BILL ANALYSIS Ó SB 339 Page 1 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 SB 339 Page 2 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 SB 339 Page 3 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 SB 339 Page 4 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 SB 339 Page 5 Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531