted via mail,  
            telephone, or computer and prohibits operations conducted from  
            a retail store open to the public. 

          6)Provides for various annual fees for the issuance of alcoholic  
            beverage licenses that vary depending upon the type of license  
            issued.

          7)Prohibits ABC from issuing a wholesale license to any person  
            who does not in good faith actually carry on or intend to  
            carry on a bona fide wholesale business by sale to retail  
            licensees of the alcoholic beverage designated in the  
            wholesale license, and authorizes ABC to revoke any wholesale  
            license when the licensee fails for a period of 45 days to  
            actively and in good faith to engage in the wholesale business

           FISCAL EFFECT  :   Unknown

           COMMENTS  : 

          According to the author, this bill is clean-up measure to AB 59  
          (Jeffries), Chapter 405, Statutes of 2009, which provided that,  
          if a military identification card lacks a physical description,  
          but does include date of birth and photo, further proof of  
          majority shall not be required  to purchase or consume any  
          alcoholic beverage, as specified.  This bill clarifies that,  
          identification issued by a governmental organization (except  
          passports and military cards) that is used to prove age and  
          identity to purchase or consume alcoholic beverages must contain  
          the name, date of birth, description, and picture of the person.  
           Recently, ABC determined that current statute as authorized by  
          last year's bill might lead to confusion and inconsistent  
          application on the part of the retail alcoholic beverage  
          industry, law enforcement officials and the general public.

          This measure also authorizes ABC to issue an off-sale retail  
          wine license that would allow entrepreneurs who do not have a  








                                                                  AB 1896
                                                                  Page  3

          physical store to sell wine directly to consumers.  This concept  
          recognizes the realities of the changing wine industry and the  
          growing use of the Internet, direct mail, and the telephone in  
          purchasing products and services.  The bill establishes a $100  
          initial fee with a $246 annual renewal fee for this new limited  
          off-sale Internet retail wine license, which is consistent with  
          the current Beer and Wine Retailer license fees.  All revenue  
          would be deposited into the ABC Fund to cover ABC's costs.  

          Presently, ABC issues two licenses to facilitate Internet retail  
          sales-a beer and wine wholesaler/Type 17 together with an  
          off-sale beer and wine/Type 20.  Current law requires holders of  
          wholesale licenses to operate as bona fide wholesalers "in good  
          faith".  This means that they must sell to retailers other than  
          themselves.  Many Internet retailers have no desire to act as  
          wholesalers, but are either forced to do so or face disciplinary  
          action against their licenses.  In addition, because the retail  
          license issued is the same license issued to stores open to the  
          public such as grocery stores, mini-marts and gas stations, the  
          license counts against the license concentration limitations  
          imposed by law, thus preventing other businesses that do wish to  
          operate a store open to the public from obtaining a license.

           Technical and clarifying amendments  :  Clarifying amendment  
          number one: Page 2, line 10 replace "possession and title of"  
          with "possession of and title to." Technical amendment number  
          two:  page 3, line 30 insert comma after "operator's license" so  
          "the name, date of birth, description and picture" doesn't only  
          apply to motor vehicle operator's license, but other documents  
          issued by government agencies.
           
          Prior legislation  :  AB 59 (Jeffries), Chapter 405, Statutes of  
          2009, provides that, if a military identification card lacks a  
          physical description, but does include date of birth and photo,  
          further proof of majority  shall not be required  to purchase or  
          consume any alcoholic beverage, as specified.  

          AB 1191 (Conway), Chapter 142, Statutes of 2009, authorizes the  
          acceptance of a valid passport, issued by the United States  
          government or a foreign government, as bona fide evidence that a  
          person is 21 years of age or older.  

          AB 764 (Calderon), Chapter 68, Statutes of 2005, established a  
          specified process where in the event an ID card issued to a  
          member of the Armed Forces is provided as proof of age 21 when  








                                                                  AB 1896
                                                                  Page  4

          purchasing alcohol beverages, and the ID lacks a physical  
          description, then proof of being age 21 may be further  
          substantiated if a motor vehicle operator's license or other  
          valid bona fide identification issued by any government  
          jurisdiction is also provided as specified.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California State Council Vietnam Veterans of America
          Department of California AWVETS
          Department of California American Legion
          Department of Alcoholic Beverage Control

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531