BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2793
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          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  








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            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  








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          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  








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          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