BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 339|
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                              UNFINISHED BUSINESS


          Bill No:  SB 339
          Author:   Wolk (D), et al
          Amended:  8/18/11
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  13-0, 4/12/11
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De León, Evans, Hernandez, Padilla, Strickland, 
            Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  40-0, 5/9/11 (Consent)
          AYES:  Alquist, Anderson, Berryhill, Blakeslee, Calderon, 
            Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, 
            Emmerson, Evans, Fuller, Gaines, Hancock, Harman, 
            Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Runner, Simitian, Steinberg, Strickland, Vargas, Walters, 
            Wolk, Wright, Wyland, Yee

           ASSEMBLY FLOOR  :  76-0, 7/14/11(Consent) - See last page for 
            vote


           SUBJECT  :    Alcoholic beverage control:  on-sale beer and 
          wine licenses:  
                      bona fide public eating place:  public 
          schoolhouses

           SOURCE  :     Davis Food Co-operative, Inc.

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           DIGEST  :    This bill adds a new provision to the Alcoholic 
          Beverage Control 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.

           Assembly Amendments  authorize the sale and consumption of 
          alcoholic beverages at a city-owned community center, as 
          specified and add double-jointing language to AB 319 
          (Norby).

           ANALYSIS  :     Existing Law :

          1. Establishes the Department of Alcoholic Beverage Control 
             (ABC) and grants it exclusive authority to administer 
             the provisions of the ABC Act (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 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 

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             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.

          This bill:

          1. Adds a new provision to the 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.

          2. Expands the definition of "bona fide eating place," 
             within the 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.

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

          4. Permits alcoholic beverages to be possessed, sold, or 

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             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.

           Comment
           
          The Act contains provisions for various types of licenses 
          that permit licensees to furnish 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.

          This bill 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 this 
          bill 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 expands 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.

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

          AB 172 (Smyth), Chapter 398, Statutes of 2009, allows 
          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, creates 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, 
          authorizes 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 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, exempts 
          from the prohibition wine produced by a bonded winery owned 
          or operated as part of an instructional program in 
          viticulture and enology.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes


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           SUPPORT  :   (Verified  8/9/11)

          Davis Food Co-operative, Inc. (source)
          California Retailers Association
          City of West Sacramento
          Family Winemakers of California

           ARGUMENTS IN SUPPORT  :    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.

           ASSEMBLY FLOOR  :  76-0, 7/14/11
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, 
            Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, 
            Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Monning, 
            Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. 
            Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, 
            Yamada, John A. Pérez
          NO VOTE RECORDED: Beth Gaines, Garrick, Gorell, Mitchell


          PQ:do  8/23/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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