BILL ANALYSIS
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THIRD READING
Bill No: AB 2296
Author: Leno (D), et al
Amended: 6/9/04 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 11-0, 6/15/04
AYES: Vincent, Johnson, Battin, Brulte, Cedillo, Chesbro,
Dunn, Karnette, Margett, Morrow, Soto
NO VOTE RECORDED: Machado, Murray
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 5/10/04 - See last page for vote
SUBJECT : Alcoholic beverages: protest of the issuance
of liquor
Licenses
SOURCE : California Grocers Association
DIGEST : This bill creates an expedited process within
the State Department of Alcohol Beverage Control by which
alcohol licenses may be protested and appealed.
ANALYSIS : Existing law provides that protests against
the issuance of a liquor license may be filed with the
State Department of Alcoholic Beverage Control (ABC).
Existing law permits ABC 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.
CONTINUED
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Existing law also permits a protestant whose protest has
been rejected to file an accusation with ABC, in which case
ABC is required to hold a hearing, as specified.
This bill:
1.Repeals in the case of a protest of the issuance of a
license to engage in the sale of alcoholic beverages that
a hearing shall be held not more than 60 days after
receipt of the protest by the State Office of
Administrative Hearings and, instead, establishes
procedures to be followed in cases in which ABC
recommends that a license be issued, notwithstanding that
one or more protests have been accepted by ABC.
2.Permits ABC to reject protests it determines to be
frivolous, in addition to other described conditions.
3.Provides that if, after investigation, ABC 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.
4.Provides that any person who has filed a verified protest
in a timely fashion as specified, that has been accepted
as described, may request that ABC conduct a hearing on
the issue or issues raised in the protest. The request
shall be in writing and shall be filed with ABC within 15
calendar days of the date the department notifies the
protesting party of its determination.
5.Specifies that at any time prior to the issuance of the
license, ABC 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.
6.Specifies that if a timely request for a hearing is filed
with ABC, 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
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protests of the person or persons requesting the hearing.
7.Provides that if no request for a hearing is filed with
the department, any protest or protests shall be deemed
withdrawn and ABC may issue the license without any
further proceeding.
8.Provides that if the person filing the request for a
hearing fails to appear at the hearing, the protest will
be deemed withdrawn.
Comments
Protests filed against a prospective alcohol licensee can
drag 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/28/04)
California Grocers Association (source)
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley
Horton, Houston, Jackson, Keene, Kehoe, Koretz, La Malfa,
La Suer, Laird, Leno, Leslie, Levine, Lieber, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Maze, McCarthy,
Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete
McLeod, Oropeza, Pacheco, Parra, Pavley, Plescia, Reyes,
Richman, Ridley-Thomas, Runner, Salinas, Samuelian,
Simitian, Spitzer, Steinberg, Strickland, Vargas,
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Wiggins, Wolk, Wyland, Yee, Nunez
NO VOTE RECORDED: Liu, Montanez, Wesson
TSM:cm 6/29/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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