(1)Under existing law, the Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the Director of Alcoholic Beverage Control, on or before March 1 of each year, to make an annual report to the Legislature on the departments activities and to post the report on its Internet Web site.

This bill would instead require the department to provide the report upon request of the Legislature.

(2)Existing law, the Alcoholic Beverage Control Act, provides for the issuance of a club license that allows a licenseholder to exercise all of the rights and privileges permitted to an on-sale general license subject to specified exceptions and limitations, including a requirement that the club be a nonprofit and have at least 100 members. Existing law allows the issuance of club licenses to clubs operated by common carriers by air at an airport terminal.

This bill would provide that the restrictions relating to nonprofit status and number of members do not apply to club licenses issued to clubs operated by common carriers by air at an airport terminal.

(1)Under existing law, the Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the Director of Alcoholic Beverage Control, on or before March 1 of each year, to make an annual report to the Legislature on the departments activities and to post the report on its Internet Web site.

This bill would instead require the department to provide the report upon request of the Legislature.

(2)Existing law, the Alcoholic Beverage Control Act, provides for the issuance of a club license that allows a licenseholder to exercise all of the rights and privileges permitted to an on-sale general license subject to specified exceptions and limitations, including a requirement that the club be a nonprofit and have at least 100 members. Existing law allows the issuance of club licenses to clubs operated by common carriers by air at an airport terminal.

This bill would provide that the restrictions relating to nonprofit status and number of members do not apply to club licenses issued to clubs operated by common carriers by air at an airport terminal.

(1)Under existing law, the Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the Director of Alcoholic Beverage Control, on or before March 1 of each year, to make an annual report to the Legislature on the departments activities and to post the report on its Internet Web site.

This bill would change the due date of the report to March 31. instead require the department to provide the report upon request of the Legislature.

Under existing law, the Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the Director of Alcoholic Beverage Control, on or before March 1 of each year, to make an annual report to the Legislature on the departments activities and to post the report on its Internet Web site.

This bill would change the due date of the report to March 31.

Date of Hearing: August 19, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

SBPCA Bill Id:SB 325

Author:(Hall) – As Amended Ver:March 26, 2015

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

SUMMARY:

This bill deletes a requirement that the Department of Alcoholic Beverage Control (ABC) prepare and submit an annual report to the Legislature on ABC's activities, and instead requires ABC to prepare and submit the report upon request of the Legislature. The bill also makes technical, non-substantive changes to the Alcoholic Beverage Control Act.

FISCAL EFFECT:

Negligible cost to ABC, possible savings if ABC has to produce fewer activity reports.

COMMENTS:

Purpose. According to the author, ABC has produced workload reports on licensing and enforcement activities since 1941. In 1999, ABC began posting its annual reports online, and the department indicates all the relevant information required under the statutory report to the Legislature is already captured in its online reports. Eliminating the separate annual report to the Legislature may relieve ABC from certain duplicative costs.

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

Date of Hearing: July 15, 2015

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 325

Author:(Hall) – As Amended Ver:March 26, 2015

SENATE VOTE: 34-0

SUBJECT: Alcoholic beverages.

SUMMARY: Modifies an existing Alcoholic Beverage Control Act (Act) provision that requires the Department of Alcoholic Beverage Control (ABC), on or before March 1 of each year, to produce a specified annual report to the Legislature and instead, requires the department to provide the report upon request of the Legislature. The bill also makes clarifying changes to an outdated provision of law relating to airline “club” licenses to reflect current business models. Specifically, this bill:

1) Eliminates the existing requirement that ABC, on or before March 1 of each year, prepare and submit to the Legislature an annual report on ABC’s activities and, instead, provides that ABC shall produce such a report upon request of the Legislature.

2) Clarifies that the restrictions relating to nonprofit status and number of members do not apply to club licenses issued to clubs operated by common carriers by air at an airport terminal.

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. 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 for this purpose.

2) Requires the Director of ABC, on or before March 1 of each year, to make an annual report to the Legislature on the Department of ABC’s activities and to post the report on its Internet Web site. (B & P Code Section 23055)

3) Defines “club,” for purposes of the Act, to mean a corporation or association which is the owner, lessee, or occupant of an establishment operated solely for objects of a social or athletic nature but not for pecuniary gain, having a bona fide membership list, and the majority of the members of which pay dues at least once in every year, and the property as well as the advantages of which belong to the members, and which sells alcoholic beverages only to its members and its bona fide guests. (B & P Code Section 23037)

4) Provides for the issuance of a “club” license allowing the sale of alcoholic beverages to a plethora of clubs/organizations (e.g., golf club, swimming club, tennis club, horse riding club, beach and athletic club, handball or racquetball club, nonprofit mobile homeowners social club, national fraternal organizations, rod and gun club, peace officers and firefighters associations, nonprofit social and religious club, National Guard or Air National Guard club, labor council, American Citizens club, local dental society club, condominium homeowners’ association, Hidalgo Society, nonprofit lawn bowls club, etc.).

5) Authorizes the issuance of a club license to clubs operated by common carriers by air at an airport terminal, as specified. (B & P Code Section 23428.13)

6) Prohibits ABC from issuing new club licenses to clubs that are not organized as a nonprofit (B & P Code Section 23434). Also, prohibits ABC from issuing new club licenses to clubs that do not have at least 100 members (B & P Code Section 23435).

FISCAL EFFECT: Unknown

COMMENTS:

Purpose of the bill. This bill is simply intended to make technical, clarifying and non-controversial changes to the Act.

Existing law requires ABC, on or before March 1 of each year, to provide an annual report to the Legislature on the department’s activities and to post the report on its Internet Web site. The report must include information for the previous fiscal year pertaining to: (1) the amount of funds allocated and spent for licensing, enforcement, and administration: (2) the number of licenses issued, renewed, denied, suspended, and revoked; (3) the average time for processing license applications, by license category; (4) the number and type of enforcement activities conducted; and, (5) the number, type, and amount of penalties, fines, and other disciplinary actions taken.

ABC has been producing and providing workload reports for the industry it regulates and groups interested in its licensing and enforcement activities since 1941. In 1999, ABC began posting all of its annual reports on the department's Internet Web site. For example, ABC provides on an annual basis: the Annual Workload Summary, the Performance Management Report, and the License Count Summary Report. ABC indicates that all of the information requested by Business and Professions Code Section 23055 is already captured in the department’s various reports.

This bill modifies the annual reporting requirement to instead require ABC to provide the report upon request of the Legislature. The author’s office emphasizes that this bill does not eliminate the statutory requirement for the report – it simply eliminates the requirement for a separate annual report to the Legislature thus enabling ABC to use its resources for other purposes. ABC believes that providing a separate report for the Legislature is duplicative and consumptive of limited resources and staff.

The author’s office points out that over the years numerous “club” licenses have been added to the Act allowing the license holder to sell and serve alcoholic beverages for consumption within the licensed establishment and only to members of the club and their guests. Currently, the law prohibits ABC from issuing “airline” club licenses to clubs that are not organized as a nonprofit or which do not have at least 100 members. The author’s office notes that this particular law no longer reflects the structure of the current licensees. Specifically, airline club licenses are no longer established as nonprofits and the 100-member requirement is no longer needed. Therefore, this bill proposes to amend outdated licensing requirements for this type of licensee to reflect the realities of the business models currently in place.

Prior legislation. AB 749 (Hall, Chapter 221, Statutes of 2011). Changed the period covered by ABC's annual report to the Legislature from a "calendar" year time period to a "fiscal" year.

SB 1480 (Committee on Governmental Organization, Chapter 296, Statutes of 2010). Among other things, deleted the requirement that the Director of ABC to include recommendations for legislation in the annual ABC report to the Legislature.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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

 CONSENT  

Bill No: SB 325

Author: Hall (D)

Amended: 3/26/15

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 4/14/15

AYES: Hall, Berryhill, Block, Gaines, Galgiani, Hernandez, Hill, Lara, McGuire, Vidak

NO VOTE RECORDED: Hueso

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Alcoholic beverages

SOURCE: Author

DIGEST: This bill modifies an existing Alcoholic Beverage Control (ABC) Act provision that requires the Department of ABC, on or before March 1 of each year, to produce a specified annual report to the Legislature and instead, requires the Department of ABC to provide the report upon request of the Legislature. This bill also makes clarifying changes to an outdated provision of law relating to airline “club” licenses to reflect current business models.

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. 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 for this purpose.
   
   

2. Requires the Director of the Department of ABC, on or before March 1 of each year, to make an annual report to the Legislature on the Department of ABC’s activities and to post the report on its Internet Web site. (B & P Code Section 23055)
   
   

3. Defines “club,” for purposes of the ABC Act, to mean a corporation or association which is the owner, lessee, or occupant of an establishment operated solely for objects of a social or athletic nature but not for pecuniary gain, having a bona fide membership list, and the majority of the members of which pay dues at least once in every year, and the property as well as the advantages of which belong to the members, and which sells alcoholic beverages only to its members and its bona fide guests. (B & P Code Section 23037)
   
   

4. Provides for the issuance of a “club” license allowing the sale of alcoholic beverages to a plethora of clubs/organizations (e.g., golf club, swimming club, tennis club, horse riding club, beach and athletic club, handball or racquetball club, nonprofit mobile homeowners social club, national fraternal organizations, rod and gun club, peace officers and firefighters associations, nonprofit social and religious club, National Guard or Air National Guard club, labor council, American Citizens club, local dental society club, condominium homeowners’ association, Hidalgo Society, nonprofit lawn bowls club, etc.).
   
   

5. Authorizes the issuance of a club license to clubs operated by common carriers by air at an airport terminal, as specified. (B & P Code Section 23428.13)
   
   

6. Prohibits the Department of ABC from issuing new club licenses to clubs that are not organized as a nonprofit (B & P Code Section 23434). Also, prohibits the Department of ABC from issuing new club licenses to clubs that do not have at least 100 members (B & P Code Section 23435).

This bill:

1. Eliminates the existing requirement that the Department of ABC, on or before March 1 of each year, prepare and submit to the Legislature an annual report on the Department of ABC’s activities and, instead, provides that the Department of ABC shall produce such a report upon request of the Legislature.
   
   

2. Clarifies that the restrictions relating to nonprofit status and number of members do not apply to club licenses issued to clubs operated by common carriers by air at an airport terminal.

Background

Purpose of SB 325. This bill is simply intended to make technical, clarifying and non-controversial changes to the ABC Act.

Existing law requires the Department of ABC, on or before March 1 of each year, to provide an annual report to the Legislature on the department’s activities and to post the report on its Internet Web site. The report must include information for the previous fiscal year pertaining to: (1) the amount of funds allocated and spent for licensing, enforcement, and administration: (2) the number of licenses issued, renewed, denied, suspended, and revoked; (3) the average time for processing license applications, by license category; (4) the number and type of enforcement activities conducted; and, (5) the number, type, and amount of penalties, fines, and other disciplinary actions taken.

The Department of ABC has been producing and providing workload reports for the industry it regulates and groups interested in its licensing and enforcement activities since 1941. In 1999, the Department of ABC began posting all of its annual reports on the Department of ABC’s Internet Web site. For example, the Department of ABC provides on an annual basis: the Annual Workload Summary, the Performance Management Report, and the License Count Summary Report. The Department of ABC indicates that all of the information requested by Business and Professions Code Section 23055 is already captured in the Department of ABC’s various reports.

This bill modifies the annual reporting requirement to instead require the Department of ABC to provide the report upon request of the Legislature. The author’s office emphasizes that this bill does not eliminate the statutory requirement for the report – it simply eliminates the requirement for a separate annual report to the Legislature thus enabling the Department of ABC to use its resources for other purposes. The Department of ABC believes that providing a separate report for the Legislature is duplicative and consumptive of limited resources and staff.

The author’s office points out that over the years numerous “club” licenses have been added to the ABC Act allowing the license holder to sell and serve alcoholic beverages for consumption within the licensed establishment and only to members of the club and their guests. Currently, the law prohibits the Department of ABC from issuing “airline” club licenses to clubs that are not organized as a nonprofit or which do not have at least 100 members. The author’s office notes that this particular law no longer reflects the structure of the current licensees. Specifically, airline club licenses are no longer established as nonprofits and the 100 member requirement is no longer needed. Therefore, this bill proposes to amend outdated licensing requirements for this type of licensee to reflect the realities of the business models currently in place.

Prior/Related Legislation

AB 749 (Hall, Chapter 221, Statutes of 2011) changed the period covered by the Department of ABC annual report to the Legislature from a "calendar" year time period to a "fiscal" year.

SB 1480 (Committee on Governmental Organization, Chapter 296, Statutes of 2010), among other things, deleted the requirement that the Director of the Department of ABC include recommendations for legislation in the annual Department of ABC report to the Legislature.

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

SUPPORT:

(Verified 4/27/15)

None received

OPPOSITION: (Verified 4/27/15)

None received

Prepared by: Arthur Terzakis / G.O. / (916) 651-1530

4/29/15 16:30:46

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: SB 325 Hearing Date: 4/14/2015

SUBJECT: Alcoholic beverages

DIGEST: This bill modifies an existing Alcoholic Beverage Control (ABC) Act provision that requires the Department of ABC, on or before March 1 of each year, to produce a specified annual report to the Legislature and instead, requires the department to provide the report upon request of the Legislature. This bill also makes clarifying changes to an outdated provision of law relating to airline “club” licenses to reflect current business models.

ANALYSIS:

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. 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 for this purpose.
   
   

2. Requires the Director of ABC, on or before March 1 of each year, to make an annual report to the Legislature on the ABC’s activities and to post the report on its Internet Web site. (B & P Code Section 23055)
   
   

3. For purposes of the ABC Act, defines “club” to mean a corporation or association which is the owner, lessee, or occupant of an establishment operated solely for objects of a social or athletic nature but not for pecuniary gain, having a bona fide membership list, and the majority of the members of which pay dues at least once in every year, and the property as well as the advantages of which belong to the members, and which sells alcoholic beverages only to its members and its bona fide guests. (B & P Code Section 23037)
   
   

4. Provides for the issuance of a “club” license allowing the sale of alcoholic beverages to a plethora of clubs/organizations (e.g., golf club, swimming club, tennis club, horse riding club, beach and athletic club, handball or racquetball club, nonprofit mobile homeowners social club, national fraternal organizations, rod and gun club, peace officers and firefighters associations, nonprofit social and religious club, National Guard or Air National Guard club, labor council, American Citizens club, local dental society club, condominium homeowners’ association, Hidalgo Society, nonprofit lawn bowls club, etc.).
   
   

5. Also, authorizes the issuance of a club license to clubs operated by common carriers by air at an airport terminal, as specified. (B & P Code Section 23428.13)
   
   

6. Prohibits the Department of ABC from issuing new club licenses to clubs that are not organized as a nonprofit (B & P Code Section 23434). Also, prohibits the Department of ABC from issuing new club licenses to clubs that do not have at least 100 members (B & P Code Section 23435).

This bill:

1. Eliminates the existing requirement that the Department of ABC, on or before March 31 of each year, prepare and submit to the Legislature an annual report on the department’s activities and , instead, provides that ABC shall produce such a report upon request of the Legislature.
   
   

2. Clarifies that the restrictions relating to nonprofit status and number of members do not apply to club licenses issued to clubs operated by common carriers by air at an airport terminal.

Background

Purpose of SB 325: This measure is simply intended to make technical, clarifying and non-controversial changes to the ABC Act.

Existing law requires the Department of ABC, on or before March 1 of each year, to provide an annual report to the Legislature on the department’s activities and to post the report on its Internet Web site. The report must include information for the previous fiscal year pertaining to: (a) the amount of funds allocated and spent for licensing, enforcement, and administration: (b) the number of licenses issued, renewed, denied, suspended, and revoked; (c) the average time for processing license applications, by license category; (d) the number and type of enforcement activities conducted; and, (e) the number, type, and amount of penalties, fines, and other disciplinary actions taken.

The Department of ABC has been producing and providing workload reports for the industry it regulates and groups interested in its licensing and enforcement activities since 1941. In 1999 the Department began posting all of its annual reports on the Department’s Internet Web site. For example, the ABC provides on an annual basis: the Annual Workload Summary, the Performance Management Report, and the License Count Summary Report. ABC indicates that all of the information requested by Business and Professions Code Section 23055 is already captured in the Department’s various reports.

This measure would modify the annual reporting requirement to instead require the ABC to provide the report upon request of the Legislature. The author’s office emphasizes that this measure does not eliminate the statutory requirement for the report – it simply eliminates the requirement for a separate annual report to the Legislature thus enabling ABC to use its resources for other purposes. ABC believes that providing a separate report for the Legislature is duplicative and consumptive of limited resources and staff.

The author’s office points out that over the years numerous “club” licenses have been added to the ABC Act allowing the license holder to sell and serve alcoholic beverages for consumption within the licensed establishment and only to members of the club and their guests. Currently, the law prohibits ABC from issuing “airline” club licenses to clubs that are not organized as a nonprofit or which do not have at least 100 members. The author’s office notes that this particular law no longer reflects the structure of the current licensees. Specifically, airline club licenses are no longer established as nonprofits and the 100 member requirement is no longer needed. Therefore, this measure proposes to amend outdated licensing requirements for this type of licensee to reflect the realities of the business models currently in place.

Prior/Related Legislation

AB 749 (Hall), Chapter 221, Statutes of 2011. Changed the period covered by the Department of ABC annual report to the Legislature from a "calendar" year time period to a "fiscal" year.

SB 1480 (Committee on Governmental Organization), Chapter 296, Statutes of 2010. Among other things, deleted the requirement that the Director of ABC include recommendations for legislation in the annual ABC report to the Legislature.

AB 2793 (Governmental Organization Committee), Chapter 273, Statutes of 2010. Among other things, authorized the Department of ABC to issue a club license to nonprofit lawn bowls clubs that do not discriminate or restrict membership, as specified.

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

SUPPORT:

None received

OPPOSITION:

None received