BILL ANALYSIS �
SB 937
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Date of Hearing: June 20, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 937 (Wright) - As Amended: June 13, 2012
SENATE VOTE : Not relevant
SUBJECT : Alcoholic beverages
SUMMARY : Makes various changes to the Alcoholic Beverage
Control Act (Act). Specifically, this bill :
1) Updates, reorganizes and clarifies existing provisions
governing alcohol beverages licensees.
2) Codifies the process in which the Department of Alcoholic
Beverage Control (ABC) is required to collect a surcharge of 3
percent of the annual license fees for the Alcoholic Beverage
Control Appeals Board's (ABCAB) administrative costs.
3) Revises the license fee schedule to set forth the fee
amounts as of the 2010 calendar year.
4) Provides that the licenses provided for in the Alcoholic
Beverage Control Act (Act) authorize the license holder to
exercise the rights and privileges specified in the Act.
5) Revises current law to authorize a retail off-sale beer and
wine replacement license to be issued under specified
circumstances. This bill would also prohibit the issuance of a
replacement license under defined circumstances.
6) Revises the provision to prohibit the transfer of an
original on-sale or off-sale license for more than the original
purchase price for a period of 2 years.
7) Provides for any hearing held pursuant to the Act, ABC may
delegate the power to hear and decide to an administrative law
judge appointed by the director, as specified.
8) Makes technical and conforming changes.
EXISTING LAW :
SB 937
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1) Establishes ABC and grants it the exclusive authority to
administer the provisions of the Act in accordance with laws
enacted by the Legislature.
2) Provides that ABC is responsible for licensing individuals
and businesses associated with the manufacture, importation sale
of alcoholic beverages in this state and the collection of
license fees or occupation taxes for this purpose.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : This bill represents the annual Senate
Governmental Organization Committee bill which makes technical,
clarifying, conforming, and non-controversial changes to the
Act. The language contained in this proposal was put forth by
ABC.
In addition to making technical and conforming changes to the
Act, SB 937 amends Business and Professions Code Section 23083.5
to clarify that ABC collects a 3 percent surcharge annually on
its annual license fees and transfers it to the Alcoholic
Beverage Control Appeals Fund to pay the board's administrative
costs. ABC states, this bill will codify the actual process.
Current law requires the Alcoholic Beverage Control Appeals
Board to establish a surcharge of up to 3 percent of ABC's
annual license fees.
The Act provides for the issuance of licenses for which various
annual fees are charged depending upon the type of license
issued. This provision authorizes an annual adjustment of the
fees, as provided, commencing with the 2010 calendar year. ABC
states, SB 937 clarifies this provision by revising the license
fee schedule to set forth the fee amounts as of the 2010
calendar year.
Additionally, the bill amends Business and Professions Code
Section 23355 to specify that an ABC license authorizes the
person to whom it is issued the rights and privileges specified
in the Act as not all ABC licenses are listed in Article 2 of
Chapter 3. ABC states, replacing "article" with "division" will
appropriately capture all licenses. For example, the
instructional tasting license is not listed in Article 2 of
Chapter 3 of the Act.
SB 937
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The bill amends Business and Professions Code Section 23817.5(b)
to clarify that ABC is authorized, but not required, to issue a
retail off-sale beer and wine replacement license under certain
conditions if the applicant is otherwise qualified. Existing
law specifies that a retail off-sale beer and wine replacement
license shall be issued upon application if certain conditions
exist. ABC states, current law could be interpreted as denying
ABC's authority to disapprove an unqualified applicant.
Additionally, the bill deletes reference to ABC's "Procedure
Manual" from current law. ABC maintains that the Procedure
Manual should not be specified in statute as it is an internal
management document.
Current law requires ABC to deny an application for a license if
issuance would result in or add to an undue concentration of
licenses in a particular area unless the local governing body
finds that it would serve the public convenience or necessity
(B&P Sections 23958, 23958.4). Current law also 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 (23958.4(d). ABC states, that the most
recent yearly retail license count is posted on ABC's web-site
in a timelier manner than the Procedure Manual.
Business and Professions Code Section 24210 states that the
Director of ABC may appoint ALJs to hear and decide cases.
Because of Section 24210's placement in Chapter 7, a recent
court case declared that ABC ALJs were only allowed to hear
enforcement matters and ALJs from the Office of Administrative
Hearings had to be used for licensing matters. ABC states, SB
937 would repeal 24210 and 24016 and amend 24300 to codify the
Court of Appeal decision and clarify that the use of ABC ALJs
for licensing matters is appropriate.
Lastly, the bill amends Section 25503.29 and 25503.37 of the
Business and Professions Code to clarify that "15 percent of
purchases" means monetary expenditures within a calendar year.
ABC states, as currently written, "15 percent of purchases" is
not defined.
Related legislation : AB 2694 (Assembly Committee on Governmental
Organization) of 2012. This bill makes various technical and
clarifying changes to the ABC Act. (Pending in Senate
SB 937
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Appropriations Committee)
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531