Existing law generally prohibits anyone from manufacturing, importing, or selling alcoholic beverages in California without a license from the Department of Alcoholic Beverage Control. Existing law creates certain exceptions from this proscription, including by allowing the serving of beer or wine without a license or permit as part of a beauty salon service or barber shop service, subject to additional restrictions on the sizes of the beverages and hours of service.

This bill would revise the exception described above to instead apply to the serving of beer or wine as part of any service provided by an establishment that is subject to regulation by the State Board of Barbering and Cosmetology.

Existing law generally prohibits anyone from manufacturing, importing, or selling alcoholic beverages in California without a license from the Department of Alcoholic Beverage Control. Existing law creates certain exceptions from this proscription, including by allowing the serving of beer or wine without a license or permit as part of a beauty salon service or barber shop service, subject to additional restrictions on the sizes of the beverages and hours of service.

This bill would revise the exception described above to instead apply to the serving of beer or wine as part of any service provided by an establishment that is subject to regulation by the State Board of Barbering and Cosmetology.

Existing law establishes the Department of Consumer Affairs, which is comprised of boards that license and regulate various professions and vocations. Under existing law, each board within the department exists as a separate unit with specified functions.

This bill would make a nonsubstantive change to these provisions.

Date of Hearing: August 23, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 247

Author:(Wilk) – As Amended Ver:February 28, 2023

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

SUMMARY:

This bill expands the exception allowing beer or wine without a Department of Alcoholic Beverage Control (ABC) license or permit at a beauty salon or barber shop service to any service provided by an establishment subject to regulation by the Board of Barbering and Cosmetology (BBC).

FISCAL EFFECT:

No fiscal impact to ABC or the BBC. ABC notes the changes proposed by this bill are consistent with ABC’s interpretation of current law.

COMMENTS:

1. Purpose. According to the author:

SB 247 will ensure that all licensees under the [BBC] are eligible to utilize the exemption listed in [existing law]. The intention of AB 1322 by Assemblyman Daly and myself was to allow patrons who are receiving a service to enjoy a singular alcoholic beverage, as long as the business meets the listed requirements.

This bill is supported by the BBC.

1. Beauty Salon and Barber Shop Exception. In 1985, the Attorney General issued an opinion holding that the operator of a commercial enterprise who offers and provides complimentary alcoholic beverages to guests, customers, or passengers while charging for services rendered is deemed to have “sold” the alcoholic beverage, thus necessitating an ABC license or permit. Over the years, the Legislature has responded to ensuing implementation concerns from the business community by enacting narrowly crafted legislation to allow the service of alcohol in specific instances without an ABC license or permit. For example, AB 1322 (Daly), Chapter 741, Statutes of 2016, allowed beauty salons and barber shops to provide clients with one serving of beer or wine at no extra charge without obtaining an ABC license or permit, following specified rules. This bill expands the beauty salon and barber shop exception to any establishment subject to regulation by the BBC, which also includes cosmetologists, manicurists, and estheticians.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: July 12, 2023

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Miguel Santiago, Chair

SBPCA Bill Id:SB 247

Author:(Wilk) – As Amended Ver:February 28, 2023

SENATE VOTE: 40-0

SUBJECT: Alcoholic beverages: licensing exemptions: barbering and cosmetology services

SUMMARY: This bill clarifies that an alcohol license or permit is not required for the serving of wine and beer as part of any service provided by an establishment that is subject to regulation by the California Board of Barbering and Cosmetology (CBBC or Board) within the Department of Consumers Affairs under the Barbering and Cosmetology Act. Specifically, this bill:

1) Clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the CBBC.

EXISTING LAW:

1) Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (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) Provides that every person who sells, furnishes, gives, or causes, to be sold any alcoholic beverages to any person under 21 years of age is guilty of a misdemeanor.

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

4) 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.

5) 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 ABC.

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 CBBC. (California Business and Professions Code § 7312)

7) Requires any person, firm or corporation operating an establishment where activity regulated under the Board is practiced, to apply for an establishment license. Existing law prohibits the Board from issuing a license to any applicant who has committed specified acts or crimes which are grounds for denial of licensure. Requires operation of the establishment only at the location for which the license was issued. (California Business and Professions Code § 7317)

8) Requires any person, firm or corporation operating an establishment where activity regulated under the Board is practiced, to comply with the Board's rules and regulations. Authorizes the Board to assess administrative fines for the violation of the Act or regulations adopted by the Board. (California Business and Professions Code § 7402 and 7406)

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

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.

Thus, it is generally 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, generally prohibits 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. Over the years, the Legislature has responded to a number of concerns raised by various businesses relative to this matter by enacting narrowly crafted legislation to allow the serving of alcohol without the need to obtain an alcohol license or permit from the ABC. Other businesses 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 alcoholic drinks to their customers.

In 2016, the Governor signed AB 1322 (Daly and Wilk, Chapter 741, Statutes of 2016) which allows beauty salons and barber shops to serve their clients limited quantities of beer and wine at no extra charge without obtaining a license or permit from the ABC. The bill requires the establishment providing the service to be in good standing with the CBBC and only allows for no more than 12 ounces of beer or six ounces of wine to be offered to a client. The beer or wine can only be offered during business hours and in no case later than 10 p.m. It’s important to note that the ABC does not have the authority to fine and, or in any way, suspend or revoke this privilege since these establishments are not licensed in any way by the department.

This bill clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the CBBC. According to ABC, the department already interprets the provisions of AB 1322 as authorizing what this bill is seeking to do. However, the author’s office states that “our office has met with licensees in the district who have been told by the [department] that they are not eligible for the [current] exemption. Clarifying the law to state that all licensees are eligible will assure that there is no confusion in the future.”

California Board of Barbering and Cosmetology. The Board of Barbering and Cosmetology (CBBC) was established in 1992 as a result of the merger between the Board of Barber Examiners and the Board of Cosmetology. The CBBC is a self-funded regulatory body that operates on licensing fees. The CBBC oversees the licensing and regulation of barbers, cosmetologists, manicurists, estheticians, and electrologists, as well as their apprentices, and the establishments where they work.

The CBBC is responsible for protecting the public from any harm or fraud that may occur in the beauty industry. It does this by setting and enforcing high standards of ethics and professionalism for all beauty practitioners. However, the CBBC does not regulate or oversee some services, such as body-piercing, braiding, ear candling, laser services, massage, permanent make-up, medical services, threading and reflexology.

The CBBC regulated over 56,000 businesses and over 500,000 establishments in the fiscal year 2021–2022. The CBBC "location license" does not distinguish between a barbershop and a beauty parlor. The Board does not track how many of these establishments serve beer and/or wine as part of their services. The licenses are renewed every two years based on the previous expiration date.

The CBBC's health and safety rules are enforced through the CBBC's Inspection Unit which conducts random and targeted health and safety inspections of establishments and schools. During 2021-2022, the CBBC conducted 7,205 inspections and issued 5,785 citations with fines for health and safety violations.

Purpose of the bill. According to the author’s office, “SB 247 will ensure that all licensees under the [CBBC] are eligible to utilize the exemption listed in the Business and Professions Code 23399.5. The intention of AB 1322 by Assemblyman Daly and myself was to allow patrons who are receiving a service to enjoy a singular alcoholic beverage, as long as the business meets the listed requirements.”

In support. The California State Board of Barbering and Cosmetology writes in support, “Currently only barber shops and beauty salons can serve wine or beer as part of any service. This bill would make a technical change since the CBBC does not specifically license barber shops or beauty salons, but rather licenses establishments.”

Related legislation. AB 416 (Muratsuchi) of 2023. Would allow any on-sale licensee that is currently authorized to sell wine, to also sell shochu, an imported Japanese alcoholic beverage that contains no more than 24% of alcohol by volume (ABV) and is derived from agricultural products. (Pending on the Senate Floor)

SB 277 (Dodd) of 2023. Would authorize a retail package off-sale beer and wine license, also known as a Type 20 License, to sell low ABV spirits beverages, as defined, in containers no larger than 16 ounces. (Pending in the Assembly Governmental Organization Committee)

SB 788 (Ashby) of 2023. Would authorize beer manufacturers that produce 60,000 or less barrels of beer per year to manufacture cider or perry at the licensed premises and to sell cider or perry to any licensee authorized to sell wine. Beer manufacturers that produce more than 60,000 barrels of beer per year already have this privilege. (In Senate. Ordered to engrossing and enrolling.)

Prior legislation. AB 2196 (Maienschein), Chapter 527, Statutes of 2022. Clarifies the scope of a hairstylist license, establishes minimum requirements for electrolysis courses, and updates the barbering extern program.

SB 803 (Roth), Chapter 648, Statutes of 2021. Continued the operations of the CBBC until January 1, 2027 and made various technical changes, statutory improvements, and policy reforms to the Act based on the joint sunset review of the CBBC by the Senate Committee on Business, Professions, and Economic Development and Assembly Committee on Business and Professions.

AB 1322 (Daly and Wilk), Chapter 741, Statutes of 2016. Allowed beauty salons and barber shops to serve their limited quantities of beer and wine at no extra charge and without obtaining a license or permit from the ABC, as specified.

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. (Never Heard in the 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.

REGISTERED SUPPORT / OPPOSITION:

Support

California State Board of Barbering and Cosmetology

Opposition

None on file

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

 THIRD READING  

Bill No: SB 247

Author: Wilk (R)

Amended: 2/28/23

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 4/25/23

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Alcoholic beverages: licensing exemptions: barbering and cosmetology services

SOURCE: Author

DIGEST: This bill clarifies that an alcohol license or permit is not required for the serving of wine and beer as part of any service provided by an establishment that is subject to regulation by the State Board of Barbering and Cosmetology (BBC) under the Barbering and Cosmetology Act.

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.

1. Provides that every person who sells, furnishes, gives, or causes, to be sold any alcoholic beverages to any person under 21 years of age is guilty of a misdemeanor.
2. Generally, 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. 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 ABC.
5. 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 BBC within the Department of Consumers Affairs.

This bill clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the BBC.

Background

Purpose of the bill. According to the author’s office, “SB 247 will ensure that all licensees under the [BBC] are eligible to utilize the exemption listed in the Business and Professions Code 23399.5. The intention of AB 1322 by Assemblyman Daly and myself was to allow patrons who are receiving a service to enjoy a singular alcoholic beverage, as long as the business meets the listed requirements.”

History. 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.

Thus, it is generally 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, generally prohibits 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.

Over the years, the Legislature has responded to a number of concerns raised by various businesses relative to this matter by enacting narrowly crafted legislation to allow the serving of alcohol without the need to obtain an alcohol license or permit from the Department of ABC. Other businesses 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 alcoholic drinks to their customers.

In 2016, the Governor signed AB 1322 (Daly and Wilk, Chapter 741, Statutes of 2016) which allowed beauty salons and barber shops to serve their clients limited quantities of beer and wine at no extra charge without obtaining a license or permit from the Department of ABC. The bill required the establishment providing the service to be in good standing with the BBC and only allows for no more than 12 ounces of beer or six ounces of wine to be offered to a client. The beer or wine can only be offered during business hours and in no case later than 10 p.m. It’s important to note that the Department of ABC does not have the authority to fine and or in any way suspend or revoke this privilege since these establishments are not licensed in any way by the Department of ABC.

This bill clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the BBC. According to the Department of ABC, the department already interprets the provisions of AB 1322 as authorizing what this bill is seeking to do. However, the author’s office states that “our office has met with licensees in the district who have been told by the [department] that they are not eligible for the [current] exemption. Clarifying the law to state that all licensees are eligible will assure that there is no confusion in the future.”

According to the BBC’s website, the BBC licenses over 50,000 establishments. It’s unknown how many of these 50,000 establishments are currently serving beer and/or wine as part of any of the services they provide.

Related/Prior Legislation

AB 1322 (Daly and Wilk, Chapter 741, Statutes of 2016) allowed beauty salons and barber shops to serve their limited quantities of beer and wine at no extra charge and without obtaining a license or permit from the Department of ABC, as specified.

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. (Never Heard in the 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 5/8/23)

California State Board of Barbering and Cosmetology

OPPOSITION: (Verified 5/8/23)

None received

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

5/10/23 15:29:06

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: SB Hearing Date: 4/25/2023

SUBJECT:

DIGEST: This bill clarifies that an alcohol license or permit is not required for the serving of wine and beer as part of any service provided by an establishment that is subject to regulation by the State Board of Barbering and Cosmetology (BBC) under the Barbering and Cosmetology Act.

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.

1. Provides that every person who sells, furnishes, gives, or causes, to be sold any alcoholic beverages to any person under 21 years of age is guilty of a misdemeanor.
2. Generally, 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. 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 ABC.
5. 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 BBC within the Department of Consumers Affairs.

This bill clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the BBC.

Background

Purpose of the Bill. According to the author’s office, “SB 247 will ensure that all licensees under the [BBC] are eligible to utilize the exemption listed in the Business and Professions Code 23399.5. The intention of AB 1322 by Assemblyman Daly and myself was to allow patrons who are receiving a service to enjoy a singular alcoholic beverage, as long as the business meets the listed requirements.”

History. 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.

Thus, it is generally 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, generally prohibits 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. Over the years, the Legislature has responded to a number of concerns raised by various businesses relative to this matter by enacting narrowly crafted legislation to allow the serving of alcohol without the need to obtain an alcohol license or permit from the Department of ABC. Other businesses 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 alcoholic drinks to their customers.

In 2016, the Governor signed AB 1322 (Daly and Wilk, Chapter 741, Statutes of 2016) which allows beauty salons and barber shops to serve their clients limited quantities of beer and wine at no extra charge without obtaining a license or permit from the Department of ABC. The bill requires the establishment providing the service to be in good standing with the BBC and only allows for no more than 12 ounces of beer or six ounces of wine to be offered to a client. The beer or wine can only be offered during business hours and in no case later than 10 p.m. It’s important to note that the Department of ABC does not have the authority to fine and or in any way suspend or revoke this privilege since these establishments are not licensed in any way by the Department of ABC.

This bill clarifies that an alcohol license or permit is not required for the serving of wine or beer as part of any service provided by an establishment that is subject to regulation by the BBC. According to the Department of ABC, the department already interprets the provisions of AB 1322 as authorizing what this bill is seeking to do. However, the author’s office states that “our office has met with licensees in the district who have been told by the [department] that they are not eligible for the [current] exemption. Clarifying the law to state that all licensees are eligible will assure that there is no confusion in the future.”

According to the BBC’s website, the BBC licenses over 50,000 establishments. It’s unknown how many of these 50,000 establishments are currently serving beer and/or wine as part of any of the services they provide.

Prior/Related Legislation

AB 1322 (Daly and Wilk, Chapter 741, Statutes of 2016) allows beauty salons and barber shops to serve their limited quantities of beer and wine at no extra charge and without obtaining a license or permit from the Department of ABC, as specified.

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. (Never Heard in the 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:

None received

OPPOSITION:

None received