HomeMy WebLinkAbout _ 4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76 � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: January 16, 2024 FROM: Jason Gibilisco, Management
ITEIVI NO. 4.1(a) Assistant to the City M�anager
***APPROVED BY***
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jgibilisco@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.1(a)--Affirm a position supporting a new bill similar to Senate Bill 76
Recommendation
Affirm a position supporting a new bi11 similar to Senate Bi1176 (Wiener)that would allow cities
to designate entertainment zones where a patron could carry an alcoholic drink between
establishments; and authorize staff to generate a statement of support and/or a letter of support to
be signed by the Mayor and sent to the Office of Scott Wiener.
Fiscal Impact
There is no fiscal impact with establishing support for, and/or, sending a statement or letter in
support of, a bill similar to Senate Bill (SB) 76 (Wiener).
Alternative Action
The City Council (Council) could choose to not support a bi11 similar to SB 76 and refrain from
issuing a statement or sending a letter of support to the Of�ce of Scott Wiener. The Council
could remain neutral, thereby refraining from taking a stance on potential legislation.
Background/flnalysis
SB 76 was approved by Governor Netivsom in 2023. Senator Scott Wiener wrote SB '76 to permit
Entertainment Zones in the City and County of San Francisco. The purpose of the bill is to
designate temporary entertainment zones, where bars and restaurants can sell alcoholic beverages
for consumption in a designated area.
Report to Redding City Council January 12,2024
Re: 4.1(a)--Affirm a position supporting a new bill similar to Senate Bi1176 Page 2
It is similar to jurisdictions that authorize open container zones for festivals, and similar outdoor
events where only outside vendors are allowed to sell alcohol in the designated area. SB 76
allows brick-and-mortar restaurants and bars inside of the entertainment zone to participate and
allows customers to carry their alcoholic beverages outside of the building into the designated
event. This allows all businesses in the entertainment zone to participate on an equal playing
field to aid in economic recovery and revive downtown areas.
A bill similar to SB 76 would allow all California cities and counties to be able to participate in
pursuing entertainment zones. The bi11 would set specific criteria for creating an entertainment
zone such as consulting with local law enforcement on any potential impacts.
Senator Scott Wiener's Office wou]d like a statement of support that is signed by the Mayor to
introduce with their press release when the bill is publicized. A letter of support would not be
needed until after the bill is introduced.
Council Priority/City ManageN Goals
This item is a routine agenda item.
Attachments
Senate Bill No. 76, Chapter'700
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AUTHENTICATED'
, , FLECTI20NIC LEGAL MATFRIAI '�.
Senate Bill No.76
CHAPTER 700
An act to amend Sections 23357, 23358, 23396, and 23552 of, to add
Section 23039.5 to,and to add Article 5(commencing with Section 25690)
to Chapter 16 of Division 9 of,the Business and Professions Code,relating
to aicoholic beverages.
[Approved by Governar Oetober 10,2023.Filed with Seere�ary
of State October 10,2023.]
LEGISLATIVE COUNSEL'S DIGEST
SB 76,Wiener.Alcoholic beverages:music venue license:entertainment
zones: consumption.
(1) The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of, and the
conditions imposed upon aicoholic beverage licenses by the Depart�nent of
Alcoholic Beverage Control.Existing law provides for various annual fees
for the issuance of alcoholic beverage licenses,depending upon the type of
license issued.Existing law authorizes the department to issue a music venue
license, as defined,that allows the licensee to sell beer,wine,and distilled
spirits at retail for consumption on the premises in a music entertainment
faeility, as defined. E�sting law makes selling, giving, delivering, or
purchasing an alcoholic beverage between the hours of 2 a.m. and 6 a.m.
of the same day a misdeineanor. Existing law further limits a music venue
licensee's authorization to sell,serve,and permit consumption of alcoholic
beverages to the time period from 2 hours before a live performance until
one hour after the live performance.Existing law authorizes the department
to make any examination of the books and recards of any licensee and makes
any person who fails to preserve the books for inspection guilty of a
misdemeanor.
This bill would authorize a licensee under a music venue license to apply
to the department for a dupiicate license or licenses,as prescribed.The bill
would also authorize a music venue licensee to se11, serve, and permit
consumption of aleoholic beverages during private events or private funetions
not open to the general public within any hours of operation permitted by
its license, regardiess of whether any live performance occurs. The bill
would exempt the licensee from having to meet certain requirements
generally imposed on a music entertainment facility in connection with and
during a private event or private function if specified conditions are met.
The bill would require the licensee to keep reeords delnonstrating compliance
with these provisions for the preceding 3 calendar years and to provide these
records to the department upon request. The bill would make a licensee's
failure to keep the required records or provide them to the department
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Ch.700 —2—
grounds for discipiinary action punishabie as a misdemeanor and would,
therefore,expand the scope of a crime,thereby imposing a state-mandated
local program.
(2) Under existing law, any person possessing an open container of an
alcoholic beverage in any city, county, or city and county-owned public
place, as specified, or any regional park or recreation and paxk district, is
guilry of an infraction if the city or county has enacted an ordinance that
prohibits the possession of those containers or the consumption of alcoholic
beverages in those areas,except as specified.
Existing law, the Planning and Zoning Law, authorizes the legislative
body of any city or county to adopt ordinances regulating zoning within its
jurisdiction, as specified.
Existing law authorizes a licensed beer manufacturer, a licensed
winegrower,and any on-sale licensee to sell certain alcoholic beverages for
consumption on or off the premises,as specified.
This bill, additionally, would authorize a licensed beer manufacturer, a
licensed winegrower,and any on-sale licensee to permit consumers to leave
the premises with open containers of alcoholic beverages for consumption
off the premises within an entertainment zone,subject to certain conditions.
The bill would define "entertainment zone" for purposes of the Alcoholic
Beverage Control Act as a zone created by ardinance on or after January 1,
2024,in the City and County of San Francisco,that authorizes consumption
of one or more types of alcoholic beverages on public streets,sidewalks,or
public rights-of-way adjacent to and during a speciai event permitted or
]icensed by the department. The bill would require the City and County of
San Francisco, if it establishes an entertainment zone,to provide specified
information relating to the entertainment zone to the department and estabiish
a process or procedure by which persons in possession of alcoholic beverages
in the entertainment zone may be readily identifiable as being 21 years of
age or older.
This bill would make legislative flndings and declarations as to the
necessity of a special statute for City and County of San Francisco.
(3)This bill would incorporate additional changes to Section 23357 of
the Business and Professions Code proposed by SB 788 to be operative only
if this bill and SB 788 are enacted and this bill is enacted last.
This bill wouid incorporate additional changes to Section 23358 of the
Business and Professions Code proposed by AB 1704 to be operative only
if this bill and AB 1704 are enacted and this bili is enacted last.
(4) The California Constitution requires the state to reimburse local
agencies and schooi 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.
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—3— Ch.700
The people of the State of California do enact as follows;
SECTION l. Section 23039.5 is added to the Business and Professions
Code,to read:
23039.5. "Entertainment zone"means a zone created by ordinance on
or after January 1, 2024, in the City and County of San Francisco that
authorizes consumption of one or more types of alcoholic beverages on
public streets, sidewalks, or public rights-of-way adjacent to and during a
speciai event permitted or licensed by the department.
SEC.2. Section 23357 of the Business and Professions Code is amended
to read:
23357. (a) A licensed beer manufacturer may,at the licensed premises
of production,seil to consumers for consulnption off the premises beer that
is produced and bottled by,or produced andpackaged for,that manufacturer.
Licensed beer manufacturers may also exercise any of the foilowing
privileges:
(1) Seil that beer to any person holding a license authorizing the sale of
beer.
(2) Sell that beer to consumers for consumption on the manufacturer's
licensed premises or on premises owned by the manufacturer that are
contiguous to the licensed premises and which are operated by and for the
manufacturer.
(3) Seil beer and wine, regardless of source, to consuiners for
consumption at a bona fide public eating place on the manufacturer's licensed
premises or at a bona fide public eating place on premises owned by the
manufacturer which are contiguous to the licensed premises and which are
operated by and for the manufacturer.
(4) (A) Permit consumers to leave the premises with open containers of
alcoholic beverages for consumption offthe premises within an entertainment
zone if all of the following conditions are satisfied:
(i) The premises is located within the entertainment zone.
(ii) Consumption of that type of alcoholic beverage is authorized by the
ordinance creating the entertainment zone.
(iii) Open alcohol containers only leave the premises during the hours
ailowed by the ordinance establishing the entertainment zone.
(iv) Patrons with open containers exit the premises directly into an
entertainment zone.
(v) All aicoholic beverages in the entertainment zone are purchased only
at a licensed premises located within the entertainment zone,
(vi) The premises expressly prohibits open containers or closed containers
oF alcoholic beverages acquired outside their premises.
(vii) Delivery of alcoholic beverages to consumers within the
entertainment zone by the licensee or by any third-party delivery service is
expressly prohibited unless the delivery is to a residential building or private
business that is not a]icensee.
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Ch.700 —4—
(viii) No alcoholic beverages purchased at the licensed premises may
leave the premises in an open glass or metal container for consumption in
an entertainment zone.
(ix) The licensee annually subinits their notice of intent to participate in
an open container entertainment zone to the department.
(B) This paragaph does not require a licensee to sell any alcoholic
beverage for consumption off the premises within an entertainment zone.
(C) Licensees whose privileges are restricted due to operating conditions
or other statutory restrictions may be prohibited from exercising
entertainment zone privileges that are contrary to their operating conditions.
For purposes of this paragraph, any restrictions on the exercise of off-sale
privileges shall apply to the removai of alcoholic beverages from the licensed
premises for consumption in the entertainment zone.
(b) Notwithstanding any other provision of this division, licensed beer
manufacturers and holders of out-of-state beer manufacturer's certificates
may be issued and may hold retail package off-sale beer and wine licenses.
Alcoholic beverage products sold at or from the off-sale premises that are
not produced and bottled by, or produced and packaged for, the beer
manufacturer shall be purchased by the beer manufacturer only from a
licensed wholesaler.
(c) Notwithstanding any other provision of this division,a licensed beer
manufacturer that produces more than 60,000 barrels of beer a year may
manufacture cider or perry at the licensed premises of production and may
seil cider or perry to any licensee authorized to sell wine. For purposes of
this subdivision,"cider"and"perty"have the meanings provided in Section
4.21(e)(5)of Title 27 of the Code of Federal Regulations.This subdivision
does not alter or amend the classification of cider or perry as wine for any
purpose other than that provided by this section.
(d) A beer manufacturer may also have upon the licensed premises, or
on premises owned by the manufacturer that are contiguous to the licensed
premises and are operated by and for the manufacturer all beers and wines,
regardless of source,for sale or service only to guests during private events
or private functions not open to the general public. Alcoholic beverage
products sold at the premises that are not produced and bottled by, or
produced and packaged for, the beer manufacturer shall be purchased by
the beer manufacturer only from a licensed wholesaler. All alcoholic
beverages sold or served shall be produced by a ]icensee authorized to
manufacture the product.
SEC. 2.5. Section 23357 of the Business and Professions Code is
amended to read:
23357. (a) A licensed beer manufacturer may,at the licensed premises
of production,sell to consumers for consumption off the premises beer that
is produced and bottled by,or produced and packaged for,that manufacturer.
Licensed beer manufacturers may also exercise any of the following
privileges:
(1) Sell that beer to any person holding a license authorizing the sale of
beer.
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—5— Ch.700
(2) Sell that beer to consumers for consumption on the manufacturer's
licensed premises or on premises owned by the manufacturer that are
contiguous to the licensed premises and which are operated by and for the
manufacturer.
(3) Sell beer and wine, regardless of source, to consumers for
consumption at a bona fide public eating place on the manufacturer's licensed
premises or at a bona fide public eating place on premises owned by the
manufacturer which are contiguous to the licensed prelnises and which are
operated by and for the manufacturer.
(4) (A) Permit consumers to lea�e the premises with open containers of
alcoholic beverages for consumption offthe premises within an entertainment
zone if all of the following conditions are satisfied:
(i) The premises is located within the entertainment zone.
(ii) Consumption of that type of alcoholic beverage is authorized by the
ordinance creating the entertainment zone.
(iii) Open alcohol containers only lea�e the premises during the hours
ailowed by the ordinance establishing the entertainment zone.
(iv) Patrons with open containers exit the premises directly into an
entertainment zone.
(v) All alcoholic beverages in the entertainment zone are purchased only
at a licensed premises located within the entertainment zone.
(vi) The premises expressly prohibits open containers or closed containers
of alcoholic beverages acquired outside their premises.
(vii) Delivery of alcoholic beverages to consumers within the
entertainment zone by the licensee or by any third-parly delivery service is
expressly prohibited unless the delivery is to a residential building or private
business that is not a licensee.
(viii) No alcoholic beverages purchased at the licensed premises may
leave the premises in an open giass or metal container for consumption in
an entertainment zone.
(ix) The licensee annually submits their notice of intent to participate in
an open container entertainment zone to the department.
(B) This paragraph does not require a licensee to seli any alcoholic
beverage for consumption off the premises within an entertainment zone.
(C) Licensees whose privileges are restricted due to operating conditions
or other statutory restrictions may be prohibited from exercising
entertainment zone privileges that are contra�ry to their operating conditions.
For purposes of this paragraph, any restrictions on the exercise of off-sale
privileges shall apply to the removal of alcoholic beverages from the licensed
premises for consumption in the entertainment zone.
(b) Notwithstanding any other provision of this division, licensed beer
manufacturers and holders of out-of-state beer manufacturer's certificates
may be issued and may hold retail package off-sale beer and wine licenses.
Alcoholic beverage products sold at or froin the off-sale premises that are
not prod�uced and bottled by, or produced and packaged for, the beer
manufacturer shall be purchased by the beer manufacturer only from a
licensed wholesaler.
92
Ch.700 —6—
(c) Notwithstanding any other provision of this division,a licensed beer
manufacturer may manufacture cider or perry at the licensed premises of
production and may sell cider or perry to any licensee authorized to sell
wine. For purposes of this subdivision, "cider" and "perry" ha�e the
meanings provided in Section 4.21(e)(8)of Title 27 of the Code of Federal
Regulations. This subdivision does not alter or amend the classification of
cider or perry as wine for any purpose other than that provided by this
section.
(d) A beer manufacturer may also have upon the licensed premises, or
on premises owned by the manufacturer that are contiguous to the licensed
premises and are operated by and for the manufacturer all beers and wines,
regardless of source,for sale or service only to guests during private events
or private functions not open to the general public. Alcoholic beverage
products soid at the premises that are not produced and bottled by, or
produced and packaged for, the beer manufacturer shall be purchased by
the beer manufacturer only froin a licensed wholesaler. All alcoholic
beverages sold or served shall be produced by a licensee authorized to
manufacture the product.
SEC.3. Section 23358 of the Business and Professions Code is amended
to read:
23358. (a) Licensedwinegrowers,notwithstanding any otherprovisions
of this division,may also exercise the following privileges:
(1) Sell wine and brandy to any person hoiding a license authorizing the
sale of wine or brandy.
(2) Se11 wine and brandy to consumers for consumption off the premises
where sold.
(3) Seli wine to consuiners for consuinption on the premises.
(4) Sell all beers,wines,and brandies,regardless of source,to consuiners
for consumption on the premises in a bona fide eating place as defined in
Section 23038, which is located on the licensed premises or on premises
owned by the licensee that are contiguous to the licensed premises and
which is operated by and for the licensee.At such bona fide public eating
place beer, wine, and brandy may be used in the preparation of food and
beverages to be consumed on the premises.
(5) (A) Permit consumers to lea�e the premises with open containers of
alcoholic beverages for consumption offthe premises within an entertainment
zone if all of the following conditions are satisfied:
(i) The premises is located within the entertainment zone.
(ii) Consumption of that type of alcoholic beverage is authorized by the
ordinance creating the entertainment zone.
(iii) Open alcohol containers only leave the premises during the hours
allowed by the ordinance establishing the entertainment zone.
(iv) Patrons with open containers exit the premises directly into an
entertainment zone.
(v) All alcoholic beverages in the entertainment zone are purchased only
at a licensed premises located within the entertainment zone.
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—7— Ch.700
(vi) The premises expressly prohibits open containers or closed containers
of alcoholic beverages acquired outside their premises.
(vii) Delivery of aicoholic beverages to consumers within the
entertainment zone by the licensee or by any third-party delivery service is
expressly prohibited uniess the delivery is to a residential building or private
business that is not a licensee.
(viii) No alcoholic beverages purchased at the licensed premises may
leave the premises in an open glass or metal container for consumption in
an entertainment zone.
(ix) The licensee annually submits their notice of intent to participate in
an open container entertainment zone to the department.
(B) This paragraph does not require a licensee to seli any alcoholic
beverage for consumption off the premises within an entertainment zone.
(C) Licensees whose privileges are restricted due to operating conditions
or other statutory restrictions may be prohibited from exercising
entertainment zone privileges that are contrary to their operating conditions.
For purposes of this paragraph, any restrictions on the exercise of off-sale
privileges shall apply to the removai of alcoholic beverages from the licensed
premises for consumption in the entertainment zone.
(6) Produce spirits of wine and blend those spirits of wine into wine
produced by the winegrower or sell those spirits of wine to an industrial
alcohol dealer.
(b) A winegrower may aiso ha�e upon the premises all beers,wines,and
brandies, regardless of source, for sale or service only to guests during
private events ar private functions not open to the general public.Alcoholic
beverage products sold at the premises that are not produced and bottled
by, or produced and packaged for, the winegrower shall be purchased by
the winegrower only from a licensed wholesaler.
(c) A winegrower shall actually produce on the winegrower's licensed
premises by conversion of grapes,berries,or other fruit,into wine,not less
than 50 percent of all wines sold to consumers on the winegrower's licensed
premise or premises and any licensed branch premise or premises.
(d) The department may, if it shali determine for good cause that the
granting of any such privile�e would be contrary to public welfare or morals,
deny the ri�ht to exercise any on-sale privilege authorized by this section
in either a bona fide eating place the main entrance to which is within 200
feet of a school or church,or on the licensed winery premises, ar both.
(e) Nothing in this section or in Section 23390 is intended to alter,
diminish, replace, or eliminate the authority of a county, city, or city and
county from exercising land use regulatory authority by law to the extent
the authority may restrict, but not eliminate, privileges afforded by these
sections.
SEC. 3.5. Section 23358 of the Business and Professions Code is
ainended to read:
23358. (a) Licensedwinegrowers,notwithstanding any otherprovisions
of this division,may also exercise the following privileges:
92
Ch.700 —8—
(1) Seil wine and brandy to any person holding a license authorizing the
sale of wine or brandy.
(2) Sell wine and brandy to consumers for consumption off the premises
where sold.
(3) Sell wine to consumers for consumption on the premises.
(4) Sell all beers,wines,and brandies,regardless of source,to consu.mers
for consumption on the premises in a bona fide eating place as defined in
Section 23038, which is located on the licensed premises or on premises
owned by the licensee that are contiguous to the licensed premises and
which is operated by and for the licensee.At such a bona fide public eating
place beer, wine, and brandy may be used in the preparation of food and
beverages to be consumed on the premises.
(5) (A) Permit consumers to leave the premises with open containers of
alcoholic beverages for consumption offthe premises within an entertainment
zone if all of the following conditions are satisfied:
(i) The premises is located within the entertainment zone.
(ii) Consumption of that type of alcoholic beverage is authorized by the
ordinance creating the entertainment zone.
(iii) Open alcohol containers only lea�e the premises during the hours
allowed by the ordinance establishing the entertainment zone.
(iv) Patrons with open containers exit the premises directly into an
entertainment zone.
(v) All aicoholic beverages in the entertainment zone are purchased only
at a licensed premises located within the entertainment zone.
(vi) The premises expressly prohibits open containers or closed containers
of alcoholic beverages acquired outside their premises.
(vii) Delivery of aicoholic beverages to consumers within the
entertainment zone by the licensee or by any third-party delivery service is
expressly prohibited uniess the delivery is to a residential building or private
business that is not a licensee.
(viii) No alcoholic beverages purchased at the licensed premises may
leave the premises in an open glass or metal container for consumption in
an entertainment zone.
(ix) The licensee annually submits their notice of intent to participate in
an open container entertainment zone to the department.
(B) This paragraph does not require a licensee to seli any alcoholic
beverage for consumption off the premises within an entertainment zone.
(C) Licensees whose privileges are restricted due to operating conditions
or other statutory restrictions may be prohibited from exercising
entertainment zone privileges that are contrary to their operating conditions.
For purposes of this paragraph, any restrictions on the exercise of off-sale
privileges shall apply to the removai of alcoholic beverages from the licensed
premises for consumption in the entertainment zone.
(6) Produce spirits of wine and blend those spirits of wine into wine
produced by the winegrower or sell those spirits of wine to an industrial
alcohol dealer ar a distilled spirits manufacturer.
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—9— Ch.700
(b) A winegrower may also ha�e upon the premises all beers,wines,and
brandies, regardless of source, for sale or service only to guests during
private events or private functions not open to the general public.Alcoholic
beverage products sold at the premises that are not produced and bottled
by, or produceci and packaged for, the winegrower shall be purchased by
the winegrower only from a licensed wholesaler.
(c) A winegrower shall actually produce on the winegrower's licensed
premises by conversion of grapes,berries,or other fruit,into wine,not less
than 50 percent of all wines soid to consumers on the winegrower's licensed
premises and any licensed branch premises.
(d) The department may, if it shall determine for good cause that the
granting of any such privilege wouid be contrary to public weifare or morals,
deny the right to exercise any on-sale privilege authorized by this section
in either a bona fide eating place the main entrance to which is within 200
feet of a schooi or church,or on the licensed winery premises, or both.
(e} Nothing in this section or in Section 23390 is intended to alter,
diminish, replace, or eliminate the authority of a county, city, ar city and
county from exercising land use regulatory authority by law to the extent
the authority may restrict, but not eliminate, privileges afforded by these
sections.
SEC.4. Section 23396 of the Business and Professions Code is amended
to read:
23396. (a) Any on-sale license authorizes the sale of the alcoholic
beverage specified in the license for consumption on the premises where
sold. No alcoholic beverages, other than beers, may be sold or served in
any bona fide public eating place for which an on-sale license has been
issued unless the premises comply with the requirements prescribed in
Section 23038,230381,23038.2,or 23038.3.
(b) (1) In addition to the privile�e in subdivision(a),any on-sale license
for a premises located in an entertainment zone autharizes the licensee to
permit consumers to leave the licensed premises with open containers of
alcoholic beverages far consumption off the premises within the
entertainment zone if ali of the following conditions are satisfied:
(A) The alcoholic beverage is specified in both the license and the
ordinance creating the entertainment zone.
(B) Open alcohol containers only lea�e the premises during the hours
allowed by the ordinance establishing the entertainment zone.
(C) Patrons with open containers exit the licensed premises directiy into
an entertainment zone.
(D) All alcoholic beverages in the entertainment zone are purchased only
at a licensed premises located within the entertainment zone.
(E) The premises expressly prohibits open containers or closed containers
of alcoholic beverages acquired outside their premises.
(F) Delivery of alcoholic beverages to consumers within the entertainment
zone by the licensee or by any third-party delivery service is expressly
prohibited unless the delivery is to a residential building or private business
that is not a licensee.
92
Ch.700 —10—
(G) No alcoholic beverages purchased at the licensed premises may 1ea�e
the premises in an open glass or metal container for consumption in an
entertainment zone.
(I�) The licensee annually submits their notice of intent to participate in
an open container entertainment zone to the department.
(2) This subdivision does not require a licensee to sell any alcoholic
beverage for consumption off the prelnises within an entertainment zone.
(3) Licensees whose privileges are restricted due to operating conditions
or other statutary restrictions may be prohibited from exercising
entertainment zone privileges that are contrary to their operating conditions.
For purposes of this paragraph, any restrictions on the exercise of off-sale
privileges shall apply to the removai of alcoholic beverages from the licensed
premises for consumption in the entertainment zone.
SEC.5. Section 23552 of the Business and Professions Code is amended
to read:
23552. (a) In addition to the licenses specified in Section 23320, the
department may issue a music venue license to sell beer,wine,and distiiled
spirits at retail far consumption upon the premises only. A music venue
licensee is eligible to obtain a duplicate license or licenses as described in
Section 24042 and shall be subject to the same fees charged for a duplicate
Type 47 license.
(b) The music venue license may be issued for a music entertainment
facility providing alcoholic beverage service. Except as provided in this
section, only licensees with a music venue license are authorized to sell
beer,wine,and distilled spirits at retail for consumption upon the premises
of the music entertainment facility. The license shall only be transferabie
from person to person at the same premises.A music venue license shall
not be transferred or sold for a purchase price or consideration in excess of
the original fee paid for that license.
(c) (1) Subject to Section 25631, the music venue licensee may sell,
serve,and permit consumption of alcoholic beverages only during the time
period from two hours before a live performance until one hour after the
live performance.
(2) (A) A music venue licensee may also sell, serve, and permit
consumption of alcoholic beverages to guests during private events or private
functions not open to the general pubiic within any hours of operation
permitted by its license,regardless of whether any live performance occurs.
(B) (i) A music entertainment facility shali not be required to meet the
requirements of subdivision (c) of Section 23550 in connection with and
during a private event or private function provided the facility's principal
purpose shall be to operate as a music entertainment facility.
(ii) A music venue licenseholder must keep records at the licensed
premises to show compliance with this paragraph for the preceding three
calendar years. Records kept in compliance with this section must be
provided to the department upon request pursuant to Section 25753.Failure
to keep required records or to provide them to the department upon request
shall be grounds for disciplinary action pursuant to Section 25616.
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(iii) For purposes of this subparagraph, "principal purpose" shall mean
that the number of private events or private functions occurring at the music
entertainment facility does not exceed the number of live entertainment
events occurring at the facility in any calendar year.
(d) (1) Issuance of the license shall be subject to the provisions of Section
23958.4.
(2) Issuance of the license shall not be subject to the provisions of Section
23816.
(e) An on-sale licensee may permit a person under 21 years of age into
the music entertainment facility. This subdivision does not authorize the
on-sale licensee to sell,furnish,or give any alcoholic beverages to a person
under 21 years of age, or to engage in any other activity not otherwise
authorized by this division.
(fj (1) An on-sale general bona fide pubiic eating place licensee or an
on-sale general public premises licensee as of the effective date of this
section may exchange that license for a music venue license,subject to the
qualifications of the premises as specified in this division. The exchange
may be made at any time upon the approval of the department,the payment
of an exchange fee of one hundred dollars($100),and compliance with the
provisions of this division relating to the issuance of an original license.
(2) The department may inodify its rules regarding the surrender of
licenses to implement this subdivision.
(g) The department may promulgate regulations to implement this articie.
SEC.6. Article 5(commencing with Section 25690)is added to Chapter
16 of Division 9 of the Business and Professions Code,to read:
Articie 5. Entertainment Zones
25690. (a) If the City and County of San Francisco establishes an
entertainment zone,it shall do both of the following:
(1) Establish a process or procedure by which persons in possession of
alcoholic beverages in the entertainment zone may be readily identifiable
as being 21 years of age or older.
(2) Provide all of the following to the depar�nent:
(A) A copy of the ordinance establishing the entertainment zone.
(B) Infonnation as lnay be necessary to identify the boundaries of the
entertainment zone.
(C) The days and hours of operation of the entertainment zone.
(D) The types of aicoholic beverages permitted within the entertainment
zone.
(E) The approved nong]ass and nonmetal containers in which alcoholic
beverages may be authorized.
(b) The Legislature finds and declares that a special statute is necessary
and that a general statute cannot be made applicable within the lneaning of
Section 16 ofArticle N of the California Constitution because of the unique
economic circumstances in the City and County of San Francisco.
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Ch.700 —12—
SEC. 7. Section 2,5 of this bill incorparates amendments to Section
23357 of the Business and Professions Code proposed by both this bill and
Senate Bill 788. That section of this bill shail only become operative if(1)
both biils are enacted and become effective on or before January 1, 2024,
(2) each bill amends Section 23357 of the Business and Professions Code,
and(3)this bill is enacted after Senate Bi11788,in which case Section 2 of
this bill shall not become operative.
SEC. 8. Section 3.5 of this bill incorporates amendments to Section
23358 of the Business and Professions Code proposed by this bill and
Assembly Bill 1704. That section of this bill shall only become operative
if(1)both bills are enacted and become effective on or before January 1,
2024, (2) each biil amends Section 23358 of the Business and Professions
Code, and(3) this bill is enacted after Assembly Bi11 1704, in which case
Section 23358 of the Business and Professions Code, as amended by
Assembly Bill 1704,shail remain operative only until the operative date of
this bill, at which tiine Section 3.5 of this bill shall become operative, and
Section 3 of this bill shali not become operative.
SEC. 9. No reimbursement is required by this act pursuant to Section 6
of Articie 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 Articie XIIZ B of the California
Constitution.
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