CC - Item 4B - Transfer of Alcoholic Beverage Licenses 'r� st_report
TO: HONORABLE MAYOR
AND MEMBERS
5_
ROSEMEAD CITY COUNCIL
FROM:\y RANK G. TRIPEPI, CITY MANAGER
DATE: YYY APRIL22, 1999
RE: AB 1092 (LOWENTHAL) -TRANSFER OF ALCOHOLIC BEVERAGE
LICENSES
Under current law, a City is able to regulate the issuance of new alcohol sales licenses through the
zoning ordinance and a conditional use permit (CUP) process. However, it is more difficult to
regulate the transfer of existing liquor licenses in a community. AB 1092 (Lowenthal) seeks to
strengthen local government control of ABC license transfers by allowing the Department of Alcohol
Beverage Control (ABC) to place "reasonable conditions"on retail liquor licenses upon request by
the local governing body.
This bill is important to cities because it enhances their role in the license transfer process. Most
cities view the process as routine and automatic, and thus feel somewhat powerless in controlling
the number of liquor licenses existing in the community. The City of Rosemead,however, currently
requires applicants requesting such a transfer to be approved through a CUP process. It is unlikely,
though,that the current process could withstand a legal challenge in the event that a transfer request
was denied by the City. AB 1092 would serve to strengthen the current process and validate the
City's procedures.
A copy of AB 1092 and committee analysis of the bill has been attached for the Council's review.
RECOMMENDATION:
It is recommended that the City Council support AB 1092 (Lowenthal) and authorize the Mayor to
send the appropriate correspondence.
COUNCIL AGENDA
APR 271999
conemoab 092 fgt
ITEM No.�"�-8
J
RPR 20 '99 01P42PM GONSALVES & SON P.2/9
f AMENDED IN ASSEMBLY APRIL 12, 1999
CALIFORNIA LEGISLATURE-1999-2000 REGULAR SESSION
ASSEMBLY BILL No. 1092
Introduced by Assembly Members
Lowenthal, Aroner, Calderon, Car, Havice, House,
Jackson, Knox, and Longville
February 25, 1999
An act to add Section 23958.5 to amend Sections 23800 and
_ 23805 of the Business and Professions Code, relating to
alcoholic beverages.
LEGISLATIVE COUNSELS DIGEST
AB 1092, as amended, Lowenthal. Alcoholic beverages:
i licenses: transfers.
Under existing law, the Department of Alcoholic Beverage
Control is authorized to place reasonable restrictions upon
retail licensees or any licensee in the exercise of retail
privileges in various situations.
• This bill would also permit the department to place
reasonable restrictions, on these licensees if the department
adopts conditions requested by a local governing body.
. • •
c,_ Control is required to make a thorough investigation to
determine whether an applicant for the transfer of a license
and the premises for which the license is applied .qualify for
a license and whether the provisions of the Alcoholic
Beverage Control Act have been complied with, prior to
issuing the license or the tranafcr.
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RPR 2a '99 01;44PM GONSALVES & SON H6/9
ab 1092
agov
19990419
Date of Hearing: April 19,1999
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Herb Wesson, Chair
AB 1092 (Lowenthal) -As Amended: April 12,1999
SUBJECT: Alcoholic Beverages
SUMMARY: Allows the Department of Alcoholic Beverage Control (ABC) to impose
conditions on off-sale retail licenses at the time of license transfer, if requested by the
respective local governing body. Specifically, this bill:
1) Authorizes the ABC to place reasonable conditions on off-sale retail licenses at the time
of license transfer, upon request by the local governing body in whose jurisdiction the
license is located. Upon receipt of a request for conditions, the ABC must either adopt
the conditions that were requested or notify the local governing body in writing of its
determination and the reasons for not adopting the proposed conditions. The bill further
requires that any request for conditions must be supported by substantial evidence
either on the licensed premises or in the immediate vicinity that would be mitigated by
the conditions.
2) Authorizes the ABC to adopt conditions requested by a local governing body only if the
request is filed within 30 days of notice given to a local government that an application
for a transfer of an off-sale retail license has been filed with the department.
3) Affords licensees the right to appeal the imposition of any conditions relative to this
authorization to the Alcoholic Beverage Control Appeals Board. If necessary, the
licensee may seek further judicial review from the District Court of Appeal or the State
Supreme Court.
EXISTING LAW:
1) Authorizes the ABC to place reasonable conditions upon retail licensees or upon any
licensee in the exercise of retail privileges in the following situations:
a) If grounds exist for the denial of an application for a license or where a protest
against the issuance of a license is filed and if the department finds that those
grounds may be removed by the imposition of those conditions.
=FR 20 '99 01 :45PM GONSRLVES & SON P.7/8
b) Where findings are made by the department which would justify a suspension or
revocation of a license, and where the imposition of a condition is reasonably related
to those findings. In the case of a suspension, the conditions may be in lieu of or in
addition to the suspension.
c) Where the department issues an order suspending or revoking only a portion of the
privileges to be exercised under the license.
d) Where findings are made by the department that the licensee has failed to correct
objectionable conditions that constitute a nuisance within a reasonable time after
receipt of notice to make corrections from a district or city attorney, or from the
department.
2.) Specifies that the type of conditions authorized above may cover any matter relating to
the privileges to be exercised under the license, the personal qualifications of the
licensee, the conduct of the business or the condition of the premises, including, but
not limited to: restrictions as to hours of sale; display of signs; employment of
designated persons; types and strengths of alcoholic beverages to be served; and the
personal conduct of the licensee
FISCAL EFFECT: Unknown
COMMENTS:
1. Background. Much to local government's frustration, both the State Constitution and the
ABC Act generally prohibit local governments from regulating the sale of alcoholic
beverages within their jurisdictions. Existing law does, however, afford local
governments some ability to determine where alcohol may be sold in their jurisdictions
by prohibiting the ABC from issuing a new alcoholic beverage license within a local
jurisdiction in an area that is not appropriately zoned for that type of business. This has
led some local governments to utilize their zoning authority and require that new
businesses located within their jurisdictions to obtain conditional use permits that, in
some instances, conditions their ability to sell alcohol. However, licensed businesses
that predate the enactment of a local zoning ordinance may continue operation under
existing law (and are essentially "grandfathered") provided the premises retain the
same type of retail license and are continuously operated without substantial change in
mode or character.
2. Purpose of the bill: According to the author, the purpose of this bill is to provide local
governments with the ability to recommend to the ABC that certain conditions be
considered at the time an off-sale license transfer is filed with the department.
Supporters contend that there is a general lack of local input when the ABC considers
the merits of a license transfer, and that in fact, the department routinely approves such
transfers regardless as to whether the premises has a history of law enforcement
problems or has operated as a public nuisance.
RPR c'o '99 01:45PM GONSRLVES
REGISTERED SUPPORT I Opposition:
Support
Alameda County Sheriff's Department
Alcohol Policy Network of Alameda County
Ashland Community Alcohol Policy Coalition
Balboa Park Collaborative
California Council on Alcohol Policy
City of Hayward
City of Oxnard
COMMPRE
Community Action Network
Harmony Women's Recovery Center
League of California Cities
Lesbigay Coalition
Mid-City for Youth
Mid-Coast Counseling and Recovery Center
North City Prevention Coalition
San Diego County Council on Alcohol Policy
San Diego County Policy Panel on Youth Access to Alcohol
San Fernando Valley Alcohol Policy Coalition
Santa Barbara Community Alcohol Problem Prevention Project
Vallejo Alcohol Policy Coalition
Ventura County Alliance of Alcohol Policy
Youth Leadership Institute
numerous individuals
Opposition
None
Analysis Prepared by: George Wiley! G. 0. 1(916) 319-2531