BILL ANALYSIS Ó
Bill No: SB
346
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 346 Author: Harman
As Amended: April 25, 2011
Hearing Date: April 26, 2011
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
SB 346 expands an existing provision of the Alcoholic
Beverage Control (ABC) Act that allows the serving of
alcohol without a license or permit in a limousine or as
part of a hot air balloon ride service to also include a
"gondola ride" service. Specifically, SB 346:
1. Provides that no license or permit is required
for the serving of alcoholic beverages as part of a
gondola ride service provided there is no extra
charge or fee for the alcoholic beverages.
2. Defines "gondola" to mean a boat built or
modeled after the traditional gondolas of Venice,
Italy, that is propelled by a pole, single oar, or a
motor and is equipped to carry no more than six
passengers.
EXISTING LAW
Existing law 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.
Existing law makes it unlawful for any person other than a
licensee of the Department of ABC to sell, manufacture, or
import alcoholic beverages in this state.
SB 346 (Harman) continued
Page 2
Existing law (Business & Professions Code Section 23399.5)
provides that no license or permit shall be required for
the serving of alcoholic beverages in a "limousine" or as
part of a "hot air balloon ride" service, provided there is
no extra charge or fee for the alcoholic beverages.
Existing law provides authority for the Department of ABC
to issue numerous types of licenses but none are authorized
specifically for a "gondola ride" service.
BACKGROUND
Brief History: In October of 1985, the Attorney General
issued opinion No. 85-701 which held that the operator of a
commercial enterprise who offers and provides complimentary
alcoholic beverages to guests, customers, or passengers
while charging for the services rendered is deemed to have
"sold" the alcoholic beverage, thereby necessitating an
alcoholic beverage license.
At the time, this opinion affected a large number of
California businesses (e.g., limousine and bus services,
and bed-and-breakfast inns) which had made a practice of
offering complimentary champagne and other alcoholic
beverages to passengers and guests as part of their
service.
The Legislature has responded to a number of concerns
raised by various business entities over the years relative
to this matter by enacting narrowly crafted legislation to
address the problem. Specifically, SB 1546 (Beverly)
Chapter 1354 of 1986 provided that no license or permit
shall be required for the serving of complimentary
alcoholic beverages in limousines. A few years later, AB
2416 (G.O. Committee) Chapter 639 of 1998, was enacted
which granted hot air balloon ride services the same
privilege.
Purpose of SB 346: According to the author's office, this
measure is simply intended to grant "gondola" cruise
businesses the opportunity to serve champagne or other
alcoholic beverages to their passengers in the course of
their service. The author's office points out that the
SB 346 (Harman) continued
Page 3
gondola cruise business is very similar in nature to that
provided by limousine or hot air balloon vendors. The
author's office states that this measure would also enable
adult patrons to bring their own bottles of champagne or
wine on board the gondola.
PRIOR/RELATED LEGISLATION
AB 2416 (Committee on Governmental Organization) Chapter
639, Statutes of 1998. Among other things, provided that
no license or permit is required for the serving of
alcoholic beverages as part of a hot air balloon ride
service, provided there is no extra charge or fee for the
alcoholic beverages.
SB 1546 (Beverly) Chapter 1354, Statutes of 1986. Provided
that no license or permit is required for the serving of
alcoholic beverages in a limousine regulated by the Public
Utilities Commission provided there is no extra charge for
the alcoholic beverages.
SUPPORT: As of April 22, 2011:
Gondola Adventures, Inc. (Newport Beach, CA)
Gondola Company of Newport (Newport Beach, CA)
Gondola Romance (Newport Beach, CA)
Gondolas D'Amore (Marina del Rey, CA)
Sunset Gondola (Huntington Beach, CA)
OPPOSE: None on file as of April 22, 2011.
FISCAL COMMITTEE: Senate Appropriations Committee