BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1579
                                                                  Page  1

          Date of Hearing:   April 30, 2009

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                               Curren Price, Chairman
                AB 1579 (Committee on Governmental Organization) - As  
                             Introduced:  March 23, 2009
           
          SUBJECT :   Alcoholic beverage control: licensees: operating  
          permits.

           SUMMARY  :   Grants the Department of Alcoholic Beverage Control  
          (ABC), discretion, to issue an interim operating permit to a  
          non-retail license applicant that allows them to operate during  
          the period a license application is pending.   Specifically,  
           this bill  : 

          1)Revises the authorization of ABC to, in its discretion, issue  
            an interim operating permit to an applicant for any license to  
            operate the premises during the period an application for a  
            license at the premises is pending, subject to specified  
            conditions applicable to all licensees or retail licensees  
            only.

           EXISTING LAW  :

          1)Establishes ABC and grants it the exclusive authority to  
            administer the provisions of the Alcoholic Beverage Control  
            Act (Act) in accordance with laws enacted by the Legislature.

          2)Authorizes the Department of Alcoholic Beverage Control, in  
            its discretion, to issue an interim retail permit to an  
            applicant for any retail license to operate the premises  
            during the period an application for a license at the premises  
            is pending, subject to specified conditions.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of the bill  .  This bill represents the annual Assembly  
          Governmental Organization Committee bill that makes technical,  
          clarifying, conforming, and non-controversial changes to the ABC  
          Act.  

          This bill codifies current law by authorizing ABC to, in its  








                                                                  AB 1579
                                                                 Page  2

          discretion, issue an interim operating permit to an applicant  
          for any license to operate during the period an application for  
          a license at the premises is pending, subject to specified  
          conditions applicable to all licensees or retail licensees only.

          Currently, when a retail license is being protested, the ABC can  
          issue an interim retail permit to be effective until the matter  
          is settled via the judicial process.  Unfortunately, though, the  
          ABC cannot issue an interim permit if the application is for a  
          non-retail license (winery, wholesaler, etc.)  This bill would  
          give ABC the same latitude and discretion, in terms of interim  
          operation, for retail and non-retail licenses while protest  
          matters are being considered.

          ABC put forth the language contained in this bill.  

           Background .  Under current law, any person may protest the  
          issuance of an alcohol license.  If a retail license application  
          has been protested and ABC has recommended approval of the  
          license, ABC may issue an Interim Operating Permit upon the  
          applicant's written request.  The fee for the permit is $100.   
          It is good for up to 120 days subject to renewals.  If an  
          application is withdrawn because of a protest being filed, an  
          applicant may not re-file an application at the same premises  
          for one year, and all protests remain valid for one year against  
          any subsequent applications filed by other persons at the  
          premises.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531