BILL ANALYSIS                                                                                                                                                                                                    

                                                       Bill No:  SB  
                       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

                              Alcoholic Beverages

          SB 818 makes non-controversial, clarifying and code  
          maintenance changes to the Alcoholic Beverage Control (ABC)  
                                  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          Constitution in 1933 repealed the 18th Amendment and ended  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  

           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  

             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  

           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