Bill Text: CA AB1579 | 2009-2010 | Regular Session | Introduced
Bill Title: Alcoholic beverage control: licensees: operating permits.
Spectrum: Moderate Partisan Bill (Democrat 11-3)
Status: (Engrossed - Dead) 2009-09-11 - To inactive file on motion of Senator Romero. [AB1579 Detail]
Download: California-2009-AB1579-Introduced.html
BILL NUMBER: AB 1579 INTRODUCED BILL TEXT INTRODUCED BY Committee on Governmental Organization (Price (Chair), Cook, Coto, Evans, Galgiani, Hall, Hill, Jeffries, Lieu, Mendoza, Portantino, Torres, Torrico, and Tran) MARCH 23, 2009 An act to amend Section 24044.5 of the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGEST AB 1579, as introduced, Committee on Governmental Organization. Alcoholic beverage control: licensees: operating permits. Existing law authorizes the Department of Alcoholic Beverage Control, in its discretion, to issue an interim retail permit to an applicant for any retail license to operate the premises during the period an application for a license at the premises is pending, subject to specified conditions. This bill would revise the authorization of the Department of Alcoholic Beverage Control to, in its discretion, issue an interim operating permit to an applicant for any license to operate the premises during the period an application for a license at the premises is pending, subject to specified condition applicable to all licensees or retail licensees only. The Alcoholic Beverage Control Act provides that a violation of any of its provisions for which another penalty or punishment is not specifically provided is a misdemeanor. This bill would expand existing crimes by imposing additional duties on a licensee under the act, thus, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 24044.5 of the Business and Professions Code is amended to read: 24044.5. (a) The department, in its discretion, may issue an interimretailoperating permit to an applicant for anyretaillicense to operate the premises during the period an application for a license at the premises is pending and when all of the following conditions exist: (1) The application has been protested pursuant to Article 3 (commencing with Section 24011). (2) The department has made a determination based upon its investigation that the license should be issued. (3) The applicant for the interimretailoperating permit has filed with the department an application for issuance of a license at the premises to himself or herself. (4) The application for the interimretailoperating permit is accompanied by a fee of one hundred dollars ($100). (b) An interimretailoperating permit issued by the department pursuant to this section shall be for a period not to exceed 120 days. An interimretailoperating permit may be extended at the discretion of the department for additional 120-day periods as necessary upon payment of an additional fee of one hundred dollars ($100) and upon compliance with all conditions required by this section. Anyinterimoperating retail permit issued by the department shall be automatically canceled when a final determination made by the department regarding the protests becomes effective or when the application for theretaillicense is withdrawn, whichever occurs first. An interimretailoperating permit is a conditional permit and authorizes the holderthereof to sell alcoholic beverages as would be permitted to be sold under theto whom issued to exercise the rights and privileges of the license for which the application has been filed with the department. Any conditions for which the applicant has petitioned pursuant to Article 1.5 (commencing with Section 23800) of Chapter 5 shall apply to any interimretailoperating permit issued by the department. (c) Purchase of beer and wine by the holder of an interimretailoperating permit issued to an applicant for a retail license shall be made only upon payment before or at the time of delivery in currency or by check. Purchase of distilled spirits by the holder of an interimretailoperating permit issued to an applicant for a retail license shall be made only upon payment before or at the time of delivery in currency or by certified check. However, the holder of an interimretailoperating permit issued to an applicant for a retail license , who also holds one or more retail licenses and is operating under the retail license or licenses in addition to the interimretailoperating permit, and who is not delinquent under the provisions of Section 25509 as to any retail license under which he or she operates, may purchase alcoholic beverages on credit under the interimretailoperating permit. (d) All checks received by a seller for beer or wine purchased by the holder of an interimretailoperating permit issued to an applicant for a retail license shall be deposited not later than the second business day following the date the beer or wine is delivered. A check dishonored on presentation shall not be deemed payment. The receipt by the seller or his or her agent in good faith from a holder ofa temporaryan interim operating permit of a check dishonored on presentation shall not be cause for disciplinary action against the seller. (e) Issuance of the license for which the holder of an interimretailoperating permit issued to an applicant for a retail license has filed an application shall not be approved by the department until the holder of the interimretailoperating permit has filed with the department a statement executed under penalty of perjury that all current obligations have been discharged, and that all outstanding checks issued by him or her in payment for alcoholic beverages will be honored on presentation. (f) It shall not be a violation of this section or grounds for disciplinary action for any licensee to extend credit to the holder of an interimretailoperating permit issued to an applicant for a retail license or to receive payment from thepermitteeholder of an interim operating permit in a manner other than authorized herein unless the seller has knowledge of the fact that the purchaser was operating under an interimretailoperating permit. Knowledge of the fact may be established by evidence, including, but not limited to, evidence that, at the time of receipt of payment or the extension of credit, the premises operated under an interimretailoperating permit were posted with the notice required by Section 23985, or the holder of the interimretailoperating permit has recorded notice as required by Section 24073, or the holder of the interimretailoperating permit has published notice as required by Section 23986, or the holder of the interimretailoperating permit has recorded and published notice pursuant to Division 6 (commencing with Section 6101) of the Commercial Code. (g) Refusal by the department to issue or extend an interimretailoperating permit shall not entitle the applicant to petition for the permit pursuant to Section 24011, or to a hearing pursuant to Section 24012. Articles 2 (commencing with Section 23985) and 3 (commencing with Section 24011) shall not apply to interimretailoperating permits. (h) Notwithstanding any other provision of law, the department may, in its discretion, cancel or suspend summarily at any time an interimretailoperating permit if the department determines that good cause for the cancellation or suspension exists. Chapter 8 (commencing with Section 24300) shall not apply to interimretailoperating permits. (i) Application for an interimretailoperating permit shall be on any form the department shall prescribe. If an application for an interimretailoperating permit is withdrawn before issuance or is refused by the department, the fee that accompanied the application shall be refunded in full, and Section 23959 shall not apply. Fees received by the department for issuance of interimretailoperating permits shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.