BILL ANALYSIS AB 2793 Page 1 Date of Hearing: April 21, 2010 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Joe Coto, Chair AB 2793 (Committee on Governmental Organization) - As Introduced: March 17, 2010 SUBJECT : Alcoholic beverage control: club licenses. SUMMARY : This bill represents the annual Assembly Governmental Organization Committee bill that makes technical, clarifying, conforming, and non-controversial changes to the Alcoholic Beverage Control Act (Act). Specifically, this bill : 1)Authorizes the Department of Alcoholic Beverage Control (ABC) to issue a club license to nonprofit lawn bowling clubs that do not discriminate or restrict membership, as specified. 2)Clarifies current law by stating that a defined alcohol manufacturer or supplier may purchase indoor advertising space or time at a fully enclosed venue with box office sales and attendance by the public on a ticketed basis only, with a patronage capacity in excess of 2,000 , but not more than 3,000 , located in Los Angeles County within the area subject to the Los Angeles Sports and Entertainment District Specific Plan, as defined. 3)Makes technical and clarifying changes to existing law. EXISTING LAW : 1)Establishes ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves the licensing and regulation of businesses involved in the manufacture, importation, and sale of alcoholic beverages in the state. 2)Provides for the issuance of a club license allowing the sale of alcoholic beverages to numerous specified organizations, as specified. 3)Specifies the holder of a club license may exercise all of the rights and privileges permitted by an on-sale general license but may sell and serve alcoholic beverages for consumption within the licensed establishment only to bona fide members of AB 2793 Page 2 the club and their bona fide guests. A club license is not transferable from person to person. No new club license shall be issued to any club which is not a nonprofit organization. 4)Provides that on and after January 1, 1980, no new club license shall be issued for any club, organization, or association which does not have at least 100 members and which has not been in existence for at least one year. 5)Restricts certain alcoholic beverage licensees, including manufacturers and winegrowers, from paying, crediting, or compensating a retailer for advertising in connection with the advertising and sale of alcoholic beverages but expressly authorizes specified licensees to purchase advertising space or time from specified fully enclosed venues located in Los Angeles County that have a patronage capacity in excess of 2,000, as described, under specified conditions. FISCAL EFFECT : Unknown. COMMENTS : This bill represents the annual Assembly Governmental Organization Committee bill that makes technical, clarifying, conforming, and non-controversial changes to the ABC Act. Currently, club licenses are available to a variety of entities by statute. Examples include golf, swimming or tennis clubs, rod and gun clubs, press clubs, firemen's associations, nonprofit social luncheon clubs, etc. Currently, 30 types of organizations are eligible for club licenses. The holder of a club license may exercise all of the rights and privileges permitted by an on-sale general license but may sell and serve alcoholic beverages for consumption within the licensed establishment only to members of the club and their guests. AB 2793 would authorize ABC to issue a club license to nonprofit lawn bowling clubs. This bill prohibits the issuance of a club license to such an organization if it restricts membership or the use of its facilities on the basis of race, religion, national origin, sex or age. In addition, this measure contains language to clean-up and/or AB 2793 Page 3 clarify provisions contained in AB 813 (John A. Perez), Chapter 647, Statutes of 2009. AB 813 created a new tied-house exception to the Act by allowing the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an alcoholic beverage supplier for the privilege of placing advertising in the on-sale licensee's premises. The amendments contained in this bill were put forth by ABC. Background : Lawn bowling has been described as part strategy, part skill. Players take bowls - balls a bit larger than softballs with one side flatter than the rest - and roll them toward a jack, a small white ball at the opposite end of the lawn. Bowlers receive points for landing the bowls close to the jack. Teams are made with two, three, or four Bowlers. The length of each game is preset by the number of times the Bowls are rolled to the Jack. When all the Bowls have been rolled, it is an "End" and the score for each "End" is recorded. Each set of Bowls has a distinguishing emblem for identification of the scoring bowls and their owner. The green upon which the game is played must be between 110' and 125' in length. Most are square, providing play areas (rinks), for six to eight sets of opponents at a time. Lawn bowls share some heritage with bocce (Italy) or boul? (France) but is played on a very flat grass green. It is also known as English Lawn Bowls or simply English Bowling. In colder climates, lawn bowling evolved into curling. In most social games, men and women compete on the same teams." Lawn bowling in the USA is administered by the US Lawn Bowling Association, an all volunteer non-profit organization that seeks to maintain the low-cost of the sport and easy-access for people of all ages. Nearly every week of the year there is at least one major tournament held in California. In 2009, Governor Arnold Schwarzenegger issued a Proclamation for California Lawn Bowls Day, a salute to the state's 59 lawn bowling facilities which hosted local and regional open houses. The Proclamation applauded California bowlers' efforts to encourage the challenge of lawn bowling and awareness of the game. Prior legislation : AB 813 (John A. Perez), Chapter 647, Statutes of 2009. Created a new tied-house exception to the Act that authorizes the owner of a venue (Club Nokia) in Los Angeles to engage in a sponsorship agreement with an a beer manufacturer, holder of winegrower's license, California AB 2793 Page 4 winegrower's agent, distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, or a distilled spirits manufacturer's agent for the privilege of placing advertising in the on-sale licensee's premises. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531