BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2296
                                                                  Page  1

          Date of Hearing:   April 28, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 2296 (Leno) - As Amended:  April 15, 2004 

          Policy Committee:                              Governmental  
          Organization Vote:                            22-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill creates an expedited process within the Department of  
          Alcohol Beverage Control (ABC) by which alcohol licenses may be  
          protested and appealed. Specifically, this bill: 

          1)Repeals the requirement that a hearing be held within 60 days  
            after the receipt by the State Office of Administrative  
            Hearings of a protest.

          2)Establishes procedures to be followed when ABC recommends  
            issues a license be issued when a protest has been accepted.

          3)Requires ABC to make certain notices in writing.

          4)Requires an administrative hearing when requested. 

           FISCAL EFFECT  

          Savings in the range of $30,000 to the extent the new process  
          reduces the number of protest hearings facilitated by  
          administrative law judges. 

           COMMENTS  

           Rationale  . This bill creates an expedited process by which  
          individuals may protest the issuance of an alcohol license. It  
          is designed to reduce the number of administrative protest  
          hearings and to decrease the appeals process to bring licensure  
          to resolution in a more timely fashion. 

          Protests filed against a prospective alcohol licensee can drag  








                                                                  AB 2296
                                                                  Page  2

          out licensure processes by months and even years in more  
          controversial and complicated cases. This bill shifts the burden  
          of hearings to the individuals protesting the licensure. Under  
          current law and practice, protesters often do not even appear at  
          the hearing, wasting significant legal and administrative  
          resources.  In 2003, about 850 alcohol licenses were protested  
          and 133 administrative law hearings were held. 



           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081