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Constitution in 1933 repealed the 18th Amendment and ended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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