BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 825|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                    CONSENT


          Bill No:  SB 825
          Author:   Senate Governmental Organization Committee
          Amended:  5/4/09
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  10-0, 5/12/09
          AYES:  Wright, Harman, Benoit, Denham, Florez, Negrete  
            McLeod, Padilla, Wiggins, Wyland, Yee
          NO VOTE RECORDED:  Calderon, Oropeza, Vacancy


           SUBJECT  :    Alcoholic beverages

           SOURCE  :     Author


           DIGEST  :    This bill is the annual committee bill that  
          makes non-controversial and code maintenance 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. 

          Existing law contains various provisions regulating the  
          labeling and containers of alcoholic beverages within the  
          state, including a provision (Section 25176 of the Business  
                                                           CONTINUED





                                                                SB 825
                                                                Page  
          2

          and Professions Code) 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 United States internal  
          revenue taxes.

          Existing law provides that protests against the issuance of  
          a liquor license may be filed with ABC.   

          The Act permits 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 (Section 23987 of the Business and Professions  
          Code) requires 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 ABC 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.

          This bill:

          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 ABC regarding an  
             application for a liquor license.

           Background  

           Purpose of this bill  .  This bill is intended to be the  
          vehicle to make various technical corrections, deletions  
          and non-controversial changes to the ABC Act.   
          Specifically, this bill: 

          1. Modifies Section 25176 of the Business and Professions  
             Code (ABC Act) to delete reference to tax stamps on  







                                                                SB 825
                                                                Page  
          3

             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 United  
             States 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 tax stamp would  
             be technical and nonsubstantive.  

          2. Modifies Section 24013 of the Business and Professions  
             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 is completely non-controversial and,  
             in fact, conforms to existing practices of ABC and its  
             allied local agencies.

           Related Legislation

           SB 415 (Oropeza), 2009-10 Session, 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.  (Currently on Senate  
          Third Reading File)

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

          TSM:mw  5/12/09   Senate Floor Analyses 







                                                                SB 825
                                                                Page  
          4


                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****