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SB-389 Alcoholic beverages: retail off-sale license: retail off-sale delivery: retail on-sale license: off-sale privileges. (2021-2022)

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Date Published: 06/15/2021 09:00 PM
SB389:v96#DOCUMENT

Amended  IN  Assembly  June 15, 2021
Amended  IN  Senate  April 21, 2021
Amended  IN  Senate  April 06, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 389


Introduced by Senator Dodd
(Principal coauthor: Senator Wiener)
(Principal coauthor: Assembly Member coauthors: Assembly Members Bauer-Kahan and Friedman)

February 11, 2021


An act to add Section Sections 23394.6 and 23401.5 to the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


SB 389, as amended, Dodd. Alcoholic beverages: retail off-sale license: retail off-sale delivery: retail on-sale license: off-sale privileges.
(1) Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Under existing law, a retail package off-sale beer and wine license authorizes the sale, to consumers and not for resale, of beer in containers, and wine in packages, as specified, for consumption off the premises where sold. Existing law prohibits the exercise of off-sale license privileges at a customer-operated checkout stand located on the licensee’s physical premises.
This bill would authorize a licensee with off-sale retail privileges to deliver alcoholic beverages to consumers away from the licensed premises if specified requirements are met. The bill would except common carries from the application of its provisions. The bill would require, among other things, that the licensee be authorized to sell alcoholic beverages for off-sale consumption, to determine which alcoholic beverages are available for delivery, and to set the prices for these beverages. The bill would require a licensee to be responsible for accepting or rejecting the delivery order and, prior to acceptance, the purchaser to affirm that both the purchaser and the recipient are not under 21 years of age. The bill would prescribe requirements for consumer delivery services operating in this context and would require the Department of Alcoholic Beverage Control to issue a consumer delivery service permit to a service that satisfies specified requirements.
The bill, in context of the authorization described above, would exempt a licensee from discipline for the sale, delivery, or furnishing of an alcoholic beverage to an obviously intoxicated person, or to a person under 21 years of age, if certain requirements are met. The bill would authorize the Department of Alcoholic Beverage Control to impose administrative penalties, as specified, against the holder of a consumer delivery service permit that violates its provisions.

Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes the department to issue various types of licenses and prohibits a person from exercising the privilege which a licensee may exercise or performing under the authority of a license unless the person is authorized to do so by a license. Existing

(2) Existing law authorizes a person holding an on-sale general license, with respect to beer and wine, and any on-sale license, with respect to the particular beverage or beverages mentioned in the license, to exercise the rights and privileges granted by an off-sale beer and wine license.
This bill would authorize the holder of a retail on-sale license or a licensed beer manufacturer manufacturer, licensed wine manufacturer, or craft distiller that operates a bona fide eating place to exercise additional off-sale rights and privileges, subject to specified requirements. In this regard, the bill would authorize the licensee to sell alcoholic beverages for off-sale consumption for which their license permits on-sale consumption if the beverages are in manufacturer prepackaged containers. Additionally, the bill would authorize a licensee to sell the alcoholic beverages, except beer, for off-sale consumption for which their license permits on-sale consumption when the beverages are not in manufacturer prepackaged containers if specified conditions are met, including, among other things, that the beverages be packaged in a container with a secure lid or cap sealed in a manner designed to prevent consumption without removal of the lid or cap by breaking the seal.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 23394.6 is added to the Business and Professions Code, to read:

23394.6.
 (a) A licensee with off-sale retail privileges may deliver an alcoholic beverage to a consumer away from the licensed premises only if all of the following requirements are met:
(1) The licensee shall be authorized to sell the alcoholic beverage for off-sale consumption. The licensee shall determine which alcoholic beverages are available for delivery and set the prices for these beverages.
(2) The delivery shall be made by the licensee or the holder of a consumer delivery service permit.
(3) The licensee shall be responsible for accepting or rejecting the delivery order, and the purchaser shall pay the licensee prior to delivery, directly or through a payment processor. Prior to the licensee accepting a delivery order, the purchaser shall affirm that both the purchaser and the recipient of the order are not under 21 years of age.
(4) Any alcoholic beverage to be delivered shall be removed from the licensed premises during the hours in which the licensee is permitted to sell, and the delivery shall be complete no later than 60 minutes after the time the licensee is required to end sales.
(5) The delivery shall be made by a person who is at least 21 years of age. The person to whom the alcoholic beverages are delivered shall be at least 21 years of age.
(6) The delivery shall be made by a person who has completed a responsible beverage service training course for delivery personnel, using materials approved by the department, that covers the following subjects:
(A) The social impact of alcohol.
(B) The impact of alcohol on the body.
(C) State law and regulations relating to alcoholic beverage control.
(D) Intervention techniques to prevent the service or sale of alcoholic beverages to underage persons or intoxicated persons.
(7) If the licensee uses a consumer delivery service, the following shall apply:
(A) The service shall be provided pursuant to a valid, written contract between the licensee and the consumer delivery service that acknowledges the requirements of this section.
(B) The licensee shall disclose to the consumer delivery service if an order to be delivered contains alcoholic beverages.
(b) The department shall issue a consumer delivery service permit to a service that satisfies the following:
(1) The service pays the required application and annual fee.
(2) The owners and officers of the service have not been convicted of any crimes of moral turpitude, as that term is applied to licensees under subdivision (d) of Section 24200.
(c) (1) A licensee is not subject to discipline for the sale, delivery, or furnishing of an alcoholic beverage to an obviously intoxicated person, if the delivery of the alcoholic beverage is made by the holder of a consumer delivery service permit acting for the licensee and the licensee did not have notice that the person was obviously intoxicated on or before the time that the consumer delivery service picked up the order.
(2) A licensee is not subject to discipline for the sale, delivery, or furnishing of an alcoholic beverage pursuant to the authorization granted by this section to a person under 21 years of age if both of the following conditions are met:
(A) Prior to the licensee accepting the order, the purchaser affirms that both the purchaser and the recipient are not under 21 years of age.
(B) The licensee identifies to the consumer delivery service that the order to be delivered contains alcoholic beverages.
(d) The department may impose the following administrative penalties against the holder of a consumer delivery service permit who violates any provision of this section:
(1) A fine of up to $500 for a first violation.
(2) A fine of up to $1,000 for a second violation within 12 months of a previous violation.
(3) A fine of up to $2,500 for a third or subsequent violation within 12 months of a previous violation.
(e) This section does not apply to the delivery of alcoholic beverages by common carrier.

SECTION 1. SEC. 2.

 Section 23401.5 is added to the Business and Professions Code, to read:

23401.5.
 Notwithstanding any other law to the contrary, the holder of a retail on-sale license or a licensed beer manufacturer manufacturer, licensed wine manufacturer, or craft distiller that operates a bona fide public eating place may exercise the following rights and privileges subject to the requirements of this section:
(a) The licensee may sell the alcoholic beverages for off-sale consumption for which their license permits on-sale consumption provided the beverages are in manufacturer prepackaged containers.
(b) In addition to the privilege provided by subdivision (a), the licensee may sell the alcoholic beverages, except beer, for off-sale consumption for which their license permits on-sale consumption when the beverages are not in manufacturer prepackaged containers if the following conditions are met:
(1) The alcoholic beverages are packaged in a container with a secure lid or cap sealed in a manner designed to prevent consumption without removal of the lid or cap by breaking the seal.
(2) Wine is sold only in single-serve containers.
(3) The container is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.
(4) (A) The following warning sign is posted in a manner that notifies consumers of restrictions regarding open container laws:

Alcoholic “Alcoholic beverages that are packaged by this establishment are open containers and shall not be transported in a motor vehicle except in the vehicle’s trunk or, if there is no trunk, the containers shall be kept in some other area of the vehicle that is not normally occupied by the driver or passengers. This does not include a utility compartment or glove compartment (See Vehicle Code Section 23225). Additionally, these beverages shall not be consumed in public or in any other area where open containers are prohibited by law. law.”

(B) For purposes of this paragraph, “post” means to prominently display on the premises, post online, or present in whatever manner is necessary to ensure that the consumer purchasing, or delivery person transporting, the beverages to which this section applies is given notice of this warning.
(c) Nothing in this section shall require a licensee to sell alcoholic beverages for off-sale consumption whether or not the alcoholic beverage is in a manufacturer-sealed prepackaged container or otherwise.