Senate BillNo. 818


Introduced by Committee on Governmental Organization (Senators Wright (Chair), Berryhill, Calderon, Cannella, Correa, De León, Galgiani, Hernandez, Lieu, Nielsen, and Padilla)

March 14, 2013


An act to amend Sections 23450, 24041, 24070, and 25605 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

SB 818, as introduced, Committee on Governmental Organization. Alcoholic beverages.

(1) The Alcoholic Beverage Control Act provides for the issuance of licenses for which various annual fees are charged depending upon the type of license issued. The act authorizes the issuance of a veterans’ club license authorizing the sale of alcoholic beverages, as provided.

This bill would revise the definition of a “veteran” for the purposes of the veterans’ club license.

(2) Existing law requires a public warehouse licensee that operates more than one public warehouse in the state to post a copy of the original public warehouse license in each warehouse establishment.

This bill would instead require a duplicate public warehouse license issued by the department to be posted in those public warehouse establishments.

(3) The Alcoholic Beverage Control Act limits the amount of the consideration that may accompany the intercounty transfer of on-sale and off-sale licenses to not more than $10,000 or $6,000, depending on the date of issue for the license, and lifts those limitations if the transfer occurs after 5 years, as specified.

This bill would revise the limitation on the amount of consideration that may accompany an intercounty transfer to no more than the fee for the original on-sale or off-sale license.

(4) The Alcoholic Beverage Control Act prohibits an off-sale licensee from delivering alcoholic beverages from an order received over the telephone without requiring proof of age and identity when the beverages are delivered.

This bill would make this prohibition applicable to orders received via other electronic means.

(5) The Alcoholic Beverage Control Act provides that a violation of any of its provisions for which another penalty or punishment is not specifically provided is a misdemeanor. This bill would expand existing crimes by imposing additional duties on a licensee under the act, thus the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

P2    1

SECTION 1.  

Section 23450 of the Business and Professions
2Code
is amended to read:

3

23450.  

As used in this article, “veteran” means any person who
4has served in the United States Army, Navy,begin insert Air Force,end insert Marine
5Corps,begin delete Revenue Marine Serviceend deletebegin insert Coast Guardend insert, or as an active nurse
6in the service of the American Red Cross, or in the Army and Navy
7Nurse Corps in time of war, or in any expedition of the armed
8forces of the United States, or who served in one of such services
9during the period September 16, 1940, to December 7, 1941, and
10received a discharge under conditions other than dishonorable.

11

SEC. 2.  

Section 24041 of the Business and Professions Code
12 is amended to read:

13

24041.  

Separate licenses shall be issued for each of the
14premises of any business establishment having more than one
15location, except as provided for in Sections 23355.1, 23388, 23389,
16and 23390, except that any manufacturer, importer, or wholesaler
P3    1may receive, store, and deliver wine as specified in its license, at
2and from a public warehouse licensed by the department, without
3holding an additional license at the warehouse. A license at a public
4warehouse shall be required by an out-of-state business whose
5alcoholic beverages come to rest, are stored, and shipped from a
6public warehouse in California. The holder of a public warehouse
7license maintaining or operating more than one public warehouse
8in this state shall be required to obtain but one license for all of
9his or her public warehouse establishments. Abegin delete copy of the originalend delete
10begin insert duplicateend insert public warehouse licensebegin insert issued by the departmentend insert issued
11to a publicbegin delete warehousemanend deletebegin insert warehouse licenseeend insert maintaining or
12operating more than one public warehouse in this state shall be
13posted in each of his or her public warehouse establishments. A
14charge of one dollar ($1) shall be made by the department for each
15begin delete copyend deletebegin insert duplicateend insert of a public warehouse license issued to a public
16warehouseman.

17

SEC. 3.  

Section 24070 of the Business and Professions Code
18 is amended to read:

19

24070.  

Each license is separate and distinct and is transferable
20upon approval by the department from the licensee to another
21person and from one premises to another premises.

22(a) All off-sale general licenses may be transferred from one
23county to another county, subject to the following provisions:

begin delete

241.

end delete

25begin insert(1)end insert The number of off-sale general licenses in existence in any
26county on June 1 of any year shall not be increased by more than
2725 new original off-sale general licenses during the following
2812-month period, provided further that the number of new original
29off-sale general licenses that may be issued in any county during
30any 12-month period shall not increase by more than 10 percent
31the number of off-sale general licenses in existence in such county
32on the June 1 with which that 12-month period began.

begin delete

332.

end delete

34begin insert(2)end insert After the department computes the number of new original
35off-sale licenses that may be issued in any county during any
3612-month period as provided by the foregoing paragraph, if the
37department determines that the ratio established by Section 23817
38will permit, during such 12-month period, additional off-sale
39general licenses in any county, off-sale general licenses may be
40transferred into such county in a number not to exceed by more
P4    1than 10 percent the number of off-sale general licenses in existence
2in such county on the June 1 with which that 12-month period
3began, but in no event to exceed 25 such transfers during that
412-month period.

begin delete

53.

end delete

6begin insert(3)end insert Under no circumstances shall the combined total number of
7new original off-sale general licenses that may be issued in any
8county during any 12-month period and the number of off-sale
9general licenses that may be transferred into such county during
10that 12-month period, exceed the limitation set forth in Section
1123817.

12(b) All on-sale general licenses may be transferred from one
13county to another county, subject to the following provisions:

begin delete

141.

end delete

15begin insert(1)end insert The number of on-sale general licenses in existence in any
16county on June 1 of any year shall not be increased by more than
1710 percent by the issuance of new original on-sale general licenses,
18but in no event to exceed 25 such licenses, during any 12-month
19period. The number of on-sale general licenses shall be limited by
20the provisions of Section 23816.

begin delete

212.

end delete

22begin insert(2)end insert After the department computes the number of new original
23on-sale licenses that may be issued in any county during any
2412-month period as provided by the foregoing paragraph, if the
25department determines that the ratio established by Section 23816
26will permit, during such 12-month period, additional on-sale
27general licenses in any county, on-sale general licenses may be
28transferred into such county in a number not to exceed by more
29than 10 percent the number of on-sale general licenses in existence
30in such county on the June with which that 12-month period began,
31but in no event to exceed 25 such transfers during that 12-month
32period.

begin delete

333.

end delete

34begin insert(3)end insert Under no circumstances shall the combined total number of
35new original on-sale general licenses that may be issued in any
36county during any 12-month period and the number of on-sale
37general licenses that may be transferred into such county during
38that 12-month period, exceed the limitation set forth in Section
3923816.

begin delete

404.

end delete

P5    1begin insert(4)end insert The transfer fee for transfer of an on-sale general license
2from one county to another county shall be the same as the fee
3prescribed in subdivision (d) of Section 24072 for transfer of an
4off-sale general license from one county to another county.

5(c) No retail license subject to the provisions of Section 23816
6or 23817 issued as a new original license on or after June 1, 1961,
7and no off-sale general license or on-sale general license transferred
8from one county to another county on or after August 17, 1967,
9shall be transferable from the licensee to another person, or if the
10licensee is a corporation a controlling interest in the stock
11ownership of the licensee shall not be, directly or indirectly, sold,
12transferred, or hypothecated unless the licensee be a corporation
13the stock of which is listed on a stock exchange in this state or in
14the City of New York, State of New York, or which is required
15by law to file periodic reports with the Security Exchange
16Commission, for a period of two years from date of issuance of
17the license, except as provided in Section 24071, and except when
18the department determines that the transfer is necessary to prevent
19undue hardship.

begin delete

20(d) No off-sale general license or on-sale general license that
21is transferred from one county to another county pursuant to this
22section shall be transferred thereafter for a purchase price or
23consideration to the transferor or from the transferee in excess of
24ten thousand dollars ($10,000), except that if the off-sale general
25license or on-sale general license was originally issued on or after
26June 1, 1961, the purchase price or consideration to the transferor
27or from the transferee shall not exceed six thousand dollars
28($6,000), as provided by Section 24079.

end delete
begin delete

29(e) Notwithstanding the provisions of subdivision (d) of this
30section any off-sale general license or on-sale general license
31transferred from one county to another county pursuant to this
32section may be transferred with no restrictions as to the purchase
33price or consideration to the transferor or from the transferee after
34a period of five years from the date of the intercounty transfer of
35the license.

end delete
begin insert

36(d) (1) An on-sale general license or off-sale general license
37that has been transferred from one county to another county shall
38not be transferred for a purchase price or consideration in excess
39of the original fee paid for that license pursuant to subdivision (b)
P6    1of Section 23954.4 for a period of five years following the previous
2transfer of that license.

end insert
begin insert

3(2) An on-sale general license or off-sale general license that
4has been transferred from one county to another county may be
5transferred with no restrictions as to the purchase price or
6consideration to the transferor or from the transferee after a period
7of five years from the date of the previous intercounty transfer of
8the license.

end insert
9

SEC. 4.  

Section 25605 of the Business and Professions Code
10 is amended to read:

11

25605.  

Nobegin delete offsaleend deletebegin insert off-saleend insert licensee shall deliver any alcoholic
12beverages pursuant to orders received for such alcoholic beverage
13by telephonebegin insert or other electronic meansend insert unless upon delivery the
14recipient shall be able to furnish proof of age and identity to
15indicate that he or she is 21 years of age or over.

16

SEC. 5.  

No reimbursement is required by this act pursuant to
17Section 6 of Article XIII B of the California Constitution because
18the only costs that may be incurred by a local agency or school
19district will be incurred because this act creates a new crime or
20infraction, eliminates a crime or infraction, or changes the penalty
21for a crime or infraction, within the meaning of Section 17556 of
22the Government Code, or changes the definition of a crime within
23the meaning of Section 6 of Article XIII B of the California
24Constitution.



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