BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1322|
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THIRD READING
Bill No: AB 1322
Author: Daly (D) and Wilk (R)
Amended: 6/30/16 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 8-2, 6/28/16
AYES: Berryhill, Bates, Gaines, Galgiani, Hill, Hueso, Lara,
Vidak
NOES: Glazer, McGuire
NO VOTE RECORDED: Hall, Block, Hernandez
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 74-0, 5/7/15 - See last page for vote
SUBJECT: Alcoholic beverages: licenses: beauty salons and
barber shops
SOURCE: Drybar
DIGEST: This bill allows beauty salons and barber shops to
serve their clients limited quantities of beer or wine at no
extra charge without obtaining a license or permit from the
Department of Alcoholic Beverage Control (ABC) if specified
requirements are satisfied.
ANALYSIS:
Existing law:
1)Establishes the Department of ABC and grants it exclusive
authority to administer the provisions of the ABC Act in
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accordance with laws enacted by the Legislature.
2)Makes it unlawful for any person other than a licensee of the
Department of 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
for the licensure and regulation of barbers and
cosmetologists, including the practice of skin care by
licensed estheticians, by the State Board of Barbering and
Cosmetology (CBBC) within the Department of Consumer Affairs.
(Chapter 10 of Division 3 of the Business and Professions
Code)
This bill:
1)Specifies 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 provided the following requirements are
met:
a) There is no extra charge or fee for the beer or wine;
b) The license of the establishment providing the beauty
salon service or barber shop service is in good standing
with the CBBC;
c) No more than 12 ounces of beer or six ounces of wine by
the glass are offered to a client; and,
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d) The beer or wine is provided only during business hours
and in no case later than 10 p.m.
2)Makes it explicit that nothing in this bill shall be construed
to preempt the authority of a city or city and county to
restrict or limit the consumption of alcoholic beverages
within its jurisdiction.
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
Related/Prior Legislation listed below.)
Existing law grants the Department of ABC the authority 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
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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
complimentary 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 approximately 42,000 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.
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.
The privilege to provide alcoholic beverages in a retail
establishment is a highly coveted and sought after authorization
many businesses desire. This bill essentially grants beauty
salons and barber shops the privilege of serving alcoholic
beverages to their clients without having to go through the
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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 (12 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.
Related/Prior 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. (Died in Assembly Appropriations
Committee)
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
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
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Com.: Yes Local: No
SUPPORT: (Verified 8/1/16)
Drybar (source)
18|8 Fine Men's Hair Salon of Playa Vista
OPPOSITION: (Verified 8/1/16)
Alcohol Justice
Asian American Drug Abuse Program, Inc.
California Alcohol Policy Alliance
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
Several hundred individuals
ARGUMENTS IN SUPPORT: Drybar Holdings LLC (known as "Drybar"),
the source of this bill, notes that it is a fast-growing beauty
business in California, providing customers with expert services
in "blow outs" of hair (that is, washing and blow-dry styling by
a professional stylist). Eighteen Drybar locations, employing
800 individuals, are currently located throughout the state.
Drybar contends that AB 1322 seeks to address an issue that has
arisen relative to beauty salons that choose to provide a
complimentary glass of wine or champagne to clients while they
visit the business establishment for services. The Department
of ABC has informed Drybar that each of its locations would need
to be licensed to sell alcoholic beverages even though the wine
or champagne provided to clients is complimentary.
Drybar states that AB 1322 will exempt beauty salons and barber
shops, in good standing with the CBBC, from needing to be
licensed by the Department of ABC in order to offer
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complimentary beer, wine or champagne. Drybar argues that a
similar exemption exists for other types of businesses that
serve complimentary alcoholic beverages to their clients (e.g.,
limousine services, hot air balloon rides, etc.)
ARGUMENTS IN OPPOSITION: Opponents are concerned about the
unintended consequences of allowing alcohol consumption at
beauty/barbering establishments. For instance, opponents
question whether the Department of 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 means of public tastings.
ASSEMBLY FLOOR: 74-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,
Chávez, Chiu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley,
Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Rodriguez,
Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron,
Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Chu, Eduardo Garcia, Roger Hernández,
Ridley-Thomas, Steinorth
Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
8/3/16 18:45:37
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