Existing law, the Alcoholic Beverage Control Act, which is administrated by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law establishes specified types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees. Existing law prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition a misdemeanor or a felony, as specified.

This bill would specify that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, except as specified.

Existing law, the Alcoholic Beverage Control Act, which is administrated by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law establishes specified types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees. Existing law prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition a misdemeanor or a felony, as specified.

This bill would specify that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, except as specified.

Existing law, the Alcoholic Beverage Control Act, which is administrated by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law establishes specified types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees. Existing law prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition a misdemeanor or a felony, as specified.

This bill would specify that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, except as specified.

(1)Existing law, the Alcoholic Beverage Control Act, which is administrated by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law establishes specified types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees. Existing law prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition a misdemeanor or a felony, as specified.

This bill would specify that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, except as specified.

(2)The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law provides for various annual fees for the issuance of alcoholic beverage licenses, depending upon the type of license issued.

This bill would authorize the department to issue a consumer brokers license that would allow the licensee to act as a broker, for a fee or commission and pursuant to a written agreement, in the sale to consumers of beer or wine, subject to specified restrictions, including that the licensee not buy or sell any alcoholic beverages for its own account. The bill would impose an original fee and an annual renewal fee for the license, which would be deposited in the Alcohol Beverage Control Fund.

 THIRD READING  

Bill No: AB 2135

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 6/14/16

AYES: Hall, Bates, Block, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, McGuire, Vidak

NO VOTE RECORDED: Berryhill, Hernandez

ASSEMBLY FLOOR: 79-0, 4/28/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill adds a new Section of law to the Alcoholic Beverage Control (ABC) Act that allows revenue sharing agreements pursuant to a concessionaire agreement between a fair operator and a licensed retailer selling alcoholic beverages during a state or county fair, under specified circumstances.

ANALYSIS:

Existing law:

1. Provides, under Article XX, Section 22, California Constitution, that the State of California, subject to the internal revenue laws of the United States, shall have the exclusive right and power to license and regulate the manufacture, sale, purchase, possession and transportation of alcoholic beverages within the state, and subject to the laws of the United States regulating commerce between foreign nations and among the states shall have the exclusive right and power to regulate the importation into and exportation from the state, of alcoholic beverages. In the exercise of these rights and powers, the Legislature shall not constitute the state or any agency thereof a manufacturer or seller of alcoholic beverages.
   
2. 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. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
   
3. Establishes specific types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees.
   
4. Prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
   
5. Defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture.
   
6. Establishes the California Exposition and State Fair (Cal Expo) as an independent entity in state government governed by its board of directors.

This bill specifies that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, Cal Expo, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, unless the agreement, or any other related agreement or understanding, results in an unlicensed person exercising control or undue influence over a licensee or the operation of a licensed business.

Background

Purpose of AB 2135. The author's office notes that financial pressures over the years have caused state and county fair operators to search for additional sources of revenue to support their operations. The author’s office claims that it has become fairly common for fair operators to enter into revenue sharing agreements that include a sharing of revenue from the sale of alcoholic beverages. However under the state’s comprehensive alcoholic beverage licensing scheme, such activities may be construed to result in the exercising of license privileges by non-licensees, which is prohibited.

The author’s office references an Attorney General Opinion in 1966 (47 Ops. Cal. Atty. Gen. 182) that determined it would be a violation of the ABC Act for a licensee to share revenue from the sale of alcoholic beverages with a non-licensee, or otherwise allow a non-licensee to exercise control over the licensed business. Such arrangements also have the potential to violate the State Constitution with respect to an agency of the state being established as a licensed seller of alcohol.

The author’s office contends that this bill will clarify that the mere existence of revenue sharing agreements does not constitute the exercising of license privileges.

Network of California fairs. The network of California fairs includes 78 different fairs divided into four categories:

• 52 District Agricultural Associations which are state government entities governed by a board of directors appointed by the Governor;
• 23 county fairs which are county government or not-for-profit organizations;
• Two citrus fruit fairs (Cloverdale and San Bernardino Orange Show) which are not-for-profit organizations; and,
• Cal Expo, a state agency.

Related Legislation

AB 2678 (Gray, 2016) provides a dedicated source of funding for state fairs and expositions by requiring that 30% of the state’s portion of sales and use tax revenue derived from sales on state fairgrounds be deposited into a separate account to be spent on fair-related purposes. (Pending in the Senate Governance and Finance Committee)

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

SUPPORT:

(Verified 6/14/16)

Department of Alcoholic Beverage Control

Sonoma-Marin Fair

Western Fairs Association

OPPOSITION: (Verified 6/14/16)

Alcohol Justice

ARGUMENTS IN SUPPORT: Proponents point out that “most fairs have a clause in their concessionaire agreements that includes a sharing of revenue from the sale of alcoholic beverages. This has been common practice for a number of years and is vital to the sustainability of fairs. Recently, such agreements have come under scrutiny, creating confusion throughout the fair industry. AB 2135 resolves the issue by making it clear the practice is permissible at a fair.”

ARGUMENTS IN OPPOSITION: Alcohol Justice states that “allowing the splitting of alcohol revenue between licensees and entities that host fairs creates an incentive to increase alcohol availability at these events. The state already suffers more than $22 billion in alcohol-related harm and over 10,000 alcohol-related deaths annually. We believe AB 2135 will ultimately increase those catastrophic alcohol-related harms and costs in the state.”

ASSEMBLY FLOOR: 79-0, 4/28/16

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

NO VOTE RECORDED: Daly

Prepared by:

6/15/16 17:24:41

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB Hearing Date: 6/14/2016

SUBJECT:

DIGEST: This bill adds a new Section of law to the Alcoholic Beverage Control (ABC) Act that allows revenue sharing agreements pursuant to a concessionaire agreement between a fair operator and a licensed retailer selling alcoholic beverages during a state or county fair, under specified circumstances.

ANALYSIS:

Existing law:

1. Article XX, section 22, California Constitution, provides that the State of California, subject to the internal revenue laws of the United States, shall have the exclusive right and power to license and regulate the manufacture, sale, purchase, possession and transportation of alcoholic beverages within the State, and subject to the laws of the United States regulating commerce between foreign nations and among the states shall have the exclusive right and power to regulate the importation into and exportation from the State, of alcoholic beverages. In the exercise of these rights and powers, the Legislature shall not constitute the State or any agency thereof a manufacturer or seller of alcoholic beverages.
   
2. 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. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
   
3. Establishes specific types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees.
   
4. Prohibits a person from exercising a privilege or performing any act for which a license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
   
5. Defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture.
   
6. Establishes the California Exposition and State Fair (Cal Expo) as an independent entity in state government governed by its board of directors.

This bill specifies that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, Cal Expo, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, unless the agreement, or any other related agreement or understanding, results in an unlicensed person exercising control or undue influence over a licensee or the operation of a licensed business.

Background

Purpose of AB 2135. The author's office notes that financial pressures over the years have caused state and county fair operators to search for additional sources of revenue to support their operations. The author’s office claims that it has become fairly common for fair operators to enter into revenue sharing agreements that include a sharing of revenue from the sale of alcoholic beverages. However under the state’s comprehensive alcoholic beverage licensing scheme, such activities may be construed to result in the exercising of license privileges by non-licensees, which is prohibited.

The author’s office references an Attorney General Opinion in 1966 (47 Ops. Cal. Atty. Gen. 182) that determined it would be a violation of the ABC Act for a licensee to share revenue from the sale of alcoholic beverages with a non-licensee, or otherwise allow a non-licensee to exercise control over the licensed business. Such arrangements also have the potential to violate the State Constitution with respect to an agency of the state being established as a licensed seller of alcohol.

The author’s office contends that this bill will clarify that the mere existence of revenue sharing agreements does not constitute the exercising of license privileges.

Network of California fairs. The network of California fairs includes 78 different fairs divided into four categories:

• 52 District Agricultural Associations (DAA) which are state government entities governed by a board of directors appointed by the governor;
• 23 county fairs which are County government or not-for-profit organizations;
• two citrus fruit fairs (Cloverdale and San Bernardino Orange Show) which are not-for-profit organizations; and,
• The California Exposition and State Fair (Cal Expo), a state agency.

Prior/Related Legislation

AB 2678 (Gray, 2016) provides a dedicated source of funding for state fairs and expositions by requiring that 30% of the state’s portion of sales and use tax revenue derived from sales on state fairgrounds be deposited into a separate account to be spent on fair-related purposes. (Pending in Senate policy committee)

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

SUPPORT:

Department of Alcoholic Beverage Control

Sonoma-Marin Fair

Western Fairs Association

OPPOSITION:

Alcohol Justice

ARGUMENTS IN SUPPORT: Proponents point out that “most fairs have a clause in their concessionaire agreements that includes a sharing of revenue from the sale of alcoholic beverages. This has been common practice for a number of years and is vital to the sustainability of fairs. Recently, such agreements have come under scrutiny, creating confusion throughout the fair industry. AB 2135 resolves the issue by making it clear the practice is permissible at a fair.”

ARGUMENTS IN OPPOSITION: Alcohol Justice states that “allowing the splitting of alcohol revenue between licensees and entities that host fairs creates an incentive to increase alcohol availability at these events. The state already suffers more than $22 billion in alcohol-related harm and over 10,000 alcohol-related deaths annually. We believe AB 2135 will ultimately increase those catastrophic alcohol-related harms and costs in the state.”

ASSEMBLY THIRD READING

ATR Bill Id:AB 2135

Author:(Levine)

As Amended Ver:April 11, 2016

Majority vote

SUMMARY: Specifies that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a California fair, as defined, in connection with the sale of alcoholic beverages fair time activities is not the exercise of a license privilege or performance of an act for which a license is required. Specifically, this bill:

1. Provides that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, unless the agreement, or any other related agreement or understanding, results in an unlicensed person exercising control or undue influence over a licensee or the operation of a licensed business.

EXISTING LAW:

1. California Constitution Article XX Section 22: The State of California, subject to the internal revenue laws of the United States, shall have the exclusive right and power to license and regulate the manufacture, sale, purchase, possession and transportation of alcoholic beverages within the State, and subject to the laws of the United States regulating commerce between foreign nations and among the states shall have the exclusive right and power to regulate the importation into and exportation from the State, of alcoholic beverages. In the exercise of these rights and powers, the Legislature shall not constitute the State or any agency thereof a manufacturer or seller of alcoholic beverages.
2. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (ABC Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.
3. Existing law, known as the "Tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.
4. Prohibits an alcoholic beverage supplier from paying money, or giving or furnishing anything of value, for the privilege of placing or painting a sign or advertisement, or window display, on or in premises selling alcoholic beverages at retail.
5. States in order to offer and/or profit from retail sell of alcohol in California you must have a liquor license. There are many types of liquor licenses that can be obtained and they each serve their own purpose. On-Sale General authorizes the sale of all types of alcoholic beverages (namely, beer, wine and distilled spirits), for consumption on the premises, and the sale of beer and wine for consumption off the premises; Off-Sale General authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers; On-Sale Beer and Wine authorizes the sale of all types of wine and malt beverages (e.g., beer, porter, ale, stout and malt liquor) for consumption on and off the premises; Off-Sale Beer and Wine authorizes the sale of all types of wine and malt beverages for consumption off the premises in original, sealed containers; and On-Sale Beer authorizes the sale of malt beverages for consumption on and off the premises.
6. Defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture (CDFA). The generic term of "fairs" refers to District Agricultural Associations (DAA's), county fairs, citrus fairs, and the California State Fair. The network of California fairs includes 77 fair organizations. California's fairs are located throughout the Golden State from early spring to the fall of each year.

FISCAL EFFECT: None. This bill is keyed non-fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill: Existing law defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture. The generic term of "fair" refers to a District Agricultural Association (DAA), county fair, citrus fair, and the California State Fair. According to the author’s office, this bill would permit a fair to share in the revenue from the sale of alcoholic beverages pursuant to a concessionaire agreement.

The author's office notes that it has become commonplace for fair operators to seek to enhance revenues by entering into concession agreements that include a sharing of revenue from the sale of alcoholic beverages on the fairgrounds. Revenue sharing is common with respect to non-alcohol products, but under the comprehensive licensing scheme in the ABC Act, such activities can result in the exercising of license privileges by non-licensees, which is prohibited.

An Attorney General Opinion in 1966 (47 Ops. Cal. Atty. Gen. 182) determined that it would be a violation of the ABC Act for a licensee to share revenue from the sale of alcoholic beverages with a non-licensee, or otherwise allow a non-licensee to exercise control over the licensed business. Additionally, the State Constitution prohibits any agency of the state from being established as a licensed seller of alcohol, which means that an individual fair cannot hold an ABC license. This bill would clarify such revenue sharing agreements is not considered the exercising of license privileges, as defined in the ABC Act.

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0002791

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 2135 (

Author:Levine) – As Amended Ver:April 11, 2016

SUBJECT: Alcoholic beverages: revenue sharing

SUMMARY: Would specify that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a California fair, as defined, in connection with the sale of alcoholic beverages fair time activities is not the exercise of a license privilege or performance of an act for which a license is required. Specifically, this bill:

1) Provides that a written agreement regarding the sharing or splitting of gross revenue from the sale of alcoholic beverages between a licensee and a district agricultural association, the California Exposition and State Fair, a county fair, or a citrus fruit fair, in connection with the sale of alcoholic beverages during a state or county fair is not the exercise of a license privilege or performance of an act for which a license is required, unless the agreement, or any other related agreement or understanding, results in an unlicensed person exercising control or undue influence over a licensee or the operation of a licensed business.

EXISTING LAW:

1) Article XX Section 22 of the California Constitution: The State of California, subject to the internal revenue laws of the United States, shall have the exclusive right and power to license and regulate the manufacture, sale, purchase, possession and transportation of alcoholic beverages within the State, and subject to the laws of the United States regulating commerce between foreign nations and among the states shall have the exclusive right and power to regulate the importation into and exportation from the State, of alcoholic beverages. In the exercise of these rights and powers, the Legislature shall not constitute the State or any agency thereof a manufacturer or seller of alcoholic beverages.

2) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (ABC Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees.

3) Existing law, known as the "Tied-house" law or "three-tier" system, separates the alcoholic beverage industry into three component parts of manufacturer (the first tier), wholesaler (the second tier), and retailer (the third tier). The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices. Tied-house laws generally prohibit suppliers and retailers from sharing common owners and legally restrict alcohol beverage suppliers' ability to gain control over retailers through indirect means. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.

4) Prohibits an alcoholic beverage supplier from paying money, or giving or furnishing anything of value, for the privilege of placing or painting a sign or advertisement, or window display, on or in premises selling alcoholic beverages at retail.

5) States in order to offer and/or profit from retail sell of alcohol in California you must have a liquor license. There are many types of liquor licenses that can be obtained and they each serve their own purpose. On-Sale General-authorizes the sale of all types of alcoholic beverages (namely, beer, wine and distilled spirits), for consumption on the premises, and the sale of beer and wine for consumption off the premises; Off-Sale General-authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers; On-Sale Beer and Wine-authorizes the sale of all types of wine and malt beverages (e.g., beer, porter, ale, stout and malt liquor) for consumption on and off the premises; Off-Sale Beer and Wine-authorizes the sale of all types of wine and malt beverages for consumption off the premises in original, sealed containers; and On-Sale Beer-authorizes the sale of malt beverages for consumption on and off the premises.

6) Defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture (CDFA). The generic term of "fairs" refers to District Agricultural Associations (DAA's), county fairs, citrus fairs, and the California State Fair. The network of California fairs includes 77 fair organizations. California’s fairs are located throughout the Golden State from early spring to the fall of each year.

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill: Existing law defines a state-supported fair organization as any fair that conducts an annual fair and submits an annual statement of operations to the California Department of Food and Agriculture. The generic term of "fair" refers to a District Agricultural Association (DAA), county fair, citrus fair, and the California State Fair. According to the author’s office, this bill would permit a fair to share in the revenue from the sale of alcoholic beverages pursuant to a concessionaire agreement.

The author’s office notes that it has become commonplace for fair operators to seek to enhance revenues by entering into concession agreements that include a sharing of revenue from the sale of alcoholic beverages on the fairgrounds. Revenue sharing is common with respect to non-alcohol products, but under the comprehensive licensing scheme in the ABC Act, such activities can result in the exercising of license privileges by non-licensees, which is prohibited.

An Attorney General Opinion in 1966 (47 Ops. Cal. Atty. Gen. 182) determined that it would be a violation of the ABC Act for a licensee to share revenue from the sale of alcoholic beverages with a non-licensee, or otherwise allow a non-licensee to exercise control over the licensed business. Additionally, the State Constitution prohibits any agency of the state from being established as a licensed seller of alcohol, which means that an individual fair cannot hold an ABC license. AB 2135 would clarify such revenue sharing agreements is not considered the exercising of license privileges, as defined in the ABC Act.

REGISTERED SUPPORT / OPPOSITION:

Support

Department of Alcoholic Beverage Control

Opposition

None on file

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