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AB-631 Alcoholic beverage control: licenses: nonprofit cultural film exhibition companies.(2021-2022)

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Date Published: 03/24/2021 09:00 PM
AB631:v98#DOCUMENT

Amended  IN  Assembly  March 24, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 631


Introduced by Assembly Member Bloom

February 12, 2021


An act to amend Section Sections 23039 and 24045.7 of the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


AB 631, as amended, Bloom. Alcoholic beverage control: licenses: nonprofit cultural film exhibition companies.
Existing law, the Alcoholic Beverage Control Act, authorizes the Department of Alcoholic Beverage Control to issue a special on-sale general license to a nonprofit theater company, subject to specified requirements. Existing law makes it a misdemeanor for any on- or off-sale licensee, or agent of that licensee, to sell, give, or deliver to any persons any alcoholic beverage between the hours of 2 a.m. and 6 a.m. of the same day. The act defines “public premises” to mean, among other things, a premises in which food products are only sold or served incidentally to the sale or service of alcoholic beverages and exempts an above-described nonprofit theater company from the definition.
This bill would authorize the department to issue a special on-sale general license to a nonprofit cultural film exhibition company. company with specified characteristics, including that it predominantly exhibits classic, foreign, independent, or rare movies and is exempt from the payment of income taxes, as specified. The bill would authorize those nonprofit cultural film exhibition companies, subject to the misdemeanor provision described above, to sell and serve alcoholic beverages, as specified, to ticketholders only during, and 2 hours before and one hour after, a bona fide film exhibition of the company. The bill would also exempt companies licensed pursuant to those provisions from the definition of “public premises.”
By expanding the application of an existing crime, this bill would impose a state-mandated local program.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 23039 of the Business and Professions Code is amended to read:

23039.
 (a) “Public premises” means:
(1) Premises licensed with any type of license other than an on-sale beer license, and maintained and operated for the selling or serving of alcoholic beverages to the public for consumption on the premises, and in which food shall not be sold or served to the public as in a bona fide public eating place, but upon which premises food products may be sold or served incidentally to the sale or service of alcoholic beverages, in accordance with rules prescribed by the department.
(2) Premises licensed with an on-sale beer license, in which food shall not be sold or served to the public as in a bona fide public eating place, and in which sandwiches, salads, desserts, and similar short orders shall not be sold and served, in accordance with rules prescribed by the department.
(b) “Public premises” does not include any of the following:
(1) Railroad dining or club cars, passenger ships, airplanes, or bona fide clubs after the clubs have been lawfully operated for not less than one year.
(2) Historic units of the state park system.
(3) Premises being operated under a temporary on-sale beer license other than permitted pursuant to Section 24045.5, or on-sale beer licensed stadia, auditoria, fairgrounds, or racetracks.
(4) Nonprofit theater companies or nonprofit cultural film exhibition companies licensed pursuant to Section 24045.7.
(5) Theaters licensed pursuant to Section 24045.75.
(6) Cemeteries licensed pursuant to Section 24045.76.
(7) Winegrowers’ premises.
(8) Licensed premises of a nonprofit arts foundation licensed pursuant to Section 24045.78.

SECTION 1.SEC. 2.

 Section 24045.7 of the Business and Professions Code is amended to read:

24045.7.
 (a) (1) The department may issue a special on-sale general license to any nonprofit theater company or nonprofit cultural film exhibition company that is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any special on-sale general license issued to a nonprofit theater company or nonprofit cultural film exhibition company pursuant to this subdivision shall be for a single specified premises only.
(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide theater performance of the company.
(3) (A) Nonprofit cultural film exhibition companies holding a license under this subdivision may, subject to Section 25631, sell and serve alcoholic beverages to ticketholders only during, and two hours before and one hour after, a bona fide film exhibition of the company.
(B) For purposes of this subdivision, “nonprofit cultural film exhibition company” means a company that predominantly exhibits classic, foreign, independent, or rare movies by means of digital or film projection equipment for its members or the general public, or both, in a theater with a seating capacity of at least 100 seats, at least three days per week.
(4) Notwithstanding any other provision in this division, a licensed manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, employee, or agent of that person, may serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating a theater in the County of Napa, the City of Livermore, or the City of Modesto, licensed pursuant to this subdivision.
(5) The Legislature finds that it is necessary and proper to require a separation between manufacturing interests, wholesale interests, and retail interests in the production and distribution of alcoholic beverages in order to prevent suppliers from dominating local markets through vertical integration and to prevent excessive sales of alcoholic beverages produced by overly aggressive marketing techniques. The Legislature further finds that the exceptions established by this subdivision to the general prohibition against tied interests must be limited to their express terms so as not to undermine the general prohibition, and intends that this section be construed accordingly.
(b) (1) The department may issue a special on-sale beer and wine license to any nonprofit theater company which has been in existence for at least eight years, which for at least six years has performed in facilities leased or rented from a local county fair association, and which is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States.
(2) Theater companies holding a license under this subdivision may, subject to Section 25631, sell and serve beer and wine to ticketholders only during, and two hours before, a bona fide theater performance of the company. Beer and wine may be sold from an open-air concession stand which is not attached to the theater building itself, if the concession stand is located on fair association property within 30 feet of the theater building and the alcoholic beverages sold are consumed only in the theater building itself, or within a designated outdoor area in front of and between the concession stand and the main public entrance to the theater building. Nothing in this section permits a theater company to sell beer or wine during the run of a county fair.

SEC. 2.SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article 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 Article XIII B of the California Constitution.