SENATE RULES COMMITTEE SB 969
Office of Senate Floor Analyses
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UNFINISHED BUSINESS
Bill No: SB 969
Author: Wiener (D), et al.
Amended: 8/22/24
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 3/12/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood- Cuevas
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24
AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab SENATE FLOOR: 37-0, 5/23/24
AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
NO VOTE RECORDED: Allen, Archuleta, Newman
ASSEMBLY FLOOR: 72-2, 8/26/24 - See last page for vote
SUBJECT: Alcoholic beverages: entertainment zones: consumption SOURCE: California Nightlife Association
City and County of San Francisco
City of San Jose
DIGEST: This bill authorizes specified licensees to allow consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone, as specified Assembly Amendments require a city, county, or city and county, upon modifying an entertainment zone, to (1) provide specified information to the Department of SB 969
Alcoholic Beverage Control (ABC), and notify local law enforcement and request feedback. Assembly Amendments also add chaptering out language.
ANALYSIS:
Existing law:
1) Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
2) Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
3) Authorizes the City and County of San Francisco to establish an entertainment zone, subject to certain requirements, including providing specified information relating to the entertainment zone to the Department of ABC and establishing 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.
4) Defines "entertainment zone" for the purpose of the ABC Act to mean a zone created by ordinance on or after Januaryl, 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 of ABC. 5) Authorizes 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 and only in the City and County of San Francisco, subject to certain conditions.
6) Provides that a licensed beer manufacturer, a licensed winegrower, and any on- sale licensee 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 this purpose, existing law requires any restrictions on the exercise of off-sale privileges to SB 969
apply to the removal of alcoholic beverages from the licensed premises for consumption in the entertainment zone.
7) Provides that any person possessing an open container of an alcoholic beverage in any city, county, or city and county owned public place 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. 8) Authorizes, under the Planning and Zoning Law, the legislative body of any city or county to adopt ordinances regulating zoning within its jurisdiction, as specified.
9) Defines an "on-sale" license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An "off-sale" license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
This bill:
1) Redefines the definition of an "entertainment zone" to mean a zone created by a city, county, or city and county ordinance on or after January 1, 2025, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way.
2) Requires a city, county, or city and county that establishes an entertainment zone to 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.
3) Requires a city, county, or city and county that establishes or modifies an entertainment zone to provide all of the following to the Department of ABC:
a) A copy of the ordinance establishing or modifying an 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.
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e) The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized.
4) Prohibits any restrictions on the exercise of off-sale privileges from applying to the removal of open alcoholic beverages from the licensed premises for consumption in the entertainment zone.
5) Provides that an ordinance establishing or modifying an entertainment zone shall not authorize consumption of alcoholic beverages during the hours in which sales of alcoholic beverages are prohibited, as specified. 6) Provides that an ordinance establishing an entertainment zone may only authorize consumption of alcoholic beverages during the hours in which at least one licensee within the boundaries of the entertainment zone is permitted to sell alcoholic beverages for consumption on the premises.
7) Requires a city, county, or city and county, before enacting or modifying an ordinance to establish an entertainment zone, to notify local law enforcement and request feedback about both of the following:
a) Potential health and safety impacts that might be generated by the entertainment zone and strategies to mitigate those impacts. b) The entertainment zone's proposed boundaries, days, and hours of operation, types of alcoholic beverages permitted, and approved nonglass and nonmetal containers.
8) Requires a city, county, or city and county that establishes an entertainment zone, to review the operation of the entertainment zone every two years to ensure that the entertainment zone is being maintained in a manner that protects the health and safety of the general public. This review shall be conducted in consultation with local law enforcement agencies and any reports produced during the review shall be made available to the Department of ABC upon request.
Background
Author Statement. According to the author's office, "Senate Bill 969 will allow local governments to designate 'Entertainment Zones,' where restaurants and bars will be able to sell alcoholic beverages for consumption in a specified zone. Under current law, cities can designate temporary open container zones for festivals, SB 969
parades, etc., but only outside vendors are allowed to sell alcohol in the zone — local brick and mortar restaurants and bars are prohibited from doing so. This bill ends this inequity by allowing local restaurants and bars inside entertainment zones to sell alcohol. SB 969 further allows municipalities to create Entertainment Zones that allow neighborhood businesses to participate on equal footing with outside vendors and to engage in novel activations that cities can plan more permanently in order to aid their economic recovery. Cities require all possible tools to address the needs of their commercial areas.
State v. Local Control of Alcohol Policy. The Department of ABC is vested with the exclusive authority to license and regulate the manufacture, distribution, and sale of alcoholic beverages within California. Existing law requires the Department of ABC to notify specified local officials of an application for the issuance or transfer of a liquor license and prohibits the Department of ABC from issuing or transferring a license until at least 30 days after these notices are provided. Local officials are also allowed to file a protest against the issuing of the license.
Over the years, local governments have petitioned the Legislature for greater authority to directly regulate establishments that sell alcohol in their respective communities. Much of this activity has been centered on local government's use of zoning laws and conditional use permits that place operating conditions on new businesses that sell alcohol.
This bill authorizes any on-sale licensee, a licensed beer manufacturer, a licensed winegrower, and a music venue licensee to sell alcoholic beverages for consumption off the premises as long as the licensed premises are within an entertainment zone. Unlike open container zones, which are ultimately the responsibility of local governments, this bill contains standards for entertainment zones and restrictions for licensees seeking to participate in entertainment zones.
This bill does not require any local governments to create such zones, establish a process for the creation of such zones, or require any licensee to participate in any event at an entertainment zone. Rather, this bill simply authorizes specified alcohol licensees to sell alcoholic beverages for consumption off their licensed premises under specified conditions. Currently, even if a city or county were to create such zones, licensees could be in violation of the ABC Act since their license might only allow for the sale of alcoholic beverages for consumption on the licensed premises.
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SB 76 (Wiener, Chapter 700, Statutes of 2023). Last year, Governor Newsom signed SB 76 (Wiener, Chapter 700, Statutes of 2023) which allows specified licensees in the City and County of San Francisco to allow consumers to leave the licensed premises with open containers of alcoholic beverages for consumption in an entertainment zone. If the City and County of San Francisco establishes an entertainment zone, it is required to establish a process by which individuals in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older. According to supporters of the bill, while San Francisco has yet to establish an entertainment zone, they expect an ordinance to be introduced this month that would create such an entertainment zone in San Francisco.
As passed by this committee, SB 76 was applicable statewide and would have allowed specified licensees in any city or county in California to allow consumers to leave the licensed premises with open containers of alcoholic beverages for consumption in an entertainment zone. The bill was amended in the Assembly to only be applicable to the City and County of San Francisco.
This bill expands the provisions of last year's SB 76 to allow specified licensees in any city and county in California to allow consumers to leave the licensed premises with open containers for consumption in an entertainment zone. Unlike last year's bill, this bill requires a city or county, before enacting or modifying an ordinance, to notify local law enforcement and request feedback on the potential health and safety impacts that might be generated by the entertainment zone and strategies to mitigate those impacts.
Related/Prior Legislation
SB 76 (Wiener, Chapter 700, Statutes of 2023) authorized specified licensees in the City and County of San Francisco to allow consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone, as specified.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No According to the Assembly Appropriations Committee, cost of an unknown, but potentially significant, amount to ABC to provide enforcement of licensees selling alcohol within an entertainment zone, especially if many expansive zones are established, thus encompassing a large number of licensees exercising a new privilege (Alcohol Beverage Control Fund). ABC notes any entertainment zone SB 969
would be established and regulated by the local jurisdiction, not ABC, so ABC cannot predict the volume of local jurisdictions that may authorize a zone, how many zones may be created, and the size and rules of those zones.
ABC also anticipates one-time information technology costs of approximately $40,000 to build a portal on its website for licensees to annually provide notice to ABC about the licensee's intent to participate in an entertainment zone.
SUPPORT: (Verified 8/20/24)
California Nightlife Association (Co-source)
City and County of San Francisco (Co-source)
City of San Jose (Co-source)
Bay Area Council
California Downtown Association
California Restaurant Association
California Travel Association
City of Merced
City of Redding
City of Santa Monica
City of Santa Rosa
County of Yolo
Darrell Steinberg, Mayor of the City of Sacramento
DIAGEO
Downtown Berkeley Association
Downtown Long Beach Alliance
Downtown Santa Monica, Inc.
Downtown Sacramento Partnership
Golden Gate Restaurant Association
The East Cut Community Benefit District
North Park Main Street
Playhouse Village Association
San Jose Downtown Association
San Francisco Travel Association
Santa Monica Chamber of Commerce
Sheng Thao, Mayor, City of Oakland
Union Square Alliance
OPPOSITION: (Verified 8/20/24)
Alcohol Justice
California Alcohol Policy Alliance
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California Council on Alcohol Problems
Citizens for a Better Los Angeles
ARGUMENTS IN SUPPORT: According to the California Nightlife Association, "SB 969 will aid the recovery of downtown small businesses by removing barriers to brick and mortar business participating in nearby outdoor events, like street fairs and festivals. It will allow municipalities to create entertainment zones that allow neighborhood businesses - which are currently barred from selling alcoholic beverages to-go during festivals - to participate on equal footing with outside vendors and to engage in new types of events structured around entertainment zones."
ARGUMENTS IN OPPOSITION: According to California Alcohol Policy Alliance, "it is not cynical to say the extra dollars are the sole intention of this policy. Streets full of drunk partygoers do not benefit after-school care centers, or senior centers. To turn blocks and blocks into ersatz Bourbon Street assumes that alcohol is the sole economic motivator for a neighborhood, and actively drives out conflicting businesses. This is at odds with many best practices, up to and including the ideals of mixed-used neighborhoods."
ASSEMBLY FLOOR: 72-2, 8/26/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk- Silva, Rendon, Luz Rivas, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Bains, Ward
NO VOTE RECORDED: Cervantes, Ortega, Ramos, Reyes, Rodriguez Click here to enter text.
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/27/24 12:56:30
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