BILL ANALYSIS Ó
SB 937
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SENATE THIRD READING
SB 937 (Governmental Organization Committee)
As Amended August 16, 2012
Majority vote
SENATE VOTE : 37-0
GOVERNMENTAL ORGANIZATION 17-0 APPROPRIATIONS 17-0
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|Ayes:|Hall, Nestande, Atkins, |Ayes:|Fuentes, Harkey, |
| |Block, Blumenfield, | |Blumenfield, Bradford, |
| |Chesbro, Cook, Galgiani, | |Charles Calderon, Campos, |
| |Garrick, Gatto, Hill, | |Davis, Donnelly, Gatto, |
| |Jeffries, Ma, Perea, V. | |Hall, Hill, Lara, |
| |Manuel Pérez, Silva, | |Mitchell, Nielsen, Norby, |
| |Torres | |Solorio, Wagner |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Makes various changes to the Alcoholic Beverage
Control Act (Act). Specifically, this bill :
1)Updates, reorganizes and clarifies existing provisions
governing alcohol beverage licensees.
2)Codifies the process in which the Department of Alcoholic
Beverage Control (ABC) is required to collect a surcharge of
3% of the annual license fees for the Alcoholic Beverage
Control Appeals Board's (ABCAB) administrative costs.
3)Revises the license fee schedule to set forth the fee amounts
as of the 2010 calendar year.
4)Revises current law to authorize a retail off-sale beer and
wine replacement license to be issued under specified
circumstances. This bill would also prohibit the issuance of
a replacement license under defined circumstances.
5)Revises the provision to prohibit the transfer of an original
on-sale or off-sale license for more than the original
purchase price for a period of 2 years.
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6)Provides for any hearing held pursuant to the Act, ABC may
delegate the power to hear and decide to an administrative law
judge appointed by the director, as specified.
7)Makes technical and conforming changes.
EXISTING LAW :
1)Establishes ABC and grants it the exclusive authority to
administer the provisions of the Act in accordance with laws
enacted by the Legislature.
2)Provides that ABC is responsible for licensing individuals and
businesses associated with the manufacture, importation sale
of alcoholic beverages in this state and the collection of
license fees or occupation taxes for this purpose.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs associated with this legislation are minor and
absorbable within existing ABC resources.
COMMENTS :
Purpose of the bill : This bill represents the annual Senate
Governmental Organization Committee bill which makes technical,
clarifying, conforming, and non-controversial changes to the
Act. The language contained in this proposal was put forth by
ABC.
In addition to making technical and conforming changes to the
Act, this bill amends Business and Professions Code (BPC)
Section 23083.5 to clarify that ABC collects a 3% surcharge
annually on its annual license fees and transfers it to the
Alcoholic Beverage Control Appeals Fund to pay the board's
administrative costs. ABC states, this bill will codify the
actual process. Current law requires the Alcoholic Beverage
Control Appeals Board to establish a surcharge of up to 3% of
ABC's annual license fees.
The Act provides for the issuance of licenses for which various
annual fees are charged depending upon the type of license
issued. This provision authorizes an annual adjustment of the
fees, as provided, commencing with the 2010 calendar year. ABC
states, this bill clarifies this provision by revising the
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license fee schedule to set forth the fee amounts as of the 2010
calendar year.
The bill amends BPC Section 23817.5(b) to clarify that ABC is
authorized, but not required, to issue a retail off-sale beer
and wine replacement license under certain conditions if the
applicant is otherwise qualified. Existing law specifies that a
retail off-sale beer and wine replacement license shall be
issued upon application if certain conditions exist. ABC
states, current law could be interpreted as denying ABC's
authority to disapprove an unqualified applicant.
Additionally, the bill deletes reference to ABC's "Procedure
Manual" from current law. ABC maintains that the Procedure
Manual should not be specified in statute as it is an internal
management document.
Current law requires ABC to deny an application for a license if
issuance would result in or add to an undue concentration of
licenses in a particular area unless the local governing body
finds that it would serve the public convenience or necessity
(BPC Sections 23958, 23958.4). Current law also specifies that
the number of retail licenses in a county shall be determined by
the most recent yearly retail license count published by ABC in
its Procedure Manual (BPC Section 23958.4(d)). ABC states, that
the most recent yearly retail license count is posted on ABC's
Web site in a timelier manner than the Procedure Manual.
BPC Section 24210 states that the Director of ABC may appoint
ALJs to hear and decide cases. Because of BPC Section 24210's
placement in Chapter 7, a recent court case declared that ABC
ALJs were only allowed to hear enforcement matters and ALJs from
the Office of Administrative Hearings had to be used for
licensing matters. ABC states, this bill would repeal BPC
Sections 24210 and 24016 and amend 24300 to codify the Court of
Appeal decision and clarify that the use of ABC ALJs for
licensing matters is appropriate.
Lastly, the bill amends BPC Sections 25503.29 and 25503.37 to
clarify that "15 percent of purchases" means monetary
expenditures within a calendar year. ABC states, as currently
written, "15 percent of purchases" is not defined.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
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