Amended in Assembly April 13, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2082

Introduced by Assembly Member Campos

February 17, 2016

An act to add Section begin delete 23963 end delete begin insert 23059 end insert to the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 2082, as amended, Campos. Alcoholic beverages: licenses: begin delete probationary period. end delete begin insert emergency orders. end insert

Existing law, the Alcoholic Beverage Control Act, which is administrated by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. begin insert The act authorizes the department to investigate potential violations of the act, authorizes the Director of the Department of Alcoholic Beverage Control to bring an action to enjoin a violation or the threatened violation of the act, and provides for a hearing process held on a protest, accusation, or petition for a license. end insert

This bill would authorize the begin delete department to place a license on a 6-month probationary period when that license is transferred or sold to an entity or individual and currently under review by the department or is transferred or sold to an entity or individual that has been convicted of, or been subject to disciplinary action for, a violation of the Alcoholic Beverage Control Act. The bill would provide that proceedings to revoke a license during a probationary hearing shall be expedited and authorizes the department to consult with other state agencies regarding these provisions. end delete begin insert director to temporarily suspend, limit, condition, or take other action upon, any license by emergency order prior to any hearing when, in the opinion of the department, the action is urgent and necessary to protect against an immediate threat to health or safety. The bill would, among other things related to the issuance and application of an emergency order, authorize or licensee or person or entity against whom the order has been issued to petition for relief by written argument. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 23059 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 23059. end insert   

(a) The director may temporarily suspend, limit,
condition, or take other action upon, any license issued pursuant
to this division by emergency order prior to any hearing when, in
the opinion of the department, the action is urgent and necessary
to protect against an immediate threat to health or safety.

(b) (1) The emergency order may suspend, limit, condition, or
take other action in relation to the license of one or more persons
in an operation without affecting other individual licensees.

(2) The emergency order shall set forth the grounds upon which
it is based, including a statement of facts constituting the alleged
emergency necessitating the action.

(3) The emergency order shall be effective immediately upon
issuance and service upon the licensee or any agent of the licensee.
The department shall serve the licensee with the emergency order,
a copy of available discovery, and other relevant evidence in
possession of the department, including, but not limited to,
affidavits, declarations, and any other evidence upon which the
department relied in issuing the emergency order. The department
shall notify the licensee of the licensee’s right to petition for relief.

(c) (1) Once the emergency order has been served, a licensee
or person or entity against whom the emergency order has been
issued may petition for relief from the order by written argument.

(2) If a petition for relief is filed, using a preponderance of the
evidence standard, the director shall modify or vacate the
emergency order if either:

(A) There is a reasonable probability that the licensee will
prevail in the accusation.

(B) The likelihood of immediate threat to the health or safety
in not sustaining the emergency order does not outweigh the
likelihood of injury to the licensee in sustaining the emergency
order.

(d) The department shall respond, in writing, to a petition for
relief, either by sustaining, modifying, or vacating the emergency
order, within three business days of receipt of the petition. If the
department does not sustain or modify the emergency order within
three business days of receipt of the petition, the emergency order
shall be dissolved.

(e) The emergency order shall remain effective until further
order of the department or disposition at an accusation proceeding.

(f) (1) The department shall file an accusation against the
licensee with any additional, available pertinent discovery that
was not provided to the licensee at the time the emergency order
was issued within five business days after the issuance of an
emergency order.

(g) The licensee or person or entity against whom the emergency
order has been issued and served is entitled to a hearing. If a
hearing is requested, it shall commence within 10 business days
of the received date of the Notice of Defense.

(h) Nothing in this section precludes a licensee from proceeding
directly to a full evidentiary hearing on an accusation without first
petitioning the department for relief.

(i) At the accusation hearing, the administrative law judge shall
issue a verbal decision which sustains or vacates the emergency
order. A proposed decision by an administrative judge on the
accusation shall be prepared for the director’s review within 10
business days after the submission of the hearing.

end insert

begin delete

SECTION 1.  

Section 23963 is added to the Business and
Professions Code, to read:

23963.  

(a) The department may place a license issued pursuant
to this division on a six-month probation under the following
circumstances:

(1) The license is transferred or sold to an entity or individual
and is currently under review by the department for a violation of
this division.

(2) The license is transferred or sold to an entity or individual
that has been either been convicted of a violation of this division
or been subject to disciplinary action by the department because
of a violation of this division.

(b) Violation of a condition of probation or of a provision of
this division constitutes cause for revocation of the license.
Proceedings to revoke a license during the six-month probationary
period shall be expedited.

(c) The department may adopt regulations establishing a
monitoring program to ensure compliance with any terms or
conditions of probation imposed by the department pursuant to
subdivision (a). The department may consult with other state
agencies that administer licensing within the state with regard to
any provision of this section, including the establishment of an
expedited license revocation proceeding.

end delete