BILL ANALYSIS
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CONSENT
Bill No: AB 2793
Author: Assembly Governmental Organization Committee
Amended: 4/14/10 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/29/10
AYES: Wright, Harman, Calderon, Florez, Negrete McLeod,
Padilla, Price, Yee
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 6/1/10 - See last page for vote
SUBJECT : Alcoholic beverage control: advertising: club
licenses
SOURCE : Author
DIGEST : This bill makes substantive and clarifying
changes to the Alcoholic Beverage Control Act.
ANALYSIS : 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, importation and sale of alcoholic
beverages in this state and the collection of license fees
or occupation taxes for this purpose.
CONTINUED
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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.
This bill:
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
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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.
Comments
This bill is the annual 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 bill
establishes a "lawn bowls club."
This bill also makes 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
1600s. George Washington bowled at Bowling Green Park and
at Mount Vernon.
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Lawn Bowling began to flourish in America at the beginning
of the 20th century. In California, there are now two
Divisions with 43 lawn bowling facilities and 4,000
players. Some facilities have one, two, three, and in some
cases, four bowling greens.
Lawn bowling in the United States is administered by the
United States Lawn Bowling Association, an all volunteer
nonprofit 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 Schwarzenegger issued a Proclamation for
California Lawn Bowls Day, a salute to the state's 59 lawn
bowling 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/3/10)
Mackenzie Park Lawn Bowls Club (Santa Barbara)
Santa Barbara Lawn Bowls Association
Southwest Lawn Bowls Association
United Lawn Bowls Association - Southwest Division (Santa
Barbara)
United States of America Lawn Bowls Team (numerous members)
World Bowls Association
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ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Blakeslee, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,
Nestande, Niello, Nielsen, Norby, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Silva, Skinner,
Smyth, Solorio, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Tom Berryhill, Audra Strickland, Vacancy
TSM:mw 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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