BILL NUMBER: AB 928	INTRODUCED
	BILL TEXT


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  any 
 a  license to operate the premises during the period an
application for a license at the premises is pending and 
when   if  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.  Any
  An    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effective or when the application for the license is withdrawn,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  discharged,  
discharged  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  any   a  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.