BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 346|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 346
Author: Harman (R)
Amended: 4/25/11
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 12-0, 4/26/11
AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De
León, Evans, Hernandez, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Calderon
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Alcoholic beverages: licensing
SOURCE : Gondola Adventures, Inc.
DIGEST : This bill expands an existing provision of the
Alcoholic Beverage Control 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.
ANALYSIS : 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 ABC to sell, manufacture, or import
alcoholic beverages in this state.
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Existing law 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 ABC to issue numerous
types of licenses but none are authorized specifically for
a "gondola ride" service.
This bill expands an existing provision of the 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,
this bill:
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.
Background
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.
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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, Statutes of 1986 provides that no license or
permit shall be required for the serving of complimentary
alcoholic beverages in limousines. A few years later, AB
2416 (Assembly Governmental Organization Committee),
Chapter 639, Statutes of 1998, was enacted which granted
hot air balloon ride services the same privilege.
Prior/Related Legislation
AB 2416 (Assembly Governmental Organization Committee),
Chapter 639, Statutes of 1998, provides 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, provides
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/10/11)
Gondola Adventures, Inc. (source)
Gondola Company of Newport
Gondola Getaway
Gondola Romance
Gondolas D'Amore
Sunset Gondola
Visit new Port Beach
ARGUMENTS IN SUPPORT : According to the author's office,
this bill 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
gondola cruise business is very similar in nature to that
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provided by limousine or hot air balloon vendors. The
author's office states that this bill enables adult patrons
to bring their own bottles of champagne or wine on board
the gondola.
PQ:do 5/10/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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