BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB 
          339
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis


          SB 339  Author:  Wolk
          As Amended:  March 31, 2011 
          Hearing Date:  April 12, 2011
          Consultant:  Art Terzakis


                                     SUBJECT  
           Alcoholic Beverages: on-sale beer and wine licenses: bona 
                           fide public eating place 

                                   DESCRIPTION
           
          SB 339 adds a new provision to the Alcoholic Beverage 
          Control (ABC) Act relating to the establishment of cooking 
          schools as "bona fide eating places" for the purpose of 
          obtaining a license to sell beer and wine.  Specifically, 
          this measure:

             1.   Expands the definition of "bona fide eating place," 
               within the ABC Act, for purposes of the on-sale beer 
               and wine eating place license, to include a cooking 
               school that regularly and in a bona fide manner 
               provides courses of instruction in the preparation of 
               food and that maintains suitable kitchen facilities 
               for persons attending the courses of instruction.

             2.   Makes other minor conforming changes to a related 
               provision of the ABC Act containing compliance 
               requirements imposed upon bona fide eating places. 

                                   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.  





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          Existing law authorizes the issuance of an on-sale beer and 
          wine eating place license (Type 41), which authorizes the 
          sale of beer and wine for consumption on or off the 
          premises where sold.  Distilled spirits may not be on the 
          premises (except brandy, rum, or liqueurs for use solely 
          for cooking purposes).  The law also provides that the 
          licensee must maintain the licensed premises as a "bona 
          fide public eating place."  Minors are allowed on the 
          premises.

          Section 23038 of the Business and Professions Code defines 
          "bona fide public eating place" as a place which is 
          regularly and in a bona fide manner used and kept open for 
          the serving of meals to guests for compensation and which 
          has suitable kitchen facilities connected therewith, 
          containing conveniences for cooking an assortment of foods 
          which may be required for ordinary meals, the kitchen of 
          which must be kept in a sanitary condition with the proper 
          amount of refrigeration for keeping of food on said 
          premises and must comply with all the regulations of the 
          local department of health. 

          Section 23038 defines "meals" to mean the usual assortment 
          of foods commonly ordered at various hours of the day; the 
          service of such food and victuals only as sandwiches or 
          salads shall not be deemed a compliance with this 
          requirement. In addition, "guests" is defined to mean 
          persons who, during the hours when meals are regularly 
          served therein, come to a bona-fide public eating place for 
          the purpose of obtaining, and actually order and obtain at 
          such time, in good faith, a meal therein.

          Existing law also authorizes the issuance of an on-sale 
          general eating place license (Type 47), which authorizes 
          the sale of beer, wine and distilled spirits for 
          consumption on the licensed premises.  The law provides 
          that the licensee must maintain the licensed premises as a 
          "bona fide public eating place" and minors are allowed on 
          the premises.

          Existing law defines an "on-sale" license as authorizing 
          the sale of all types of alcoholic beverages: namely, beer, 
          wine and distilled spirits, for consumption on the premises 
          (such as at a restaurant or bar).  An "off-sale" license 
          authorizes the sale of all types of alcoholic beverages for 
          consumption off the premises in original, sealed 




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          containers.  

                                    BACKGROUND
           
           Purpose of SB 339:   As noted above, an eating establishment 
          must be considered a "bona fide eating place" to obtain a 
          license to sell beer and wine for consumption on or off the 
          premises where sold.  Currently, a cooking school which 
          operates for the purpose of teaching its students to 
          prepare meals, and which often times provides students the 
          opportunity to consume the meals prepared in classes on 
          site, does not meet the requirements for a "bona fide 
          public eating place" and thus is unable to obtain a license 
          from the ABC to include appropriate wine pairings with 
          cooking classes.

          According to the author's office, allowing cooking schools 
          to serve wine with prepared meals enables the schools to 
          present complete meal options to students, thus enriching 
          the learning experience.   Individuals must be 21 years of 
          age or older to consume the alcoholic beverages.  
           
          This measure is sponsored by the Davis Food Co-operative, 
          Inc. (DFC) which is a community-owned grocery store that 
          serves its member-owners and the larger Davis and Yolo 
          County Community.  In 2009, the DFC remodeled an adjacent 
          building and now offers classes each year to hundreds of 
          local residents in their teaching kitchen.  The DFC notes 
          that this measure will enable its teaching kitchen, and 
          other cooking schools, to offer courses that include 
          appropriate wine pairings.  

           SUPPORT:   Davis Food Co-operative, Inc.; Family Winemakers 
          of California 
           
          OPPOSE:   None on file as of April 8, 2011.
           
          FISCAL COMMITTEE:   Senate Appropriations Committee