25634.
(a) For purposes of this section:(1) “Local governing body” means the city council or the board of supervisors, as may be applicable, of a qualified city.
(2) “Qualified city” means the Cities of Palm Springs and West Hollywood and the City and County of San Francisco.
(b) Beginning January 1, 2025, notwithstanding Section 25631, the department shall conduct a pilot program and, pursuant to that pilot program, may issue an additional hours license that would authorize, with or without conditions, the selling, giving, or purchasing of alcoholic beverages at an individual on-sale licensed premises between the hours of 2 a.m. and 4 a.m. on Saturdays and Sundays, and on January 1, the last Monday in May known as “Memorial Day,” July 4, the first Monday in September known as “Labor Day,” and the day before that Thursday in November proclaimed by the President as “Thanksgiving Day,” and between the hours of 2 a.m. and 3 a.m. on all other days, within a qualified city if the local governing body of that qualified city does the following:
(1) Designates a task force composed of members, including at least one member of law enforcement and one additional member of the Department of the California Highway Patrol, to develop a recommended local plan that meets all of the following requirements:
(A) Shows that the public convenience or necessity will be served by the additional hours.
(B) Identifies the service area in which an on-sale licensed premises would be eligible for an additional hours license and further identifies the area that will be affected by the additional hours and demonstrates how that area will benefit from the additional hours.
(C) Shows significant support by residents and businesses within the additional hours service area for the additional hours, pursuant to a determination by the local governing body.
(D) Includes an assessment by the local governing body, prepared in consultation with local law enforcement, regarding the potential impact of an additional hours service area and the public safety plan, created by 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 hours service area.
(E) Shows that
transportation services are readily accessible in the additional hours service area during the additional service hours.
(F) Includes programs to increase public awareness of the transportation services available and unavailable in the additional hours service area and the impacts of alcohol consumption.
(G) Includes an assessment of the potential impact of an additional hours service area on adjacent cities, counties, and cities and counties, including, but not limited to, nearby law enforcement agencies.
(H) Indicates that the qualified city chooses to participate in the pilot program.
(2) Based upon
its independent assessment, adopts an ordinance that satisfies the elements of the local plan, including the requirements of subparagraphs (A) to (H), inclusive, of paragraph (1), and submits the ordinance to the department.
(3) A local governing body may comply with this section and approve a local plan and submit an ordinance to the department beginning January 1, 2023.
(c) (1) Upon receipt of an ordinance adopted pursuant to paragraph (2) 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 hours license to an applicant if the ordinance
from the qualified city does not meet the requirements of paragraph (2) of subdivision (b).
(2) The department may review ordinances beginning January 1, 2023.
(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 (2) of subdivision (b).
(B) Subject to subparagraph (A), an on-sale licensee may apply for an additional hours license beginning January 1, 2023. The department may issue additional hours licenses pursuant to this section beginning January 1, 2023. An additional hours license issued on or after January 1, 2023, and
before January 1, 2025, shall become effective on January 1, 2025. An additional hours license issued on or after January 1, 2025, shall become effective on its effective date.
(2) An on-sale licensee that has conditions on the license that restrict the hours of sale, service, or consumption of alcohol to a time earlier than 2 a.m. shall not be eligible for an additional hours license authorizing the sale, service, or consumption of alcoholic beverages after 2 a.m. for any day or days of the week during which a restriction exists.
(3) An on-sale licensee issued an additional hours license pursuant to this section shall require that all persons engaged in the sale or service of alcohol during the additional hours period complete a responsible beverage training course.
(4) Notwithstanding Section 23401, off-sale privileges shall not be exercised during the additional hours period allowed pursuant to the additional hours license.
(5) An additional 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 licensees, shall be subject to the local governing body’s requirements for an additional hours license. The local governing body may charge an additional hours licensee a fee to fund local law enforcement.
(7) The determination of the necessity for, and types of, local licensing and local
permitting shall be made by the local governing body.
(e) (1) Upon receipt of an application by an on-sale licensee for an additional hours license pursuant to this section, the department shall make a thorough investigation, including whether the additional hours license sought by the applicant would unreasonably interfere with the quiet enjoyment of their property by the residents of the city, county, or city and county in which the applicant’s licensed premises are located, and may deny an application in the same manner as provided in Section 23958.
(2) The applicant 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 hours license is sought,
and any other interested parties, as determined by the local governing body, of the application by an on-sale licensee for an additional hours license pursuant to this section 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 an application by an on-sale licensee for an additional hours license. The time within which a local law enforcement agency may file a protest shall be extended by the period prescribed in Section 23987.
(4) The department may reject protests, except protests made by a public agency or public official, if it determines 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 protest as a cause for revocation of the additional 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 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 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 or persons 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 hours license without any further proceeding.
(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 hours license. Any conditions placed on the on-sale license shall apply to the additional 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 patrons 21 years of age or older during the additional hours period. Any person under 21
years of age who enters and remains in the licensed premises during the additional hours period 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. This 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 hours license issued pursuant to this section. An additional 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 hours license pursuant to this section, accompany the application with a nonrefundable fee of two thousand five hundred dollars ($2,500). Fees collected pursuant to this section shall be deposited in the Alcohol Beverage Control Fund.
(2) An original and annual fee for an additional hours license issued pursuant to this section shall be two thousand five hundred dollars ($2,500).
(i) The department shall adopt rules and regulations to enforce the provisions of this section.
(j) (1) On or before January 1, 2027, the Department of the California Highway Patrol shall provide the Legislature and the Senate and Assembly Committees on Governmental Organization with a report on the regional impact of the additional hours service areas, which shall include, but is not limited to, incidents involving driving under the influence and alcohol-related traffic collisions. Regional entities including cities, counties, and law enforcement
may provide information to the Department of the California Highway Patrol on the impact the additional hours
service areas had in their jurisdiction, including, but not limited to, incidents involving driving under the influence, alcohol-related traffic collisions, and any additional costs accrued. The report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) Each qualified city that chooses to participate in the pilot program shall provide the Legislature and the Senate and Assembly Committees on Governmental Organization with a report on the regional impact of the additional hours licenses within one year of the first additional hours license being issued in that city, and then once each year thereafter. The report shall include information on any impact the additional service hours had 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 hours licenses, the number of additional hours licenses issued, and conditions placed on those licenses, if any, by the department. The report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(k) This section shall remain in effect only until January 2, 2028, and as of that date is repealed.