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
interim  retail   operating  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 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 interim  retail  
operating  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 interim  retail  
operating  permit is accompanied by a fee of one hundred
dollars ($100).
   (b) An interim  retail   operating 
permit issued by the department pursuant to this section shall be for
a period not to exceed 120 days. An interim  retail
  operating  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. Any  interim   operating  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 the  retail
 license is withdrawn, whichever occurs first. An interim
 retail   operating  permit is a
conditional permit and authorizes the holder  thereof to sell
alcoholic beverages as would be permitted to be sold under the
  to 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 interim  retail  
operating  permit issued by the department.
   (c) Purchase of beer and wine by the holder of an interim 
retail   operating  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 interim  retail
  operating  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 interim  retail   operating 
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 interim  retail
  operating  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 interim  retail   operating 
permit.
   (d) All checks received by a seller for beer or wine purchased by
the holder of an interim  retail   operating
 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 of  a temporary   an 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 interim
 retail   operating  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
interim  retail   operating  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 interim  retail   operating  permit
 issued to an applicant for a retail license  or to receive
payment from the  permittee   holder 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 interim  retail  
operating  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 interim  retail   operating
 permit were posted with the notice required by Section 23985,
or the holder of the interim  retail   operating
 permit has recorded notice as required by Section 24073, or
the holder of the interim  retail   operating
 permit has published notice as required by Section 23986, or
the holder of the interim  retail   operating
 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 interim
 retail   operating  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 interim  retail   operating
 permits.
   (h) Notwithstanding any other provision of law, the department
may, in its discretion, cancel or suspend summarily at any time an
interim  retail   operating  permit if the
department determines that good cause for the cancellation or
suspension exists. Chapter 8 (commencing with Section 24300) shall
not apply to interim  retail   operating 
permits.
   (i) Application for an interim  retail  
operating  permit shall be on any form the department shall
prescribe. If an application for an interim  retail 
 operating  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 interim  retail
  operating  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.                                                 
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