BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 1322 Hearing Date: 7/14/2015
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|Author: |Daly |
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|Version: |4/15/2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Alcoholic beverages: licenses: beauty salons and barber
shops
DIGEST: This bill allows beauty salons and barber shops, in
good standing with the California Board of Barbering and
Cosmetology (CBBC), to serve their clients limited quantities of
beer or wine at no extra charge during normal business hours
without obtaining a license or permit from the Department of
Alcoholic Beverage Control (ABC).
ANALYSIS:
Existing law:
1)Establishes the Department of 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)Allows the serving of alcoholic beverages without a license or
permit 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)Establishes the Barbering and Cosmetology Act, which provides
AB 1322 (Daly) Page 2 of ?
for the licensure and regulation of barbers and
cosmetologists, including the practice of skin care by
licensed estheticians, by the CBBC within the Department of
Consumer Affairs. (Chapter 10 of Division 3 of the Business
and Professions Code)
This bill:
Provides that an ABC 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:
1)There is no extra charge or fee for the beer or wine;
2)The license of the establishment providing the beauty salon
service or barber shop service is in good standing with the
CBBC;
3) No more than 12 ounces of beer or six ounces of wine is
offered to a client;
4) The beer or wine is provided only during business hours and
in no case later than 10 p.m.
Background
In October of 1985, the Attorney General issued 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. (See
AB 1322 (Daly) Page 3 of ?
prior/related legislation listed below.)
Existing law provides authority for the Department of ABC to
issue numerous types of licenses but none are authorized
specifically for a "beauty salon or barber" service. Currently,
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.
Purpose of the bill: According to the author's office, many
beauty salons and barber shops throughout California offer
complementary alcoholic beverages to their customers. 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 grant beauty salons and
barber shops the opportunity to serve beer or wine to their
clients aged 21 or over without an ABC license or permit,
provided there is no extra fee charged for the beverage.
Beauty salons and barber shops. According to the CBBC, there
are a total of 41,830 beauty salon and barber shop location
permits issued throughout the State, however, the CBBC location
license does not differentiate between a beauty salon and barber
shop. The following 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.
Staff comments. Relaxing with a glass of wine while getting
those tootsies pampered at the salon may appear to be a simple
act of hospitality but the salon is very likely running afoul of
alcoholic beverage licensing laws relating to possession,
serving, or sale of alcoholic beverages. Over the years, other
businesses (e.g., art galleries, painting classes, spas, and bed
and breakfasts) desiring to offer complimentary drinks with a
service have struggled with the decision to either obtain a
proper alcoholic beverage license or cease to provide free
drinks to their customers.
AB 1322 (Daly) Page 4 of ?
The privilege to provide alcoholic beverages in a retail
establishment is a highly coveted and sought after authorization
many businesses desire. This bill would essentially grant
beauty salons and barber shops the privilege of serving
alcoholic beverages to their clients without having to go
through the standard ABC licensing process which requires
applicants to undergo fingerprinting and a thorough background
investigation. In addition, the existing ABC licensing process
provides the opportunity for residents and local governing
bodies to voice their concerns to the Department of ABC as it
pertains to the issuance of a license.
This bill grants beauty salons and barber shops the opportunity
to serve alcohol (twelve ounces of beer or six ounces of wine)
without an ABC license or permit, provided: (1) there is no
extra fee charged for the alcoholic beverage; (2) the
establishment's existing salon/barbering license is in good
standing with the CBBC; and, (3) the beer or wine is served
during normal business hours.
As currently drafted, it is unclear how alcohol limitations
related to underage drinking and excess use would be enforced.
Prior/Related Legislation
SB 346 (Harman, 2011) would have authorized the serving of
alcoholic beverages without a license or permit as part of a
"gondola ride" (boat) service. (Held in Assembly Appropriations
Committee at request of the author)
AB 2416 (Governmental Organization Committee, Chapter 639,
Statutes of 1998) provided that a license or permit is not
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
AB 1322 (Daly) Page 5 of ?
a license or permit is not required for the serving of alcoholic
beverages in a limousine provided there is no extra charge or
fee for the alcoholic beverages.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
Drybar
18|8 Fine Men's Hair Salon of Playa Vista
OPPOSITION:
Alcohol Justice
Asian American Drug Abuse Program, Inc.
California Council on Alcohol Problems
Los Angeles Drug and Alcohol Policy Alliance
Partnership for a Positive Pomona
Paso por Paso
Pueblo y Salud
San Rafael Alcohol and Drug Coalition
The Wall Las Memorias Project
United Coalition East Prevention Project
Youth for Justice
Numerous individuals
ARGUMENTS IN SUPPORT: Proponents claim that AB 1322 will enable
small locally owned and operated salon and barbering businesses
the opportunity to provide their customers with quality services
and experiences.
ARGUMENTS IN OPPOSITION: Opponents are concerned about the
unintended consequences of allowing alcohol consumption at
beauty/barbering establishments. For instance, opponents
question whether the ABC is capable of monitoring the thousands
of licenses that have been issued under the CBBC. Opponents
also point out that AB 1322 makes no mention of age requirements
or proper "responsible beverage service" training of persons
pouring the alcohol. Furthermore, opponents believe that the
alcohol industry may begin marketing and distributing their
products through beauty/barbering establishments as another
AB 1322 (Daly) Page 6 of ?
means of public tastings.