BILL ANALYSIS Ó
SB 346
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Date of Hearing: June 22, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 346 (Harmon) - As Amended: April 25, 2011
SENATE VOTE : 37-0
SUBJECT : Alcoholic beverages: licensing
SUMMARY : Expands an existing provision of the Alcoholic
Beverage Control Act (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.
EXISTING LAW :
1) Establishes the Department of Alcoholic Beverage Control
(ABC) and grants it exclusive authority to administer the
provisions of the Act in accordance with laws enacted by the
Legislature.
2) Makes it unlawful for any person other than a licensee of the
ABC to sell, manufacture, or import alcoholic beverages in this
state.
3) 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.
4) Provides authority for ABC to issue numerous types of
licenses but none are authorized specifically for a "gondola
ride" service.
SB 346
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FISCAL EFFECT : Unknown.
COMMENTS :
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, 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.
Purpose of the bill : 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 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.
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
SB 346
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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.
REGISTERED SUPPORT / OPPOSITION :
Support
Gondola Adventures, Inc.
Gondola's D'Amore
Sunset Gondola
Visit Newport Beach, Inc.
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531