BILL ANALYSIS Ó AB 1322 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1322 (Daly) - As Amended April 15, 2015 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|21 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill allows beauty salons and barbershops to serve up to 12 ounces of beer or 6 ounces of wine as part of their beauty services without a license or permit, provided there is no extra charge or fee for the beer or wine, the salon or barber shop is in good standing with the Board of Barbering and Cosmetology, and the beer or wine is only provided during normal business hours and in no case later than 10 pm. AB 1322 Page 2 FISCAL EFFECT: 1)Minor and absorbable costs to the Department of Alcoholic Beverage Control (ABC) as the bill creates a full exemption from alcoholic beverage licensing and permitting, meaning ABC would not be responsible for enforcement. 2)Likely minor, non-reimburseable local costs for enforcement, potentially offset by a minor increase in fine revenue. COMMENTS: 1)Purpose. According to the author, many beauty salons and barber shops throughout California offer complementary alcoholic beverages to their customers at no charge. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to give beauty salons and barber shops the opportunity to serve champagne, beer, or other wine to their clients aged 21 or over without an ABC license or permit. 2)Background. A 1985 Attorney General legal opinion held businesses that offered complimentary alcoholic beverages to customers and guests while charging for the other services rendered were deemed to have "sold" the alcoholic beverage, and thereby needed an appropriate license. At the time, many service businesses had a practice of offering complimentary champagne or other beverages to customers as part of their service. The Legislature has since provided statutory exception to the licensing requirement for complementary alcoholic beverages offered by limousine and hot air balloon operators. AB 1322 Page 3 3)Sip, Sip?Clip, Clip. According to the Board of Barbering and Cosmetology, there are approximately 42,000 beauty salons and barbershops in California. By contrast, there are approximately 45,000 on-sale licensees. As a result, this bill will substantially increase the potential number of establishments in the state that may furnish beer and wine. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081