BILL ANALYSIS Ó
AB 1322
Page 1
ASSEMBLY THIRD READING
AB
1322 (Daly)
As Amended April 15, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+-----------------------+---------------------|
|Governmental |21-0 |Gray, Linder, | |
|Organization | |Achadjian, Alejo, | |
| | |Bigelow, Campos, | |
| | |Cooley, Cooper, Daly, | |
| | |Cristina Garcia, | |
| | |Eduardo Garcia, | |
| | |Gipson, | |
| | |Roger Hernández, | |
| | |Jones-Sawyer, Levine, | |
| | |Mayes, Perea, Salas, | |
| | |Steinorth, Waldron, | |
| | |Wilk | |
| | | | |
|----------------+------+-----------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, Bloom, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Holden, Jones, | |
| | |Quirk, Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
AB 1322
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SUMMARY: Allows beauty salons and barbershops to serve up to 12
ounces of beer or six 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 California Board of Barbering and
Cosmetology (CBBC), and the beer or wine is only provided during
normal business hours and in no case later than 10 p.m.
Specifically, this bill:
1)Provides a license or permit is not required for the serving of
alcoholic beverages as part of a beauty salon service or
barbershop service, provided there is no extra charge or fee for
the alcoholic beverages.
2)Specifies that there shall be no extra charge or fee for the
alcoholic beverages when the fee charged for the beauty salon
service or barbershop is the same regardless of whether
alcoholic beverages are served.
3)Provides a license or permit is not required for the serving of
beer or wine as part of a beauty salon service or barber shop
service if the following requirements are met:
a) There is no extra charge or fee for the beer or wine.
b) There is no extra charge or fee for the beer or wine if
the fee charged for the beauty salon service or barber shop
service is the same regardless of whether beer or wine is
served.
c) The license of the establishment providing the beauty
salon service or barber shop service is in good standing with
the CBBC.
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4) Provides that no more than 12 ounces of beer or six ounces of
wine by the glass is offered to a client.
5) Provides the beer or wine is provided only during business
hours and in no case later than 10 p.m.
EXISTING LAW:
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the ABC Act in accordance with laws enacted by the
Legislature.
2)Makes it unlawful for any person other than a licensee of the
ABC to sell, manufacture, or import alcoholic beverages in this
state.
3)Provides that no license or permit shall be required for the
serving of alcoholic beverages in a "limousine" or as part of a
"hot air balloon ride" service, provided there is no extra
charge or fee for the alcoholic beverages.
4)Provides that ABC must deny an application for a license if
issuance would create a law enforcement problem, or if issuance
would result in, or add to, an undue concentration of licenses
in the area where the license is desired. For liquor stores and
other specified retail license, however, the ABC is authorized
to issue a license if the respective local government determines
that public convenience or necessity would be served by granting
the license.
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5)Caps the number of new on and off-sale general licenses issued
by the ABC at one for every 2,500 inhabitants of the county
where the establishment is located (2,000:1 for on sale
licenses). If no licenses are available from the state due to
the population restrictions, those people interested in
obtaining a liquor license may purchase one from an existing
licensee, for whatever price the market bears. In 1994, the
Legislature approved a three-year moratorium on the issuance of
new off-sale beer and wine licenses, which at the time was not
bound by any population to license restriction. In 1997, this
moratorium was made permanent.
6)Establishes the Barbering and Cosmetology Act, which provides
for the licensure and regulation of barbers and cosmetologists,
including the practice of skin care by licensed estheticians, by
the Board in the Department of Consumer Affairs. (Business and
Professions Code (BPC) Section 7316)
7)Establishes the specified requirements that applicants for a
cosmetology, esthetician, barbering, manicurist and
electrologist license must meet in order to sit for the
licensure examination. (BPC Sections 7321, 7321.5, 7324, 7326,
7330)
FISCAL EFFECT: According to the Assembly Appropriations
Committee, minor and absorbable costs to ABC as the bill creates a
full exemption from alcoholic beverage licensing and permitting,
meaning ABC would not be responsible for enforcement. Likely
minor, non-reimbursable local costs for enforcement, potentially
offset by a minor increase in fine revenue.
COMMENTS:
Background: In October of 1985, the Attorney General issued
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opinion No. 85-701, which held that the operator of a commercial
enterprise who offers and provides complimentary alcoholic
beverages to guests, customers, or passengers while charging for
the services rendered is deemed to have "sold" the alcoholic
beverage, thereby necessitating an alcoholic beverage license.
At the time, this opinion affected a large number of California
businesses (e.g., limousine and bus services, and
bed-and-breakfast inns) which had made a practice of offering
complimentary champagne and other alcoholic beverages to
passengers and guests as part of their service.
The Legislature has responded to a number of concerns raised by
various business entities over the years relative to this matter
by enacting narrowly crafted legislation to address the problem.
Specifically, SB 1546 (Beverly), Chapter 1354, Statutes of 1986,
provides that no license or permit shall be required for the
serving of complimentary alcoholic beverages in limousines. A few
years later, AB 2416 (Governmental Organization Committee),
Chapter 639, Statutes of 1998, was enacted which granted hot air
balloon ride services the same privilege.
In California, it is unlawful for any corporation, club, or
organization to sell, give, serve, dispense, keep, or allow to be
consumed on its premises any alcoholic beverage unless licensed or
permitted by law. This prohibition includes the serving of free
alcohol with the purchase of another good or service. It is also
unlawful for any person to keep or consume an alcoholic beverage
on any premises open to the public other than as specifically
permitted by law.
According to the CBBC, within the Department of Consumer Affairs,
there are a total of 41,830 beauty salon and barbershop location
permits issued in the State. The CBBC "location license" does not
differentiate between a beauty salon or barbershop. The following
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services are not under the jurisdiction of the CBBC:
body-piercing, braiding, ear candling, laser services, massage,
permanent make-up, medical services, threading and reflexology.
Purpose of the bill: According to the author's office, this bill
intended to grant beauty salon or barber shop businesses the
opportunity to serve champagne or other alcoholic beverages to
their clients ages 21 and over without an ABC license or a permit,
provided there is no extra fee charged for the beverage.
The author states many beauty salons and barbershops throughout
California offer complementary alcoholic beverages to their
customers at no charge. However, by providing such beverages
without an ABC license, these establishments are in conflict with
state and local alcohol licensing requirements. The author points
out that most beauty salons and barbershops are small, mom and pop
operations which seek to provide a positive experience for their
customers; unfortunately, such businesses currently serving
alcoholic beverages face potential sanctions for their actions.
This bill is simply intended to clarify in law that beauty salons
and barbershops may offer a free alcoholic beverage to patrons of
age who purchase a specified service under the Barbering and
Cosmetology Act.
In opposition: The California Council on Alcohol Problems opposes
the bill, concerned about the unintended consequences of allowing
alcohol consumption at beauty/barbering establishments. For
instance, is ABC prepared/able to monitor the thousands of
licenses under the CBBC? Will the alcohol industry begin
marketing and distributing their products through beauty/barbering
establishments as another means of public tastings?
Prior legislation: AB 461 (Achadjian), Chapter 110, Statutes of
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2013. Authorized ABC to issue five new original on-sale general
licenses to San Luis Obispo County between January 1, 2014, and
December 31, 2016, for restaurants with a seating capacity for 50
or more diners.
AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized ABC to
issue a maximum of 15 new original on-sale general licenses, over
a three-year period, for bona fide public eating-places in Marin
County.
AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized ABC to
issue a maximum of 15 new original on-sale general licenses, over
a three-year period, for bona fide public eating-places in Napa
County.
SB 762 (Cox), Chapter 193, Statutes of 2007. Allowed ABC to issue
10 new original on-sale general licenses for bona fide public
eating-places in Mono County.
AB 2416 (Governmental Organization Committee), Chapter 639,
Statutes of 1998. Provided that no license or permit is required
for the serving of alcoholic beverages as part of a hot air
balloon ride service, provided there is no extra charge or fee for
the alcoholic beverages.
SB 1546 (Beverly), Chapter 1354, Statutes of 1986. Provided that
no license or permit is required for, the serving of alcoholic
beverages in a limousine regulated by the Public Utilities
Commission provided there is no extra charge for the alcoholic
beverages.
AB 1252 (N. Waters), Chapter 753, Statutes of 1977. Permitted the
Director of ABC to authorize the conversion of any on-sale general
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license for "seasonal business" to an on-sale general license, as
specified.
Analysis Prepared by:
Eric Johnson / G.O. / (916) 319-2531 FN: 0000249