Amended in Assembly August 26, 2013

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 Sectionsbegin insert 23375,end insert 23450, 24041, 24070, and 25605 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

SB 818, as amended, 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.

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(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.

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

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(2) A public warehouse license authorizes the storage of alcoholic beverages for another licensee, including storage in specified warehouses.

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This bill would allow the department to issue the holder of a public warehouse license a duplicate of that license for each additional warehouse operated by the licensee, which authorizes the exercise of all the privileges of the original licensee at the additional warehouse or warehouses.

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(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    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 23375 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

23375.  

begin insert(a)end insertbegin insertend insert A public warehouse license authorizes the storage
4of alcoholic beverages for the account of another licensee,
5including storage in a United States customs bonded warehouse,
6a United States internal revenue bonded warehouse, and a United
7States bonded wine cellar.

begin insert

P3    1(b) The department may issue to the holder of a public
2warehouse license a duplicate of the original license for each
3additional warehouse operated by the licensee, which authorizes
4the exercise of all privileges of the original license at the additional
5warehouse or warehouses. The fee for a duplicate warehouse
6license shall be one dollar ($1).

end insert
7

begin deleteSECTION 1.end delete
8begin insertSEC. 2.end insert  

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

10

23450.  

As used in this article, “veteran” means any person who
11has served in the United States Army, Navy, Air Force, Marine
12Corps, Coast Guard, or as an active nurse in the service of the
13American Red Cross, or in the Army and Navy Nurse Corps in
14time of war, or in any expedition of the Armed Forces of the United
15States, or who served in one ofbegin delete suchend deletebegin insert theseend insert services during the
16period September 16, 1940, to December 7, 1941, and received a
17discharge under conditions other than dishonorable.

18

begin deleteSEC. 2.end delete
19begin insertSEC. 3.end insert  

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

21

24041.  

Separate licenses shall be issued for each of the
22premises of any business establishment having more than one
23location, except as provided for in Sections 23355.1, 23388, 23389,
24and 23390, except that any manufacturer, importer, or wholesaler
25may receive, store, and deliver wine as specified in its license, at
26and from a public warehouse licensed by the department, without
27holding an additional license at the warehouse. A license at a public
28warehouse shall be required by an out-of-state business whose
29alcoholic beverages come to rest, are stored, and shipped from a
30public warehouse in California. begin delete The holder of a public warehouse
31license maintaining or operating more than one public warehouse
32in this state shall be required to obtain but one license for all of
33his or her public warehouse establishments. A duplicate public
34warehouse license issued by the department issued to a public
35warehouse licensee maintaining or operating more than one public
36warehouse in this state shall be posted in each of his or her public
37warehouse establishments. A charge of one dollar ($1) shall be
38made by the department for each duplicate of a public warehouse
39license issued to a public warehouseman.end delete

P4    1

begin deleteSEC. 3.end delete
2begin insertSEC. 4.end insert  

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

4

24070.  

Each license is separate and distinct and is transferable
5upon approval by the department from the licensee to another
6person and from one premises to another premises.

7(a) All off-sale general licenses may be transferred from one
8county to another county, subject to the following provisions:

9(1) The number of off-sale general licenses in existence in any
10county on June 1 of any year shall not be increased by more than
1125 new original off-sale general licenses during the following
1212-month period, provided further that the number of new original
13off-sale general licenses that may be issued in any county during
14any 12-month period shall not increase by more than 10 percent
15the number of off-sale general licenses in existence inbegin delete suchend deletebegin insert thatend insert
16 county on the June 1 with which that 12-month period began.

17(2) After the department computes the number of new original
18off-sale licenses that may be issued in any county during any
1912-month period as provided by the foregoing paragraph, if the
20department determines that the ratio established by Section 23817
21will permit, duringbegin delete suchend deletebegin insert thatend insert 12-month period, additional off-sale
22general licenses in any county, off-sale general licenses may be
23transferred intobegin delete suchend deletebegin insert thatend insert county in a number not to exceed by
24more than 10 percent the number of off-sale general licenses in
25existence inbegin delete suchend deletebegin insert thatend insert county on the June 1 with which that
2612-month period began, but in no event to exceed 25 such transfers
27during that 12-month period.

28(3) Under no circumstances shall the combined total number of
29new original off-sale general licenses that may be issued in any
30county during any 12-month period and the number of off-sale
31general licenses that may be transferred into such county during
32that 12-month period, exceed the limitation set forth in Section
3323817.

34(b) All on-sale general licenses may be transferred from one
35county to another county, subject to the following provisions:

36(1) The number of on-sale general licenses in existence in any
37county on June 1 of any year shall not be increased by more than
3810 percent by the issuance of new original on-sale general licenses,
39but in no event to exceed 25 such licenses, during any 12-month
P5    1period. The number of on-sale general licenses shall be limited by
2the provisions of Section 23816.

3(2) After the department computes the number of new original
4on-sale licenses that may be issued in any county during any
512-month period as provided by the foregoing paragraph, if the
6department determines that the ratio established by Section 23816
7will permit, duringbegin delete suchend deletebegin insert thatend insert 12-month period, additional on-sale
8general licenses in any county, on-sale general licenses may be
9transferred intobegin delete suchend deletebegin insert thatend insert county in a number not to exceed by
10more than 10 percent the number of on-sale general licenses in
11existence inbegin delete suchend deletebegin insert thatend insert county onbegin delete theend delete Junebegin insert 1end insert with which that
1212-month period began, but in no event to exceed 25 such transfers
13during that 12-month period.

14(3) Under no circumstances shall the combined total number of
15new original on-sale general licenses that may be issued in any
16county during any 12-month period and the number of on-sale
17general licenses that may be transferred intobegin delete suchend deletebegin insert thatend insert county
18during that 12-month period, exceed the limitation set forth in
19Section 23816.

20(4) The transfer fee for transfer of an on-sale general license
21from one county to another county shall be the same as the fee
22prescribed in subdivision (d) of Section 24072 for transfer of an
23off-sale general license from one county to another county.

24(c) No retail license subject to the provisions of Section 23816
25or 23817 issued as a new original license on or after June 1, 1961,
26and no off-sale general license or on-sale general license transferred
27from one county to another county on or after August 17, 1967,
28shall be transferable from the licensee to another person, or if the
29licensee is a corporation a controlling interest in the stock
30ownership of the licensee shall not be, directly or indirectly, sold,
31transferred, or hypothecated unless the licensee be a corporation
32the stock of which is listed on a stock exchange in this state or in
33the City of New York, State of New York, or which is required
34by law to file periodic reports with thebegin delete Securityend deletebegin insert United States
35Securities andend insert
Exchange Commission, for a period of two years
36from date of issuance of the license, except as provided in Section
3724071, and except when the department determines that the transfer
38is necessary to prevent undue hardship.

39(d) (1) An on-sale general license or off-sale general license
40that has been transferred from one county to another county shall
P6    1not be transferred for a purchase price or consideration in excess
2of the original fee paid for that license pursuant to subdivision (b)
3of Sectionbegin delete 23954.4end deletebegin insert 23954.5end insert for a period of five years following
4the previous transfer of that license.

5(2) An on-sale general license or off-sale general license that
6has been transferred from one county to another county may be
7transferred with no restrictions as to the purchase price or
8consideration to the transferor or from the transferee after a period
9of five years from the date of the previous intercounty transfer of
10the license.

11

begin deleteSEC. 4.end delete
12begin insertSEC. 5.end insert  

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

14

25605.  

No off-sale licensee shall deliver any alcoholic
15beverages pursuant to orders received forbegin delete suchend delete alcoholicbegin delete beverageend delete
16begin insert beverages end insert by telephone or other electronic means unless upon
17delivery the recipient shall be able to furnish proof of age and
18identity to indicate that he or she is 21 years of age or over.

19

begin deleteSEC. 5.end delete
20begin insertSEC. 6.end insert  

No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22the only costs that may be incurred by a local agency or school
23district will be incurred because this act creates a new crime or
24infraction, eliminates a crime or infraction, or changes the penalty
25for a crime or infraction, within the meaning of Section 17556 of
26the Government Code, or changes the definition of a crime within
27the meaning of Section 6 of Article XIII B of the California
28Constitution.



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