BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1322


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          Date of Hearing:   April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1322 (Daly) - As Amended April 15, 2015


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          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


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          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


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          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