BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1425
                                                                  Page  1

          Date of Hearing:   April 24, 2013

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Hall III, Isadore, Chair
                AB 1425 (Committee on Governmental Organization) - As  
                             Introduced:  March 21, 2013
           
          SUBJECT  :   Alcoholic beverages.

           SUMMARY  :   Makes a minor clarifying change, as well as code  
          maintenance changes, to existing provisions of the Alcoholic  
          Beverage Control Act (Act).  Specifically,  this bill  :

          1)  Existing law requires the Department of Alcoholic Beverage  
          Control (ABC) to make an annual report to the Legislature on the  
          department's activities, on or before March 1 of each year. This  
          bill would also require ABC to post the report on its Internet  
          Web site.

          2)  Removes obsolete references from the Act.

           EXISTING LAW  :

          1)  Establishes ABC and grants it exclusive authority to  
          administer the provisions of the ABC Act in accordance with laws  
          enacted by the Legislature.  This involves licensing individuals  
          and businesses associated with the manufacture, importation and  
          sale of alcoholic beverages in this state and the collection of  
          license fees for this purpose. 

          2)  Provides that on or before March 1 of each year, the  
          director shall prepare and submit to the Legislature an annual  
          report on the department's activities. The report shall include,  
          but not be limited to, the following information for the  
          previous fiscal year:

               (a) The amount of funds allocated and spent by ABC for  
          licensing, enforcement, and administration.

               (b) The number of licenses issued, renewed, denied,  
          suspended, and revoked, by license category.

               (c) The average time for processing license applications,  
          by license category.









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               (d) The number and type of enforcement activities conducted  
          by the department and by local law enforcement agencies in  
          conjunction with ABC.

               (e) The number, type, and amount of penalties, fines, and  
          other disciplinary actions taken by ABC.

          3)  Provides a licensed wine blender shall not be issued and  
          shall not own or hold, directly or indirectly, any retailer's  
          license, nor shall the holder of a retailer's license be issued  
          or own or hold, directly or indirectly, a wine blender's  
          license, or own or hold any interest in a wine blender's  
          license, as described.

          4)  A wine blender's license does not authorize winetasting  
          activities or the conducting or sponsoring of wine tastings  
          either on or off the wine blender's licensed premises, as  
          specified.
           
          FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

           Purpose of the bill  :  The annual Assembly 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 the ABC.   
          Specifically, the language: 1) Would require ABC to post its  
          annual report to the Legislature on its Internet Web site; and  
          2) Would remove obsolete references in the Act pertaining to a  
          wine blender's license.  None of the existing Type 22 wine  
          blender licenses were issued or transferred prior to 1968, which  
          makes this specific provision obsolete.

           Prior legislation  :  AB 749 (Hall), Chapter 221, Statutes of  
          2011.  Changed reporting requirements for the ABC relating to  
          its annual report to the Legislature to previous "fiscal year",  
          instead of "calendar year."

          SB 1480 (Committee on Governmental Organization), Chapter 296,  
          Statutes of 2010.  Among other things, deleted the requirement  
          that the Director of ABC include recommendations for legislation  
          in the annual ABC report to the Legislature.

          AB 2413 (Committee on Governmental Organization) Chapter 579 of  








                                                                  AB 1425
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          Statutes of 2002.  Required ABC to include within its annual  
          report to the Legislature, the number and type of enforcement  
          activities conducted by local law enforcement agencies in  
          conjunction with the ABC.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531