BILL ANALYSIS Ó
SB 346
Page 1
Date of Hearing: July 6, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 346 (Harman) - As Amended: April 25, 2011
Policy Committee: Governmental
Organization Vote: 17 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill exempts gondolas from the current on-sale boat liquor
licensing requirements. Instead, this bill would allow the
serving of alcoholic beverages without a license as part of a
gondola ride service, as long as there is no extra charge or fee
for the beverages.
FISCAL EFFECT
1)To the extent gondola boat owners who would otherwise acquire
licenses to serve alcohol are no longer required to do so, it
would result in a loss of revenue for the Department of
Alcoholic Beverage Control (ABC). For every 100 gondolas that
no longer need to be licensed, it would result in a loss of
revenue for ABC between $10,000 and $50,000 per year.
2)The fee for an on-sale beer and wine boat (Type 45) license is
$100 for the original license and $108 for the annual renewal.
The fee for an on-sale general boat license (Type 54) is $100
for the original license and $510 for the annual renewal.
COMMENTS
1)Purpose . 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 argues that the gondola cruise business is very similar
in nature to that provided by limousine or hot air balloon
vendors, both of which are exempt from licensing.
SB 346
Page 2
Gondola companies appear to operate primarily in Southern
California in such communities as Newport Beach, San Diego,
Huntington Harbor, Long Beach and Redondo Beach.
2)On-sale Liquor Licenses for Boats . ABC currently offers two
alcoholic beverage licenses for boat owners and operators,
including gondola cruise companies. These on-sale beer and
wine and on-sale general licenses for boats require that the
owner or operator of a boat be licensed by the United States
Coast Guard (USCG). According to the USCG, under federal law a
coast guard mariner license is always required for any boats
carrying paying passengers, including gondolas. Consequently,
these on-sale licenses are presently available to gondola
businesses.
3)Prior/Related Legislation : AB 2416 (Assembly Governmental
Organization Committee; Chapter 639, Statutes of
1998) 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081