BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 937|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 937
Author: Senate Governmental Organization Committee
Amended: 8/16/12
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 11-0, 5/10/11
AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Strickland, Wyland
NO VOTE RECORDED: Calderon, Yee
SENATE FLOOR : 37-0, 5/16/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Runner, Simitian, Steinberg, Vargas, Wolk, Wright, Yee
NO VOTE RECORDED: Strickland, Walters, Wyland
ASSEMBLY FLOOR : 78-0, 8/20/12 - See last page for vote
SUBJECT : Alcoholic beverages
SOURCE : Author
DIGEST : This bill is the annual committee bill that
makes non-controversial and code maintenance changes to the
Alcoholic Beverage Control Act. It corrects an incorrect
reference to a Business and Professions Code section.
CONTINUED
SB 937
Page
2
Assembly Amendments (1) update, reorganize, and clarify
existing provisions governing alcohol beverages licensees;
(2) codify the process in which the Department of Alcoholic
Beverage Control (ABC) is required to collect a surcharge
of 3% of the annual license fees for the Alcoholic Beverage
Control Appeals Board's (ABCAB) administrative costs; (3)
revise the license fee schedule to set forth the fee
amounts as of the 2010 calendar year; (4) revise current
law to authorize a retail off-sale beer and wine
replacement license to be issued under specified
circumstances. This bill also prohibits the issuance of a
replacement license under defined circumstances; (5) revise
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 two years; (6) provide 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; and (7) make
technical and conforming changes.
ANALYSIS :
Existing law:
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.
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% surcharge
annually on its annual license fees and transfers it to the
CONTINUED
SB 937
Page
3
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% 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.
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.
CONTINUED
SB 937
Page
4
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 Governmental
Organization Committee) makes various technical and
clarifying changes to the ABC Act.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/21/12)
Alcoholic Beverage Control Board
ASSEMBLY FLOOR : 78-0, 08/20/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Furutani, Roger Hern�ndez
CONTINUED
SB 937
Page
5
PQ:m 8/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED