BILL ANALYSIS Ó AB 1558 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1558 (Mathis) - As Amended March 16, 2016 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|18 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue additional on-sale general licenses within Inyo County. Specifically, this bill allows up to five additional licenses between January 1, 2017 and December 31, AB 1558 Page 2 2019, for bona fide public eating places or public premises, or both, with seating capacity for 50 or more diners. FISCAL EFFECT: Any additional licensing and oversight costs for ABC associated with this legislation will be minor and absorbable. COMMENTS: 1)Purpose and background. According to the author, Inyo County is a popular tourist destination. However, existing ABC regulations that allocate certain alcohol licenses based on county population make it difficult for entrepreneurs to succeed in a volatile economic climate. According to the author, while Inyo County has not seen population growth, the number of businesses unable to obtain a license each year demonstrates the need for additional liquor licenses. 2)Other related legislation. A number of recent bills have created specific license exemptions for individual counties. Those bills are: a) AB 461 (Achadjian), Chapter 110, Statutes of 2013: Authorized ABC to issue no more five new original on-sale general licenses, over a three-year period, for bona fide public eating places in San Luis Obispo County. b) AB 1320 (Allen), Chapter 467, Statutes of 2012: Authorized ABC to issue no more 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in Marin County. AB 1558 Page 3 c) SB 1285 (Leno) of 2016. This bill, beginning January 1, 2017, provides an exception to this limitation for a county of the 6th class, as specified, for 28 new original special on-sale general licenses for bona fide eating places for premises located within specified census tracts in that county, subject to specified requirements. (Pending in Senate G.O. Committee) d) SB 762 (Cox), Chapter 193, Statutes of 2007: Authorized ABC to issue 10 new original on-sale general licenses for bona fide public eating places in Mono County. Moreover, AB 1670 (Dodd) of 2016, which passed the Assembly Governmental Organization Committee on April 6, 2016, allows 25 new on-sale general licenses, over a 5-year period, for bona fide public eating places public premises in Napa County. This bill is also on today's calendar. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081