AB 928, as introduced, Linder. Alcoholic beverages.
Existing law, the Alcoholic Beverage Control Act, regulates the application, issuance, and suspension of alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law permits the department, in its discretion, to issue an interim operating permit to an applicant for a license to operate a premises during the period an application for a license at the premises is pending, if specified conditions exist.
This bill would make technical, nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 24044.5 of the Business and Professions
2Code is amended to read:
(a) The department, in its discretion, may issue an
4interim operating permit to an applicant for
begin delete anyend delete license to operate
5the premises during the period an application for a license at the
P2 1premises is pending and
begin delete whenend delete all of the following conditions
3(1) The application has been protested pursuant to Article 3
4(commencing with Section 24011).
5(2) The department has made a determination based upon its
6investigation that the license should be issued.
7(3) The applicant for the interim operating permit has filed with
8the department an application for issuance of a license at the
9premises to himself or herself.
10(4) The application for the interim operating permit is
11accompanied by a fee of one hundred dollars ($100).
12(b) An interim operating permit issued by the department
13pursuant to this section shall be for a period not to exceed 120
14days. An interim operating permit may be extended at the discretion
15of the department for additional 120-day periods as necessary upon
16payment of an additional fee of one hundred dollars ($100) and
17upon compliance with all conditions required by this section.
begin delete Any end delete
18interim operating permit issued by the department shall be
19automatically canceled when a final determination made by the
20department regarding the protests becomes effective or when the
21application for the license is withdrawn, whichever occurs first.
22An interim operating permit is a conditional permit and authorizes
23the holder to whom issued to exercise the rights and privileges of
24the license for which the application has been filed with the
25department. Any conditions for which the applicant has petitioned
26pursuant to Article 1.5 (commencing with Section 23800) of
27Chapter 5 shall apply to any interim operating permit issued by
29(c) Purchase of beer and wine by the holder of an interim
30operating permit issued to an applicant for a retail license shall be
31made only upon payment before or at the time of delivery in
32currency or by check. Purchase of distilled spirits by the holder of
33an interim operating permit issued to an applicant for a retail
34license shall be made only upon payment before or at the time of
35delivery in currency or by certified check. However, the holder of
36an interim operating permit issued to an applicant for a retail
37license, who also holds one or more retail licenses and is operating
38under the retail license or licenses in addition to the interim
39operating permit, and who is not delinquent under the provisions
40of Section 25509 as to any retail license under which he or she
P3 1operates, may purchase alcoholic beverages on credit under the
2interim operating permit.
3(d) All checks received by a seller for beer or wine purchased
4by the holder of an interim operating permit issued to an applicant
5for a retail license shall be deposited not later than the second
6business day following the date the beer or wine is delivered.
7A check dishonored on presentation shall not be deemed
8payment. The receipt by the seller or his or her agent in good faith
9from a holder of an interim operating permit of a check dishonored
10on presentation shall not be cause for disciplinary action against
12(e) Issuance of the license for which the holder of an interim
13operating permit issued to an applicant for a retail license has filed
14an application shall not be approved by the department until the
15holder of the interim operating permit has filed with the department
16a statement executed under penalty of perjury that all current
17obligations have been
begin delete discharged,end delete and that all
18outstanding checks issued by him or her in payment for alcoholic
19beverages will be honored on presentation.
20(f) It shall not be a violation of this section or grounds for
21disciplinary action for
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licensee to extend credit to the holder
22of an interim operating permit issued to an applicant for a retail
23license or to receive payment from the holder of an interim
24operating permit in a manner other than authorized herein unless
25the seller has knowledge of the fact that the purchaser was
26operating under an interim operating permit. Knowledge of the
27fact may be established by evidence, including, but not limited to,
28evidence that, at the time of receipt of payment or the extension
29of credit, the premises operated under an interim operating permit
30were posted with the notice required by Section 23985, or the
31holder of the interim operating permit has recorded notice as
32required by Section 24073, or the holder of the interim operating
33permit has published notice as required by Section 23986, or the
34holder of the interim operating permit has recorded and published
35notice pursuant to Division 6 (commencing with Section 6101) of
36the Commercial Code.
37(g) Refusal by the department to issue or extend an interim
38operating permit shall not entitle the applicant to petition for the
39permit pursuant to Section 24011, or to a hearing pursuant to
40Section 24012. Articles 2 (commencing with Section 23985) and
P4 13 (commencing with Section 24011) shall not apply to interim
3(h) Notwithstanding any other provision of law, the department
4may, in its discretion, cancel or suspend summarily at any time an
5interim operating permit if the department determines that good
6cause for the cancellation or suspension exists. Chapter 8
7(commencing with Section 24300) shall not apply to interim
9(i) Application for an interim operating permit shall be on any
10form the department shall prescribe. If an application for an interim
11operating permit is withdrawn before issuance or is refused by the
12department, the fee that accompanied the application shall be
13refunded in full, and Section 23959 shall not apply. Fees received
14by the department for issuance of interim operating permits shall
15be deposited in the Alcohol Beverage Control Fund as provided
16in Section 25761.