BILL ANALYSIS
Bill No: SB
825
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 825 Author: Committee on Governmental Organization
As Amended: May 4, 2009
Hearing Date: May 12, 2009
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
SB 825 is the annual committee bill that makes
non-controversial and code maintenance changes to the
Alcoholic Beverage Control (ABC) Act. Specifically, SB
825:
1. Deletes reference to "federal tax stamps" which have
not been required for over 20 years.
2. Makes clarifying and conforming changes to an existing
provision of law pertaining to notification requirements
and the submission of protests to the Department of ABC
regarding an application for a liquor license.
EXISTING LAW
Existing law establishes the Department of 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.
Existing law contains various provisions regulating the
labeling and containers of alcoholic beverages within the
SB 825 (G.O. Committee) continued
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state, including a provision (Business & Professions Code
Section 25176) prohibiting, as a misdemeanor, the refilling
or causing to be refilled with distilled spirits any
distilled spirits package to which a tax stamp has been
affixed evidencing the payment of U.S. internal revenue
taxes.
Existing law provides that protests against the issuance of
a liquor license may be filed with the Department of ABC.
The act permits the ABC to reject protests, except protests
made by a public agency, public official, or governing body
of a city or county, it determines to be false, frivolous,
vexatious, or without reasonable or probable cause.
Existing law (Business & Professions Code Section 23987)
requires the Department of 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
ABC from issuing or transferring a license until at least
30 days after these notices are provided. Existing law
authorizes the department to extend that 30-day period for
a period not to exceed an additional 20 days if a proper
written request is made by any local law enforcement
agency.
BACKGROUND
Purpose of SB 825: This measure is intended to be the
vehicle to make various technical corrections, deletions
and non-controversial changes to the ABC Act.
Specifically, this measure:
1.Modifies Section 25176 of the B & P Code (ABC Act) to
delete reference to tax stamps on liquor bottles.
Currently, Section 25176 prohibits the refilling or
causing to be refilled with distilled spirits any
distilled spirits package to which a tax stamp has been
affixed evidencing the payment of U.S. internal revenue
taxes. Federal tax stamps are no longer used on liquor
bottles so referencing containers that have them is no
longer appropriate. The ability of ABC to take action
against licensees who refill with a different brand or
marry smaller quantities of one brand into a single
container of the same brand will still be unlawful under
Section 25176. Removing the obsolete reference to the
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Page 3
tax stamp would be technical and non-substantive.
2.Modifies Section 24013 of the B & P Code relating to
protest timeframes for the issuance of a liquor license
to parallel existing provisions of law (Section 23987)
relating to local government review timeframes for the
issuance or transfer of an alcoholic beverage license.
Essentially, Section 23987 has been amended several times
over the years to make changes in ABC's public
notification requirements to public officials and to
allow extended time periods for their input. The clear
intent of these prior amendments was to allow additional
time for submission of protests to ABC. However, Section
24013, which specifically defines protest timeframes, was
not amended to be reflective. The proposed change would
be completely non-controversial and would, in fact,
conform to existing practices of the Department of ABC
and its allied local agencies.
RELATED LEGISLATION
SB 415 (Oropeza) 2009-10 Session. Would expand 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 lengthen the
existing extension period from 20 to 30 days. (Pending in
Senate Appropriations Committee)
SUPPORT/OPPOSE: None on file as of May 7, 2009.
FISCAL COMMITTEE: No.
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