California Legislature—2015–16 Regular Session

Assembly Bill No. 928

Introduced by Assembly Member Linder

February 26, 2015

An act to amend Section 24044.5 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

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 1.  

Section 24044.5 of the Business and Professions
Code is amended to read:

24044.5.  

(a) The department, in its discretion, may issue an
interim operating permit to an applicant for begin delete any end delete begin insert a end insert license to operate
the premises during the period an application for a license at the
premises is pending and begin delete when end delete begin insert if end insert all of the following conditions
exist:

(1) The application has been protested pursuant to Article 3
(commencing with Section 24011).

(2) The department has made a determination based upon its
investigation that the license should be issued.

(3) The applicant for the interim operating permit has filed with
the department an application for issuance of a license at the
premises to himself or herself.

(4) The application for the interim operating permit is
accompanied by a fee of one hundred dollars ($100).

(b) An interim operating permit issued by the department
pursuant to this section shall be for a period not to exceed 120
days. An interim operating permit may be extended at the discretion
of the department for additional 120-day periods as necessary upon
payment of an additional fee of one hundred dollars ($100) and
upon compliance with all conditions required by this section. begin delete Any end delete
begin insert An end insert interim operating permit issued by the department shall be
automatically canceled when a final determination made by the
department regarding the protests becomes effective or when the
application for the license is withdrawn, whichever occurs first.
An interim operating permit is a conditional permit and authorizes
the holder to whom issued to exercise the rights and privileges of
the license for which the application has been filed with the
department. Any conditions for which the applicant has petitioned
pursuant to Article 1.5 (commencing with Section 23800) of
Chapter 5 shall apply to any interim operating permit issued by
the department.

(c) Purchase of beer and wine by the holder of an interim
operating permit issued to an applicant for a retail license shall be
made only upon payment before or at the time of delivery in
currency or by check. Purchase of distilled spirits by the holder of
an interim operating permit issued to an applicant for a retail
license shall be made only upon payment before or at the time of
delivery in currency or by certified check. However, the holder of
an interim operating permit issued to an applicant for a retail
license, who also holds one or more retail licenses and is operating
under the retail license or licenses in addition to the interim
operating permit, and who is not delinquent under the provisions
of Section 25509 as to any retail license under which he or she
operates, may purchase alcoholic beverages on credit under the
interim operating permit.

(d) All checks received by a seller for beer or wine purchased
by the holder of an interim operating permit issued to an applicant
for a retail license shall be deposited not later than the second
business day following the date the beer or wine is delivered.

A check dishonored on presentation shall not be deemed
payment. The receipt by the seller or his or her agent in good faith
from a holder of an interim operating permit of a check dishonored
on presentation shall not be cause for disciplinary action against
the seller.

(e) Issuance of the license for which the holder of an interim
operating permit issued to an applicant for a retail license has filed
an application shall not be approved by the department until the
holder of the interim operating permit has filed with the department
a statement executed under penalty of perjury that all current
obligations have been begin delete discharged, end delete begin insert discharged end insert and that all
outstanding checks issued by him or her in payment for alcoholic
beverages will be honored on presentation.

(f) It shall not be a violation of this section or grounds for
disciplinary action for begin delete any end delete begin insert a end insert licensee to extend credit to the holder
of an interim operating permit issued to an applicant for a retail
license or to receive payment from the holder of an interim
operating permit in a manner other than authorized herein unless
the seller has knowledge of the fact that the purchaser was
operating under an interim operating permit. Knowledge of the
fact may be established by evidence, including, but not limited to,
evidence that, at the time of receipt of payment or the extension
of credit, the premises operated under an interim operating permit
were posted with the notice required by Section 23985, or the
holder of the interim operating permit has recorded notice as
required by Section 24073, or the holder of the interim operating
permit has published notice as required by Section 23986, or the
holder of the interim operating permit has recorded and published
notice pursuant to Division 6 (commencing with Section 6101) of
the Commercial Code.

(g) Refusal by the department to issue or extend an interim
operating permit shall not entitle the applicant to petition for the
permit pursuant to Section 24011, or to a hearing pursuant to
Section 24012. Articles 2 (commencing with Section 23985) and
3 (commencing with Section 24011) shall not apply to interim
operating permits.

(h) Notwithstanding any other provision of law, the department
may, in its discretion, cancel or suspend summarily at any time an
interim operating permit if the department determines that good
cause for the cancellation or suspension exists. Chapter 8
(commencing with Section 24300) shall not apply to interim
operating permits.

(i) Application for an interim operating permit shall be on any
form the department shall prescribe. If an application for an interim
operating permit is withdrawn before issuance or is refused by the
department, the fee that accompanied the application shall be
refunded in full, and Section 23959 shall not apply. Fees received
by the department for issuance of interim operating permits shall
be deposited in the Alcohol Beverage Control Fund as provided
in Section 25761.