BILL ANALYSIS
Bill No: SB
415
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 415 Author: Oropeza
As Introduced: February 26, 2009
Hearing Date: April 28, 2009
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: licenses; local government review
DESCRIPTION
SB 415 expands the eligibility list of local government
officials who may request an extension of time to review
the issuance or transfer of an alcoholic beverage license
and lengthens the existing extension period from 20 to 30
days.
EXISTING LAW
The enactment of the 21st Amendment to the U.S.
Constitution in 1933 repealed the 18th Amendment and ended
the era of Prohibition. Accordingly, states were granted
the authority to establish alcoholic beverage laws and
administrative structures to regulate the sale and
distribution of alcoholic beverages.
Existing law establishes the Department of Alcoholic
Beverage Control (ABC) and grants it exclusive authority to
administer the provisions of the Alcoholic Beverage Control
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.
Existing law authorizes ABC to impose reasonable conditions
SB 415 (Oropeza) continued
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on the exercise of retail privileges under the Act. The
ABC may impose conditions on certain license transfers at
the request of a local governing body in whose jurisdiction
the license is located.
Existing law specifies the grounds that constitute a basis
for the suspension or revocation of an alcoholic beverage
license, including a licensee's failure, within a
reasonable time, after specified notice from a district
attorney, city attorney, county counsel, or the ABC to take
reasonable steps to correct objectionable conditions on the
licensed premises, as specified.
Existing law requires the ABC to notify the appropriate
sheriff, chief of police, district attorney, city or county
planning agency, and legislative body of an application for
the issuance or transfer of a liquor license, and prohibits
the ABC from issuing or transferring a license until at
least 30 days after these notices are provided. Existing
law authorizes the ABC to extend that 30-day period for a
period not to exceed 20 days if a proper written request is
made by any local law enforcement agency .
BACKGROUND
Purpose of SB 415: According to the author's office, this
measure continues the effort to expand local government
involvement in the ABC license process. Specifically, this
measure seeks to clarify that local government agencies can
request a twenty day extension for the review of a license;
not just a law enforcement agency as specified under
current law. Additionally, the author's office indicates
that the current 20-day extension period does not provide
adequate time for local governments which may only meet
once a month to properly address possible concerns with a
license. Thus, this measure asks for an additional 10 days
of review to better accommodate local government meeting
schedules.
Arguments in Support: Proponents state that they are
supportive of methods that permit additional involvement by
local entities in the application review process.
Proponents believe that this measure will enable
communities to review and manage any pertinent public
safety and economic issues related to the sale of alcoholic
beverages.
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Arguments in Opposition: Opponents argue that SB 415 is
unnecessary because existing law provides a sufficient
30-day initial review and comment period, plus an optional
20-day extension allowance. Thus, under current law, local
law enforcement agencies have up to 50-days to review and
comment upon a license application. Additionally, opponents
believe that expanding the range of entities that can
formally request an extension for review could lead to
overzealous individuals unnecessarily delaying the start-up
of a new business venture. Opponents emphasize that
jurisdiction over alcoholic beverage licensing has always
been held by the state and not local government - this
measure would result in an inappropriate expansion of local
authority over retail licensing.
PRIOR/RELATED LEGISLATION
SB 450 (Oropeza) 2007-08 Session. Would have authorized
ABC to extend the 30-day waiting period affecting the
issuance or transfer of a liquor license for a period not
to exceed an additional 20 days if a proper written request
is made by any entity or official receiving the required
notification. Also, would have added a new provision to
the ABC Act requiring a licensee to prominently display
signage providing contact information for local law
enforcement and the ABC's district office for purposes of
reporting possible violations by the licensee. (Failed
passage in this committee on a vote of 1-4)
AB 2672 (Oropeza) 2005-06 Session. Would have increased
the extension period for local government review of liquor
license applications or transfers from 20 to 30 days
provided proper written request is made by any entity or
official receiving the required notification. (Died Senate
Inactive File)
SB 148 (Scott) Chapter 625, Statutes of 2006. Among other
things, provided additional bases for the suspension or
revocation of an ABC license, when a licensee fails to take
reasonable steps to correct objectionable conditions on the
licensed premises or on any public sidewalk abutting a
licensed premises, as provided, after specified notice from
the district attorney, the city attorney, or a county
counsel.
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AB 624 (Oropeza) Chapter 931, Statutes of 2001. Among
other things, permitted ABC to take into account
neighboring crime statistics in the area of the site of the
establishment when transferring a license. Also, extended
the time period local entities have to respond to the
notice of a new or transferred license and required the
notification of local property owners adjacent to the site.
AB 1092 (Lowenthal) Chapter 499, Statutes of 1999.
Authorized the ABC to place reasonable restrictions upon
retail licenses or any licensee in the exercise of retail
privileges if the ABC adopts conditions requested by a
local governing body.
SUPPORT: As of April 24, 2009:
California Council on Alcohol Policy
Hermosa Beach, City of
League of California Cities
Long Beach, City of
OPPOSE: As of April 24, 2009:
California Grocers Association
Family Winemakers of California
FISCAL COMMITTEE: Senate Appropriations Committee
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