Bill Text: CA SB76 | 2023-2024 | Regular Session | Chaptered
Bill Title: Alcoholic beverages: music venue license: entertainment zones: consumption.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2023-10-10 - Chaptered by Secretary of State. Chapter 700, Statutes of 2023. [SB76 Detail]
Download: California-2023-SB76-Chaptered.html
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 alcoholic beverages.
[
Approved by
Governor
October 10, 2023.
Filed with
Secretary 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 alcoholic beverage licenses by the Department 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 facility, as defined. Existing 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 misdemeanor. 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 records 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 duplicate license or licenses, as prescribed. The bill would also authorize a music venue licensee to sell, serve, and permit consumption of alcoholic beverages during private events or private functions not open to the general public within any hours of operation permitted by its license, regardless 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 records demonstrating 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 grounds for disciplinary action punishable 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 park district, is guilty 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 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 special event permitted or licensed 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 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.
This bill would make legislative findings 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 would 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 bill is enacted last.
(4) The California Constitution requires the state to reimburse local agencies and school 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
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 special 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, 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.
(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 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 off the 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.
(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 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 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 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 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 sell cider or perry to any licensee authorized to sell wine. For purposes of this subdivision, “cider” and “perry” 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 licensee 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.
(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 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 off the 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.
(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 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 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 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 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 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” have 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 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 licensee authorized to manufacture the product.
SEC. 3.
Section 23358 of the Business and Professions Code is amended to read:23358.
(a) Licensed winegrowers, notwithstanding any other provisions of this division, may also exercise the following privileges:(1) Sell 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 consumers 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 leave the premises with open containers of alcoholic beverages for consumption off the 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.
(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 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 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
removal 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 also have 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 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 shall
determine for good cause that the granting of any such privilege would be contrary to public welfare 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 school 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, 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 amended to read:23358.
(a) Licensed winegrowers, notwithstanding any other provisions of this division, may also exercise the following privileges:(1) Sell 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 consumers 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 off the 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.
(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 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 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 removal 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 or a distilled spirits manufacturer.
(b) A winegrower may also have 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 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 premises and any licensed branch premises.
(d) The department may, if it shall determine for good cause that the granting of any such privilege would be contrary to public welfare 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 school 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, 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. 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, 23038.1, 23038.2, or 23038.3.(b) (1) In addition to the privilege in subdivision (a), any on-sale license for a premises located in an entertainment zone authorizes the licensee to permit consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises
within the entertainment zone if all 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 leave the premises during the hours allowed by the ordinance establishing the entertainment zone.
(C) Patrons with open containers exit the licensed premises directly 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.
(G) 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.
(H) 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 premises within an
entertainment zone.
(3) 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 removal 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 distilled spirits at retail for 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 transferable 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 public within any hours of operation permitted by its license, regardless of whether
any live performance occurs.
(B) (i) A music entertainment facility shall 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.
(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.
(f) (1) An on-sale general bona fide public 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 modify its rules regarding the surrender of licenses to implement this subdivision.
(g) The department may promulgate regulations to implement this article.
SEC. 6.
Article 5 (commencing with Section 25690) is added to Chapter 16 of Division 9 of the Business and Professions Code, to read:Article 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 department:
(A) A copy of the ordinance establishing the entertainment zone.
(B) Information as may 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 alcoholic beverages permitted within the entertainment zone.
(E) The approved nonglass 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 meaning of Section 16 of Article IV of the California Constitution because of the unique economic circumstances in the City and County of San Francisco.
