Assembly Standing Committee on Governmental Organization

We're going to go ahead and start the Assembly Governmental Organization Committee as a Subcommittee because we noticed the absence of a quorum. So I'm going to go ahead and get it started so everybody can move on with the business at hand. I'm going to do a couple of housekeeping things and then we'll move forward to the agenda. Witnesses can testify in person or by phone.

The number to call is 877-692-8957. Again, that number is 877-692-8957, and the access code is 18501100. Again, 18501100. This number can also be found on the Committee's website and is currently displayed on your screens. For those calling in, please mute yourself while in the queue to eliminate any background noise. For each bill heard today, there'll be an opportunity for two main witnesses in support, two main witnesses in opposition.

As tradition, this Committee or otherwise said, it will always be about two minutes per person, four minutes in total, so I will be giving you a gentle reminder. For additional witnesses calling in, you'll be placed in the queue until your opportunity to provide public comment. Support and opposition will be alternated or whenever it comes up, just to move the meeting a little bit quicker. When your opportunity to provide comment, press one then zero then unmute yourself in order to speak.

Please be brief, limiting your comments to name, organization, and position only. I'm going to do that as well for those who are present and stating a position after the main witnesses have gone up. Name, organization, and position only. And I'll repeat that several times so that we're fair to everybody. And with that, we'll begin as a Subcommittee, as we've mentioned, and sergeant, please call the absent Members. Announcements: Assembly Members Cervantes and Mathis are absent today.

I will skip the consent calendar because it would require a motion and a second, and we currently don't have a full Committee. We're operating as a Subcommittee. What I will do is--and I'll jump forward to any of the authors who might be present to begin their presentation, either Assembly Member Rubio or Assembly Member Patterson if they are here. And we're very fortunate to have Mr. Patterson here. Big round of applause. And you may begin, sir. Sorry to catch off guard right when you walked in.

No, that's great. I'm glad I was here so you all didn't have to keep waiting for other authors who are running a little later, you know. Good afternoon, Mr. Chair and Members. I'm here today to present AB 1668. This bill would provide a limited exception for Placer County to the existing alcoholic beverage license limit set by Department of ABC. It is important to know that recently recognized by the State of California as pro-housing, Place County is one of the fastest growing regions in the state.

In addition, we continue to support smaller businesses and allow for growth at the rate that the population continues to grow in the county, which is why I'm authoring this. This came up recently. There was actually a Sacramento Business Journal article about the inability for small businesses in my district to get licenses as the population has grown so fast. And so this was actually before I was even elected, and so when I got elected, I committed to doing this bill.

I think on the phone we have a supervisor, Bonnie--okay, Bonnie Gore. Big supporter of the bill, though. Joel Joyce, Legislative Coordinator for Placer County in support of this bill and to answer any questions.

Mr. Patterson, would you be so kind to allow us really quickly to take a roll call?

Oh, that'd be great. Thank you.

Thank you. Madam Secretary?

[Roll Call].

Quorum is established. Thank you for your kindness. You may proceed. And I believe you're referencing a witness now, right?

Yeah. That's it, and we'll turn it over here.

Thank you, Chair Santiago, Vice Chair Lackey, the remaining Members of the Committee for hearing this bill. I also want to thank Assemblyman Joe Patterson for authoring this bill. I'm Joel Joyce with the County of Placer. Within Placer County in rural and suburban cities and counties across the states, small businesses are typically the economic lifeblood of these jurisdictions, and within those small businesses, the service sector typically makes up the most jobs, with food and restaurant establishments making up a large number within that sector.

Unfortunately, Placer County has been overalllocated, its allotment of these Type 47 alcohol licenses. This has caused a supply and demand issue, and thus new licenses have not been issued in years, and currently on the open market, some of these licenses are exceeding 200,000 dollars. And this cost can only be afforded by large conglomerate, typically chain type restaurants. This bill will allow individuals and entrepreneurs who wish to start a food establishment to be able to without the need for an exorbitant amount of capital.

Additionally, restaurants fail at a high rate nationally and in this state, and thus the ability for individuals not to incur a high amount of debt or to raise as high amount of capital will allow these restaurant and food establishments to succeed at a higher rate. There is a limit within this bill at no more than four issued licenses per year and no more than ten total. As many Members of this Committee know, operating and succeeding with a small business is very difficult. And with that, I'd ask you to vote for yes to pass this legislation. Happy to answer any questions you may have.

Thank you. Mr. Patterson, you have a second witness?

No, that's it.

Okay, apologize. Any main witnesses in opposition? Not hearing any public comments in support in the room. We have a first and a second. I know it was Mr. Low who said the first; I couldn't catch a second. I apologize. Oh, Davies. I apologize. Any public comments in opposition in the room? Any question for Committee Members? You may close. Oh, you know what? If we can go to the phones. Any public comments on the phone? Name, organization, and position only. Moderator.

Thank you. To express your position on the bill, you may press one then zero on the telephone. And we do have a member of the public with an operator here. One then zero for anyone else. We'll go to line seven. Please go ahead.

Yes. This is Carson Benowitz-Fredericks, Alcohol Justice in San Rafael, California, in opposition. Thank you.

Thank you.

No others in queue, Mr. Chair.

You may close.

I respectfully ask for your aye vote.

This bill enjoys a pass recommendation. Sorry, we had a motion and a second. Madam Secretary, please call the roll.

File Item Five: AB 1668: Assembly Member Patterson. The motion is 'do pass to the Committee on Appropriations.' [Roll Call].

Bill pass; we'll leave it open, and I want to thank the Vice Chair for working with us to get five bills on consent. So big high five to the Vice Chair, and we would need a first and a second for the consent calendar. We have first: Mr. Gipson. Second by Ms. Quirk-Silva. Madam Secretary, please call the roll.

On the consent calendar file item one, AB 546. Via pudois. The motion is do pass to approach on consent. File item two, AB 782. Lackey. The motion is do passed to recommend consent. File item four, AB 1174. Joe Patterson. The motion is do pass to consent. File item six, AB 1679. Santiago. The motion is do pass to consent. File item seven, AB 1074, Santiago. The motion is do pass to appropriations on recommended consent. [Roll Call]

That bill is out and we'll wait for. You have some members to add. We're just going to give a couple of minutes for authors to come or if they give me permission, I'll present for them.

Thank you.

Last presenter is on the way, so we'll wait for a second. I'll make a motion, some ideas. Thank you, Ms. Rubio. And thank you very much for presenting.

You can begin when you're okay.

Chair.

Thank you.

We have a first. And we have a second.

Yes.

Thank you for the opportunity to present AB 1088 which would extend the direct consumer shipping flexibilities for small craft distillers through 2024. Let's see. I will try and cut it short. This is just an extension for the craft brewers and I would respectfully ask for an aye vote. I will answer any questions that you have.

Thank you. We have main witnesses in support.

Chair and Members. Nate Solo, on behalf of the California Artisanal Distillers Guild. We represent over 200 craft distillers throughout the state. This is critically important and appreciate your support. Thank you

Mr. Chair. Beau Biller, with Platinum Advisors on behalf of UPS, also in support.

Thank you. And wonderful. We're going to main opposition. Sorry, main witnesses in opposition. I'm not seeing any. So I'll move on. Public comments of those in the room who are support. Those in the room who may be in opposition. We'll go into the phones.

Thank you. We do have a public comment from the phone. Please press 1 and 0 again. There we go. We'll go back to line seven. Your line is open. Line seven. You may be muted. We can't hear you.

Yes, Carson Benowitz-Fredericks with Alcohol Justice San Rafael, California the common carrier is still a fairly sketchy way to deliver alcohol. We're opposed. Thank you.

Thank you. Any additional witnesses?

Thank you, Mr. Chair None from the phones.

Any questions for Committee Members? We invite the author to close.

Zero, respectfully ask for an aye vote. Thank you.

Thank you. We have a first. 2nd Madam Secretary, please call the roll.

[Roll Call]

Bills out. We'll leave it open. If you voted three times, you can correct me, Mr. Vice Chair, but if you voted three times, you've completed today's votes. We'll start up from the top again for all three bills, in case you missed any. Yeah, that's fine. We'll get them. All right. Now.

[Roll Call]

And we just did that for the benefit of anybody who was here who needed to leave. We'll go through it again for anybody who's coming down. Mr. Mccarty, Mr. Berman, we're going to run through this just so that you can fulfill your obligation to vote and go.

[Roll Call]

You guys are good. That's only three bills to go through.

[Roll Call]

That concludes Assembly GO. We adjourn the meeting.