BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 415|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 415
          Author:   Oropeza (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  7-4, 4/28/09
          AYES:  Wright, Calderon, Florez, Negrete McLeod, Oropeza,  
            Padilla, Yee
          NOES:  Harman, Benoit, Wiggins, Wyland
          NO VOTE RECORDED:  Denham, Vacancy

           SENATE APPROPRIATIONS COMMITTEE :  Senate Rule 28.8


           SUBJECT  :    Alcoholic beverages:  licenses:  local  
          government review

           SOURCE  :     Author


           DIGEST  :    This bill expands the eligibility list of local  
          government officials who may request an extension of time  
          to review the issuance of transfer of an alcoholic beverage  
          license and lengthens the existing extension period from 20  
          to 30 days.

           ANALYSIS  :    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 the laws enacted by  
          the Legislature.  This involves licensing individuals and  
          businesses associated with the manufacture, importation and  
                                                           CONTINUED





                                                                SB 415
                                                                Page  
          2

          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  
          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 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.

          This bill authorizes the ABC to extend the 30-day period  
          for a period not to exceed an additional 30 days if a  
          proper written request is made by any entity or official  
          receiving the required notification.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/12/09)

          California Council on Alcohol Policy
          Cities of Antioch, Costa Mesa, Hermosa Beach, Long Beach  
            and Rancho Cordova
          League of California Cities
          The West County Alcohol Policy Working Group


                                                           CONTINUED





                                                                SB 415
                                                                Page  
          3

           OPPOSITION  :    (Verified  5/12/09)

          California Grocers Association
          Family Winemakers of California

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill continues the effort to expand local government  
          involvement in the ABC license process.  Specifically, this  
          bill seeks to clarify that local government agencies can  
          request a 20-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 bill asks for an additional 10 days of review to  
          better accommodate local government meeting schedules.

          Proponents state that they are supportive of methods that  
          permit additional involvement by local entities in the  
          application review process.  Proponents believe that this  
          bill will enable communities to review and manage any  
          pertinent public safety and economic issues related to the  
          sale of alcoholic beverages.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that this bill  
          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 bill  
          would result in an inappropriate expansion of local  
          authority over retail licensing.  
           

          TSM:cm  5/12/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                                           CONTINUED





                                                                SB 415
                                                                Page  
          4


                                ****  END  ****











































                                                           CONTINUED