BILL NUMBER: SB 1531 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 20, 2012
AMENDED IN SENATE APRIL 16, 2012
INTRODUCED BY Senator Wolk
FEBRUARY 24, 2012
An act to amend Section 23958.4 of add
Section 25503.32 to the Business and Professions Code, relating
to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 1531, as amended, Wolk. Alcoholic beverages:
licensees. tied-house restrictions: opera houses.
The Alcoholic Beverage Control Act specifies the rules
and procedures for the issuance and transfer of alcoholic beverage
licenses by the Department of Alcoholic Beverage Control. The act
requires the department to deny an application for a license if
issuance or transfer of the license would result in or add to an
undue concentration where, among other things, the ratio of on-sale
or off-sale retail licenses to population in a specified area exceeds
the ratio of on-sale or off-sale retail licenses to population
within that area's county. Existing law specifies how the number
retail licenses within a county is determined for purposes of this
prohibition contains limitations on sales commonly
known as "tied-house" restrictions, which generally
prohibit a manufacturer, winegrower, manufacturer's agent, California
winegrower's agent, rectifier, bottler, importer, or wholesaler from
furnishing, giving, or lending any money or other thing of value to
any person engaged in operating, owning, or maintaining any on-sale
licensed premises. Existing law authorizes specific exceptions to
this prohibition, including exceptions for donations to nonprofit
corporations .
This bill would revise the manner in which the number of
retail licenses in a county is established
additionally authorize donations of wine by specified winegrow
ers to an opera house under specified conditions, as provided.
This bill would make findings regarding the need for special
legislation .
The Alcoholic Beverage Control Act provides that a violation of
any of its provisions for which another penalty or punishment is not
specifically provided is a misdemeanor. This bill would expand
existing crimes by imposing additional requirements on a licensee
under the act, thus, the bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.32 is added to the
Business and Professions Code , to read:
25503.32. (a) Notwithstanding any other provision of this
division, a holder of a winegrower's license whose licensed premises
of production are located within the County of Napa may donate wine
to an opera house, if all the following conditions are met:
(1) The opera house is a nonprofit charitable corporation or
association exempt from payment of income taxes under the provisions
of the Internal Revenue Code of the United States and Chapter 4
(commencing with Section 23701) of Part 11 of Division 2 of the
Revenue and Taxation Code.
(2) The opera house has been incorporated in the City and County
of Napa and produces not less than 150 events open to the general
public per year.
(3) The opera house holds a retail on-sale license.
(4) The donation shall not be conditioned directly or indirectly,
in any way, on the purchase, sale, or distribution of any alcoholic
beverage manufactured or distributed by the holder of a winegrower's
license by the opera house.
(b) The on-sale retail licensee may sell the donated wine and
shall sell or serve other brands of wine in addition to brands
produced or marketed by the donating winegrower.
(c) The opera house may acknowledge and thank a donating
winegrower in the opera house's event programs, on the opera house's
Internet Web site, and on stage during an event.
(d) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exceptions
established by this section to the general prohibition against tied
interests must be limited to their express terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
SEC. 2. The Legislature finds and declares that,
because of the unique circumstances, and the cultural importance of
the Napa Valley Opera House, a statute of general applicability
cannot be enacted within the meaning of subdivision (b) of Section 16
of Article IV of the California Constitution, and, therefore, this
special statute is necessary.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 23958.4 of the Business and
Professions Code is amended to read:
23958.4. (a) For purposes of Section 23958, "undue concentration"
means the case in which the applicant premises for an original or
premises-to-premises transfer of any retail license are located in an
area where any of the following conditions exist:
(1) The applicant premises are located in a crime reporting
district that has a 20 percent greater number of reported crimes, as
defined in subdivision (c), than the average number of reported
crimes as determined from all crime reporting districts within the
jurisdiction of the local law enforcement agency.
(2) As to on-sale retail license applications, the ratio of
on-sale retail licenses to population in the census tract or census
division in which the applicant premises are located exceeds the
ratio of on-sale retail licenses to population in the county in which
the applicant premises are located.
(3) As to off-sale retail license applications, the ratio of
off-sale retail licenses to population in the census tract or census
division in which the applicant premises are located exceeds the
ratio of off-sale retail licenses to population in the county in
which the applicant premises are located.
(b) Notwithstanding Section 23958, the department may issue a
license as follows:
(1) With respect to a nonretail license, a retail on-sale bona
fide eating place license, a retail license issued for a hotel,
motel, or other lodging establishment, as defined in subdivision (b)
of Section 25503.16, a retail license issued in conjunction with a
beer manufacturer's license, or a winegrower's license, if the
applicant shows that public convenience or necessity would be served
by the issuance.
(2) With respect to any other license, if the local governing body
of the area in which the applicant premises are located, or its
designated subordinate officer or body, determines within 90 days of
notification of a completed application that public convenience or
necessity would be served by the issuance. The 90-day period shall
commence upon receipt by the local governing body of (A) notification
by the department of an application for licensure, or (B) a
completed application according to local requirements, if any,
whichever is later.
If the local governing body, or its designated subordinate officer
or body, does not make a determination within the 90-day period,
then the department may issue a license if the applicant shows the
department that public convenience or necessity would be served by
the issuance. In making its determination, the department shall not
attribute any weight to the failure of the local governing body, or
its designated subordinate officer or body, to make a determination
regarding public convenience or necessity within the 90-day period.
(c) For purposes of this section, the following definitions shall
apply:
(1) "Reporting districts" means geographical areas within the
boundaries of a single governmental entity (city or the
unincorporated area of a county) that are identified by the local law
enforcement agency in the compilation and maintenance of statistical
information on reported crimes and arrests.
(2) "Reported crimes" means the most recent yearly compilation by
the local law enforcement agency of reported offenses of criminal
homicide, forcible rape, robbery, aggravated assault, burglary,
larceny theft, and motor vehicle theft, combined with all arrests for
other crimes, both felonies and misdemeanors, except traffic
citations.
(3) "Population within the census tract or census division" means
the population as determined by the most recent United States
decennial or special census. The population determination shall not
operate to prevent an applicant from establishing that an increase of
resident population has occurred within the census tract or census
division.
(4) "Population in the county" shall be determined by the annual
population estimate for California counties published by the
Population Research Unit of the Department of Finance.
(5) "Retail licenses" shall include the following:
(A) Off-sale retail licenses: Type 20 (off-sale beer and wine) and
Type 21 (off-sale general).
(B) On-sale retail licenses: All retail on-sale licenses, except
Type 43 (on-sale beer and wine for train), Type 44 (on-sale beer and
wine for fishing party boat), Type 45 (on-sale beer and wine for
boat), Type 46 (on-sale beer and wine for airplane), Type 53 (on-sale
general for train and sleeping car), Type 54 (on-sale general for
boat), Type 55 (on-sale general for airplane), Type 56 (on-sale
general for vessels of more than 1,000 tons burden), and Type 62
(on-sale general bona fide public eating place intermittent dockside
license for vessels of more than 15,000 tons displacement).
(6) A "premises to premises transfer" refers to each license being
separate and distinct, and transferable upon approval of the
department.
(d) For purposes of this section, the number of retail licenses in
the county shall be established by the department on an annual
basis.
(e) The enactment of this section shall not affect any existing
rights of any holder of a retail license issued prior to April 29,
1992, whose premises were destroyed or rendered unusable as a result
of the civil disturbances occurring in Los Angeles from April 29 to
May 2, 1992, to reopen and operate those licensed premises.
(f) This section shall not apply if the premises have been
licensed and operated with the same type license within 90 days of
the application.