BILL ANALYSIS
AB 1896
Page 1
Date of Hearing: April 12, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 1896 (Jeffries) - As Introduced: February 16, 2010
SUBJECT : Alcoholic beverage control: licensees: proof of age.
SUMMARY : Clarifies the Alcoholic Beverage Control Act (Act)
regarding proof of age, and creates a new Internet wine license.
Specifically, this bill :
1)Revises the provision relating to the use of military
identification cards as proof of age for purposes of
purchasing or consuming of alcoholic beverages, to directly
specify that a valid identification card issued to a member of
the Armed Forces, that includes the date of birth and a photo
of the person would, under all circumstances, constitute bona
fide evidence of age, as defined.
2)Authorizes the issuance of a limited off-sale retail wine
license that would allow the licensee to sell wine only via
direct mail, telephone, or Internet, as specified. This bill
would impose an original fee and an annual renewal fee in
specified amounts, and would allow the Department of Alcoholic
Beverage Control (ABC) to impose reasonable conditions upon
the licensee, as specified.
EXISTING LAW :
1)Establishes ABC and grants it the exclusive authority to
administer the provisions of the Act in accordance with laws
enacted by the Legislature.
2)Provides that, if a military identification card lacks a
physical description, but does include date of birth and
photo, further proof of majority shall not be required to
purchase or consume any alcoholic beverage, as specified.
3)Authorizes the acceptance of a valid passport, issued by the
United States government or a foreign government, as bona fide
evidence that a person is 21 years of age or older.
4)Subjects a holder of a license to sell alcoholic beverages to
criminal prosecution and suspension or revocation of that
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license if the licensee sells any alcoholic beverages to any
person under the age of 21 years. Makes it a misdemeanor for
any person under the age of 21 years to purchase any alcoholic
beverage or consume any alcoholic beverage in any on-sale
premises.
5)Establishes a beer and wine wholesaler license. Authorizes a
beer and wine wholesaler licensee to obtain an off-sale beer
and wine license, but limits sales to those accepted via mail,
telephone, or computer and prohibits operations conducted from
a retail store open to the public.
6)Provides for various annual fees for the issuance of alcoholic
beverage licenses that vary depending upon the type of license
issued.
7)Prohibits ABC from issuing a wholesale license to any person
who does not in good faith actually carry on or intend to
carry on a bona fide wholesale business by sale to retail
licensees of the alcoholic beverage designated in the
wholesale license, and authorizes ABC to revoke any wholesale
license when the licensee fails for a period of 45 days to
actively and in good faith to engage in the wholesale business
FISCAL EFFECT : Unknown
COMMENTS :
According to the author, this bill is clean-up measure to AB 59
(Jeffries), Chapter 405, Statutes of 2009, which provided that,
if a military identification card lacks a physical description,
but does include date of birth and photo, further proof of
majority shall not be required to purchase or consume any
alcoholic beverage, as specified. This bill clarifies that,
identification issued by a governmental organization (except
passports and military cards) that is used to prove age and
identity to purchase or consume alcoholic beverages must contain
the name, date of birth, description, and picture of the person.
Recently, ABC determined that current statute as authorized by
last year's bill might lead to confusion and inconsistent
application on the part of the retail alcoholic beverage
industry, law enforcement officials and the general public.
This measure also authorizes ABC to issue an off-sale retail
wine license that would allow entrepreneurs who do not have a
AB 1896
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physical store to sell wine directly to consumers. This concept
recognizes the realities of the changing wine industry and the
growing use of the Internet, direct mail, and the telephone in
purchasing products and services. The bill establishes a $100
initial fee with a $246 annual renewal fee for this new limited
off-sale Internet retail wine license, which is consistent with
the current Beer and Wine Retailer license fees. All revenue
would be deposited into the ABC Fund to cover ABC's costs.
Presently, ABC issues two licenses to facilitate Internet retail
sales-a beer and wine wholesaler/Type 17 together with an
off-sale beer and wine/Type 20. Current law requires holders of
wholesale licenses to operate as bona fide wholesalers "in good
faith". This means that they must sell to retailers other than
themselves. Many Internet retailers have no desire to act as
wholesalers, but are either forced to do so or face disciplinary
action against their licenses. In addition, because the retail
license issued is the same license issued to stores open to the
public such as grocery stores, mini-marts and gas stations, the
license counts against the license concentration limitations
imposed by law, thus preventing other businesses that do wish to
operate a store open to the public from obtaining a license.
Technical and clarifying amendments : Clarifying amendment
number one: Page 2, line 10 replace "possession and title of"
with "possession of and title to." Technical amendment number
two: page 3, line 30 insert comma after "operator's license" so
"the name, date of birth, description and picture" doesn't only
apply to motor vehicle operator's license, but other documents
issued by government agencies.
Prior legislation : AB 59 (Jeffries), Chapter 405, Statutes of
2009, provides that, if a military identification card lacks a
physical description, but does include date of birth and photo,
further proof of majority shall not be required to purchase or
consume any alcoholic beverage, as specified.
AB 1191 (Conway), Chapter 142, Statutes of 2009, authorizes the
acceptance of a valid passport, issued by the United States
government or a foreign government, as bona fide evidence that a
person is 21 years of age or older.
AB 764 (Calderon), Chapter 68, Statutes of 2005, established a
specified process where in the event an ID card issued to a
member of the Armed Forces is provided as proof of age 21 when
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purchasing alcohol beverages, and the ID lacks a physical
description, then proof of being age 21 may be further
substantiated if a motor vehicle operator's license or other
valid bona fide identification issued by any government
jurisdiction is also provided as specified.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Council Vietnam Veterans of America
Department of California AWVETS
Department of California American Legion
Department of Alcoholic Beverage Control
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531