Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of beer or wine without a license as part of a beauty salon or barber shop service if specified requirements are met, including that there be no extra charge or fee for the beer or wine, the license of the establishment providing the service is in good standing, and the servings are limited to specified amounts.

Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of beer or wine without a license as part of a beauty salon or barber shop service if specified requirements are met, including that there be no extra charge or fee for the beer or wine, the license of the establishment providing the service is in good standing, and the servings are limited to specified amounts.

Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of beer or wine without a license as part of a beauty salon or barber shop service if specified requirements are met, including that there be no extra charge or fee for the beer or wine, the license of the establishment providing the service is in good standing, and the servings are limited to specified amounts.

Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of beer or wine without a license as part of a beauty salon or barber shop service if specified requirements are met, including that there be no extra charge or fee for the beer or wine, the license of the establishment providing the service is in good standing, and the servings are limited to specified amounts.

Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of alcoholic beverages beer or wine without a license where the serving of alcoholic beverages is as part of a beauty salon or barber shop service, provided there is service if specified requirements are met, including that there be no extra charge or fee for the alcoholic beverages. beer or wine, the license of the establishment providing the service is in good standing, and the servings are limited to specified amounts.

Existing law makes it unlawful for any person other than a licensee of the Department of Alcoholic Beverage Control to sell, manufacture, or import alcoholic beverages in this state. Existing law allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

This bill would additionally allow the serving of alcoholic beverages without a license where the serving of alcoholic beverages is part of a beauty salon or barber shop service, provided there is no extra charge or fee for the alcoholic beverages.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1322

Author:(Daly and Wilk)

As Amended Ver:June 30, 2016

Majority vote

Original Committee Reference: G.O.

SUMMARY: This bill allows beauty salons and barber shops to serve their clients limited quantities of beer or wine at no extra charge without obtaining a license or permit from the Department of Alcoholic Beverage Control (ABC) if specified requirements are satisfied.

The Senate amendments:

1. Make it explicit that nothing in this bill shall be construed to preempt the authority of a city or city and county to restrict or limit the consumption of alcoholic beverages within its jurisdiction.
2. Make technical changes
3. Add co-author.

EXISTING LAW:

1. Establishes ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.
2. Makes it unlawful for any person other than a licensee of the ABC to sell, manufacture, or import alcoholic beverages in this state.
3. Provides that no license or permit shall be required for the serving of alcoholic beverages in a "limousine" or as part of a "hot air balloon ride" service, provided there is no extra charge or fee for the alcoholic beverages.
4. Provides that ABC must 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. For liquor stores and other specified retail license, however, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
5. 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.
6. Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the Board in the Department of Consumer Affairs. (Business and Professions Code (BPC) Section 7316)
7. Establishes the specified requirements that applicants for a cosmetology, esthetician, barbering, manicurist and electrologist license must meet in order to sit for the licensure examination. (BPC Sections 7321, 7321.5, 7324, 7326, 7330)

AS PASSED BY THE ASSEMBLY, this bill allowed beauty salons and barbershops to serve up to 12 ounces of beer or six ounces of wine as part of their beauty services without a license or permit, provided there is no extra charge or fee for the beer or wine, the salon or barber shop is in good standing with the California Board of Barbering and Cosmetology, and the beer or wine is only provided during normal business hours and in no case later than 10 p.m.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: This bill, as amended is consistent with Assembly actions.

Background: In October of 1985, the Attorney General issued opinion No. 85-701, which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have "sold" the alcoholic beverage, thereby necessitating an alcoholic beverage license.

At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service.

The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. Specifically, SB 1546 (Beverly), Chapter 1354, Statutes of 1986, provides that no license or permit shall be required for the serving of complimentary alcoholic beverages in limousines. A few years later, AB 2416 (Governmental Organization Committee), Chapter 639, Statutes of 1998, was enacted which granted hot air balloon ride services the same privilege.

In California, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

According to the State Board of Barbering and Cosmetology (CBBC), within the Department of Consumer Affairs, there are a total of 41,830 beauty salon and barbershop location permits issued in the State. The CBBC "location license" does not differentiate between a beauty salon or barbershop. The following services are not under the jurisdiction of the CBBC: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Purpose of the bill: According to the author's office, many beauty salons and barber shops throughout California offer complimentary alcoholic beverages to their customers. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to grant beauty salons and barber shops the opportunity to serve beer or wine to their clients aged 21 or over without an ABC license or permit, provided there is no extra fee charged for the beverage.

In support: Drybar Holdings LLC (known as "Drybar"), the sponsor of this bill, notes that it is a fast-growing beauty business in California, providing customers with expert services in "blow outs" of hair (that is, washing and blow-dry styling by a professional stylist). Eighteen Drybar locations, employing 800 individuals, are currently located throughout the state.

Drybar contends that this bill seeks to address an issue that has arisen relative to beauty salons that choose to provide a complimentary glass of wine or champagne to clients while they visit the business establishment for services. ABC has informed Drybar that each of its locations would need to be licensed to sell alcoholic beverages even though the wine or champagne provided to clients is complimentary. This bill will exempt beauty salons and barber shops, in good standing with the CBBC, from needing to be licensed by the ABC in order to offer complimentary beer, wine or champagne. Drybar states that a similar exemption exists for other types of businesses that serve complimentary alcoholic beverages to their clients (e.g., limousine services, hot air balloon rides, etc.)

In opposition: Opponents are concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, opponents question whether the ABC is capable of monitoring the thousands of licenses that have been issued under the CBBC. Opponents also point out that this bill makes no mention of age requirements or proper "responsible beverage service" training of persons pouring the alcohol. Furthermore, opponents believe that the alcohol industry may begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings.

Prior legislation: AB 2416 (Governmental Organization Committee), Chapter 639, Statutes of 1998. Provided that no license or permit is required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly), Chapter 1354, Statutes of 1986. Provided that no license or permit is required for, the serving of alcoholic beverages in a limousine regulated by the Public Utilities Commission provided there is no extra charge for the alcoholic beverages.

AB 1252 (N. Waters), Chapter 753, Statutes of 1977. Permitted the Director of ABC to authorize the conversion of any on-sale general license for "seasonal business" to an on-sale general license, as specified.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0003798

 THIRD READING  

Bill No: AB 1322

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 8-2, 6/28/16

AYES: Berryhill, Bates, Gaines, Galgiani, Hill, Hueso, Lara, Vidak

NOES: Glazer, McGuire

NO VOTE RECORDED: Hall, Block, Hernandez

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-0, 5/7/15 - See last page for vote

SUBJECT:

SOURCE: Drybar

DIGEST: This bill allows beauty salons and barber shops to serve their clients limited quantities of beer or wine at no extra charge without obtaining a license or permit from the Department of Alcoholic Beverage Control (ABC) if specified requirements are satisfied.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.
2. Makes it unlawful for any person other than a licensee of the Department of ABC to sell, manufacture, or import alcoholic beverages in this state.
3. Allows the serving of alcoholic beverages without a license or permit in a “limousine” or as part of a “hot air balloon ride” service, provided there is no extra charge or fee for the alcoholic beverages.
4. Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the State Board of Barbering and Cosmetology (CBBC) within the Department of Consumer Affairs. (Chapter 10 of Division 3 of the Business and Professions Code)

This bill:

1. Specifies that an ABC license or permit is not required for the serving of beer or wine as part of a beauty salon service or barber shop service provided the following requirements are met:
   1. There is no extra charge or fee for the beer or wine;
   2. The license of the establishment providing the beauty salon service or barber shop service is in good standing with the CBBC;
   3. No more than 12 ounces of beer or six ounces of wine by the glass are offered to a client; and,
   4. The beer or wine is provided only during business hours and in no case later than 10 p.m.
2. Makes it explicit that nothing in this bill shall be construed to preempt the authority of a city or city and county to restrict or limit the consumption of alcoholic beverages within its jurisdiction.

Background

In October of 1985, the Attorney General issued opinion No. 85-701 which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have “sold” the alcoholic beverage, thereby necessitating an alcoholic beverage license. At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service. The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. (See Related/Prior Legislation listed below.)

Existing law grants the Department of ABC the authority to issue numerous types of licenses but none are authorized specifically for a “beauty salon or barber” service. Currently, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

Purpose of the bill. According to the author’s office, many beauty salons and barber shops throughout California offer complimentary alcoholic beverages to their customers. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to grant beauty salons and barber shops the opportunity to serve beer or wine to their clients aged 21 or over without an ABC license or permit, provided there is no extra fee charged for the beverage.

Beauty salons and barber shops. According to the CBBC, there are approximately 42,000 beauty salon and barber shop location permits issued throughout the State, however, the CBBC location license does not differentiate between a beauty salon and barber shop. The following services are not under the jurisdiction of the CBBC: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Comments

Relaxing with a glass of wine while getting those tootsies pampered at the salon may appear to be a simple act of hospitality but the salon is very likely running afoul of alcoholic beverage licensing laws relating to possession, serving, or sale of alcoholic beverages. Over the years, other businesses (e.g., art galleries, painting classes, spas, and bed and breakfasts) desiring to offer complimentary drinks with a service have struggled with the decision to either obtain a proper alcoholic beverage license or cease to provide free drinks to their customers.

The privilege to provide alcoholic beverages in a retail establishment is a highly coveted and sought after authorization many businesses desire. This bill essentially grants beauty salons and barber shops the privilege of serving alcoholic beverages to their clients without having to go through the standard ABC licensing process which requires applicants to undergo fingerprinting and a thorough background investigation. In addition, the existing ABC licensing process provides the opportunity for residents and local governing bodies to voice their concerns to the Department of ABC as it pertains to the issuance of a license.

This bill grants beauty salons and barber shops the opportunity to serve alcohol (12 ounces of beer or six ounces of wine) without an ABC license or permit, provided: (1) there is no extra fee charged for the alcoholic beverage; (2) the establishment’s existing salon/barbering license is in good standing with the CBBC; and, (3) the beer or wine is served during normal business hours.

As currently drafted, it is unclear how alcohol limitations related to underage drinking and excess use would be enforced.

Related/Prior Legislation

SB 346 (Harman, 2011) would have authorized the serving of alcoholic beverages without a license or permit as part of a "gondola ride" (boat) service. (Died in Assembly Appropriations Committee)

AB 2416 (Governmental Organization Committee, Chapter 639, Statutes of 1998) provided that a license or permit is not required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly, Chapter 1354, Statutes of 1986) provided that a license or permit is not required for the serving of alcoholic beverages in a limousine provided there is no extra charge or fee for the alcoholic beverages.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/1/16)

Drybar (source)

18|8 Fine Men's Hair Salon of Playa Vista

OPPOSITION: (Verified 8/1/16)

Alcohol Justice

Asian American Drug Abuse Program, Inc.

California Alcohol Policy Alliance

California Council on Alcohol Problems

Los Angeles Drug and Alcohol Policy Alliance

Partnership for a Positive Pomona

Paso por Paso

Pueblo y Salud

San Rafael Alcohol and Drug Coalition

The Wall Las Memorias Project

United Coalition East Prevention Project

Youth for Justice

Several hundred individuals

ARGUMENTS IN SUPPORT: Drybar Holdings LLC (known as “Drybar”), the source of this bill, notes that it is a fast-growing beauty business in California, providing customers with expert services in “blow outs” of hair (that is, washing and blow-dry styling by a professional stylist). Eighteen Drybar locations, employing 800 individuals, are currently located throughout the state.

Drybar contends that AB 1322 seeks to address an issue that has arisen relative to beauty salons that choose to provide a complimentary glass of wine or champagne to clients while they visit the business establishment for services. The Department of ABC has informed Drybar that each of its locations would need to be licensed to sell alcoholic beverages even though the wine or champagne provided to clients is complimentary.

Drybar states that AB 1322 will exempt beauty salons and barber shops, in good standing with the CBBC, from needing to be licensed by the Department of ABC in order to offer complimentary beer, wine or champagne. Drybar argues that a similar exemption exists for other types of businesses that serve complimentary alcoholic beverages to their clients (e.g., limousine services, hot air balloon rides, etc.)

ARGUMENTS IN OPPOSITION: Opponents are concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, opponents question whether the Department of ABC is capable of monitoring the thousands of licenses that have been issued under the CBBC. Opponents also point out that AB 1322 makes no mention of age requirements or proper “responsible beverage service” training of persons pouring the alcohol. Furthermore, opponents believe that the alcohol industry may begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings.

ASSEMBLY FLOOR: 74-0, 5/7/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Campos, Chu, Eduardo Garcia, Roger Hernández, Ridley-Thomas, Steinorth

Prepared by:

8/3/16 18:45:37

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/28/2016

SUBJECT:

DIGEST: This bill allows beauty salons and barber shops to serve their clients limited quantities of beer or wine at no extra charge without obtaining a license or permit from the Department of Alcoholic Beverage Control (ABC) if specified requirements are satisfied.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.
2. Makes it unlawful for any person other than a licensee of the ABC to sell, manufacture, or import alcoholic beverages in this state.
3. Allows the serving of alcoholic beverages without a license or permit in a “limousine” or as part of a “hot air balloon ride” service, provided there is no extra charge or fee for the alcoholic beverages.
   
4. Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the State Board of Barbering and Cosmetology (CBBC) within the Department of Consumer Affairs. (Chapter 10 of Division 3 of the Business and Professions Code)

This bill:

1. Specifies that an ABC license or permit is not required for the serving of beer or wine as part of a beauty salon service or barber shop service provided the following requirements are met:
   1. There is no extra charge or fee for the beer or wine;
      
   2. The license of the establishment providing the beauty salon service or barber shop service is in good standing with the CBBC;
      
   3. No more than 12 ounces of beer or six ounces of wine by the glass are offered to a client; and,
      
   4. The beer or wine is provided only during business hours and in no case later than 10 p.m.
      
2. Makes it explicit that nothing in this bill shall be construed to preempt the authority of a city or city and county to restrict or limit the consumption of alcoholic beverages within its jurisdiction.
   

Background

In October of 1985, the Attorney General issued opinion No. 85-701 which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have “sold” the alcoholic beverage, thereby necessitating an alcoholic beverage license. At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service. The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. (See prior/related legislation listed below.)

Existing law grants the Department of ABC the authority to issue numerous types of licenses but none are authorized specifically for a “beauty salon or barber” service. Currently, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

Purpose of the bill: According to the author’s office, many beauty salons and barber shops throughout California offer complimentary alcoholic beverages to their customers. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to grant beauty salons and barber shops the opportunity to serve beer or wine to their clients aged 21 or over without an ABC license or permit, provided there is no extra fee charged for the beverage.

Beauty salons and barber shops. According to the CBBC, there are approximately 42,000 beauty salon and barber shop location permits issued throughout the State, however, the CBBC location license does not differentiate between a beauty salon and barber shop. The following services are not under the jurisdiction of the CBBC: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Staff comments. Relaxing with a glass of wine while getting those tootsies pampered at the salon may appear to be a simple act of hospitality but the salon is very likely running afoul of alcoholic beverage licensing laws relating to possession, serving, or sale of alcoholic beverages. Over the years, other businesses (e.g., art galleries, painting classes, spas, and bed and breakfasts) desiring to offer complimentary drinks with a service have struggled with the decision to either obtain a proper alcoholic beverage license or cease to provide free drinks to their customers.

The privilege to provide alcoholic beverages in a retail establishment is a highly coveted and sought after authorization many businesses desire. This bill would essentially grant beauty salons and barber shops the privilege of serving alcoholic beverages to their clients without having to go through the standard ABC licensing process which requires applicants to undergo fingerprinting and a thorough background investigation. In addition, the existing ABC licensing process provides the opportunity for residents and local governing bodies to voice their concerns to the Department of ABC as it pertains to the issuance of a license.

This bill grants beauty salons and barber shops the opportunity to serve alcohol (twelve ounces of beer or six ounces of wine) without an ABC license or permit, provided: (1) there is no extra fee charged for the alcoholic beverage; (2) the establishment’s existing salon/barbering license is in good standing with the CBBC; and, (3) the beer or wine is served during normal business hours.

As currently drafted, it is unclear how alcohol limitations related to underage drinking and excess use would be enforced.

Prior/Related Legislation

SB 346 (Harman, 2011) would have authorized the serving of alcoholic beverages without a license or permit as part of a "gondola ride" (boat) service. (Held in Assembly Appropriations Committee at request of the author)

AB 2416 (Governmental Organization Committee, Chapter 639, Statutes of 1998) provided that a license or permit is not required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly, Chapter 1354, Statutes of 1986) provided that a license or permit is not required for the serving of alcoholic beverages in a limousine provided there is no extra charge or fee for the alcoholic beverages.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Drybar (sponsor)

18|8 Fine Men's Hair Salon of Playa Vista

OPPOSITION:

Alcohol Justice

Asian American Drug Abuse Program, Inc.

California Alcohol Policy Alliance

California Council on Alcohol Problems

Los Angeles Drug and Alcohol Policy Alliance

Partnership for a Positive Pomona

Paso por Paso

Pueblo y Salud

San Rafael Alcohol and Drug Coalition

The Wall Las Memorias Project

United Coalition East Prevention Project

Youth for Justice

And, numerous individuals throughout the state

ARGUMENTS IN SUPPORT: Drybar Holdings LLC (known as “Drybar”), the sponsor of this bill, notes that it is a fast-growing beauty business in California, providing customers with expert services in “blow outs” of hair (that is, washing and blow-dry styling by a professional stylist). Eighteen Drybar locations, employing 800 individuals, are currently located throughout the state.

Drybar contends that AB 1322 seeks to address an issue that has arisen relative to beauty salons that choose to provide a complimentary glass of wine or champagne to clients while they visit the business establishment for services. The Department of ABC has informed Drybar that each of its locations would need to be licensed to sell alcoholic beverages even though the wine or champagne provided to clients is complimentary.

Drybar states that AB 1322 will exempt beauty salons and barber shops, in good standing with the CBBC, from needing to be licensed by the ABC in order to offer complimentary beer, wine or champagne. Drybar argues that a similar exemption exists for other types of businesses that serve complimentary alcoholic beverages to their clients (e.g., limousine services, hot air balloon rides, etc.)

ARGUMENTS IN OPPOSITION: Opponents are concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, opponents question whether the ABC is capable of monitoring the thousands of licenses that have been issued under the CBBC. Opponents also point out that AB 1322 makes no mention of age requirements or proper “responsible beverage service” training of persons pouring the alcohol. Furthermore, opponents believe that the alcohol industry may begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings.

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB 1322 Hearing Date: 7/14/2015

SUBJECT: Alcoholic beverages: licenses: beauty salons and barber shops

DIGEST: This bill allows beauty salons and barber shops, in good standing with the California Board of Barbering and Cosmetology (CBBC), to serve their clients limited quantities of beer or wine at no extra charge during normal business hours without obtaining a license or permit from the Department of Alcoholic Beverage Control (ABC).

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.

2. Makes it unlawful for any person other than a licensee of the ABC to sell, manufacture, or import alcoholic beverages in this state.

3. Allows the serving of alcoholic beverages without a license or permit in a “limousine” or as part of a “hot air balloon ride” service, provided there is no extra charge or fee for the alcoholic beverages.
   
   

4. Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the CBBC within the Department of Consumer Affairs. (Chapter 10 of Division 3 of the Business and Professions Code)

This bill:

Provides that an ABC license or permit is not required for the serving of beer or wine as part of a beauty salon service or barber shop service if the following requirements are met:

1. There is no extra charge or fee for the beer or wine;
   
   
   

2. The license of the establishment providing the beauty salon service or barber shop service is in good standing with the CBBC;

3) No more than 12 ounces of beer or six ounces of wine is offered to a client;

4) The beer or wine is provided only during business hours and in no case later than 10 p.m.

Background

In October of 1985, the Attorney General issued opinion No. 85-701 which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have “sold” the alcoholic beverage, thereby necessitating an alcoholic beverage license. At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service. The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. (See prior/related legislation listed below.)

Existing law provides authority for the Department of ABC to issue numerous types of licenses but none are authorized specifically for a “beauty salon or barber” service. Currently, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

Purpose of the bill: According to the author’s office, many beauty salons and barber shops throughout California offer complementary alcoholic beverages to their customers. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to grant beauty salons and barber shops the opportunity to serve beer or wine to their clients aged 21 or over without an ABC license or permit, provided there is no extra fee charged for the beverage.

Beauty salons and barber shops. According to the CBBC, there are a total of 41,830 beauty salon and barber shop location permits issued throughout the State, however, the CBBC location license does not differentiate between a beauty salon and barber shop. The following services are not under the jurisdiction of the CBBC: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Staff comments. Relaxing with a glass of wine while getting those tootsies pampered at the salon may appear to be a simple act of hospitality but the salon is very likely running afoul of alcoholic beverage licensing laws relating to possession, serving, or sale of alcoholic beverages. Over the years, other businesses (e.g., art galleries, painting classes, spas, and bed and breakfasts) desiring to offer complimentary drinks with a service have struggled with the decision to either obtain a proper alcoholic beverage license or cease to provide free drinks to their customers.

The privilege to provide alcoholic beverages in a retail establishment is a highly coveted and sought after authorization many businesses desire. This bill would essentially grant beauty salons and barber shops the privilege of serving alcoholic beverages to their clients without having to go through the standard ABC licensing process which requires applicants to undergo fingerprinting and a thorough background investigation. In addition, the existing ABC licensing process provides the opportunity for residents and local governing bodies to voice their concerns to the Department of ABC as it pertains to the issuance of a license.

This bill grants beauty salons and barber shops the opportunity to serve alcohol (twelve ounces of beer or six ounces of wine) without an ABC license or permit, provided: (1) there is no extra fee charged for the alcoholic beverage; (2) the establishment’s existing salon/barbering license is in good standing with the CBBC; and, (3) the beer or wine is served during normal business hours.

As currently drafted, it is unclear how alcohol limitations related to underage drinking and excess use would be enforced.

Prior/Related Legislation

SB 346 (Harman, 2011) would have authorized the serving of alcoholic beverages without a license or permit as part of a "gondola ride" (boat) service. (Held in Assembly Appropriations Committee at request of the author)

AB 2416 (Governmental Organization Committee, Chapter 639, Statutes of 1998) provided that a license or permit is not required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly, Chapter 1354, Statutes of 1986) provided that a license or permit is not required for the serving of alcoholic beverages in a limousine provided there is no extra charge or fee for the alcoholic beverages.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

Drybar

18|8 Fine Men's Hair Salon of Playa Vista

OPPOSITION:

Alcohol Justice

Asian American Drug Abuse Program, Inc.

California Council on Alcohol Problems

Los Angeles Drug and Alcohol Policy Alliance

Partnership for a Positive Pomona

Paso por Paso

Pueblo y Salud

San Rafael Alcohol and Drug Coalition

The Wall Las Memorias Project

United Coalition East Prevention Project

Youth for Justice

Numerous individuals

ARGUMENTS IN SUPPORT: Proponents claim that AB 1322 will enable small locally owned and operated salon and barbering businesses the opportunity to provide their customers with quality services and experiences.

ARGUMENTS IN OPPOSITION: Opponents are concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, opponents question whether the ABC is capable of monitoring the thousands of licenses that have been issued under the CBBC. Opponents also point out that AB 1322 makes no mention of age requirements or proper “responsible beverage service” training of persons pouring the alcohol. Furthermore, opponents believe that the alcohol industry may begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings.

ASSEMBLY THIRD READING

ATR Bill Id:AB 1322

Author:(Daly)

As Amended Ver:April 15, 2015

Majority vote

SUMMARY: Allows beauty salons and barbershops to serve up to 12 ounces of beer or six ounces of wine as part of their beauty services without a license or permit, provided there is no extra charge or fee for the beer or wine, the salon or barber shop is in good standing with the California Board of Barbering and Cosmetology (CBBC), and the beer or wine is only provided during normal business hours and in no case later than 10 p.m. Specifically, this bill:

1. Provides a license or permit is not required for the serving of alcoholic beverages as part of a beauty salon service or barbershop service, provided there is no extra charge or fee for the alcoholic beverages.

2. Specifies that there shall be no extra charge or fee for the alcoholic beverages when the fee charged for the beauty salon service or barbershop is the same regardless of whether alcoholic beverages are served.

3. Provides a license or permit is not required for the serving of beer or wine as part of a beauty salon service or barber shop service if the following requirements are met:

   1. There is no extra charge or fee for the beer or wine.

   2. There is no extra charge or fee for the beer or wine if the fee charged for the beauty salon service or barber shop service is the same regardless of whether beer or wine is served.

   3. The license of the establishment providing the beauty salon service or barber shop service is in good standing with the CBBC.

4) Provides that no more than 12 ounces of beer or six ounces of wine by the glass is offered to a client.

5) Provides the beer or wine is provided only during business hours and in no case later than 10 p.m.

EXISTING LAW:

1. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.

2. Makes it unlawful for any person other than a licensee of the ABC to sell, manufacture, or import alcoholic beverages in this state.

3. Provides that no license or permit shall be required for the serving of alcoholic beverages in a "limousine" or as part of a "hot air balloon ride" service, provided there is no extra charge or fee for the alcoholic beverages.

4. Provides that ABC must 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. For liquor stores and other specified retail license, however, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

5. 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.

6. Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the Board in the Department of Consumer Affairs. (Business and Professions Code (BPC) Section 7316)

7. Establishes the specified requirements that applicants for a cosmetology, esthetician, barbering, manicurist and electrologist license must meet in order to sit for the licensure examination. (BPC Sections 7321, 7321.5, 7324, 7326, 7330)

FISCAL EFFECT: According to the Assembly Appropriations Committee, minor and absorbable costs to ABC as the bill creates a full exemption from alcoholic beverage licensing and permitting, meaning ABC would not be responsible for enforcement. Likely minor, non-reimbursable local costs for enforcement, potentially offset by a minor increase in fine revenue.

COMMENTS:

Background: In October of 1985, the Attorney General issued opinion No. 85-701, which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have "sold" the alcoholic beverage, thereby necessitating an alcoholic beverage license.

At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service.

The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. Specifically, SB 1546 (Beverly), Chapter 1354, Statutes of 1986, provides that no license or permit shall be required for the serving of complimentary alcoholic beverages in limousines. A few years later, AB 2416 (Governmental Organization Committee), Chapter 639, Statutes of 1998, was enacted which granted hot air balloon ride services the same privilege.

In California, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

According to the CBBC, within the Department of Consumer Affairs, there are a total of 41,830 beauty salon and barbershop location permits issued in the State. The CBBC "location license" does not differentiate between a beauty salon or barbershop. The following services are not under the jurisdiction of the CBBC: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Purpose of the bill: According to the author's office, this bill intended to grant beauty salon or barber shop businesses the opportunity to serve champagne or other alcoholic beverages to their clients ages 21 and over without an ABC license or a permit, provided there is no extra fee charged for the beverage.

The author states many beauty salons and barbershops throughout California offer complementary alcoholic beverages to their customers at no charge. However, by providing such beverages without an ABC license, these establishments are in conflict with state and local alcohol licensing requirements. The author points out that most beauty salons and barbershops are small, mom and pop operations which seek to provide a positive experience for their customers; unfortunately, such businesses currently serving alcoholic beverages face potential sanctions for their actions.

This bill is simply intended to clarify in law that beauty salons and barbershops may offer a free alcoholic beverage to patrons of age who purchase a specified service under the Barbering and Cosmetology Act.

In opposition: The California Council on Alcohol Problems opposes the bill, concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, is ABC prepared/able to monitor the thousands of licenses under the CBBC? Will the alcohol industry begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings?

Prior legislation: AB 461 (Achadjian), Chapter 110, Statutes of 2013. Authorized ABC to issue five new original on-sale general licenses to San Luis Obispo County between January 1, 2014, and December 31, 2016, for restaurants with a seating capacity for 50 or more diners.

AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in Marin County.

AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in Napa County.

SB 762 (Cox), Chapter 193, Statutes of 2007. Allowed ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in Mono County.

AB 2416 (Governmental Organization Committee), Chapter 639, Statutes of 1998. Provided that no license or permit is required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly), Chapter 1354, Statutes of 1986. Provided that no license or permit is required for, the serving of alcoholic beverages in a limousine regulated by the Public Utilities Commission provided there is no extra charge for the alcoholic beverages.

AB 1252 (N. Waters), Chapter 753, Statutes of 1977. Permitted the Director of ABC to authorize the conversion of any on-sale general license for "seasonal business" to an on-sale general license, as specified.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0000249

Date of Hearing: April 22, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1322

Author:(Daly) – As Amended Ver:April 15, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill allows beauty salons and barbershops to serve up to 12 ounces of beer or 6 ounces of wine as part of their beauty services without a license or permit, provided there is no extra charge or fee for the beer or wine, the salon or barber shop is in good standing with the Board of Barbering and Cosmetology, and the beer or wine is only provided during normal business hours and in no case later than 10 pm.

FISCAL EFFECT:

1) Minor and absorbable costs to the Department of Alcoholic Beverage Control (ABC) as the bill creates a full exemption from alcoholic beverage licensing and permitting, meaning ABC would not be responsible for enforcement.

2) Likely minor, non-reimburseable local costs for enforcement, potentially offset by a minor increase in fine revenue.

COMMENTS:

1) Purpose. According to the author, many beauty salons and barber shops throughout California offer complementary alcoholic beverages to their customers at no charge. However, because these establishments often lack ABC licenses, they may be in violation of state and local alcohol licensing requirements. This bill is intended to give beauty salons and barber shops the opportunity to serve champagne, beer, or other wine to their clients aged 21 or over without an ABC license or permit.

2) Background. A 1985 Attorney General legal opinion held businesses that offered complimentary alcoholic beverages to customers and guests while charging for the other services rendered were deemed to have "sold" the alcoholic beverage, and thereby needed an appropriate license. At the time, many service businesses had a practice of offering complimentary champagne or other beverages to customers as part of their service. The Legislature has since provided statutory exception to the licensing requirement for complementary alcoholic beverages offered by limousine and hot air balloon operators.

3) Sip, Sip…Clip, Clip. According to the Board of Barbering and Cosmetology, there are approximately 42,000 beauty salons and barbershops in California. By contrast, there are approximately 45,000 on-sale licensees. As a result, this bill will substantially increase the potential number of establishments in the state that may furnish beer and wine.

Analysis Prepared by: Joel Tashjian / APPR. / (916) 319-2081

Date of Hearing: April 8, 2015

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 1322

Author:(Daly) – As Introduced Ver:February 27, 2015

SUBJECT: Alcoholic beverages: licenses: beauty salons

SUMMARY: This bill expands an existing provision of the Alcoholic Beverage Control Act (ABC Act) that allows the serving of alcohol without a license or permit in a limousine or as part of a hot air balloon ride service to also include a beauty salon or barbershop, provided there is no extra charge or fee for the alcoholic beverages. Specifically, this bill:

1) Provides a license or permit is not required for the serving of alcoholic beverages as part of a beauty salon service or barbershop service, provided there is no extra charge or fee for the alcoholic beverages.

2) Specifies that there shall be no extra charge or fee for the alcoholic beverages when the fee charged for the beauty salon service or barbershop is the same regardless of whether alcoholic beverages are served.

EXISTING LAW:

1) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature.

2) Makes it unlawful for any person other than a licensee of the ABC to sell, manufacture, or import alcoholic beverages in this state.

3) Provides that no license or permit shall be required for the serving of alcoholic beverages in a “limousine” or as part of a “hot air balloon ride” service, provided there is no extra charge or fee for the alcoholic beverages.

4) Provides that ABC must 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. For liquor stores and other specified retail license, however, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

5) 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.

6) Establishes the Barbering and Cosmetology Act, which provides for the licensure and regulation of barbers and cosmetologists, including the practice of skin care by licensed estheticians, by the Board in the Department of Consumer Affairs. (Business and Professions Code (BPC) Section 7316)

7) Establishes the specified requirements that applicants for a cosmetology, esthetician, barbering, manicurist and electrologist license must meet in order to sit for the licensure examination. (BPC 7321, 7321.5, 7324, 7326, 7330)

FISCAL EFFECT: Unknown

COMMENTS:

Background: In October of 1985, the Attorney General issued opinion No. 85-701, which held that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for the services rendered is deemed to have “sold” the alcoholic beverage, thereby necessitating an alcoholic beverage license.

At the time, this opinion affected a large number of California businesses (e.g., limousine and bus services, and bed-and-breakfast inns) which had made a practice of offering complimentary champagne and other alcoholic beverages to passengers and guests as part of their service.

The Legislature has responded to a number of concerns raised by various business entities over the years relative to this matter by enacting narrowly crafted legislation to address the problem. Specifically, SB 1546 (Beverly), Chapter 1354, Statutes of 1986 provides that no license or permit shall be required for the serving of complimentary alcoholic beverages in limousines. A few years later, AB 2416 (Assembly Governmental Organization Committee), Chapter 639, Statutes of 1998, was enacted which granted hot air balloon ride services the same privilege.

In California, it is unlawful for any corporation, club, or organization to sell, give, serve, dispense, keep, or allow to be consumed on its premises any alcoholic beverage unless licensed or permitted by law. This prohibition includes the serving of free alcohol with the purchase of another good or service. It is also unlawful for any person to keep or consume an alcoholic beverage on any premises open to the public other than as specifically permitted by law.

According to the California Board of Barbering and Cosmetology (CBBC), within the Department of Consumer Affairs, there are a total of 41,830 beauty salon and barbershop location permits issued in the State. The CBCC "location license" does not differentiate between a beauty salon or barbershop. The following services are not under the jurisdiction of the Board of Barbering and Cosmetology: body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

Purpose of the bill: According to the author’s office, this bill intended to grant beauty salon or barber shop businesses the opportunity to serve champagne or other alcoholic beverages to their clients ages 21 and over without an ABC license or a permit, provided there is no extra fee charged for the beverage.

The author states many beauty salons and barbershops throughout California offer complementary alcoholic beverages to their customers at no charge. However, by providing such beverages without an ABC license, these establishments are in conflict with state and local alcohol licensing requirements. The author points out that most beauty salons and barbershops are small, mom and pop operations which seek to provide a positive experience for their customers; unfortunately, such businesses currently serving alcoholic beverages face potential sanctions for their actions.

AB 1322 is simply intended to clarify in law that beauty salons and barbershops may offer a free alcoholic beverage to patrons of age who purchase a specified service under the Barbering and Cosmetology Act.

Policy consideration. The author might consider amending the bill to state the following: 1) alcoholic beverages may only be served by an entity whose license is in good standing with the California Board of Barbering and Cosmetology; 2) only beer and wine may be served at the beauty salon or barbershop; 3) no more than twelve ounces of beer or wine by the glass for on-premise consumption may be offered; and 4) beer and wine may only be provided during normal business hours but no later than 10 p.m. each night.

In opposition: The California Council on Alcohol Problems opposes the bill, concerned about the unintended consequences of allowing alcohol consumption at beauty/barbering establishments. For instance, is ABC prepared/able to monitor the thousands of licenses under the CBBC? Will the alcohol industry begin marketing and distributing their products through beauty/barbering establishments as another means of public tastings?

Prior legislation: AB 461 (Achadjian), Chapter 110, Statutes of 2013. Authorized ABC to issue five new original on-sale general licenses to San Luis Obispo County between January 1, 2014, and December 31, 2016, for restaurants with a seating capacity for 50 or more diners.

AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in Marin County.

AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in Napa County.

SB 762 (Cox), Chapter 193, Statutes of 2007. Allowed ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in Mono County.

AB 2416 (Assembly Governmental Organization Committee), Chapter 639, Statutes of 1998. Provided that no license or permit is required for the serving of alcoholic beverages as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

SB 1546 (Beverly), Chapter 1354, Statutes of 1986. Provided that no license or permit is required for, the serving of alcoholic beverages in a limousine regulated by the Public Utilities Commission provided there is no extra charge for the alcoholic beverages.

AB 1252 (N. Waters), Chapter 753, Statutes of 1977. Permitted the Director of ABC to authorize the conversion of any on-sale general license for "seasonal business" to an on-sale general license, as specified.

REGISTERED SUPPORT / OPPOSITION:

Support

Lee Short, Franchise owner, 18|8 Fine Men's Salon of Playa Vista

Opposition

California Council on Alcohol Problems

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531