BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1531|
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THIRD READING
Bill No: SB 1531
Author: Wolk (D)
Amended: 4/16/12
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 11-0, 5/8/12
AYES: Wright, Anderson, Cannella, Corbett, De Le�n, Evans,
Hernandez, Padilla, Walters, Wyland, Yee
NO VOTE RECORDED: Berryhill, Calderon
SUBJECT : Alcoholic beverages: licensees
SOURCE : Author
DIGEST : This bill makes a change in the Alcoholic
Beverage Control Act with respect to the manner in which
the Department of Alcoholic Beverage Control (ABC)
determines the number of retail licenses that are to be
issued in a county. Under this bill, the determination
will be based on an annual basis instead of by the most
recent yearly retail license count published by the ABC in
its Procedure Manual.
ANALYSIS : The enactment of the 21st Amendment to the
U.S. Constitution, in 1933, repealed the 18th Amendment and
ended the era of Prohibition. Accordingly, states were
granted the authority to establish alcoholic beverage laws
and administrative structures to regulate the sale and
distribution of alcoholic beverages.
CONTINUED
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Existing law establishes the ABC and grants it exclusive
authority to administer the provisions of the Alcoholic
Beverage Control Act in accordance with laws enacted by the
Legislature. The ABC must deny an application for a
license if issuance creates a law enforcement problem, or
if issuance results in, or adds to, an undue concentration
of licenses in the area where the license is desired. For
liquor stores and other specified retail licenses, however,
the ABC is authorized to issue a license if the respective
local government determines that public convenience or
necessity will be served by granting the license.
Existing law 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.
Existing law caps the number of new on and off-sale general
licenses issued by the ABC at one for every 2,500
inhabitants of the county where the establishment is
located (2,000:1 for on sale licenses). If no licenses are
available from the state due to the population
restrictions, those people interested in obtaining a liquor
license may purchase one from an existing licensee, for
whatever price the market bears. In 1994, the Legislature
approved a three-year moratorium on the issuance of new
off-sale beer and wine licenses, which at the time was not
bound by any population to license restriction. In 1997,
this moratorium was made permanent.
Background
As noted above, existing law requires the ABC to deny an
application for a license if issuance would create a law
enforcement problem, or if issuance would result in, or add
to, an undue concentration of licenses in the area where
the license is desired. Additionally, existing law
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.
According to ABC staff, the Procedure Manual should not be
specified in statute because it is an internal management
document. Thus, this bill simply deletes reference to
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ABC's "Procedure Manual" and instead requires that the
number of retail licenses in the county be established by
ABC on an annual basis.
NOTE: See Senate Governmental Organization Committee's
analysis for a list of prior/related legislation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
DLW:dom 5/9/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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