BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 818
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          Date of Hearing:   June 12, 2013

                                 Isadore Hall, Chair
                 SB 818 (Committee on Governmental Organization) - As  
                             Introduced:  March 14, 2013

           SENATE VOTE  :   34-0
          SUBJECT  :   Alcoholic beverages.

           SUMMARY  :   Makes non-controversial, clarifying and code  
          maintenance changes to the Alcoholic Beverage Control Act (the  

           EXISTING LAW  :

          1)  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          in 1933 repealed the 18th Amendment and ended the era of  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.  

          2)  Establishes the Department of Alcoholic Beverage Control  
          (ABC) and grants it exclusive authority to administer the  
          provisions of the 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. 

          3)  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 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  

          4)  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  


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          law also requires ABC to charge $1 for each copy it issues to a  
          Type 14 license holder.

          5)  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.

          6)  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.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

           Purpose of the bill  :  This is the annual Senate Governmental  
          Organization Committee bill that makes various non-controversial  
          and code maintenance changes to the Act.  The proposed changes  
          have been requested by 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 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. 


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             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 Act.   
          Among other things, codified the process in which 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 ABC. 

          SB 825 (Governmental Organization Committee), Chapter 68,  
          Statutes of 2009.  Made various technical, clarifying and  
          non-substantive changes to the Act.

           Related legislation  :  AB 1425 (Committee on Governmental  
          Organization) of 2013.  Requires ABC to post its annual report  
          to the Legislature on its website.  In addition, this bill makes  
          various code maintenance changes to existing provisions of the  
          Act. (Pending in Senate G.O. Committee)

          None on file
          None on file



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          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531