BILL ANALYSIS
Bill No: SB
1044
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1044 Author: Harman
As Introduced: February 16, 2010
Hearing Date: March 23, 2010
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
SB 1044 expands an existing privilege under the Alcoholic
Beverage Control (ABC) Act that currently allows on-sale
general and on-sale beer and wine licensees to apply to the
Department of ABC for event permit authorizations for no
more than four (4) days in a single calendar year to no
more than fourteen (14) days in a single calendar year.
EXISTING LAW
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 for this purpose.
Existing law contains provisions for various types of
licenses that permit licensees to furnish alcoholic
beverages under designated circumstances.
Existing law [Business and Professions Code Section
23399(b)] authorizes the issuance of an event permit to any
licensee under either an on-sale general license, or an
on-sale beer and wine license, authorizing the sale of
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beer, wine, and distilled spirits at specified events only
for consumption on property adjacent to the licensed
premises and owned or under the control of the licensee, as
specified. Existing law provides that these specified
events may be held no more frequently than four days in any
single calendar year.
Existing law [Business and Professions Code Section
23399(c)] establishes the fee for an event permit
authorization at $10 which must be deposited into the ABC
Fund and specifies that event authorizations are subject to
the approval of ABC and local law enforcement.
BACKGROUND
Prior to passage of AB 81 (R. Wright), Chapter 103 of 1997,
the ABC Act authorized the exercise of license privileges
only on specified and defined licensed premises. In
addition, on-sale general licensees could obtain caterer's
permits and cater an unlimited number of events away from
their licensed premises subject to approval by ABC. AB 81
of 1997 enabled on-sale general licensees to cater events
on property adjacent to the licensed premises and under
their control once per calendar quarter. Subsequent
legislation (see prior legislation listed below) increased
the number of days to four, eliminated the calendar quarter
restriction, and expanded authority to on-sale beer and
wine licensees in addition to on-sale general licensees.
Current law subjects these event permit authorizations to
approval by the appropriate local law enforcement agency
and requires that the property be secured and controlled by
the licensee and not visible to the general public. Event
authorizations are typically sought by on-sale licensees
who expect a larger audience at planned events than the
permanent licensed premises can accommodate (e.g., St.
Patrick's Day, Cinco de Mayo and July 4th festivities and
other celebrations/festivals).
The department's fee for the review, processing and
issuance of catering and event authorizations is currently
ten dollars ($10). The fee for an event authorization has
not been adjusted since its statutory creation in 1997.
According ABC staff, as of December 31, 2009, there were
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753 valid event permits (Type 77) subject to annual renewal
($131) with an additional $10 fee for each event permit
authorization (each day an event is authorized throughout
the year). ABC issues approximately 300 event permit
authorizations annually to these permit holders.
Purpose of SB 1044: This measure would essentially allow
on-sale general and on-sale beer and wine licensees to
apply for event permit authorizations for events held up to
14 days per calendar year instead of the 4 days allowed
under current law.
According to the author's office, this measure is intended
to allow restaurants, bars and other establishments more
expansive opportunities to participate in local festivals,
parades and downtown celebrations. For example, the Laguna
Beach Chamber of Commerce sponsors a monthly event - the
Forest Avenue Promenade-in which participating restaurants
from Pacific Coast Highway to Glenneyre Street on Forest
Avenue currently can only attain permits to participate
four times a year. This particular free admission and free
parking event offers entertainment and dancing, with
restaurants serving their food al fresco, and other
retailers open for business. This measure would enable
interested restaurants to participate in the event each
month in a calendar year instead of only 4 times.
PRIOR/RELATED LEGISLATION
SB 1211 (Harman), Chapter 348, Statutes of 2008. Expanded
an existing provision [Business and Professions Code
Section 23399(a)] of the ABC Act to authorize the issuance
of a "caterer's permit" to any licensee under an "on-sale
beer and wine license."
AB 111 (Koretz), Chapter 62, Statutes of 2005. Authorized
the Department of ABC to issue special event permits for
the sale of wine, beer, or distilled spirits for four total
days each year, rather than the existing limit of one day
per calendar quarter.
AB 1298 (Wesson), Chapter 488, Statutes of 2001. Among
other things, increased the annual fees imposed upon
manufacturers, distributors and retailers by specified
amounts
through 2004 and permitted the Department of ABC to adjust
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the fees charged commencing with the 2005 calendar year by
an amount not to exceed an inflation factor based on the
Consumer Price Index for the west region.
AB 1407 (Wesson), Chapter 699, Statutes of 1999.
Authorized an on-sale beer and wine licensee to apply to
ABC for event permits and authorizations under the same
terms and conditions authorized for on-sale general
licensees. Also, clarified that authority could be granted
no more frequently than one day in a calendar quarter as
opposed to "once" in a calendar quarter as previously
specified.
AB 81 (R. Wright), Chapter 103, Statutes of 1997. Added
Business and Professions Code Section 23399(b) authorizing
an on-sale general licensee to apply to ABC for an event
permit to allow the licensee to sell alcoholic beverages on
property adjacent to their licensed premises no more
frequently than once in a calendar quarter.
SUPPORT: Laguna Beach Chamber of Commerce (sponsor)
OPPOSE: None on file as of March 19, 2010
FISCAL COMMITTEE: Senate Appropriations Committee
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