BILL ANALYSIS Ó
Bill No: SB
818
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 818 Author: Committee on Governmental Organization
As Introduced: March 14, 2013
Hearing Date: April 23, 2013
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
SB 818 makes non-controversial, clarifying and code
maintenance 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Constitution in 1933 repealed the 18th Amendment and ended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 23450) defines "veteran" for
purposes of Veterans' Club licenses as any person who has
served in the United States Army, Navy, Marine Corps,
Revenue Marine Service, or as an active nurse in the
service of the American Red Cross, or in the Army and Navy
Nurse Corps in time of war, or in any expedition of the
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armed forces of the United States, or who served in one of
such services during the period September 16, 1940 to
December 7, 1941 and received a discharge under conditions
other than dishonorable.
Existing law (B&P Code Section 24041) requires the holder
of a Type 14 public warehouse license to obtain only one
license for all warehouses and requires the license holder
to post a copy of the original license in any additional
warehouses operated by the license holder. Existing law
also requires ABC to charge $1 for each copy it issues to a
Type 14 license holder.
Existing law (B&P Code Section 24070) prohibits the
transfer of an off-sale general license or on-sale general
license from one county to another for a purchase price in
excess of $10,000 unless it was originally issued on or
after June 1, 1961, in which case the purchase price shall
not exceed $6,000. The law provides that after a period of
five years from the date of the inter-county transfer of
the license, these licenses may be transferred to another
county without restrictions on the purchase price.
Existing law (B&P Code Section 25605) prohibits an off-sale
licensee from delivering alcoholic beverages ordered by
telephone unless the recipient can furnish proof of age and
identity to indicate that he or she is 21 years of age or
over.
BACKGROUND
Purpose of SB 818: This is the annual committee bill that
makes various non-controversial and code maintenance
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 23450, which dates
back to 1935, to include persons who have served in
the Air Force and Coast Guard in the definition of
"veteran" for purposes of being eligible for a
Veterans Club license.
2. Would amend B&P Code Section 24041 to clarify that
a Type 14 public warehouse licensee with multiple
warehouses must obtain a duplicate of its original
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license from ABC for a $1 charge for each additional
warehouse operated and post it in each warehouse. As
currently written, Section 24041 is not clear that the
duplicates (or copies) must be obtained from ABC.
3. Would amend B&P Code Section 24070 to clarify that
an original general license cannot be transferred from
one county to another for more than the fee set by
statute for five years from the date it was last
transferred between counties. The current fee for
original general licenses is set in Section 23954.5(b)
at $13,800.
4. Would amend B&P Code Section 25605 to recognize
forms of electronic communication, in addition to the
telephone, by which alcohol orders may be placed.
Section 25605 was enacted in 1963 before e-mail and
other forms of electronic communication existed.
PRIOR LEGISLATION
SB 937 (Governmental Organization Committee), Chapter 327,
Statutes of 2012. Made non-controversial and code
maintenance changes to the Alcoholic Beverage Control (ABC)
Act. Among other things, codified the process in which the
Department of ABC is required to collect a surcharge of 3
percent of the annual license fees for the ABC Appeals
Board's administrative costs; revised the license fee
schedule to set forth the fee amounts as of the 2010
calendar year; and, revised the provision to prohibit the
transfer of an original on-sale or off-sale license for
more than the original purchase price for a period of 2
years.
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 April 19, 2013.
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OPPOSE: None on file as of April 19, 2013.
FISCAL COMMITTEE: Senate Appropriations Committee
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