Amended in Assembly April 2, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 593

Introduced by Assembly Member Quirk

February 20, 2013

An act to amend begin delete Section 24300 end delete begin insert Sections 23986, 24013, and 24014 end insert of, and to add and repeal Section 23059 of, the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 593, as amended, Quirk. Alcoholic beverages: Department of Alcoholic Beverage Control.

(1) The Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control and requires the department to perform various duties relating to the issuance of alcoholic beverage licences.

This bill would require the department to evaluate its onsite license review process for restaurants in order to implement a more expedited licensing process. This bill would also require the department to prepare and submit a report to the Legislature, on or before December 31, 2015, relating to the review.

(2) The Alcoholic Beverage Control Act requires begin delete any hearings held on a protest, accusation, or petition for a license to be held at specified locations and to be conducted in accordance with specified administrative procedures end delete begin insert specified applicants for on-sale or off-sale licensees to have a notice of the application published, as provided end insert .

This bill would begin delete additionally require that any hearing held on a protest be held within 60 days of the date from which the initial protest was filed end delete begin insert exempt from that requirement applicants that are required to provide specified notices via mail of applications for licenses, including retail licenses, and transfer of licenses, as provided end insert .

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(3) Existing law provides that protests against the issuance of a liquor license may be filed with the department. Existing law permits the Department of Alcoholic Beverage Control to reject protests, except protests made by a public agency, public official, or governing body of a city or county, it determines to be false, vexatious, or without reasonable or probable cause.

end insert begin insert

This bill would permit the department to reject protests, except protests made by a public agency, public official, or governing body of a city or county, it determines are invalid or unreasonable, as described. The bill would also require a protest submitted by a person other than an employee of the department or a public officer to be submitted by an individual and limit the protest to one signatory.

end insert begin insert

(4) This bill would also make legislative findings related to legislation to provide guidance and direction to the Department of Alcoholic Beverage Control and the Alcoholic Beverage Control Appeals Board.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares all of the
following: end insert

begin insert

(a) That it is the intent of the Legislature to enact legislation
that would require the Alcoholic Beverage Control Appeals Board
to issue its decisions within 120 days of a hearing.

end insert begin insert

(b) That it is the intent of the Legislature to enact legislation
that would provide the Department of Alcoholic Beverage Control
with recruitment and retention incentives.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 23059 is added to the Business and Professions
Code, to read:

23059.  

(a) The department shall evaluate its onsite license
review process for restaurants that are bona fide eating places in
order to implement a more expedited licensing process.

(b) (1) On or before December 31, 2015, the department shall
prepare and submit to the Legislature a report on the findings
regarding the onsite review process described in subdivision (a).

(c) The report required by subdivision (b) shall be submitted in
compliance with Section 9795 of the Government Code.

(d) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 23986 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

23986.  

(a) Any applicant for an on-sale license shall cause a
notice of the application, giving the name or names of the applicant
and the premises where the business is to be conducted, to be
published pursuant to Section 6061 of the Government Code in a
newspaper of general circulation, other than a legal or professional
trade publication, in the city in which the premises are situated, or
if the premises are not in a city, the publication shall be made in
a newspaper of general circulation nearest the premises where the
business is to be conducted. The form of the notice shall be
prescribed by the department. Affidavit of publication shall be
filed with the department prior to the issuance of any license. The
department shall adopt rules and regulations to enforce the
provisions of this section.

(b) Any applicant for an on-sale or off-sale license at a premises
which is located in a census tract which has an undue concentration
of licenses, as defined in paragraph (2) or (3) of subdivision (a) of
Section 23958.4, shall cause a notice of the application to be
published pursuant to Section 6063 of the Government Code in a
newspaper of general circulation other than a legal or trade
publication. Publication shall be made in the city in which the
premises are situated, or if the premises are not in a city, the
publication shall be made in a newspaper of general circulation
nearest the premises where the business is to be conducted. The
form of the notice shall be prescribed by the department. Affidavit
of publication shall be filed with the department prior to the
issuance of any license. The department shall adopt rules and
regulations to enforce the provisions of this subdivision.

begin insert

(c) This section shall not apply to any licensee subject to the
notification requirements of Section 23985.5 or Section 23987.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 24013 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

24013.  

(a) Protests may be filed at any office of the department
within 30 days from the first date of posting the notice of intention
to engage in the sale of alcoholic beverages at the premises, within
30 days of the mailing of the notification pursuant to Section
23985.5, or within 30 days of the mailing of the notices of the
department to public officials as required by Section 23987,
whichever is later. The time within which a local law enforcement
agency may file a protest shall be extended by the period prescribed
in Section 23987, pursuant to a request made under that section.

(b)  begin insert (1) end insert begin insert   end insert The department may reject protests, except protests
made by a public agency or public official or protests made by the
governing body of a city or county, if it determines the protests
are false, vexatious, frivolous, begin insert invalid or unreasonable, end insert or without
reasonable or probable cause at any time before hearing thereon,
notwithstanding Section 24016 or 24300. If, after investigation,
the department recommends that a license be issued
notwithstanding a protest by a public agency, a public official, or
the governing body of a city or county, the department shall notify
the agency, official, or governing body in writing of its
determination and the reasons therefor, in conjunction with the
notice of hearing provided to the protestant pursuant to Section
11509 of the Government Code. If the department rejects a protest
as provided in this section and issues a license, a protestant whose
protest has been rejected may, within 10 days after the issuance
of the license, file an accusation with the department alleging the
grounds of protest as a cause for revocation of the license and the
department shall hold a hearing as provided in Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code.

begin insert

(2) For purposes of this subdivision, an invalid or unreasonable
protest includes, but is not limited to, a protest that the department
determines is ____.

end insert

(c) Nothing in this section shall be construed as prohibiting or
restricting any right that the individual making the protest might
have to a judicial proceeding.

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begin insert SEC. 5. end insert   

end insert

begin insert Section 24014 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

24014.  

begin insert (a) end insert begin insert   end insert A protest made by any person other than an
employee of the department or a public officer shall be verified.
Verification may be on information and belief.

begin insert

(b) A protest made pursuant to this section shall be submitted
by an individual and shall be limited to one signatory.

end insert

begin delete

SEC. 2.  

Section 24300 of the Business and Professions Code is
amended to read:

24300.  

(a) Any hearings held on a protest, accusation, or
petition for a license shall be held in the county in which the
premises or licensee is located; provided, that hearings before the
department itself on reconsideration or under subdivision (c) of
Section 11517 of the Government Code may be held at any place
in the state where the department is meeting. Except as provided
in Section 24203 and in this section, the proceedings shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code,
and in all cases the department shall have all the powers granted
therein. The department, in its exclusive discretion, shall consider
scheduling the hearing at a time, including evening hours, and at
a place convenient to all parties to a proceeding, including those
witnesses required to be present, and the public affected.

(b) Notwithstanding the provisions of subdivision (a), if a protest
is filed against an application for a license and the proposed
premises are located within a city, the department may, in its
discretion, hold the hearing within that city, unless the protest is
filed by the governing body of the city, in which case the
department shall hold the hearing within that city.

(c) For any hearing held pursuant to this division, the department
may delegate the power to hear and decide to an administrative
law judge appointed by the director. Any hearing before an
administrative law judge shall be pursuant to the procedures, rules,
and limitations prescribed in Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code.

(d) Any hearing held on a protest shall be scheduled within 60
days from the date of an initial protest filing.

end delete