BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  AB 
          2694
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis



          AB 2694  Author:  Committee on Governmental Organization
          As Amended:  April 12, 2012
          Hearing Date:  June 26, 2012
          Consultant:  Art Terzakis


                                     SUBJECT  
                              Alcoholic Beverages

                                   DESCRIPTION
           
          AB 2694 is the annual committee bill that makes 
          non-controversial and code maintenance changes to the 
          Alcoholic Beverage Control (ABC) Act.  

                                   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 for this purpose. 

                                    BACKGROUND
           
          This measure makes technical and non-controversial changes 
          to the ABC Act that have been requested by the department.  
          Specifically, AB 2694 makes the following changes to three 
          existing provisions of the ABC Act:

          1.Existing law (Business and Professions Code Section 
            23355) specifies that an ABC license authorizes the 
            person to whom it is issued, and no other person at the 
            premises for which the license was issued, the rights and 




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            privileges specified in Article 2 of Chapter 3 of the ABC 
            Act.  Not all ABC licenses are listed in Article 2, thus 
            the proposed change in this provision of law would 
            replace "article" with "division" so that all licenses 
            are captured. 

          2.Existing law (Business and Professions Code Section 
            23393.5) establishes a limited off-sale retail wine 
            license and specifies that all fee revenue shall be 
            deposited into the "Alcoholic" Beverage Control Fund 
            pursuant to Section 25761.   The proposed change in this 
            provision of law would correctly name the "Alcohol" 
            Beverage Control Fund.
          3.Existing law (Business and Professions Code Section 
            23958.4) specifies that the number of retail licenses in 
            a county shall be determined by the most recent yearly 
            retail license count published by ABC in its Procedure 
            Manual.  The proposed change in this provision of law 
            would delete reference to ABC's "Procedure Manual" since 
            it's an internal management document and instead would 
            provide that the number of retail licenses in the county 
            shall be "established by the department on an annual 
            basis." 

                            PRIOR/RELATED LEGISLATION
           
           SB 937 (Governmental Organization Committee) 2011-12 
          Session.   Would make non-controversial and code maintenance 
          changes to the ABC Act, as specified.  (Pending in Assembly 
          Appropriations Committee)   

          SB 1480 (Governmental Organization Committee) Chapter 296, 
          Statutes of 2010.  Made minor, technical, and clarifying 
          changes to existing provisions of the ABC Act in order to 
          reduce the department's paperwork requirements. 
           
          SB 825 (Governmental Organization Committee) Chapter 68, 
          Statutes of 2009.  Made various technical, clarifying and 
          non-substantive changes to the ABC Act.

           SUPPORT:   None on file as of June 22, 2012.

           OPPOSE:   None on file as of June 22, 2012.

           FISCAL COMMITTEE:   Senate Appropriations Committee





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