Predictably, if you own a beauty salon or a barber shop and want to serve alcohol then you currently need to apply for a license from the Department of Alcoholic Beverage Control (“ABC”). Assembly Bill 1322 is meant to change that. AB-1322 is a groundbreaking new law rolling through the state legislature this year that will have a major impact on alcohol distribution in the state of California.

Existing law makes it unlawful for any person other than an ABC licensee to sell, manufacture, or import alcoholic beverages in California. Interestingly, however, Section 23399.5 of the Business and Professions Code allows the serving of alcohol without a license in a limousine or as part of a hot air balloon ride service, provided there is no extra charge or fee for the alcoholic beverages.

AB-1322 would amend Section 23399.5 to allow the serving of beer or wine without a license as part of a beauty salon or barber shop service if the following requirements are met:

(1) There is no extra charge or fee for the beer or wine. For purposes of this paragraph, there is no extra charge or fee for the beer or wine if the fee charged for the beauty salon service or barber shop service is the same regardless of whether beer or wine is served.

(2) The license of the establishment providing the beauty salon service or barber shop service is in good standing with the State Board of Barbering and Cosmetology.

(3) No more than 12 ounces of beer or six ounces of wine by the glass is offered to a client.

(4) The beer or wine is provided only during business hours and in no case later than 10 p.m.

To date, AB-1322 passed unanimously in the House and is working its way through the Senate this year.

The intent behind AB-1322 is to legalize and regulate an already common business practice. According to David Miller, a spokesman for Assemblyman Tom Daly (D-Anaheim), who authored the bill, the service of alcohol at beauty salons and barber shops is “one of those areas of law which needs to be updated to reflect modern realities.”

However, there are critics that oppose the law. According to alcohol industry watch groups, the state’s ability to enforce AB-1322’s requirements at over 45,000 new venues serving alcohol (a 41% increase) remains unclear. And because these businesses are not required to register with the ABC, identifying non-compliant businesses will be far from easy.

In any event, AB-1322 is a bill to keep an eye on in 2016.


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