BILL NUMBER: AB 2082	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Campos

                        FEBRUARY 17, 2016

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2082, as amended, Campos. Alcoholic beverages: licenses:
 probationary period.   emergency orders. 
   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.  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. 
   This bill would authorize the  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.   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 t   he 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. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 23059 is added to the 
 Business and Professions Code   , to read:  
   23059.  (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.  
  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.