TO WELCOME YOU TO OUR
INFORMATIONAL HEARING ON THE
DEPARTMENT ALCOHOLIC BEVERAGE
CONTROL.
IT TIED HOUSE LAWS.
AS MANY OF YOU KNOW THIS
COMMITTEE HAS BROAD JURISDICTION
AND THAT'S OVERSEE A HIGH NUMBER
OF DEPARTMENTS AND AGENCIES.
WE ALSO HAVE THE PRIVILEGE OF
BEING THE LARGEST POLICY
COMMITTEE IN THE SENATE.
WITH SIXTY MEMBERS SEVEN BEING
NEW TO THE COMMITTEE THIS YEAR.
YES SUCH ITEMS A GOOD
OPPORTUNITY TO USE THIS TIME
BEFORE BILL HEARINGS BEGIN NEXT
MONTH. TO ORGANIZE A NUMBER OF
INFORMATIONAL HEARINGS.
TODAY WITH THE DEPARTMENT OF A.
B. C..
WE ALSO BE HOLDING AN
INFORMATIONAL HEARING LATER THIS
MONTH WILL FOCUS ON GAMBLING IN
CALIFORNIA.
THAT HEARING WILL INCLUDE A
NUMBER OF STATE AGENCIES IT OVER.
C. N. ENFORCE GAMBLING IN THE
STATE.
AS WELL AS A PRESENTATION BY THE
LEGISLATIVE ANALYST'S OFFICE.
MY HOPE IS THAT THESE HEARINGS
WILL BE ABLE TO PROVIDE MEMBERS
AND STAFF WITH VALUABLE
INFORMATION ON ISSUES THAT WILL
BE BEFORE OUR COMMITTEE.
THIS LEGISLATIVE SESSION.
WITH THAT SAID I'M HAPPY TO
WELCOME DIRECTOR JACOB APPLE
SMITH.
WITH THE ALCOHOL BEVERAGE
CONTROL DEPARTMENT A AND THANK
HIM FOR HIS WILLINGNESS TO BE
HERE TODAY AND ALWAYS HIS
WILLINGNESS --
TO YOU KNOW TO REACH OUT AND
COMMUNICATE WITH --
MY STAFF AND MY A. MYSELF SO --
APPLE SMITH WELCOME THANK YOU
CHAIRMAN A REALLY APPRECIATED ON
SENATORS REALLY APPRECIATE BEING
HERE -- I'M
GONNA GIVE YOU --
WE DON'T HAVE A LOT OF TIMES
SOMEBODY GIVE ME A RELATIVELY
QUICK OVERVIEW --
FEEL FREE TO ASK ME QUESTIONS
ALONG THE WAY --
AND I'M HAPPY TO ANSWER THEM ON
THE COVER JUST A BASIC OVERVIEW
AND THEN --
TO A DISCUSSION OF JUST OUR
GENERAL ARMED FORCE FOR PROGRAMS
ARE PREVENTION PROGRAMS OUR
LICENSING PROGRAMS AND THEN --
TALK ABOUT THE TIED HOUSE --
WHICH WAS THE AGENDA CHAIRMAN
KILEY PROPOSE SO I JUST WANT.
TO SOME OF MY STAFF IS HERE IF
THERE'S ANYTHING IN PARTICULAR --
I DON'T KNOW I'M HAPPY TO TURN
TO THEM -- I
WANTED TO SOLVING BUT I WILL SAY
ASK MY CHIEF DEPUTY --
CAROTID STAND UP PLEASE HE JUST
WAS IN A REAR END ACCIDENT NOT
HIS FAULT AND I FIVE AND HE GOT
HERE.
SKIPPING THROUGH THE BACK ROOM
LIKE A WHISTLING SAILOR
[inaudible]
PAYMENT.
I KNOW NO ONE KNEW WHAT THAT
MEANT BUT AS YOU CAN REMEMBER
THE OLD SPICE ADS RIGHT ANYWAY
SO -- AND
DESPITE MY PROMISED TO BE BRIEF
CAM HOT TO BE BRIEF I'M GONNA
START AND SEVENTEEN NINETY VERY
UNUSUAL REGULATORY --
ENVIRONMENT --
FOR A QUOTE CLOSELY REGULATED
PRODUCT AND A LOT OF IT HAS TO
DO WITH PROHIBITION SO PEOPLE
JUST PLAIN DRANK A LOT AND IN
THE EARLY PARTS THIS --
OUR OUR REPUBLIC.
THEY YOU CAN SEE THE AMOUNTS ARE
JUST PRETTY PHENOMENAL THE
ACTUALLY DECREASED OVER THE
COURSE OF THE NINETEENTH CENTURY
BUT WHAT BUT WHAT THERE WAS SO
MUCH ABUSE OF ALCOHOL.
THAT -- A
TEMPERANCE MOVEMENT REALLY ROSE
UP THAT LEAD TO PROHIBITION AND
AND THE TWENTIES OR IN CENTER.
AND IT WAS REALLY PART OF DAILY
LIFE -- I'M
A BIG CHARLES DICKENS FAN AND
DAVID COPPERFIELD NINE YEARS OLD
HOUSE ALE FOR LUNCH SO THAT'S
HOW MUCH PEOPLE DRINK BACK THEN --
THERE ARE LOTS AND LOTS OF
REVIEWED HIS PREDATORY MARKETING
PRACTICES ALL CALL THEM --
THAT THINK THAT DREW THE IRE OF
PROHIBITIONISTS --
AND ONE OF THOSE WHICH WE'RE
GONNA TALK ABOUT MORE IN DETAIL
LATER WAS THE TIGHT HOUSE --
AND JUST GENERALLY WHAT THE TIE
IS A MANUFACTURER CONTROLS A
RETAILER --
IT COULD BE THAT THE
MANUFACTURER SUPPLIES EQUIPMENT
SUPPLIES ALCOHOL SUPPLIES
WHATEVER BUT IT'S ESSENTIALLY
THE CONTROL.
OF OF OF ONE TIER OF THE
INDUSTRY MANUFACTURER RETAILER.
AND A CANDY THINGS ARE MORE
NUANCED WHICH WILL TALK ABOUT
LATER.
BUT REALLY PROHIBITION --
VERY MUCH OF A SOCIAL MOVEMENT --
AND THEN OF COURSE IN NINETEEN
NINETEEN WE HAVE --
WE HAD ACTUAL PROHIBITION BY
CONSTITUTIONAL AMENDMENT I'M IS
REALLY VERY MUCH OF A PARTLY A
RELIGIOUS PARTLY HEALTH.
I'M PARTLY A PUBLIC SAFETY
EFFORTS --
AND AS WE KNOW FROM THE HISTORY
OF AL CAPONE AND OTHERS AND
THERE'S A GUN THERE WHICH IS
KIND OF HARD TO SEE NEXT OF
THOSE CARDS --
IT ALSO LED TO IT UNFORTUNATELY
LED TO A WHOLE BUNCH OF CRIME
THERE WERE ACTUALLY BENEFITS
FROM IT --
CIRRHOSIS OF THE LIVER FOR
EXAMPLE WENT WAY DOWN BUT PEOPLE
OF COURSE STILL DRINK --
AND INSTEAD OF DRINKING IN A
LEGAL WAY SELECTIVITY WHICH IN
NINETEEN THIRTY THREE LED TO THE
REPEAL OF PROHIBITION --
AND ONE OF THE UNUSUAL THINGS
THAT HAPPEN IN THE REPEAL WAS
THAT THE STATE'S WERE GIVEN THE
RIGHT TO REGULATE ALCOHOL.
UNLIKE ANY OTHER PRODUCT IN THE
UNITED STATES SO TIME IS WALLS
REMEMBER FROM CITIZENS CIVICS OF
THOSE OF US WHO ARE HAVE LAW
SCHOOL INFLICTED ON THEM --
GENERALLY COMMERCE AND OTHER
THING SHOULD FLOOR ACROSS STATE
LINES WITHOUT DISCRIMINATION
WILL ONE DAY --
PRODUCT REALLY EXEMPTED FROM
THAT IS ALCOHOL AND THAT'S BY
THE TWENTY FIRST AMENDMENT SO
STATES CAN HAVE NO ALCOHOL.
BACON ABOUT CALL THAT IS
REGULATED VERY STRICTLY THEY CAN
DICTATE IS SOME STATES HAVE IN
THE PAST THAT THERE BE NO BEER
SOLD WITH MORE THAN THREE POINT
2% ALCOHOL IT CETERA.
SO IT'S AN IT'S AN UNUSUAL
REGULATORY SCHEME.
I WON THAT EXPLAINS A LOT OF THE
COMPLEXITY OF THE LAWS IN
CALIFORNIA.
AND LOS ROUTE THE COUNTRY'S
ORIGINALLY THE BE --
WE WAS THE REGULATOR --
AND THERE WAS A GIANT SCANDAL --
OF KICKBACKS AND PAYOFFS ON
CASPAR WEINBERGER ACTUALLY WAS
THE LEAD THE INVESTIGATIONS INTO
THIS -- SOME
OF SOME FISHEL'S FLED TO MEXICO
ALAN CRANSTON FAMOUSLY --
INVITED ONE OF THEM TO GET IS
PENSION CHECK WHICH USE GOING TO
KEEP ON HIS DESK IN SACRAMENTO
AND HE COULD COME BACK IN THE
CALIFORNIA GET IS PENSION CHECK
IF YOU WANTED IT.
UPON WHICH HE WOULD BE ARRESTED
AND SENT TO PRISON A WONDERFUL
HISTORY AND IN NINETEEN FIFTY
FIVE THE CONSTITUTION WAS PASSED
THAT -- THAT
CREATED MY AGENCY --
AS I USED TO LIKE TO TELL
GOVERNOR BROWN --
I'M THE ONLY ON ELECTED
CONSTITUTIONAL OFFICER IN THE
STATE OF CALIFORNIA AND THAT'S
BY THE NINETEEN FIFTY FIVE A
MINUTE NOW THAT DOESN'T MEAN I
CAN'T BE --
RELIEVED OF MY DUTIES AT ANY
MOMENT BUT NEVERTHELESS AT LEAST
I GET TO SIT ON THE CONSTITUTION
VERY PROBABLY --
SO SOME OF THE SOME OF THE
ISSUES WE FACE IN --
THE RIGIDITY OF OUR LAWS ALSO
ARE BY THE FACT THAT THE CITY IN
THE CONSTITUTION ALTHOUGH I
THINK THERE'S A LOT OF
FLEXIBILITY BIG MOST OF THE
THINGS WE WANT TO DO IN THE
STATE CAN BE ACCOMPLISHED
DESPITE --
THE FACT THAT THERE ARE LIMITS
PROPOSED BY OUR OWN CONSTITUTION.
OKAY SO BACKED UP TO THE
DEPARTMENT SO I MOVED FROM
SEVENTEEN NINETY TWO TWO
THOUSAND AND NINETEEN SEVEN
MINUTES --
AND AGAIN ASK MANY QUESTIONS AS
WE GO -- I
REALLY DON'T MEAN TO GOES SO
FAST I JUST WOULD LIKE TO ALLOW
YOU TIME TO TALK TO ME ABOUT
WHATEVER YOU WANT.
SORE BUDGET SEVENTY SIX MILLION
DOLLARS WE ARE 1100% SENT
SPECIAL FUND AT ALL OF OUR MONEY
COMES FROM FEES THAT THE
INDUSTRY PAYS US --
WE HAVE FOUR ENGINE FIFTY NINE
PEOPLE ABOUT WHERE ABOUT HALF
SWORN.
ON AND WE HAVE FIELD OFFICES
THROUGHOUT CALIFORNIA --
ALL THE WAY WE HAVE YOUR RECON
READING PALM DESERT --
SOME OF OUR LICENSING WORK IS
DONE BY PROFESSIONALS AS YOU'D
EXPECT.
ARM IT'S BUT WE HAVE A FAIRLY
COMPLICATED PROCESS BUT THERE'S
EXPERTS WHO UNDERSTAND IT AND
FOR THOSE PEOPLE WHO DON'T WE
HAVE A LOT OF FIRST AND SECOND
GENERATION SMALL BUSINESS PEOPLE.
WE ARE VERY COMMITTED TO HOLDING
THEIR HANDS AND WALKING THEM
THROUGH THE PROCESS --
WE HAVE INTERPRETERS WE WE SPENT
A LOT OF TIME WITH HANDS ON WORK
FOR PEOPLE NEEDED.
I'M REALLY TRYING TO HELP --
PEOPLE ET INTO BUSINESS AND NOT
BE A HURDLE FOR THEM AS LONG AS
THEY ARE --
THEIR GOALS ARE WHAT ARE ALL OF
OUR GOAL SHOULD BE WHICH IS TO
HELP CALIFORNIAN GROW JOBS. TO
BIG BUSINESS --
YOU CAN SEE THE RESTAURANT
BUSINESS FIFTY BILLION DOLLARS
WINERIES FIFTY SEVEN BILLION.
TWO MILLION DOLLARS TWO MILLION
JOBS IN CALIFORNIA.
AND THEY TEND TO BE PRETTY GOOD
JOBS -- IT
IS A IT IS AN INDUSTRY VIRTUALLY
ALL OF IT --
AND IT'S JUST IT'S A FANTASTIC
ECONOMIC GROWTH --
PART OF OUR STATE --
WE LICENSE ALL CURRENT YES
CHAIRMAN. TO ASK FOR QUESTIONS
HE'LL.
I BOUGHT WAS A SEEING THOSE
NUMBERS BEFORE BUT I NEVER SEE A
NUMBER RELATED.
TO HARD.
ALCOHOL IN TERMS OF DOLLAR
ECONOMIC VALUE WHAT THE HOW MUCH
OF THAT IS SOLD IN THE STATE OF
CALIFORNIA WE HAVE ANY.
INFORMATION ON THAT I I DON'T
KNOW THAT WE ACTUALLY DO --
WE MIGHT --
NOT NO NOTHING FROM THE PEANUT
GALLERY --
THE WHAT WHAT I WOULD SAY IS AND
WE AND WE CAN WE'RE GONNA TALK
ABOUT THIS I THINK A LITTLE BIT
BUT IN TERMS OF RESTAURANTS --
HARD ALCOHOL IS BECOMING
INCREASINGLY IMPORTANT TO THEIR
BUSINESS MODELS AND I'M IN IT'S
AN ONGOING ISSUE THAT WE'RE
DEALING WITH BECAUSE THERE ARE
LIMITS ON THE NUMBER OF
BUSINESSES THAT CAN SELL OUR OUR
ALCOHOL.
I'M IN PARTLY BY THE WAY.
TAKE IT BACK PROHIBITION PARTLY
THE REASON WAS IS THAT.
IT WAS IT'S IT'S IT'S FAR MORE
INTOXICATING BY VOLUME SO
GENERALLY THERE'S BEEN A BELIEF
THAT NEEDS TO BE MORE CLOSELY
REGULATED AND THAT'S SOMETHING
THAT IS A PATTERN THAT.
THAT THAT --
FLOWS THROUGH ALL STATES --
REGULATORY SYSTEMS --
WHETHER THAT SOMETHING THAT IS --
APPROPRIATE ANYMORE IS XIN WORTH
ASKING BUT GENERALLY IT'S BEEN
THE VIEW THAT IT IS A IT'S A
MORE DANGEROUS PRODUCT JUST
BECAUSE OF ITS ALCOHOL CONTENT --
WE LICENSE ALL SORTS OF THINGS
FROM AIRPLANES TWO SHIPS ARE WE
LICENSE --
GOLF CART ON GOLF COURSES WE
HAVE EIGHTY SEVEN KINDS OF
LICENSES ON THE MOST RECENTLY
CREE RECREATED WAS FOR A
CEMETERY IN LOS ANGELES --
SO LOTS AND LOTS OF DIFFERENT
KINDS OF LICENSES I MEAN THEY
HAVE SOME COMMONALITIES TO THEM.
THERE EITHER REACH SOME KIND OF
A RETAIL LICENSE LIKE A LIQUOR
STORE OR A CRUISE SHIP WERE
THERE CERTAIN ESSENTIALLY
SERVING IT. FOR TO THE CONSUMER --
THEIR DISTRIBUTOR --
DRIVING TRUCKS AROUND THE STATE
DELIVERING AND OR THEIR
MANUFACTURER LIKE THAT --
CATTLE UP AT THE TOP OR THE OR
THE THE WINE GRAPES NOT IN THE
LOWER LEFT HAND CORNER --
WE HAVE NINETY TWO THOUSAND
LICENSES IN THE STATE WE DO NOT
LICENSE INDIVIDUALS SO THOSE ARE
ACTUALLY NINETY TWO THOUSAND
BUSINESSES --
SOME OF THOSE BUSINESSES HOLD A
COUPLE LICENSES IN COMBINATION
SO THEY CAN DO A FEW DIFFERENT
THINGS --
BUT GENERALLY THERE ARE JUST
PLAIN A LOT OF LICENSES --
AND ALL OF THOSE ARE ONES THAT --
WE DO BACKGROUND INVESTIGATIONS
ON AND AND GET THEM IN THE
BUSINESS.
AND THEN THE RENEWAL AND RENEW
EVERY YEAR --
WE DO NOT DO ANY --
ASSESSMENT OF THEM WHEN THEY
RENEW IT'S JUST AN AUTOMATIC
PROCESS --
BECAUSE YOU CAN SEE WE HAVE
RESTAURANTS FORTY FIVE THOUSAND
OF THEM ABOUT A THIRD OF THOSE
ARE ONES THAT SERVE HOW HARD
ALCOHOL IN THE OTHER TWO THIRDS
ARE NOT PERMITTED TO BUY THEIR
LICENSE OTHER EITHER SELLING
BEER WINE BEER AND WINE --
BARS CLUBS MARKETS IT CETERA --
THE NON RETAILERS ARE --
YOU CAN SEE HIM AT THE BOTTOM
HOME -- THEY
A LOT OF THOSE REACHED OF NON
RETAILERS --
THE EXCUSE ME THE WITH THE
WINERIES BREWERIES IN STORES
SOME OF THOSE ACTUALLY HAVE
RETAIL OPERATIONS SO THAT'S WHY
YOU CAN GO INTO A WINERY IN YOU
CAN.
TASTE ONE YOU CAN BUY WINE IF
EVER RESTAURANT YOU CAN SIT DOWN
THEIR NEED AND DRINKING EVEN
DRINK OTHER PEOPLE'S WINE THERE --
SO THERE'S SOME BLURRING NOW OF
THE PURE.
I'M A MANUFACTURER VERSES I'M A
RETAILER AND THAT'S AN EXAMPLE
OF IT --
WITH THIRTEEN THOUSAND LICENSES
A YEAR --
AND IN GENERALLY YOU WERE WERE
PRETTY QUIRK PRETTY GOOD ABOUT
TIMELY MOVING THEM ON WE DO HAVE
SLOW DOWNS AND ALL AND SOME
AREAS WERE.
IMPACTED WERE TENDS TO BE.
MORE CONTENTIOUS MORE
COMPLICATED LOS ANGELES IS
ALWAYS EXAMPLE I USE JUST
BECAUSE THERE THERE ARE VERY
COMPLEX LOCAL PROCESSES.
AND THERE ARE THERE ARE TEND TO
BE A LOT OF PROTESTS PARTLY
BECAUSE THE COMPACTION OF IT
ALSO TRUE IN SAN DIEGO --
NO INTO TV CAN EITHER ISSUE OR
TAKE AWAY ON ALCOHOL LICENSE
OTHER THAN THE A. B. C..
NOW LOCALS CAN LIMóN IT BY
TAKING LIMITED BY ZONING TAKEN
DECLINED ISSUE IS C. U. P. --
THERE'S OTHER THINGS THAT THEY
CAN DO IF THEY DON'T WANT
ALCOHOL IN THEIR AREA --
THEY ALSO LOOK WILL CLOSE A LOT
OF TIMES PROTEST --
AND WE WORK CLOSELY WITH LOCAL
GOVERNMENTS AND LAW ENFORCEMENT
IN PARTICULAR TO TRY TO RESOLVE
THE ISSUES THE LOCAL COMMUNITIES
HAVE REGARDING ISSUES THEY WANT
TO PROTEST.
THAT ARE WE KNOW.
THANK YOU MISTER I JUST A
SPECIFIC TO THAT AND ABOUT A
THANK YOU --
FOR IN TERMS OF WHEN THERE ARE
PROTESTS.
WHEN I WAS ON THE BOARD OF
SUPERVISORS IN SAN FRANCISCO WE
HAD A COUPLE OF SITUATIONS?
WHERE THE OUR LOCAL POLICE --
A CAPTAIN OR THE LOCAL STATION
AND SIGNED OFF ON WHATEVER THE
LICENSE WAS OF THE MODIFICATION
OF THE HOURS MODIFICATION --
BUT ABC WOULD REJECT --
BASED ON LIKE ONE NEIGHBOR
PROTESTING AND WHERE AND WE YOU
KNOW PUTTING ASIDE WHETHER IT'S
EVER.
FAIR TO DENY PROTEST BASED ON
WHAT LIKE ONE NEIGHBOR.
PROTESTING.
AGAINST MY QUESTION IS --
ARE HEALTH COMMON IS THE A. B.
C. WOULD BASICALLY OVERRIDE WHAT
THE LOCAL POLICE ARE SAYING IS
IS OKAY AND THE NA AND DENY A
PERMIT -- G.
IT'S NOT THAT COMMON --
BECAUSE THE THAT THOSE ARE THEY
ARE VERY FEW AND FAR BETWEEN
MOSTLY BECAUSE ONE OF THE THINGS
ARE LICENSING PEOPLE REALLY TRY
TO DO IS WORK WITH THOSE
PROTESTS AND AND THE AND THE
LICENSEE AND THE LOCAL
GOVERNMENT TO SEE IF THEY CAN
GET COMPROMISES.
BY --
REDUCING THE AMOUNT OF NO HOURS --
OTHER CONDITIONS THAT WE CAN
ACTUALLY PUT ON A LICENSE IT'S
REALLY THE RARE SEARCHES
CIRCUMSTANCE WHERE WE GET THAT
FAR BUT IT DOES HAPPEN --
AND OUT SAID I'VE REALLY TRIED
TO MOVE US TO A MORE WHOLE
HOLISTIC REVIEW OF APPROACH AND
MORE ONE QUICK EXAMPLE IS --
I ISSUE DECISION WHICH IS
PRESIDENTIAL AND HAS THE EFFECT
OF A REGULATION WHEREBY --
INSTEAD OF JUST LOOKING AT ONE
PROTEST WHICH IS WHAT THE
STATUTE SEEMS TO IMPLY AS A RULE
WE SHOULD BE LOOKING AT THE
TOTALITY OF THE CIRCUMSTANCES
AND ENCOURAGING PEOPLE TO BRING
FORWARD NEIGHBORS WHO ACTUALLY
THINKS THAT IT'S A COMMUNITY
BENEFIT NOT JUST GO WITH ONE
PERSON DOESN'T LIKE.
IT.
ERICA COULD DECIDE NOT.
TO BY OFFICE ABSOLUTELY OF A
GREAT THANK YOU.
CENTER BORDERS.
I JUST FOLLOWING UP ON ALWAYS
LIKE A QUESTION [inaudible]
YEAH --
HAVING ALSO SERVED ON THE LOCAL
LEVEL ON THE BOARD OF
SUPERVISORS IN CENTRAL VALLEY --
WE HAD WHAT WAS ESSENTIALLY A
PRESUMPTION OF DENIAL.
THAT WHEN THERE WERE X. NUMBER
OF PERMITS ISSUED ANY GIVEN
LOCALE.
ANY APPLICATION THEREAFTER WAS
PRESUMED TO BE DENIED.
SOME OF OVER RIDE.
YES YOU CAN DESCRIBE.
IF WE'RE DEFERRING TO LOCAL
AUTHORITIES TO MAKE THESE
DECISIONS [inaudible]
AND THERE'S A PRISON WE WERE WE
WERE TOLD AND TELL ME IF I'M
MISTAKEN WE WERE TOLD THAT ABC
HAD THE BIRDS THE PRESUMPTION OF
DENIAL.
ONCE YOU EXCEED A NUMBER PERMITS
IN A GIVEN --
ZIP CODE ZONE OR WHATEVER WAS
YOU EXPLAIN THAT FOR SURE SO SO
THERE'S THERE'S PRESUMPTIONS IF
THERE'S AND IF THERE'S AN OVER
CONCENTRATION OF LICENSES OR THE
LICENSES ON OUR WAY WHAT IS
DEEMED AS A HIGH CRIME DISTRICT --
UNFORTUNATELY THE HIGH CRIME
DISTRICT A LOT OF TIMES JUST
COINCIDES WHERE PEOPLE WANT TO
BE RIGHT BECAUSE PEOPLE BREAK
INTO CARS MORE OFTEN IN DOWNTOWN
SACRAMENTO WHERE I LIVE I DON'T
CONSIDER TO BE A CRIME
INVESTIGATION MANY BETTER RULE
READS THAT WAY.
AND IF THAT IS TRUE THEN THERE
NEEDS TO BE CITY. TO JUSTIFY THE
ISSUANCE OF A LICENSE AND THERE
ALSO NEEDS TO THERE ALSO IS A
PRESUMPTION THAT WOULD THEY HAVE
TO CHAU QUIET AND THE LICENSEE
HAS TO SHOW THEIR WILL INTERFERE
WITH A QUIET ENJOYMENT OF THE
NEIGHBORS IF THERE ARE FACT
RESIDENTIAL NEIGHBORS WHICH IS
SIMILAR TO WHAT.
SENIOR WIENER WAS ASKING SO WE
HAVE RESTRICTIONS ON WHAT WE CAN
DO.
BUT AGAIN WE REALLY TRY TO WORK
WITH APPLICANTS --
TO BRING THEIR APPLICATION
FORWARD IN A WAY THAT IT WAS ME
IT'S MOST LIKELY TO BE GRANTED
IF IT'S IN FACT SOMETHING THAT
CAN FIT WITH A LOCAL COMMUNITY.
THAT'S INTERESTING PHRASES BEEN
DESCRIBED IS ESSENTIALLY
FOOTLOOSE.
THERE'S CATEGORICAL DENIALS AND
THE BURDEN OF PERSUASION --
TO TO SHOWN NECESSITY OR
JUSTIFICATION OF SOME KIND MADE
IT VERY VERY DIFFICULT AND JUST
KIND OF SAID I DIDN'T KNOW THE
NEXUS BETWEEN A. B. C. THE STATE
AND AND THERE'S AND THERE'S DIED
NOT TO GET TOO MUCH IN THE WEEDS
BUT FRESNO IS A GOOD EXAMPLE IN.
OTHERS PARTS OF FRIENDS NUMBER
PEOPLE BEEN REALLY CONCERNED
ABOUT LIQUOR STORES AND SO THERE
THERE'S NOT A LOT OF PUBLIC
SUPPORT OR EVEN LOCAL
GOVERNMENTS SUPPORT FOR NEW
LIQUOR STORES IN SOME OF THOSE
NEIGHBORHOODS.
BUT I WOULD SAY THATIN
RESTAURANTS HOWEVER MIGHT BE A
GOOD THING FOR THOSE
NEIGHBORHOODS BECAUSE ACTUALLY
BRING JOBS IN THEM AND SOME
OTHER LIFE THAN A PERSON WHO
JUST WANTS TO PICK UP.
CHEAP VODKA AT THE CORNER.
THANK YOU CENTER ONE THANK YOU --
WOULD YOU GIVE ME AN EXAMPLE OF
PERHAPS THE LICENSE BE FROZEN.
OR YOU HAVE ONE PROPRIETOR WHO
HAD PROBLEMS AS WE JUST HEARD --
PERSONAL ISSUES WHAT HAVE YOU IN
THE NEXT PROPRIETOR WHOSE CLEAN
AND AND IT'S PAST BACKGROUND
WITH THE LICENSE.
MAY NOT BE GIVEN TO THE LOCATION
OR THE CITY BECAUSE OF SOME
ISSUES.
THAT'LL BE.
A LICENSES SO ROTTEN THAT IT
ACTUALLY SHOULD BE REVOKED AND
HAVE THAT.
THAT -- THAT
OWNER OUT OF THERE REVOKE IT OUT
RIGHT WITHOUT ALLOWING IT TO BE
TRANSFERRED UNLESS THE LOCALS
DON'T WANT TO TRANSFER THEY JUST
THINK THE CORNER.
IS SO BAD THEY JUST NEED TO
CLEAN IT UP.
THAT THERE MIGHT BE AN EXCEPTION
GENERALLY WHAT WE'LL DO IS WE'LL
REVOKE IT.
AND GIVE THE PERSON SO MUCH TIME
TRANSFERRED WHILE THE BUSINESSES
SHUT DOWN SO THAT SO THAT.
SO THAT WE DON'T LOSE THE
ECONOMIC OPPORTUNITIES IN THE
BUSINESS AND LET ME JUST SORT OF
SAY GENERALLY WE'RE VERY LOW'S
TO SHUT DOWN BUSINESSES WE ARE
MINDFUL THAT.
THAT PEOPLE ARE PUT OUT OF WORK
WE TRY TO LOOK FOR OTHER THINGS.
TOO TO DO SHORT OF THAT TO
HYPOTHETICALLY FOR WERE LIQUOR
STORE ON THE CORNER OF SEVENTH
AND BROAD WAY I PATHETICALLY.
AND THERE WAS CRIME ISSUES AND
SO ON AND OF COURSE YOU.
WITH THE THE COMMUNITY AND SOME
WOULD YOU WITH THAT AND I
USUALLY FREEZE IT AND THEN.
MAYBE COUPLE YEARS LATER THEIR
REAPPLY --
IN YOU WOULD RECONSIDER.
WELL WE WE IT WE WOULDN'T EVEN
DO THAT OUT WE WOULD ACTUALLY DO
HOPE THAT THERE WAS SOME BUT IF
BUYER IF IT WAS A BUSINESS THAT
SHOULD BE RESUSCITATED AND SO
THE BUSINESS WOULD REALLY.
PROCEED SEAMLESSLY WHAT WE WOULD
DO WHEN IT WAS TRANSFERRED DOWN
WAS WE WOULD LOOK TO SEE WHAT
THE PROBLEMS WERE AND THEN PUT
CONDITIONS ON SO MAYBE THEY HAVE
PROBLEMS WITH LOITERING.
MAYBE THEY NEEDED SECURITY MAYBE
THEY BECAUSE OF SOME KIND THAT
WEREN'T WEREN'T HELPING THE
NEIGHBORHOOD SO WE WOULD LOOK
FOR THOSE SORTS OF THINGS.
TO CONDITIONS TO PUT ON A NEW
OWNER SO THAT THOSE PROBLEMS
WOULD BE AVOIDED UNDER NEW
OWNERSHIP [inaudible]
YES.
THE RUBIO THANK YOU I HAVE A
QUESTION IN TERMS OF NEW
INDUSTRIES WHAT IS A. B. C.
DOING.
TO THE THEIR MONITOR OUR LOOK
AHEAD AND TRY. TO FOR EXMPLE
UBER EATS THESE DELIVERY
SERVICES THAT DELIVER I DON'T
KNOW IF IT'S ALLOWED THE CAN
GIVE ME SOME INFORMATION TERMS
OF WHAT WE'RE DOING.
TO SO WE DON'T --
WE WE WE HAVE A WE HAVE A
DEFICIT IN OUR ABILITY.
TO WITH TO TO HAVE REGULATIONS
REGARDING THOSE ISSUES --
AND THAT'S JUST A A JUST A
RESOURCES ISSUE FOR US WHICH IS
NOT A GOOD THING.
BUT SO WHAT WE'VE DONE WITH ALL
THOSE --
MANY OF THOSE COMPANIES AS WE'VE
ACTUALLY MET WITH THEM TO TO
LOOK AT THEIR BUSINESS MODELS
THEY HAVE BEEN VERY COOPERATIVE
WITH THIS WE PROBABLY MET WITH A
HALF DOZEN --
DELIVERY SERVICE IS A VERY KIND
OR ITS GROCERY STORES IT CETERA --
AND THEY'VE BEEN VERY
COOPERATIVE WITH US AND TRIED TO
COMPLY WITH THE PRINCIPLES OF
MAKING SURE THAT THOSE THAT
SALES WERE CONDUCTED PROPERLY
AND THAT THE PRODUCTS ARE NOT
BEING DIVERTED TO KIDS AND TOOK
OVER INTOXICATED PEOPLE AND
OTHER PEOPLE REALLY SHOULDN'T BE
MY ALCOHOL OR COULDN'T PH#N
ACTUALLY.
WALKED INTO A BUSINESS SO WE'VE
ACTUALLY HAD NO ISSUES NO
PROBLEMS WHATSOEVER NO
COMPLAINTS I'D.
I THINK THAT A LOT OF THAT HOUSE
TO DO WITH THE FACT THAT WE'VE
BEEN VERY PROACTIVE IN THE
INDUSTRY HAS BEEN RESPONSIVE TO
THAT.
THING CAM [inaudible]
OKAY.
OKAY -- SO
I'VE I'VE KIND OF SAID THIS A
LITTLE BIT ON A MODEL TO SEE I
USED TO BE THE CHIEF OF THE
BUREAU OF GAMBLING CONTROL --
AND I AND I AND I JUST WANT TO
TRY TO WE TRY TO BE VERY
PRACTICAL AS REGULATORS.
AND I JUST USE THE EXAMPLE OF
PIKE HELP POKER WHICH IS
SOMETHING THAT --
EVER BEEN IN A CAR ROOM SOME
IDIOT AND TRICK OR TRAVEL
BECAUSE HIS IT'S REALLY
FASCINATING GAME AND IT'S BEEN
WHILE THERE ARE THERE'S PEOPLE
ALL OVER THE PLACE IT'S HARD TO
FOLLOW.
AND SO WHEN I WAS IN A GAMBLING
TO TROLL MY MY AGENTS REALLY
WANTED ME TO SLAP OF MUCH OF
RULES ON PUTTING OUT POKER TO
SAY.
HE CAN'T BET ON THAT HAND YOU
CAN'T THAT ON THIS HANDICAP IN
ON THAT HAND EYE SYMBOL WHO
REALLY CARES ABOUT ALL THIS.
THE OWNERS OF THE CLUBS DON'T
CARE OF THE PATRONS ARE HAVING A
GOOD TIME WE'RE NOT SEEING GUN
FIGHTS IN CARP ROOM SO WHY ARE
WE GONNA PUT MUCH REGULATIONS ON
IT.
AND WAS REALLY ONLY BECAUSE MY
AGENTS WANTED REGULATIONS ON AND
I'M NOT TRYING.
TO GET MY CHEAP SHOT BUT BUT IT
REALLY WHERE WE CAN BE PRACTICAL
HOW WE CAN TRY TO GET TO AS LONG
AS THOSE GAMES FOR SAFE AND
UNDER CONTROL EVEN IF MAYBE.
WE DON'T UNDERSTAND THE MORE.
ISN'T REALLY THE POINT RIGHT
THERE THEIR GREAT GAMES ARE
WONDERFUL GAMES AND THEIR
COLORFUL AND THEY WORK AND WE
ARE THIS STAND BACK FROM IT EVEN
THOUGH IT KIND OF MAKES THIS
LITTLE NERVOUS BECAUSE IT'S A
LITTLE WILD --
STORE AGENCIES AGAIN WE HAVE OR
ABOUT HALF SWORN THEIR STRAIGHT
UP FULL ON PEACE OFFICERS --
THEY HAVE ALL PEACE OFFICER
POWERS WERE FOCUSED IN AROUND
LICENSES TALISMANS BUT WE DO
SAID ON TASK FORCE AND DO A LOT
OF OTHER THINGS --
WE DO A LOT OF CRIMINAL
INVESTIGATIONS IN AROUND --
ALCOHOL ESTABLISHMENTS --
TO HUMAN TRAFFICKING NARCOTICS
AND GAMBLING --
ANYTHING THAT IS MAKING A
ALCOHOLICS DOWN ASTONISHMENT
YOU'RE RESPONSIBLE --
OR OTHERWISE ROTTEN OR
NEIGHBORHOOD PROBLEM --
WE ARE GENERALLY IN PLAIN
CLOTHES TIONS --
WHEN WE DO THINGS LIKE SERVICE
SEARCH WARRANTS SPEND WERE
ACTUALLY IN HOT HIGH PROFILE A
TIRE -- WE
DO -- LOTS A
LOT LIKE I SAID LOTS DRUG CASES
THOSE ARE A BUNCH OF GUNS WE
GOTTEN COUNTRY COSTA COUNTY OUT
OF A OUT OF A AND A LEGAL STILL
OPERATION --
ONE OF THE THINGS I AM YOU KNOW
LIKE ALL STATE AGENCIES WERE
ALWAYS CHALLENGE FOR THE
RESOURCES DAHLE TELL YOU ONE OF
THE THINGS ARE REALLY BLESSED
WITH AS I A FANTASTIC PEOPLE.
LOVE OUR DEPARTMENT --
WHICH IS REALLY --
JUST TO JUST OF SAYS THE GREAT
THING ABOUT I'M VERY PROUD ABOUT
US --
ARRESTED THIRTY TWO HUNDRED
PEOPLE LAST YEAR --
LOT OF IT HAVING TO DO WITH
SALES TO MINORS ARMS YOU EXPECT
AND WE INSPECTED --
THIRTY EIGHT THOUSAND OF ARE --
NINETY TWO THOUSAND LICENSEES.
THESE ARE A FEW OF OUR PROGRAMS
WITH THE OBLIGATORY --
ACRONYMS THAT ALL COPS LIKE TO
USE -- BUT I
WON'T TALK ABOUT ALL OF THEM ALL
JUST FOCUS ON TO THE I'LL CALL
POLICING PARTNERSHIP IS REALLY A
FORCE MULTIPLIER FOR US SO WE
GIVE --
GRANTS TO JURISDICTIONS
THROUGHOUT THE STATE ABOUT
USUALLY ABOUT SIXTY EVERY YEAR --
AND IT'S NOT JUST GIVING THE
MONEY WITH THEM IN THE FIELD TO
TEACH ME HOW TO DO ALCOHOL CASES
THEY DO MY ENERGY COURT CASES
THEY DO SHOULDER TAPS --
THEY DO SOME DISORDERLY HOUSES
CASES WHICH ARE COMMONLY --
ONES WITH HUMAN TRAFFICKING IN
THEM -- SO
IT'S AND IT'S OUR IT'S OUR HOPE
THEN THAT THE TAKE THAT WORK AND
FOR THE RENT --
IN THEIR OWN --
AND THEIR OWN DEPARTMENTS --
AND WE IT THIS YEAR WE'RE GIVING
OUT THREE MILLION DOLLARS AS
PART OF THIS PROGRAM --
ARE TRACE INVESTIGATIONS --
TARGET RESPONSE ALCOHOL
CONNECTED EMERGENCIES IS NOT
TERRIBLE BUT IT'S ACTUALLY AN
INCREDIBLY GOOD PROGRAM MORE.
IF THERE IS A IN ON MINOR
INVOLVED IN AN ACCIDENT WITH
SERIOUS BODILY INJURY OR DEATH --
WE WE WE INVESTIGATED AND TRACE
THE I'LL CALL IF WE CAN BACK TO
THE SOURCE --
IT SO IT'S SOMETHING WE DO ON
THE SPOT.
IT WOULD BE WITH IT USES LOCAL
DEPARTMENTS ALL OVER THE STATE
WE RIGHT NOW WE'RE DOING A
PROGRAM OR WERE DOING --
ROLL CALL BRIEFINGS TO GET
THERE'S A KID INVOLVED WITH
ALCOHOL ON AN ACCIDENT.
THEY NEED TO CALL US BECAUSE WE
CAN ALL A LOT OF TIMES TRAYS
THAT ALCOHOL IN THE SALES BACK
TO AN ESTABLISHMENT WHERE IT
CAME FROM.
YES SIR SURE THANK YOU
RESTRUCTURING IN THE IN THE LAW
ENFORCEMENT WORLD OF COURSE
WE'RE ALWAYS CONCERNED ABOUT.
OFFICER SAFETY AND I KNOW THAT
THE THE OFFICERS TO THE B. C.
HAVE FULL POLICE POWERS.
IN IN THEIR COURSE OF
INVESTIGATION AND THEY DISCOVER
SOMETHING YOU CAN SEE THE
OFFICER --
HANDCUFFED IN THAT INDIVIDUAL.
WOULD YOU.
WOULD THERE BE AN INVESTIGATION
THAT WE HE WOULD WALK IN AND
THEN FULFILL THAT INVESTIGATION
THROUGH ARREST.
OR WHAT HE TEAM UP WITH LOCAL
LAW ENFORCEMENT AND RAID SO
THERE WOULD BE MORE POLICE
OFFICERS AND JUST ONE OR TWO
THAT MAY CAUSE SOME PROBLEMS.
YOUR TYPICALLY --
DEPENDING ON THE MAGNITUDE OF
THE ISSUES YES WE WE TEAM OF
LOCAL ON FOR SINCE ALL MANY
TIMES -- WE
COMMONLY IN SERVING SEARCH
WARRANTS ESPECIALLY IN CROWDED
AREAS WE WE GENERALLY HAVE A
LOCAL POLICE WITH US --
SOMETIMES REAR IT FOR TACTICAL
REASONS OF OUR OWN --
OR IF IT'S SOMETHING WE CAN
MANAGE WITH THE STAFF OF AN
OFFICE BUT WE WE REALLY TRIED
ALL PARTNER WITH LOCAL POLICE
EVERYWHERE WE CAN --
THAT THEY REALLY RELY ON IS TO A
LARGE EXTENT BECAUSE VERY FEW
DEPARTMENTS ANYMORE HAVE TRUE
ALCOHOL VICE UNITS --
SAN FRANCISCO --
SACRAMENTO --
LA DO BUT A LOT OF PLACES --
YOU KNOW THEY'RE SO STRAIN FOR
RESOURCES IF THERE'S A BAR
THAT'S A PROBLEM.
THEY REALLY POINT TO US TO DEAL
WITH IT --
AND WE DO.
HELP US BUT IT IT'S REALLY ARE
IN THEIR VIEW OUR RESPONSIBILITY
AND WE TAKE THAT VERY SERIOUSLY
[inaudible]
THANK YOU.
THANK IN A REVIEW OF WHAT THE
RISE OF THE CANNABIS INDUSTRY IN
THE IN THE POPULARITY AND
ACCESSIBILITY IS THERE ANYTHING
THAT WE NEED TO BE DOING IN
TERMS OF MONITORING.
HOW THESE TWO INDUSTRIES MAKE
CROSSOVER?
WE ARE MONITORING THAT REALLY
CLOSELY --
OUR GOAL HAS BEEN TO MAKE PEOPLE
UNDERSTAND THAT THE PRODUCTS ARE
LEGAL.
NAY SHOULD NOT BE COMBINED IN.
ON ALCOHOL ESTABLISHMENT --
OR SHOULD NOT BE COMBINED WITH
ALCOHOL IF PEOPLE WANT TO TAKE
THE TWO OF MY HOME AND THEY CAN
DO IT UP THAT'S THEIR RIGHT THEY
CAN DO THAT IF THEY WANT TO BUT
WITH THE LEADS THOSE THOSE
STATUTORY SCHEME IS REALLY CLEAR
THAT THEY NEED TO BE SEPARATED.
SO WE HAVE SENT OUT ADVISORIES
WE'VE SENT WARNINGS TO LICENSEES
OF OURS WHO REALLY SEEM TO WANT
TO COMBINE THE TWO PRODUCTS THAT
I MEAN IN A VERY ENTREPRENEURIAL
WAY I DON'T THINK THERE ARE YOU
KNOW THEY'RE TRYING TO BE --
CROOKS OR ANYTHING BUT WE'RE
JUST REALLY --
THIS BECAUSE WE DON'T WANT THIS
TO GET AWAY FROM US AND AND IN
INDUSTRY TO ADD TO RISE UP THOSE
ESSENTIALLY COMBINING THE
PRODUCTS.
UNLESS OF COURSE THE LEGISLATURE
DECIDES THAT'S OKAY FOR RIGHT
NOW WILL THE MESSAGE IS CLEAR
KEEP THEM SEPARATE.
SO WE OF BEEN REALLY WORKING
HARD TO KEEP OUR LICENSEES OUT
OF TROUBLE WHEN THEY'RE TRYING
TO MAKE COCKTAILS WITH CANNABIS
AND THEM AND ANALYZE ONLY
BETWEEN TWO AND FOUR AM IN
CERTAIN CITIES ARE.
THAT'S CORRECT. FIVE TO MISTER
CHAIRMAN BACK.
ON HAT YEAH SO --
AS ONE OUT OF A HUNDRED TWENTY
LEGISLATORS I I THINK THAT THIS
SHARP.
LIKE.
THE TO SHALL NOT EVER MEET I
THINK IT IS NOT A CRITICISM A.
B. C. IT'S THE LAW IS THE LAW
AND I HOPE WE CHANGE OUR ITS
IRRATIONAL --
AYE AYE AND THERE WAS A BILL I
THINK LAST YEAR I DON'T REMEMBER
THE GOVERNOR SIGNED THAT I VOTED
AGAINST.
TO THE YOU CAN EVEN CHOOSE
ALCOHOL WITH WITH ANYTHING FROM
CANNABIS EVEN IF HAS NOTHING TO
DO WITH INTOXICATION WE ARE --
ABSOLUTELY STIFLING INNOVATION
AND THEN THE IDEA THE IN TERMS
OF WHERE PEOPLE ARE SUPPOSED TO
CONSUME CANNABIS WE DON'T WANT
THEM DOING ON THE STREET --
YOU HAVE YOUR PEOPLE.
YOU KNOW PEOPLE DON'T WANT TO BE
THE OLD PEOPLE SMOKING.
AND THE BUSINESS COMMUNITY CAN
PROVIDE THAT IT CAN BE DONE I I
THINK A SAFE.
WAY -- SO I
HOPE WE MOVE AWAY FROM THE SHARP
CANNABIS IS YOUR ALCOHOL IS HERE
AND THE WORLD WILL AND IF THEY
COME TOGETHER --
AND JUST A REAL QUICK REFERENCE --
WE HAVE A LITTLE BIT OF AN
UNUSUAL --
DISCIPLINARY --
SYSTEM -- SO
THIS IS FOR IF WE TAKE ACTION
AGAINST A LICENSE OR LICENSES
TONIGHT -- I
HAVE MY OWN PROSECUTORS AT MY
OWN JUDGES AND ACTUALLY MAKE ALL
THE DECISIONS MYSELF SO.
I IT'S OF IT'S VERY MUCH OF A
PERSONAL ATTENTION TO DETAIL
THAT I TAKE RESPONSIBILITY FOR
ALL OF THESE THINGS --
AND SO MY MAKE A LOT.
COUPLE HUNDRED DECISIONS BASED
ON JUDGES ON RECOMMENDATIONS TO
ME EVERY YEAR --
AND THEN OBVIOUSLY THEY HAVE AN
APPEAL TO AN APPEALS BOARD --
LET ME SEE SAY SOMETHING A
LITTLE BIT ROB REGULATION THIS
IS SORT OF A SEGUE INTO TIGHT
HOUSE.
GENERALLY MOST PEOPLE THINK
ALCOHOL S REGULATED IN THE
RIGHT WAY IF YOU TAKE A POLL
FROM -- I
THINK THEY RECOGNIZE THAT IT'S A
PRODUCT THAT HAS SOCIETAL
PROBLEMS IF IF LEFT UNFETTERED --
IF YOU LOOK AT WHAT THEIR
CONCERNS ARE DRUNK DRIVING AN
UNDERAGE DRINKING RIGHT UP THERE
AT THE TOP.
THERE A LITTLE LESS CONCERN
INTERESTINGLY ABOUT LOWERING
PRICES WHICH IS GENERALLY THE
HUGE IN THE ARGUMENTS YOU HERE --
FOR FOR DEREGULATING PRODUCTS --
AND THE INDUSTRY ITSELF VERY
MUCH SUPPORTS OUR DEPARTMENTS --
AND REGULATION AND WHY BECAUSE
IT'S IS A IS A QUOTE ON QUOTE
SAN INDUSTRY RIGHT.
BAD STORIES.
ARE THEY'RE THE ONES WE'RE GONNA
GET PICKED ON FIRST THERE'S
NOTHING THEY FEAR MORE THAN
TAXATION REALLY OR UNDUE
REGULATION --
AND THAT IS BECAUSE IT'S A
PRODUCT THAT TRADITIONALLY HAS
BEEN SOMETHING THAT WHEN THINGS
GO BAD.
SOMEONE WANTS TO REGULATE THEM
OR TAX THEM --
AND THEY'RE ALSO GENERALLY A LOT
OF THEM SPECIALLY MID TO SMALL
BUSINESSES.
REGULATION IS IS FOR THEM A
GUARD AGAINST UNFAIR COMPETITION.
THE DIRECTOR I JUST WANTED TO
MAKE A POINT THAT.
I DIDN'T WANT ANY THE NEW
A. B. C. REGULATES MARIJUANA --
YEAH WHILE I HOPE TO THE
DEPARTMENT OF BEER OF KICK
CANNABIS CONTROL REGULATES
MARIJUANA --
IS EFFECTIVELY AS THE A. B. C.
DOES --
ALCOHOL.
IT'S A TOTALLY DIFFERENT
DEPARTMENT.
I GERMAN PLEASE AT NIGHT
RECOGNIZED OUT BUT DOT COMING
FROM LOCAL GOVERNMENT WHERE WE
HAD ISSUED PERMITS THERE'S
ALWAYS THE THE BAD ACTOR AND THE
AND THE POOL OF PEOPLE THAT WANT
TO DO THE RIGHT THING AT THE
RIGHT TIME AND SO WE'VE
EXPERIENCED SOME.
SOME ISSUES SO I WAS JUST
WONDERING IF YOU HAD COME ACROSS
ANYTHING THAT.
KIND OF LEADS US TO BELIEVE THAT
WE NEED TO BE LIKE MARK AND THE
ONLY THING AND ADD TO THAT IS.
THERE'S A LOT OF SMOKE AROUND
THIS ISSUE PARDON THE PUN --
WE'VE FOUND VERY LITTLE ACTUAL
CROSSOVER IT'S BEEN MOSTLY.
PEOPLE TALKING ABOUT AN ARTICLE
SPRING UP ABOUT IT --
SO HERE AGAIN SO NOW WHAT'S THE
DATE BACK TO THE TIED HOUSE --
IN AGAIN A TIGHT HOUSE MEANS A
MANUFACTURER.
AND THE HOUSE THAT SELLS ALCOHOL
ARE TIED TOGETHER --
INCLUDED IN THIS --
SYSTEM IS A* WHOLESALERS SO
IMPURE TIGHT HOUSE SYSTEM.
NO MANUFACTURER WHOLESALER
RETAILER CAN HAVE ANY OWNERSHIP
OR CONTROL OVER ANY OTHER TEAR.
AND THE IDEAS THIS CREATES
ORDERLY DISTRIBUTION AT PRESENT
IT PREVENTS ACCESS.
SO AGAIN BACK TO THE BACK TO THE
OLD DAYS --
IN IN TO ONE OF THE REASONS TIED
HOUSES WERE SO CONCERNING IS
THAT --
THERE WERE FEARS COMPETITIONS
PARTICULAR MUNK BREWERIES --
AND THEY ESSENTIALLY WOULD PUT
SALOONS OR OR BARS AND TO
BUSINESS --
AND THEY WOULD SOMETIMES BY THE
EQUIPMENT SOMETIMES BY ALL THE
GLASSWARE ON BETWEEN NINE AND
EIGHTEEN NINETY FIVE IN NINETEEN
OH FIVE THE SLITS BREWING
COMPANY FOR THOSE OF US OLD
ENOUGH TO REMEMBER SCHLITZ BEER --
THEY IN DISTRICT ONE NEIGHBOR
SAYS I'M IN SOME NEIGHBORHOODS
THERE WERE TWO HUNDRED PEOPLE
FOR EVERY BAR --
THEY USE FREE LUNCHES
PROSTITUTION GAMBLING ANYTHING
THEY COULD TO COMPETE WITH EACH
OTHER.
AND TO TO SELL ALCOHOL A LOT OF
TIMES SOME OF THESE COMPANIES
WERE WERE --
FOREIGN OWNED OR NOT LOCALLY
OWNED.
THEY DIDN'T REALLY GIVE MUCH
CARE ABOUT LOCAL COMMUNITIES
THEY JUST HAD A PROFIT MOTIVE
AND THAT PROFIT MOTIVE WAS WAS
TO SELL ALCOHOL AS MUCH AS THEY
COULD AND TO ELIMINATE THEIR
COMPETITORS.
SO WHEN --
PROHIBITION CAME OUT --
WHO'S VIEWED AS HAVING GONE TOO
FAR -- THAT
IT WAS WITH A REALLY NOT GOING
TO CHANGE TEN THOUSAND YEARS OF
HUMAN HISTORY --
THE STATE'S WERE ALLOWED TO
REGULATE AS I SAID BEFORE.
SO -- IN
SOME STATES ARE COTROL STATES
MEAN THEY ACTUALLY RUN THE
LIQUOR STORES SOME OF A MORON
ACTION THE WHOLESALERS SOME RUN
BOWL JUST DEPENDS THERE'S ALL
SORTS OF MODELS --
CALIFORNIA CHOSE TO NOT BE IN
THE ALCOHOL BUSINESS BUT IT
ACTUALLY HAD CHAU STRICT
REGULATIONS AND ARE STRICT TIED
HOUSE PROVISION SO NINETEEN
THIRTY FIVE ONE OF MY AGENTS
ACTUALLY FOUND THE ORIGINAL ACT.%
HE WOULD LET ME BRING UP THE DID
MAKE A COPY FOR ME SO THIS WAS
HELP BEING THE A. B. C. ACT WAS
IN NINETEEN THIRTY FIVE AND THE
TIGHT HOUSE ROOM RULES.
WORD ABOUT TWENTY SEVEN WORDS
LONG WHICH SAID IF YOU'RE A
RETAILER YOU CAN'T BE A
MANUFACTURER FOR MANUFACTURE YOU
CAN'T THE RETAILER FOR
WHOLESALER ETCETERA.
SO IT'S JUST ONE TINY LITTLE
PROVISIONING HERE AND THIS IS MY
ACT TODAY --
AND IT IS ABOUT FIVE HUNDRED
PAGES LONG.
SO IT IS ENORMOUSLY COMPLICATED --
LEE REGULAR WHO WE SHE'S THE
HEAD OF OUR TRADING FORCED ME
UNIT WHICH DEALS WITH TIGHT
HOUSE --
UNFORTUNATELY SHE'S LIKE A
WALKING --
YOU KNOW --
ALFIE KISS AND AND KNOWLEDGE OF
ALL THINGS AND COMPUTER IN THIS --
BUT IT'S HARD TO FALL I MEAN IS
THERE SOME BASIC THINGS ARE
CLEAR.
BUT THERE'S SOME OBSCURE THINGS
THE TRIP UP VERY SOPHISTICATED
PEOPLE.
AND THAT'S NOT A THAT'S NOT A
GOOD THING BUT BUT WE'VE CREATED
EXCEPTIONS OVER THE YEARS AND
VERY UNUSUAL SEARCHERS
CIRCUMSTANCES THAT HAVE.
UNINTENDED CONSEQUENCES SUCH AS
FIVE HUNDRED PAGES OF LAWS
REGULATIONS.
OF SERVER NOT NINE NINE THIS BUT
I'M I MEAN TO THIS COMMITTEE --
WHAT WHAT IS IT THAT ALLOWS A --
LIKE A BREWERY TO SELL ALCOHOL
ON THEIR OWN PREMISES AT A
COMPETITIVE MICROBREWERY FOR
EXAMPLE.
SURE SO --
SO THERE'S THERE'S REALLY TWO
WAYS SO --
THAT CAN BE A MENU FOR IT'S
BASICALLY A MANUFACTURING
LICENSE THEY HAVE TO MANUFACTURE
ON THAT PROMISES AND THEN
THEY'RE ALLOWED TO SELL THE BEER
FOR CONSUMPTION ON THE PREMISES
SO THE GOLDEN ROAD NINETEEN TO
AND CON ELSTREE WHICH HAS BEEN
IN THE NEWS --
THERE ALSO THE AND DOWNTOWN ONLY
THAT'S OWNED BY ANHEUSER BUSCH
THEY MAKE BEER THERE AND THEN
THEY CAN SELL THEIR OWN BEER
THERE --
THERE'S OTHER ONES THAT ARE ON
LIKE A BREW PUB --
THEY HAVE TO MANUFACTURE BEER ON
THE PREMISES --
AND WE'VE GIVEN THEM AN
EXCEPTION TO BE A RETAILER OR
WITHIN CERTAIN RESTRICTIONS AND
LIMITS.
WINERIES HAVEL HAVE MORE
PRIVILEGES THAN ANY OF THE OTHER
MANUFACTURERS THEY CAN ACTUALLY
OWN LIQUOR STORES BUT ONLY ONCE
IT'S SELL BEER AND WINE THEY
CAN'T HAVE A LIQUOR STORE THAT --
CELLS HARD ALCOHOL --
THEY CAN THEN ALSO HAVE A
RESTAURANT AND IF THEY HAVE A
RESTAURANT THEY'RE ALLOWED TO
SERVE OTHER PEOPLE'S WINE --
AS LONG AS IT COMES IN THE
NORMAL DISTRIBUTION CHANNELS.
AND ARE WE IN USUAL
INTERNATIONALLY IN THIS I KNOW I
THINK IN THE U. K. FOR EXAMPLE
YOU HAVE BIG BREWERS WHO WILL.
HAVE CONTRACTS WITH PUBS AND AN
OLD THEN THE BASIC EXCLUSIVELY
SELL THEIR THEIR BEERS I IS THAT
CORRECT THAT IS CORRECT OKAY.
IS THAT IS THAT IS THAT A COMMON
MODEL IN EUROPE.
IT'S A COMMON MODEL IN EUROPE
IT'S COMMON MODEL IN THE WORLD --
MISSION DID NOT WANT.
SO FOR EXAMPLE RIGHT NOW IN
BRAZIL FEARS COPIES.
MANAGER BUSH'S HEADQUARTERED IN
BRAZIL --
AND HEINEKEN IS DECIDED THAT IT
WANTS TO EDGE RAN AS A BOOKSHOP
IN BRAZIL SO THE TWO COMPANIES
ARE LITERALLY GOING AROUND AND
THEY ARE PUTTING.
THEIR PAYING BARS FIFTY THOUSAND
DOLLARS TO CARRY ONLY THEIR
PRODUCTS WE COULD HAVE TO DO
THIS KIND OF THING SOME COKE AND
PEPSI DO THIS KIND OF THING
WHICH IS ONE OF THE REASONS WHY
CODE.
IF YOU GO TO A BIG SUPERMARKET.
THERE'S MAYBE LIKE A COUPLE
KINDS OF THERE'S A COUPLE
MANUFACTURERS OF SODA POP AND
THERE ARE SEVENTY FIVE
MANUFACTURERS OF BEER.
IN.
AND THIS IS A THIS IS PRIMARILY
A PRO COMPETITION.
THANK ITS IT'S ORIGINS ARE
INTEMPERANCE BUT IT HAS BECOME A
FOR MORE OF A FAIR COMPETITION
STATUTE VAN A TEMPERANCE STATUTE
YASSIN'S PRACTICAL APPLICATION.
I STILL I STILL THINK THEY'RE
THE UNDERPINNINGS OF TEMPERANCE.
IF IT WAS ELIMINATED PEOPLE
MIGHT START TALKING ABOUT
TEMPERANCE MORE BUT RIGHT NOW
IT'S MOSTLY. FOR COMPETITION
[inaudible]
RIGHT OKAY --
AND THAT'S THE BANDS OF THE TIRE
A SYSTEM PERMITS THE CREATION
AND GROWTH OF CALIFORNIA SMALL
BUSINESS.
AND THE CRAPPER RESOURCE HERE
SOMEWHERE THEY MAY STILL BE IN
AS I ALWAYS SAY THE ONE OF THE
REASONS THERE ARE THOUSAND
CRAFTERS IN THE STATE OF
CALIFORNIA IS BECAUSE OF THE
TITLE SYSTEM.
THEY CAN ACTUALLY GET ON STORE
SHELVES THEY CAN ACTUALLY MOVE
THEIR PRODUCT THROUGH COMMERCE --
IT ALSO IS A SYSTEM THAT ALLOWS
LOCAL INTERESTS TO BALANCE THEIR
OWN ECONOMIC DEVELOPMENT WITH
PUBLIC HEALTH AND SAFETY.
THEY'RE NOT.
THEY'RE NOT THE RE PEOPLE
SELLING ALCOHOL IN THEIR IN
THEIR AREAS.
NEED TO HAVE SOME LOCAL
CONNECTIONS AS OPPOSED TO BEING
CONTROLLED BY SOMEONE FAR AWAY
WHO DOES NOT CARE ABOUT THE
NEIGHBORHOOD --
AND IT'S A DIFFERENT EDITORS ON
FOR COMPETITION [inaudible] FOR
SURE --
COMMON THERE STILL BRIBERY
EXTORTION.
LOTS OF THERE'S STILL LOTS OF
COMPETITION THE INDUSTRY.
MORE COMMONLY IT'S CREATIVE
APPROACHES OF ADVERTISING WAYS
OF FUNNELING MONEY INTO FROM
MANUFACTURERS TYPICALLY TUESDAY --
TO RETAILERS IN WAYS THAT --
SHORT OF BRIBES ARE --
DESIGNED TO CREATE A CONTROLLING
RELATIONSHIP WHERE BY RETAILERS
MORE LIKELY.
TO CARRY THAT MANUFACTURES
PRODUCT BECAUSE OF COMMERCIAL
INCENTIVES AS OPPOSED.
TO BY VIRTUE OF SUPPLY DEMAND
ETCETERA [inaudible]
YES.
A QUICK QUESTION ON ON ON THAT
LAST SLIDE.
SO WHEN YOU GO INTO SUPER EIGHT
WHEN YOU GO IN A CONVENIENCE
STORE OR LIQUOR CORN LIQUOR
STORE AND YOU SEE ALL OF THE
NEON LIGHTS.
OF ANY GIVEN PRODUCT --
I WAS TOLD THAT A LOT OF THE
LARGER MANUFACTURES.
GIFT OF THOSE.
WORDS PART OF A IS THE IN
INCENTIVE PACKAGE IS THAT ARE
YOU SAYING THAT --
THAT THAT IS DISALLOWED UNDER
THE PROMOTIONAL EVENTS OR
EQUIPMENT OF COULD YET SO THE
GENERAL RULE IS IT IS IS
PROHIBITED --
BUT A VARIETY OF EXCEPTIONS HAVE
ARISEN SO FOR EXAMPLE --
YOU'LL SEE LIKE BEER SIGNS IN A
BAR THEY CAN HAVE CERTAIN TAKEN
HAVE CERTAIN SIGNS AND CERTAIN
AMOUNT OF SIGNAGE --
HE'LL SOMETIMES YOU'LL SEE REFER
THERE'S AS LONG AS THE THE
RETAILERS ACTUALLY PAYING THEM A
LEASING FEE FOR THOSE
REFRIGERATORS BUT THE
REFRIGERATOR MIGHT SAY.
YOU KNOW CORES LIGHT ON OR
WHATEVER WOULD SAY SO THERE ARE
THERE SO MANY EXCEPTIONS AND
THEY'RE THEY'RE SO COMPLICATED.
THAT TEY'RE REALLY DESIGNED TO
ALLOW SOME CROSSOVER BUT NOT SO
MUCH THAT THE MANUFACTURE.
OF THE RETAILERS BEHOLDEN TO THE
MANUFACTURER --
NOW THE FRUSTRATIONS --
THERE ARE LOTS OF FRUSTRATIONS
ABOUT THIS IT'S VERY COUNTER
INTUITIVE TO A LOT OF PEOPLE WHO
WERE IN BUSINESS AND
PARTICULARLY WE SEE FRUSTRATIONS
AMONG -- IN --
CYBERSPACE WHO ARE AWARE OF NEW
BUSINESS MODELS WERE TRYING TO
FIGURE OUT HOW THEY CAN.
APPLY THE KINDS OF MARKETING
PRACTICES THEY HAVE ANOTHER FOR
AREAS TO ALCOHOL.
AND THEY JUST OTHER JUST STYMIED
BY THIS IDEA OF THE INABILITY OF
MANUFACTURERS AND RETAILERS FOR
EXAMPLE TO COORDINATE THEIR
ADVERTISING --
THAT IS PROHIBITED --
SO IS SO WE GET A LOT OF THAT
BUT AT THE SAME TIME WE ALSO
REALLY REALLY TRY TO WORK WITH
THEM.
AND HELP THEM CREE BUSINESS
MODEL SO THAT WILL BE SUCCESSFUL --
AND EVEN THOUGH SOMETIMES A
LITTLE BIT CUMBERSOME FOR THEM
WE GENERALLY OUR EXPERIENCES
BEEN THAT WE CAN GET THEM TO
THEIR WAY THEY WERE WHERE THEY
WANTED TO GET.
WHICH IS BEING --
WHICH IS WHICH IS APPROPRIATE
PROMOTION OF MY AND MARKETING OF
PRODUCTS --
IN AN EXPERIENCE FOR THE CA TO
THEM.
BUT IT'S COMPLICATED --
BUT WE REALLY DO TRY TO BE
PROACTIVE WITH THEM AND HAVE AN
OPEN DOOR AND I MEET WITH PEOPLE
LIKE THIS VIRTUALLY EVERY SINGLE
WEEK -- SO
WE WILL A LOT OF PEOPLE WILL SAY
TO ME WINE ARE TIGHT HOUSE LAW
YOU KNOW LAWS JUST SORT OF A
FUNCTION OF YOU KNOW A BIKE ON
HERE -- AND
AND MY ANSWER TO THAT IS ALWAYS.
OBVIOUSLY ONE THE LEGISLATURE
DECIDES WHAT THEY ARE.
BUT A LOT OF IT IS JUST YOUR
VIEW OF OF HOW WE SHOULD BE
REGULATING SOMETHING THAT IS
ESSENTIALLY AN INTOXICATING
PRODUCT.
AND ALSO WHAT INTEREST YOUR
INDUSTRY INDUSTRY TO LIVE SO
THOSE OF YOU WHO OR EXPERIENCE
WITH US WE'LL KNOW THAT. FOR
EVERY IDEA OF BREAKING TIED
HOUSE TYPICALLY ONE OF THE TEARS
LOBBYIST WILL SAY YOU SHOULDN'T
DO THAT.
AND THAT TEAR WILL THEN ALSO AND
WE WANT TO DO SOMETHING AND THEN
ANOTHER TEAR WILL NOT WANT YOU
TO DO IT.
HAD A LOT OF THAT AS PER
PERSISTENCE IRVING THEIR TURF.
RAIN -- AND
FOR US IT'S YOU KNOW WE WE FALL
THE STATUE AND IT'S AN TEN AND
REALLY TRY --
TO KEEP THE TEARS SEPARATE TO
THE DEGREE.
THIS TELLS US TO DO IT RIGHT AND
THAT ARE REAL OUR OVER ARCHING
PRINCIPLE IS. ONE BUSINESS THAT
YOU SHOULD NOT CONTROL ANOTHER
BUSINESS WITHOUT A LICENSE.
AND THAT'S KIND OF REALLY ARE
SORT OF OUR BASE LINE FOR ALL
THIS -- AND
IT IT'S COMPLICATED BUT AGAIN WE
REALLY TRY TO BE OUT IN FRONT
AND HELP PEOPLE UNDERSTAND IT --
SOME SOME UNFAIR COMPETITION
TRADE --
SOME ON SOME RETAILERS DON'T
UNDERSTAND IT WHICH WE TRY TO
EDUCATE THEM IF WE FIND THEM
DOING THINGS THEY SHOULDN'T BE
WE TYPICALLY JUST WARM IN TOWN
THE KNOCK IT OFF FOR REALLY NOT.
TRYING TO BE PUNITIVE FROM.
THE TITLE SYSTEM IS IS WE TALK
ABOUT FRACTURES CONTROLLING
RETAILERS THAT IS IN A LOT OF
WAYS JUST THE WAY RETAILERS
CHANGE HAS FLIPPED.
RIGHTS OF THE NOW RETAILERS THAT
ARE SO BIG AND POWERFUL THAT
THEY CAN ACTUALLY START
CONTROLLING WHAT MANUFACTURERS
ARE DOING.
SO SO ARE MOST SOME OF OUR MOST
RECENT INVESTIGATIONS IN FACT IN
TERMS OF COMMERCIAL BRIBERY HAVE
REALLY BEEN.
WHERE MANUFACTURERS EVEN LARGE
MANUFACTURERS HAVE BEEN?
THE VICTIMS OF RETAILERS
DEMANDING --
PAYMENTS IN KICKBACKS TO HAVE
THEIR PRODUCTS ON THEIR SHELVES --
NON LICENSEES AS I WAS SAYING
BEFORE LOTS OF PEOPLE WHO WANT
YOU KNOW RUN A RUN AROUND AND
CREATE AN APP THAT ALLOWS YOU TO
DO A BUNCH OF THINGS ON THERE
ARE ON THE PHONE.
OR HOWEVER THEY WANT TO WANT TO
DO IT --
THEY REALLY RUN INTO PROBLEMS
WITH WITH THE THE PROHIBITIONS
AGAINST ADVERTISING MARKETING
BETWEEN BUSINESSES.
BUT AGAIN I I I TRULY BELIEVE
THAT FOR MOST OF THIS --
WE WE ARE ABLE TO GET OUT IN
FRONT AND HELP THEM DESIGN
MODELS THAT SAID.
I DO THINK IT WOULD BE HELPFUL
IF WE COULD AS AN AGENCY HAVE
PROACTIVE REGULATIONS THAT WOULD
SHOW PEOPLE HOW TO HOW THE RIGHT
BUSINESS MODEL.
UNLIKE MOST STATUTES WHERE --
IF THERE'S NOT A LAW AGAINST IT
YOU CAN DO IT AND ALCOHOL THE
THE LAW IS YOU CANNOT DO
ANYTHING UNLESS THERE'S A LAW
THAT SAYS YOU CAN.
SO SO FOR US ACTUALLY WE THINK
ROUTE REGULATIONS WE MOSTLY
THINK ABOUT THEM IN TERMS OF
TRYING TO HELP PEOPLE --
GIVE THEM GUIDELINES AND IS THAT
HOW THEY CAN HAVE A LEGITIMATE
BUSINESS IN THE WAY WITH A ONE
AND THEN FINALLY LOTS AND LOTS
AS I WAS SAYING WITH GIANT
RETAILERS WERE JUST SEEING AN
INCREASING NUMBER OF JUST PEOPLE.
BASICALLY DELIBERATELY VIOLATING.
HOUSE LOS --
AND BECAUSE I LIKE TO IN ON A
POSITIVE NOTE.
I'LL JUST IN WITH CHAMPAGNE --
CHAMPAGNE IS --
THE STILL LOW PARTS OF SILICON
VALLEY I MEAN I'M NAPA VALLEY
NOW COULD ARGUE --
THE TOTAL ON PROBABLY IS GREATER
GREAT VALUE THEN --
CHAMPION BUT IT'S STILL THE THE
THE BEST GREAT VALUE IN THE
WORLD.
AND IT IS THE MOST STRICTLY
REGULATED AGRICULTURAL PRODUCT
PROBABLY IN THE WORLD --
THERE IS A THERE ARE RULES ON
HOW MANY.
LINES YOU CAN PLANT HOW MANY IN --
THERE ARE RULES IN TERMS OF OUT
ALL SORTS OF THINGS IN TERMS OF
IF YOU CALL YOURSELF A CERTAIN
KIND OF CHAMPAGNE WHAT WHAT HOW
MUCH USED HAS TO BE IN IT.
AND THEY THEY ARE THEY ARE VERY
MUCH IN FAVOR OF THEIR SYSTEM
AND THAT SYSTEM HAS WORK FOR
THEM -- A
BECAUSE THE INDUSTRY ITSELF IS
SUPPORTIVE OF IT --
AND IS BEEN SUCCESSFUL SO IT'S
AN UNUSUAL AREA IT'S AN UNUSUAL
INDUSTRY --
IN THE SENSE THAT IT IS HIGHLY
REGULATED.
AND MOST PEOPLE IN IT.
WOULD ARGUE THAT IT'S TO ITS
BENEFITS SO.
I'M NOT REALLY TRYING TO PUSH
GOVERNMENT REGULATION GENERALLY
BUT THIS IS THIS IS AN AREA
WHERE IT IT DEMANDS SOME SECOND
THOUGHT ABOUT ITS PRIORITY
BECAUSE IT'S IT'S REALLY NOT
TYPICAL.
SO ANYWAY WITHOUT I'M MY
COMMENTS ARE AN END UP ON HAPPY
ANSWER ANY QUESTION THAT YOU
DIRECTOR WE'VE GOT FIVE MINUTES
SO I'M TO START OUT WITH SENATOR
BRADFORD.
THANK YOU MISTER CHAIRMAN ARE
YOU SHOULD QUESTION AS RELATES
TO DIVERSITY AND THE ABC HAVE
ANY OVER.
TO LOOK THAT LANDS BECAUSE WE
SELL A LOT MORE MINORITY
DISTRIBUTORS AND YOU SEEM LIKE
THEY'VE GONE BY THE WAYSIDE SO
IS THAT AREA OF CONCERN. FOR A.
B. C. OR IS THAT MORE OF A
CORPORATE DECISION ON WITH A
CONTRACT YEAH IT'S REALLY MORE
OF A CORPORATE DECISION WHO THE
CONTRACT WITH THERE'S BEEN A LOT
OF SICK CONSOLIDATION IN THE
DISTRIBUTOR INDUSTRY AND I DON'T
KNOW IF THAT.
IS PART OF WHAT THE ISSUE IS --
WHAT I WOULD SAY IS JUST MORE%
AND MORE IN TERMS OF RETAILERS
AS?
YOU MUCH A FUNCTION OF LOCAL
COMMUNITIES --
BOTH IN TERMS OF YOU KNOW WHO
THIS AND WHO --
WHO PEOPLE COMPLAIN ABOUT SO
IT'S SOMETHING THAT WE REALLY
HAVEN'T LOOKED AT CLOSELY
OURSELVES --
BECAUSE MOSTLY WERE RESPONDING
TO LOCAL ISSUES --
BE THE A YOU KNOW FROM ALL
MEMBERS BRING THEM FOREVER YOU
HAVE NO OVERSIGHT ON
DISTRIBUTION OR MANUFACTURING
AND LOOK AT THAT WE DO BUT WE
DON'T HAVE ANY ANY AUTHORITY OR
ANALYSIS OF WHO'S OWNING THOSE
BUSINESSES OTHER THAN WHETHER
THEY'RE QUALIFIED.
THANK YOU MY LAST QUESTION.
IT IS --
HOME DELIVERY I BAD DON'T
TOTALLY UNDERSTAND THAT PARTS OF
THE COUNTRY.
PEOPLE ARE DELIVERING GROCERIES
AND AND THINGS YOU KNOW YOU SEE
NEW YORK CHICAGO AND AND AND
CALIFORNIA'S START TO PICK UP.
OUR WE REGULATE IN THAT THAT WE
DON'T --
DELIVER TO MINORS --
AT THE HOME.
SO WE WE DON'T HAVE ANY THERE'S
NO LAWS OR REGULATIONS THAT
PERTAIN TO IT IN PARTICULAR BUT
WHAT THE WAY WE TREATED IS THAT
THE RETAILERS RESPONSIBLE FOR IT
FROM THE MOMENT IT LEAVES ITS
DOOR. TO THE MOMENT TO IT THE
PURCHASE A CURSE SO IF THEY USE
THEIR OWN DELIVERY DRIVERS.
BUT THEY'RE RESPONSIBLE FOR WITH
THE US SALE TO A MINOR IF THEY
HANDED OVER. TO TO DRIZZLY OR
SOME OTHER THIRD PARTY COMPANY.
AND THERE'S A SALE TO A MINOR BY
SOMEONE THEY DON'T EMPLOY.
THE RETAILERS DON'T STILL
RESPONSIBLE FOR I DON'T KNOW BUT
IT'S REDUCE THE MODEL WE USE
BECAUSE IT'S REALLY REALLY WE
HOLD THEM RESPONSIBLE FOR THE
SALE.
BUT AGAIN WE REALLY HAD NO.
ISSUES.
THE INDUSTRY THUS FAR ISN'T AS
FAR AS WE KNOW HAS BEEN
RESPONSIBLE --
AS YOU KNOW I'M CURRENTLY
WORKING ON LEGISLATION WILL
PROVIDE ADDITIONAL --
LICENSES --
FOR RESTAURANTS.
HERE -- I
THINK IT'S IMPORTANT THE PERHAPS
MAYBE YOU ADDRESS THE BOTH THE
POPULAR THE POPULATION LIMITS
FOR OFF SALE AND ON SALE.
YES SO KIND OF THE HIT AROUND
WAS A DIFFERENT SURE SO SO WITH
SO WITH RESTAURANTS ANYONE --
THERE'S NO.
THERE'S WITH RESTAURANTS THAT
WANT TO SELL HARD DISTILLED
SPIRITS --
THERE'S A LIMIT BY --
BY COUNTY TO ONE PER TWO
THOUSAND RESIDENTS --
AND NOW IT'S JUST STRAIGHT UP IN
STATUTES --
INTERESTINGLY ENOUGH IN NINETEEN
SIXTY ONE AND ONE FROM ONE
THOUSAND TO TWO THOUSAND AND
THAT WAS LARGELY BECAUSE OF THE
BABY BOOM AND THE CONCERN THAT
THERE WAS GOING TO BE JUST ON A
RUSH OF LICENSES CREATED.
AT THAT TIME --
SO IT'S RENTS THEMSELVES MOST OF
THE CONCERNS PEOPLE HAVE WITH --
WITH THAT WELL CALL STEPS IN
SCHOOL ABOUT ARE NOT RESTAURANTS
THEIR NIGHTCLUBS.
SO IN IN THE RESTAURANT INDUSTRY
HAS CHANGED SO MUCH PEOPLE JUST
PLAIN EAT OUT MORE THEY SPEND
MORE ON THERE'S JUST MUCH MORE
DEMANDS FOR RESTAURANTS AND
THERE USED TO BE.
SO WHETHER THE TWO THOUSAND
LIMóN IS REALLY THE RIGHT WAY
TO LOOK AT ANYMORE IS A GOOD
QUESTION --
THERE ARE SOME AREAS LIKE YOURS
AND CENTER WINNERS --
AND CENTER BRADFORD'S WHERE
LICENSES MIGHT BE GOING FOR THE
HUNDREDS OF THOUSANDS OF DOLLARS
ON THE OPEN MARKET WHEREAS IF
YOU COME TO US FOR A LICENSE
IT'S FIFTEEN THOUSAND OKAY LOOKS
LIKE IT'S THAT TIME DIRECTOR
THANK YOU VERY MUCH APPRECIATE.
YOU BEING HERE THIS MORNING AND
YOUR GREAT STAFF --
WHOSE GREAT WORK --
FOR ALL OUR CONSTITUENTS
APPRECIATE --
YOU BEING HERE.
THANK YOU FOR THE OPPORTUNITY
AND ANY TIME ANY OF YOU WANT
INFORMATION PLEASE CONTACT US WE
WE REALLY LIKE TO GET OUT IN
FRONT OF ISSUES --
AND WORK OF ALL OF YOU SO THANK
YOU VERY MUCH OF THE TIME