25634.
(a) For purposes of this section, “local governing body” means the city council or the board of supervisors, as may be applicable, of a city.(b) Beginning on January 1, 2025, the department may issue an additional serving hours license that, notwithstanding subdivision (a) of Section 25631, authorizes, with or without conditions, the selling, giving, or purchasing of alcoholic beverages at an individual on-sale licensed premises on January 1, the last Monday in May known as “Memorial Day,” July 4, the first Monday in September known as “Labor Day,” or the day before that Thursday in November proclaimed by the President as “Thanksgiving Day,” and on all other Fridays and Saturdays between the hours of 2 a.m. and 4 a.m., if the local governing body of the city in which the licensed premises is located does all of the following:
(1) Adopts an ordinance that meets all of the following requirements and submits the ordinance to the department:
(A) Indicates that the city will allow additional serving hours licenses.
(B) Identifies the service area in which an on-sale licensed premises would be eligible for an additional serving hours license and further identifies the area that will be affected by the additional serving hours and demonstrates how that area will benefit from the additional serving hours.
(C) Includes an assessment by the local governing body, prepared in consultation with local law enforcement, regarding the potential impact of the additional serving hours area and the public safety plan, created in consultation with local law enforcement, for managing those impacts that has been approved by the local governing body. The assessment shall include crime statistics, data derived from police reports, emergency medical response data, sanitation reports, and public health reports related to the additional serving hours area.
(D) Shows that the local law enforcement budget will be increased by at least five percent to mitigate public safety impacts.
(E) Includes an assessment by the local governing body, prepared in consultation with the county transportation authority, regarding the potential impact of an additional serving hours area and a transportation plan, prepared in consultation with the county transportation authority, for managing transportation impacts that has been approved by the local governing body.
(F) Shows that funding has been identified to carry out the local transportation agency’s transportation plan.
(G) Shows that transportation services are readily accessible in the additional serving hours area during the additional serving hours.
(H) Includes programs to increase public awareness of the transportation services available in the additional serving hours area.
(2) A local governing body may comply with this section and submit an ordinance to the department beginning January 1, 2025.
(c) (1) Upon receipt of an ordinance adopted pursuant to paragraph (1) of subdivision (b), including documentation regarding protests to the ordinance, the department shall review the ordinance to ensure that the ordinance contains the information required by paragraph (1) of subdivision (b). The department shall not issue an additional serving hours license to an applicant if the ordinance from the city does not meet the requirements of paragraph (1) of subdivision (b).
(2) The department may review ordinances beginning on January 1, 2025.
(d) (1) (A) An on-sale licensee shall not apply for an additional hours license pursuant to this section until the department has received the ordinance adopted pursuant to paragraph (1) of subdivision (b).
(B) Subject to subparagraph (A), an on-sale licensee may apply for an additional serving hours license beginning on January 1, 2025.
(2) If an on-sale licensee has conditions on the license that restrict the hours of sale, service, or consumption of alcohol to a time earlier than 2 a.m., an additional serving hours license shall not authorize any additional serving hours for any day or days of the week during which a restriction exists.
(3) An on-sale licensee issued an additional serving hours license pursuant to this section shall require that all persons engaged in the sale or service of alcohol during the additional hours service period complete a responsible beverage training course.
(4) Notwithstanding Section 23401, off-sale privileges shall not be exercised during the additional serving hours permitted pursuant to an additional serving hours license.
(5) An additional serving hours license is not transferable between on-sale licensed premises.
(6) All new, existing, and previously legally nonconforming on-sale licensees, including previous person-to-person transferee licenses, shall be subject to the local governing body’s requirements for an additional serving hours license. The local governing body may charge an additional serving hours licensee a fee to fund local law enforcement.
(7) The determination of the necessity for, and types of, local licensing and local permitting in connection with an additional serving hours license shall be made by the local governing body.
(e) (1) Upon receipt of an application by an on-sale licensee for an additional serving hours license pursuant to this section, the department shall make a thorough investigation, including whether the additional serving hours license sought by the applicant would unreasonably interfere with the quiet enjoyment of their property by the residents of the city in which the applicant’s licensed premises are located, and may deny an application in the same manner as is provided in Section 23958.
(2) The applicant for an additional serving hours license shall notify the law enforcement agencies of the city, the residents of the city located within 500 feet of the premises for which an additional serving hours license is sought, and any other interested parties, as determined by the local governing body, of the application within 30 consecutive days of the filing of the application, in a manner determined by the local governing body.
(3) Protests may be filed at any office of the department within 30 days from the first date of notice of the filing of the application pursuant to paragraph (2). The time within which a local law enforcement agency may file a protest shall be extended by the period described in Section 23987.
(4) The department may reject protests, except protest made by a public agency or public official, if it determines that the protests are false, vexatious, frivolous, or without reasonable or probable cause at any time before hearing thereon, notwithstanding Section 24300. If, after investigation, the department recommends that an additional hours license be issued notwithstanding a protest by a public agency or a public official, the department shall notify the agency or official in writing of its determination and the reasons therefor, in conjunction with the notice of hearing provided to the protestant pursuant to Section 11509 of the Government Code. If the department rejects a protest as provided in this section, a protestant whose protest has been rejected may, within 10 days, file an accusation with the department alleging the grounds of the protest as a cause for revocation of the additional serving hours license and the department shall hold a hearing as provided in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(5) This section shall not be construed as prohibiting or restricting any right that the individual making the protest might have to a judicial proceeding.
(f) (1) If, after investigation, the department recommends that an additional serving hours license be issued, with or without conditions, notwithstanding that one or more protests have been accepted by the department, the department shall notify the local governing body and all protesting parties whose protests have been accepted in writing of its determination.
(2) Any person who has filed a verified protest in a timely fashion pursuant to subdivision (e) that has been accepted pursuant to this section may request that the department conduct a hearing on the issue or issues raised in the protest. The request shall be in writing and shall be filed with the department within 15 business days of the date the department notifies the protesting party of its determination as required under paragraph (1).
(3) At any time before the issuance of the additional serving hours license, the department may, in its discretion, accept a late request for a hearing upon a showing of good cause. Any determination of the department pursuant to this paragraph shall not be an issue at the hearing nor grounds for appeal or review.
(4) If a request for a hearing is filed with the department pursuant to paragraph (2), the department shall schedule a hearing on the protest. The issues to be determined at the hearing shall be limited to those issues raised in the protest or protests of the person or persons requesting the hearing.
(5) Notwithstanding that a hearing is held pursuant to paragraph (4), the protest or protests of any person who did not request a hearing as authorized by this section shall be deemed withdrawn.
(6) If a request for a hearing is not filed with the department pursuant to this section, any protest or protests shall be deemed withdrawn and the department may approve the on-sale licensee’s application for an additional serving hours license without any further proceedings.
(7) If the person filing the request for a hearing fails to appear at the hearing, the protest shall be deemed withdrawn.
(g) (1) The department shall notify the applicant of the outcome of the application for an additional serving hours license. Any conditions placed on the on-sale license shall apply to the additional serving hours license. Any additional conditions placed upon the additional hours license pursuant to this section shall be subject to Article 1.5 (commencing with Section 23800).
(2) The premises for which an additional hours license is issued shall be restricted to patron 21 years of age or older during the additional serving hours. Any person under 21 years of age who enters and remains in the licensed premises during the additional serving hours without lawful business therein is guilty of a misdemeanor and shall be punished by a fine of not less than two hundred dollars ($200), no part of which shall be suspended. The provision does not prohibit the presence on the licensed premises of a person under 21 years of age that is otherwise authorized by law.
(3) Section 24203 applies to an additional serving hours license issued pursuant to this section. An additional serving hours license may be suspended or revoked separately from the on-sale license.
(h) (1) The applicant shall, at the time of application for an additional serving hours license pursuant to this section, accompany the application with a nonrefundable fee of two thousand five hundred dollars ($2,500).
(2) An original and annual fee for an additional serving hours license issued pursuant to this section shall be two thousand five hundred dollars ($2,500).
(3) Fees collected pursuant to this subdivision shall be deposited into the Alcohol Beverage Control Fund.
(i) The department shall adopt rules and regulations to enforce this section.
(j) (1) A city that by ordinance creates an additional serving hours area shall provide to the Legislature and the Senate and Assembly Committees on Governmental Organization with a report on its regional impact within one year of the first additional serving hours license being issued in that city, and then once each year thereafter. The report shall include information on any impact that the additional serving hours have on crime rates in the city, including arrests for driving under the influence and domestic violence. The report shall also include a detailed description of the number of licensees that applied for additional serving hours licenses, the number of additional serving hours licenses issued, and conditions placed on those licenses by the department, if any.
(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.