BILL NUMBER: AB 2296	CHAPTERED
	BILL TEXT

	CHAPTER  345
	FILED WITH SECRETARY OF STATE  AUGUST 30, 2004
	APPROVED BY GOVERNOR  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 12, 2004
	PASSED THE SENATE  JULY 12, 2004
	AMENDED IN SENATE  JUNE 9, 2004
	AMENDED IN ASSEMBLY  APRIL 15, 2004
	AMENDED IN ASSEMBLY  APRIL 1, 2004

INTRODUCED BY   Assembly Members Leno and Aghazarian

                        FEBRUARY 19, 2004

   An act to amend Section 24013 of, and to repeal and add Section
24015 of, the Business and Professions Code, relating to alcoholic
beverage control.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2296, Leno.  Alcoholic beverages:  issuance of liquor licenses:
  protests.
   (1) Existing law provides that protests against the issuance of a
liquor license may be filed with the Department of Alcoholic Beverage
Control.  Existing law permits the department to reject protests,
except protests made by a public agency, public official, or
governing body of a city or county, it determines to be false,
vexatious, or without reasonable or probable cause.  Existing law
also permits a protestant whose protest has been rejected to file an
accusation with the department, in which case the department is
required to hold a hearing, as specified.
   This bill would also permit the department to reject protests it
determines to be frivolous.
   (2) Existing law requires, in the case of a protest of the
issuance of a liquor license, that a hearing be held not more than 60
days after the receipt of the protest by the State Office of
Administrative Hearings.
   This bill would repeal this hearing requirement and instead would
establish procedures to be followed in cases in which the department
recommends that a license be issued, notwithstanding that one or more
protests have been accepted by the department.  Under these
procedures, the department would be required to notify the applicant
and any party whose protest has been accepted in writing of its
determination.  The bill would provide for a hearing upon the request
of any of these protesting parties who have filed a verified protest
in a timely fashion pursuant to existing law, authorize the
department to accept a late request for a hearing, limit the issues
that may be determined at the hearing, provide that the protests of
any person who did not request a hearing under these provisions shall
be deemed withdrawn, authorize the department to issue the license
without any further proceedings if no request for hearing is filed
with the department, and provide that the protest is deemed withdrawn
if the person requesting the hearing fails to appear at that
hearing.


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


  SECTION 1.  Section 24013 of the Business and Professions Code is
amended to read:
   24013.  (a) Protests may be filed at any office of the department
at any time within 30 days from the first date of posting the notice
of intention to engage in the sale of alcoholic beverages at the
premises, or within 30 days of the mailing of the notification
pursuant to Section 23985.5, whichever is later.
   (b) The department may reject protests, except protests made by a
public agency or public official or protests made by the governing
body of a city or county, if it determines the protests are false,
vexatious, frivolous, or without reasonable or probable cause at any
time before hearing thereon, notwithstanding Section 24016 or 24300.
If, after investigation, the department recommends that a license be
issued notwithstanding a protest by a public agency, a public
official, or the governing body of a city or county, the department
shall notify the agency, official, or governing body in writing of
its determination and the reasons therefor, in conjunction with the
notice of hearing provided to the protestant pursuant to Section
11509 of the Government Code.  If the department rejects a protest as
provided in this section and issues a license, a protestant whose
protest has been rejected may, within 10 days after the issuance of
the license, file an accusation with the department alleging the
grounds of protest as a cause for revocation of the license and the
department shall hold a hearing as provided in Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (c) Nothing in this section shall be construed as prohibiting or
restricting any right that the individual making the protest might
have to a judicial proceeding.
  SEC. 2.  Section 24015 of the Business and Professions Code is
repealed.
  SEC. 2.  Section 24015 is added to the Business and Professions
Code, to read:
   24015.  (a) If, after investigation, the department recommends
that a license be issued, with or without conditions, notwithstanding
that one or more protests have been accepted by the department, the
department shall notify the applicant and all protesting parties
whose protests have been accepted in writing of its determination.
   (b) Any person who has filed a verified protest in a timely
fashion pursuant to subdivision (a) of Section 24013, that has been
accepted pursuant to this article may request that the department
conduct a hearing on the issue or issues raised in the protest.  The
request shall be in writing and shall be filed with the department
within 15 business days of the date the department notifies the
protesting party of its determination as required under subdivision
(a).
   (c) At any time prior to the issuance of the license, the
department may, in its discretion, accept a late request for a
hearing upon a showing of good cause.  Any determination of the
department pursuant to this subdivision shall not be an issue at the
hearing nor grounds for appeal or review.
   (d) If a request for a hearing is filed with the department
pursuant to subdivision (b), the department shall schedule a hearing
on the protest.  The issues to be determined at the hearing shall be
limited to those issues raised in the protest or protests of the
person or persons requesting the hearing.
   (e) Notwithstanding that a hearing is held pursuant to subdivision
(d), the protest or protests of any person or persons who did not
request a hearing as authorized in this section shall be deemed
withdrawn.
   (f) If no request for a hearing is filed with the department
pursuant to this section, any protest or protests shall be deemed
withdrawn and the department may issue the license without any
further proceeding.
   (g) If the person filing the request for a hearing fails to appear
at the hearing, the protest shall be deemed withdrawn.