BILL ANALYSIS
Bill No: AB
2793
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2793 Author: Committee on Governmental Organization
As Amended: April 14, 2010
Hearing Date: June 29, 2010
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
AB 2793 makes the following substantive and clarifying
changes to the Alcoholic Beverage Control (ABC) Act:
1. Establishes a new "club" license (lawn bowls club) that
authorizes the Department of ABC to issue a club license
for the sale of alcoholic beverages to nonprofit lawn
bowls clubs, provided those clubs do not discriminate or
restrict membership.
2. Modifies an existing tied-house advertising exception
applicable to a specified venue in Downtown Los Angeles
as follows: (a) limits the patronage capacity to no more
than 3,000 instead of in excess of 2,000 and (b) adds
clarity to provisions that place certain limitations on
the retail licensee's purchase of alcoholic beverages
from the supplier that has purchased the advertising
space.
EXISTING LAW
Existing law establishes the Department of Alcoholic
Beverage Control (ABC) and grants it exclusive authority to
administer the provisions of the ABC Act in accordance with
laws enacted by the Legislature. This involves licensing
individuals and businesses associated with the manufacture,
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importation and sale of alcoholic beverages in this state
and the collection of license fees or occupation taxes for
this purpose.
Existing law, known as the "tied-house" law, separates the
alcoholic beverage industry into three component parts, or
tiers, of manufacturer (including breweries, wineries and
distilleries), wholesaler, and retailer (both on-sale and
off-sale).
Tied house refers to a practice in this country prior to
Prohibition and still occurring in England today where a
bar or public house, from whence comes the "house" of tied
house, is tied to the products of a particular
manufacturer, either because the manufacturer owns the
house, or the house is contractually obligated to carry
only a particular manufacturer's products.
The ABC Act prohibits an alcoholic beverage supplier from
paying money, or giving or furnishing anything of value,
for the privilege of placing or painting a sign or
advertisement, or window display, on or in premises selling
alcoholic beverages at retail.
The Act contains numerous exceptions including one that
exists for a fully enclosed venue with box office sales and
attendance by the public on a ticketed basis only, with a
patronage capacity in excess of 2,000 located in Los
Angeles County within the area subject to the Los Angeles
Sports and Entertainment District, as specified.
Existing law provides for the issuance of a "club" license
allowing the sale of alcoholic beverages to numerous
specified organizations, as specified. Existing law
provides that the holder of a club license may exercise all
of the rights and privileges permitted by an on-sale
general license but may sell and serve alcoholic beverages
for consumption within the licensed establishment only to
bona fide members of the club and their bona fide guests.
A club license is not transferable from person to person.
No new club license shall be issued to any club which is
not a nonprofit organization.
BACKGROUND
Purpose of AB 2793 : This measure represents the annual
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Assembly Governmental Organization Committee Bill that
makes technical, clarifying, conforming, and
non-controversial changes to the ABC Act.
Over the years numerous "club licenses" have been added to
the ABC Act (e.g., tennis club, yacht club, rod and gun
clubs, riding club, airlines club, social luncheon club,
American GI Forum, handball club, beach and athletic club,
press club, golf club, swim club, etc.) allowing the
license holder to sell and serve alcoholic beverages for
consumption within the licensed establishment only to
members of the club and their guests. This measure would
establish a "lawn bowls club."
AB 2793 would also make minor clarifying changes to
provisions contained in AB 813 (John A. Perez) of last year
that created a new tied-house exception for Club Nokia in
Los Angeles.
History of Lawn Bowling: Some say the lineage of lawn
bowling goes back to 5000 B.C. to the Egyptians. The Romans
took it to Italy as "Bocce," France as "Boule," and England
as "Bowls." The oldest bowls Green played on is in
Southampton, England where the green has been in operation
since 1299 A.D. Some notable bowlers include Henry VIII,
William Shakespeare, and Sir Francis Bacon. It was
introduced in North America in the 1600's. George
Washington bowled at Bowling Green Park and at Mount
Vernon.
Lawn Bowling began to flourish in America at the beginning
of the 20th century. In California there are now 2
Divisions with 43 lawn bowling facilities and 4000 players.
Some facilities have one, two, three, and in some cases,
four bowling greens.
Lawn bowling in the USA is administered by the US Lawn
Bowling Association, an all volunteer non-profit
organization that seeks to maintain the low-cost of the
sport and easy-access for of all ages. Nearly every week
of the year there is at least one major tournament held in
California.
Governor's Proclamation: In 2009, Governor Arnold
Schwarzenegger issued a Proclamation for California Lawn
Bowls Day, a salute to the state's 59 lawn bowling
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facilities which hosted local and regional open houses.
The Proclamation applauded California bowlers' efforts to
encourage the challenge of lawn bowling and awareness of
the game.
PRIOR/RELATED LEGISLATION
AB 813 (John A. Perez) Chapter 647, Statutes of 2009.
Created a new tied-house exception by allowing the owner of
a venue (Club Nokia) in Los Angeles to engage in a
sponsorship agreement with an alcoholic beverage supplier
for the privilege of placing advertising in the on-sale
licensee's premises.
SUPPORT: As of June 25, 2010:
Mackenzie Park Lawn Bowls Club (Santa Barbara)
World Bowls Association
United Lawn Bowls Association - Southwest Division (Santa
Barbara)
Southwest Lawn Bowls Association
Santa Barbara Lawn Bowls Association
United States of America Lawn Bowls Team (numerous members)
OPPOSE: None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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