BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 339
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          Date of Hearing:   June 22, 2011

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                 Isadore Hall, Chair
                      SB 339 (Wolk) - As Amended:  May 23, 2011

           SENATE VOTE  :   40-0
           
          SUBJECT  :   Alcoholic beverage control: on-sale beer and wine 
          licenses: bona fide public eating place: public schoolhouses.

           SUMMARY  :   Adds a new provision to the Alcoholic Beverage 
          Control Act (ABC Act) relating to the establishment of cooking 
          schools as bona fide eating places for the purpose of obtaining 
          a license to sell beer and wine.  In addition, this bill 
          authorizes the sale and consumption of alcoholic beverages at a 
          city-owned community center, as specified.  Specifically,  this 
          bill  :   

          1) Expands the definition of "bona fide eating place," within 
          the ABC Act, for purposes of the on-sale beer and wine eating 
          place license, to include a cooking school that regularly and in 
          a bona fide manner provides courses of instruction in the 
          preparation of food and that maintains suitable kitchen 
          facilities for persons attending the courses of instruction.

          2) Makes other minor conforming changes to a related provision 
          of the ABC Act containing compliance requirements imposed upon 
          bona fide eating places.

          3) Permits alcoholic beverages to be possessed, sold, or used 
          during an event held at a community center owned by a city 
          located on public school grounds, if the event is held when 
          students are not present at the facility, as specified.
           
          EXISTING LAW  :

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

          2) Defines "bona fide public eating place" as 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 








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          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. 

          3) Defines "meals" to mean the usual assortment of foods 
          commonly ordered at various hours of the day; the service of 
          such food and victuals only as sandwiches or salads shall not be 
          deemed a compliance with this requirement. In addition, "guests" 
          is defined to mean persons who, during the hours when meals are 
          regularly served therein, come to a bona-fide public eating 
          place for the purpose of obtaining, and actually order and 
          obtain at such time, in good faith, a meal therein.

          4) Authorizes the issuance of an on-sale beer and wine eating 
          place license (Type 41), which authorizes the sale of beer and 
          wine for consumption on or off the premises where sold.  
          Distilled spirits may not be on the premises (except brandy, 
          rum, or liqueurs for use solely for cooking purposes).  The law 
          also provides that the licensee must maintain the licensed 
          premises as a "bona fide public eating place."  Minors are 
          allowed on the premises.

          5) Defines an "on-sale" license as authorizing the sale of all 
          types of 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.  

          6) Generally prohibits the sale or consumption of alcoholic 
          beverages at a public schoolhouse or any grounds thereof. 
          Existing law provides that this prohibition does not apply if 
          the alcoholic beverage is possessed, consumed, or used during an 
          event at a community center owned by a community services 
          district, as provided.  

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   
           
          Purpose of the bill  :  The ABC Act contains provisions for 
          various types of licenses that permit licensees to furnish 








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          alcoholic beverages under certain circumstances.  As noted 
          above, an eating establishment must be considered a "bona fide 
          eating place" to obtain a license to sell beer and wine for 
          consumption on or off the premises where sold.  Currently, a 
          cooking school which operates for the purpose of teaching its 
          students to prepare meals, and which often times provides 
          students the opportunity to consume the meals prepared in 
          classes on site, does not meet the requirements for a "bona fide 
          public eating place" and thus is unable to obtain a license from 
          the ABC to include appropriate wine pairings with cooking 
          classes.

          According to the author's office, allowing cooking schools to 
          serve wine with prepared meals enables the schools to present 
          complete meal options to students, thus enriching the learning 
          experience.  Individuals must be 21 years of age or older to 
          consume the alcoholic beverages. 

          This measure is sponsored by the Davis Food Co-operative, Inc. 
          (DFC) which is a community-owned grocery store that serves its 
          member-owners and the larger Davis and Yolo County Community.  
          In 2009, the DFC remodeled an adjacent building and now offers 
          classes each year to hundreds of local residents in their 
          teaching kitchen.  The DFC notes that this measure will enable 
          its teaching kitchen, and other cooking schools, to offer 
          courses that include appropriate wine pairings.  

          The Family Winemakers of California emphasizes that SB 339 is a 
          narrow expansion of Tied-house exceptions.  Greater wine 
          knowledge may expand sales for winemakers when on-sale beer and 
          wine licenses are granted to qualified cooking schools 
          throughout the state. 

          In addition, this bill would expand an existing statute which 
          allows community centers located on public school grounds to 
          hold events during which alcoholic beverages are sold and 
          consumed, to include city-owned community centers, provided that 
          the events are not held at a time when students are attending a 
          school-sponsored activity at the center.

           Prior legislation  :  AB 1643 (Smyth), Chapter 79, Statutes of 
          2010.  Removes the prohibition against serving alcohol at a 
          public kindergarten K-12 school housed on the campus of a 
          college, as long as the event is held at a time when children 
          are not present.  In addition, the only allowable events at 








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          which alcohol can be served in this instance are fundraisers 
          held to benefit a nonprofit corporation.

          AB 172 (Smyth), Chapter 398, Statutes of 2009.  Allowed public 
          colleges to serve alcoholic beverages during fundraisers in 
          college facilities that are used to support school K-12 
          students, if the event is held at a time when students are not 
          present at the facility.

          AB 1598 (Price), Chapter 149, Statutes of 2007.  Created a new 
          exception to the existing prohibition against the sale or 
          consumption of alcoholic beverages on the grounds of a public    
               school to enable culinary arts programs at a campus of a 
          California Community College to buy, use, sell or consume wine 
          or beer only in connection with a sponsored dinner, course of 
          instruction, or meal demonstration.

          SB 1486 (Hollingsworth), Chapter 72, Statutes of 2006.  
          Authorized alcoholic beverages to be served and consumed on the 
          grounds of the "Water Conservation Garden" located on the campus 
          of Cuyamaca College in Rancho San Diego.

          SB 127 (Chesbro), Chapter 171, Statutes of 2005.  Makes changes 
          to an existing license           category in the Alcoholic 
          Beverage Control Act for the American Center for Wine, Food and 
          the Arts located in Napa County and operated by a nonprofit 
          commonly referred to as COPIA.  

          SB 220 (Chesbro), Chapter 203, Statutes of 2005.  Exempt from 
          the prohibition wine produced by a bonded winery owned or 
          operated as part of an instructional program in viticulture and  
                  enology.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Retailers Association
          City of West Sacramento
          Davis Food Co-operative, Inc.
          Family Winemakers of California
           
            Opposition 
           
          None on file








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