BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 937
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            SB 937 (Committee on Governmental Organization) - As Amended:  
                                   June 13, 2012 

          Policy Committee:                              Governmental 
          Organization Vote:                            17 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill makes various changes to the Alcoholic Beverage 
          Control Act. Specifically, this bill:  

          1)Codifies the process in which the Department of Alcoholic 
            Beverage Control (ABC) is required to collect a surcharge of 
            three percent of the annual license fees for the Alcoholic 
            Beverage Control Appeals Board's administrative costs.

          2)Revises the license fee schedule to set forth the fee amounts 
            that have been in place since 2010.

          3)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.

          4)Revises the provision prohibiting the transfer of an original 
            on-sale or off-sale license for more than the original 
            purchase price for a period of two years.

           FISCAL EFFECT  

          Costs associated with this legislation are minor and absorbable 
          within existing ABC resources. 

           COMMENTS  

           Rationale  . This bill is the annual Senate Governmental 
          Organization Committee omnibus bill that makes technical, 








                                                                  SB 937
                                                                  Page  2

          clarifying, conforming, and non-controversial changes to the ABC 
          Act.  The language contained in this proposal was put forth by 
          ABC. 

          This bill clarifies that ABC collects a three percent surcharge 
          annually on its annual license fees and transfers it to the ABC 
          Appeals Fund to pay the board's administrative costs.  ABC 
          states this bill codifies current 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. 

          In addition, the ABC Act provides for the issuance of licenses 
          for which various annual fees are charged depending upon the 
          type of license issued.  This bill 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 2010. 
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081