BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB  
          1425
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2013-2014 Regular Session
                                 Staff Analysis

          
          AB 1425  Author:  Committee on Governmental Organization
          As Introduced:  March 21, 2013  
          Hearing Date:  June 11, 2013
          Consultant:  Art Terzakis

                                         
                                    SUBJECT  
                              Alcoholic Beverages

                                   DESCRIPTION
           
          AB 1425 makes non-controversial and clarifying changes to  
          the Alcoholic Beverage Control (ABC) Act.

                                   EXISTING LAW

           The enactment of the 21st Amendment to the U.S.  
          Constitution in 1933 repealed the 18th Amendment and ended  
          the era of Prohibition.  Accordingly, states were granted  
          the authority to establish alcoholic beverage laws and  
          administrative structures to regulate the sale and  
          distribution of alcoholic beverages.  

          Existing law establishes the Department of 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. 

          Existing law (B&P Code Section 23055) requires ABC to  
          submit an annual report to the Legislature by March 1 on  
          the department's activities for the previous fiscal year.

          Existing law (B&P Code Section 23356.8) prohibits a  
          licensed wine blender (Type 22) from holding a retail  




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          license and prohibits a retail licensee from holding a wine  
          blender license. The law also specifies that this  
          prohibition does not apply to licenses issued on or before  
          February 2, 1968.

          Existing law (B&P Code Section 23356.9) prohibits a  
          licensed wine blender from conducting wine tastings on or  
          off its licensed premises.  The law also specifies that  
          this prohibition does not apply to wine blender licenses  
          issued on or before February 2, 1968. 
                                         


                                   BACKGROUND
           
           Purpose of AB 1425:   This is the annual committee bill that  
          makes various non-controversial changes to the ABC Act.   
          The proposed changes have been requested by the Department  
          of ABC.  Specifically this measure:

          1)Would amend B&P Code Section 23055 to require ABC to post  
            its annual report to the Legislature on its Internet  
            website by March 1 of each year instead of submitting it  
            to the Legislature. This proposed change would make the  
            report easily accessible to interested parties and is  
            consistent with SB 71 (Leno), Chapter 728 of 2012, which  
            required state agencies to place specified reports on  
            their Internet websites instead of submitting them to the  
            Legislature.

          2)Would amend B&P Code Sections 23356.8 and 23356.9 to  
            remove the grandfather clauses that allow wine blender  
            licensees issued prior to February 2, 1968 to hold retail  
            licenses.  At the time these sections were enacted in  
            1968, two wine blenders held retail licenses.  None of  
            the existing Type 22 wine blender licenses were issued or  
            transferred prior to 1968, which makes these grandfather  
            clauses obsolete.

                            PRIOR/RELATED LEGISLATION
           
           SB 818 (Governmental Organization Committee) 2013-14  
          Session.   Would make non-controversial, clarifying and code  
          maintenance changes to the ABC Act.  (Pending in Assembly  
          G.O. Committee)  





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          SB 937 (Governmental Organization Committee), Chapter 327,  
          Statutes of 2012.   Made non-controversial and code  
          maintenance changes to the ABC Act.  

           AB 749 (Hall), Chapter 221, Statutes of 2011.   Changed the  
          period covered by the Department of ABC annual report to  
          the Legislature from a "calendar" year time period to a  
          "fiscal" year.
           
          SB 1480 (Governmental Organization Committee), Chapter 296,  
          Statutes of 2010.  Made minor clarifying changes, as well as  
          code maintenance changes, to existing provisions of the ABC  
          Act in order to reduce paperwork requirements of the  
          Department of ABC. 
           
          SB 825 (Governmental Organization Committee), Chapter 68,  
          Statutes of 2009.  Made various technical, clarifying and  
          non-substantive changes to the ABC Act.

           SUPPORT:   None on file as of June 7, 2013.

           OPPOSE:   None on file as of June 7, 2013.

           FISCAL COMMITTEE:   Senate Appropriations Committee

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