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 EXISTING LAW The enactment of the 21st Amendment to the U.S. Constitution in 1933 repealed the 18th Amendment and ended the era of Prohibition.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 SB 818 (Committee on Governmental Organization) continuedPage 2 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 SB 818 (Committee on Governmental Organization) continuedPage 3 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. SB 818 (Committee on Governmental Organization) continuedPage 4 OPPOSE: None on file as of April 19, 2013. FISCAL COMMITTEE: Senate Appropriations Committee **********