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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|Policy |Governmental Organization |Vote:|21 - 0 |
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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