BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1320|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 1320
Author: Allen (D), et al.
Amended: 6/11/12 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE GOVERNMENTAL ORGANIZATION COMM. : 12-0, 6/26/12
AYES: Wright, Anderson, Berryhill, Calderon, Cannella, De
León, Evans, Hernandez, Padilla, Walters, Wyland, Yee
NO VOTE RECORDED: Corbett
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Alcoholic beverages
SOURCE : Author
DIGEST : This bill permits the Department of Alcoholic
Beverage Control (ABC) to issue a maximum of 15 new
original on-sale general licenses, over a 5-year period,
for bona fide public eating places in Marin County.
Senate Floor Amendments of 6/11/12 delete the prior version
of the bill relating to public employees and add the above
language.
ANALYSIS : The enactment of the 21st Amendment to the
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United States Constitution in 1933 repealed the 18th
Amendment and ended the era of Prohibition. Accordingly,
states were granted the authority to establish alcoholic
beverage laws and administrative structures to regulate the
sale and distribution of alcoholic beverages. Existing law
establishes the ABC and grants it exclusive authority to
administer the provisions of the Alcoholic Beverage Control
Act in accordance with laws enacted by the Legislature.
This involves licensing individuals and businesses
associated with the manufacture, importation and sale of
alcoholic beverages in this state and the collection of
license fees or occupation taxes for this purpose.
The ABC must deny an application for a license if issuance
would create a law enforcement problem, or if issuance
would result in, or add to, an undue concentration of
licenses in the area where the license is desired. For
liquor stores and other specified retail license, however,
the ABC is authorized to issue a license if the respective
local government determines that public convenience or
necessity would be served by granting the license.
Existing law caps the number of new on and off-sale general
licenses issued by the ABC at one for every 2,500
inhabitants of the county where the establishment is
located (2,000:1 for on-sale licenses). If no licenses are
available from the state due to the population
restrictions, those people interested in obtaining a liquor
license may purchase one from an existing licensee, for
whatever price the market bears. In 1994, the Legislature
approved a three-year moratorium on the issuance of new
off-sale beer and wine licenses, which at the time was not
bound by any population to license restriction. In 1997,
this moratorium was made permanent. Existing law defines
"bona fide public eating place" to mean a place which is
regularly and in a bona fide manner used and kept open for
the serving of meals to guests for compensation and which
has suitable kitchen facilities connected therewith,
containing conveniences for cooking an assortment of foods
which may be required for ordinary meals, the kitchen of
which must be kept in a sanitary condition with the proper
amount of refrigeration for keeping of food on said
premises and must comply with all the regulations of the
local Department of Health. Existing law defines an
"on-sale" license as authorizing the sale of all types of
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alcoholic beverages: namely, beer, wine and distilled
spirits, for consumption on the premises (such as at a
restaurant or bar). An "off-sale" license authorizes the
sale of all types of alcoholic beverages for consumption
off the premises in original, sealed containers. Existing
law authorizes the ABC, commencing January 1, 2009, to
issue five additional new original on-sale licenses, per
year for a period of three years, for bona fide public
eating places having a seating capacity for 50 or more
diners in Napa County. (AB 2255 (Evans), Chapter 130,
Statutes of 2008)
Specifics of AB 1320
1. Authorizes the ABC, to issue five new original on-sale
general licenses per year, until January 1, 2016, for
bona fide public eating places having a seating capacity
for 50 or more diners in a county of the 18th class
(Marin). Also, provides that no more than a total of 15
such licenses shall be issued relative to this bill.
2. Requires the ABC to follow existing "drawing for
priority" procedures with respect to the issuance of
these new licenses as set forth in Section 23961 of the
Alcoholic Beverage Control Act.
3. Provides that a person who currently holds a valid
on-sale general license for seasonal business is not
prohibited from applying for an original on-sale general
license pursuant to this bill.
4. Makes it explicit that a license issued pursuant to this
bill shall not be transferred from one county to another
nor shall it be transferred to any premise not
qualifying under these provisions.
Comments
ABC's records from 2011 indicate that Marin County's
population was 254,692 and there were 136 on-sale general
licenses in existence within the county. Based on those
statistics, no new on-sale general licenses were made
available in 2011. However, ABC records indicate that one
new on-sale general license was made available and issued
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through the priority drawing process in 2008 and another in
2009.
According to ABC, currently there are approximately 13,560
Type 47 licenses statewide. Licenses are selling on the
open market in Marin County for $75,000 to $100,000.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:m 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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