BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1042
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CONCURRENCE IN SENATE AMENDMENTS
AB 1042 (Alpert)
As Amended June 26, 1996
Majority vote

 ASSEMBLY: 47-30 (January 29,1996)SENATE:  29-2 (August 8, 1996)     


Original Committee Reference:   G.O.

 SUMMARY:  Codifies an existing regulation and additionally  
prohibits a license from being issued for any premises for which a  
license has been denied two times within a 36-month period, unless  
two years have elapsed from the date that the last order became  
final.

 The Senate amendments limit the applicability of this bill to  
situations in which licenses have been denied only.  

 EXISTING LAW provides that the Department of Alcoholic Beverage  
Control (ABC) may deny an application for a license if issuance  
would create a law enforcement problem or result in or add to an  
undue concentration of licenses.  Both the applicant and the  
premises are investigated to determine if issuance would affect  
public welfare and morals.

 AS PASSED BY THE ASSEMBLY, this bill codified the aforementioned  
regulation and additionally prohibited a license from being issued  
for any premises for which a license has been denied or revoked  
two times within a 36-month period, unless two years have elapsed  
from the date that the last order became final.

 FISCAL EFFECT:  According to ABC, potential savings to the  
department due to a reduction in the number of hearings for  
multiple denials.

 BACKGROUND:  Existing law provides that the ABC may deny an  
application for a license if issuance would create a law  
enforcement problem or result in or add to an undue concentration  
of licenses.  Both the applicant and the premises are investigated  
to determine if issuance would affect public welfare and morals.  

Existing regulations prohibit the department from issuing a  
license for any premises for which an application for a license  
has been denied, or at which a license has been revoked, for  
reasons pertaining to the premises unless one year has elapsed  
from the date the order becomes final.  This rule can be waived in  
special circumstances, such as when the reasons that caused the  
denial no longer exist.   

 ARGUMENTS IN SUPPORT:  According to the author, current ABC policy  
allows any premise for which application for a liquor license has  











                                                          AB 1042
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been denied to reapply for a license after one year's time,  
regardless of whether the entity has addressed the reasons of the  
original denial.  It is therefore possible for an entity to apply  
for a license year after year, causing those who oppose the  
issuance, such as community organizations and police departments,  
to repeatedly expend time and resources in opposing the issuance  
of the license.

 ARGUMENTS IN OPPOSITION:  The longer waiting period may cause  
economic loss to the owner of the property.  It may be preferable  
to allow the ABC the flexibility to continue to deal with these  
requests on a regulatory, not a statutory, basis.


 Analysis prepared by:  Jim Branham / ago / (916) 445-3451           
 FN 027159