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SB-1315 Alcoholic beverages: consumption area permits.(2021-2022)



Current Version: 06/15/22 - Amended Assembly

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SB1315:v97#DOCUMENT

Amended  IN  Assembly  June 15, 2022
Amended  IN  Senate  April 27, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1315

Introduced by Senator Cortese

February 18, 2022

An act to add Section 23399.46 to the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


SB 1315, as amended, Cortese. Alcoholic beverages: consumption area permits.
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 prohibits a person from exercising a privilege or performing an act which a licensee may exercise or perform under the authority of a license unless the person has a valid license. Existing law prescribes various requirements regarding where alcoholic beverages may be consumed and generally defines a “licensee” to include any person holding a license, a permit, a certification, or any other authorization issued by the department. Existing law generally provides that a violation of the Alcoholic Beverage Control Act for which another punishment is not otherwise provided is a misdemeanor.
This bill would authorize the issuance of a consumption area permit to a person, in the City of San Jose, who owns, operates, or manages a privately owned commercial area, which is not itself a premises where alcoholic beverages are sold. area, as specified. The bill would prescribe requirements for the issuance of a consumption area permit and for operations under the permit, which would authorize consumption of alcoholic beverages off the premises where the beverages are sold by on-sale licensees who are without off-sale privileges. consumers to remove alcoholic beverages from the licensed premises where sold and consume them within a specified consumption area. The bill would prohibit issuance of the permit to a person premises licensed to sell alcoholic beverages. The bill would require that alcoholic beverages consumed in the permitted consumption area be purchased sold only from by licensees contiguous to the area that have entered into a specified written agreement that requires joint responsibility that are licensed for on-sale consumption. The bill would require that the licensees be jointly responsible for compliance with all laws that may subject their licenses to discipline that result from violations in the permitted area. area and would prescribe requirements in this regard. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would require a consumption area permitholder to implement all various security measures necessary to ensure that prevent persons under 21 years of age do not possess or consume from possessing or consuming alcoholic beverages and other violations of the act in the permitted consumption area. The bill would also require that the permitholder install and limit the hours during which alcoholic beverages can be consumed and, during permitted consumption hours, maintain temporary or permanent physical barriers with clear entrances and exits or other security measures around the permitted consumption area or other security measures, as specified. area. The bill would permit a licensed manufacturer to sell alcoholic beverages consumed in the permitted consumption area along with multiple licensed retailers that are authorized to sell alcoholic beverages consumed in the permitted consumption area, as provided. The bill would permit a licensed manufacturer, in this context, to advertise or promote the permitted consumption area, subject to certain requirements. The bill would prescribe other restrictions on the permitholder and the permitted area and would prescribe fees and disciplinary provisions in this connection.
This bill would make legislative findings and declarations as to the necessity of a special statute for premises located in the City of San Jose.
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 23399.46 is added to the Business and Professions Code, to read:

23399.46.
 (a) (1) A person who owns, operates, or manages a privately owned commercial area, as described in subdivision (g), which is not itself a premises where alcoholic beverages are sold, (l), may apply to the department for a consumption area permit. Subject to the requirements of this section, a consumption area permit shall authorize consumption of alcoholic beverages off the premises where the alcoholic beverages are sold by on-sale licensees who are without off-sale privileges within the specified consumers to remove alcoholic beverages from the licensed premises where sold and to consume the alcoholic beverages only in the permitted consumption area.
(2) (A) The department shall not issue a consumption area permit to a person premises licensed to sell alcoholic beverages.
(B) The permitted area shall not include any portion of a retail premises open to the public where goods and services other than alcoholic beverages are sold.
(C) A consumption area permit shall not authorize the consumption of alcoholic beverages on public roads when those roads are open to motor vehicles.

(D)A consumption area permit shall not be considered a retail license and Sections 23958.4, 23985.5, and 23986 shall not be applied to it.

(b) A consumption area permitholder shall be required to do all of the following:
(1) Implement all security measures necessary to ensure that the security measures described in this subdivision to prevent persons under 21 years of age do not possess or consume from possessing or consuming alcoholic beverages and other violations of this division in the permitted consumption area.

(2)Install and maintain temporary or permanent physical barriers around the permitted consumption area or other security measures, including, but not limited to, signage, electronic surveillance, and the use of security personnel, while alcoholic beverages are consumed. Barriers or other security measures shall provide notice of the permitted consumption area boundaries, control entry to, and exit from, the permitted area, and prevent the removal of alcoholic beverages from the permitted area.

(3)Comply with the requirements of Section 23985, as they are determined by the department in its discretion, regardless of the fact that a consumption area permit application is not an application to engage in the sale of alcoholic beverages at any premises.

(4)Comply with the requirements of Section 23800, and any other conditions as they are determined by the department in its discretion, regardless of the fact that a consumption area permit is not a retail license to exercise retail privileges. Conditions determined by the department may include, but are not limited to, restrictions on the times that consumers may possess or consume alcoholic beverages in the permitted area and requirements that alcoholic beverages in the permitted area be sold in containers that identify specific licensees that sell alcoholic beverages that may be consumed in the area.

(2) Limit the hours during which alcoholic beverages can be consumed and, during permitted consumption hours, maintain temporary or permanent physical barriers around the permitted consumption area, with clear entrances and exits, or other security measures that the department may reasonably require, including, but not limited to, electronic surveillance, and the use of roving security personnel, and signage. Signage shall provide clear notice of all of the following:
(A) The boundaries, entrances, and exits of the consumption area.
(B) Who is authorized to consume alcoholic beverages, when consumption is authorized, and what alcoholic beverages are authorized to be consumed in the consumption area.
(C) Alcoholic beverages to be consumed in the consumption area cannot be removed from the consumption area.
(3) Prevent motor vehicle operation in the permitted consumption area during permitted consumption hours.
(4) Collect data for evaluation, including data regarding disturbances, assaults, thefts, collisions, and alcohol-related violations, to be provided upon request during regular and usual business hours to local law enforcement or the department.
(c) Any alcoholic beverages beverage consumed in the permitted consumption area shall be purchased only from sold only by licensees contiguous to the permitted area that have entered into a written agreement that requires that all licensees who sell alcoholic beverages for consumption in the permitted area consumption area and whose license permits on-sale consumption. These licensees shall be jointly responsible for compliance with all laws that may subject their licenses to discipline that result from violations in the permitted area. consumption area. Alcoholic beverages authorized for consumption in the consumption area shall be sold in containers clearly marked for this purpose.
(d) Nothing in this section is intended to affect or limit the application of laws that permit licensees to sell alcoholic beverages for consumption off the premises when not consumed in a permitted consumption area.
(e) Notwithstanding that a consumption area permit authorizes the consumption of, but not the sale of, alcoholic beverages, Sections 23985 and 25658 shall apply as though the consumption area permit was a retailer license. Sections 23958.4, 23985.5, and 23986 shall not apply.
(f) Notwithstanding any law to the contrary, the department may impose conditions at any time, as though the consumption area permit was a retailer license, restricting or prohibiting alcoholic beverage consumption pursuant to this section.
(1) Any conditions imposed pursuant to this subdivision shall be based upon a showing of good cause. Good cause includes, but is not limited to, a written request, to include the reason for the restriction or prohibition, from a local law enforcement agency or local governing body, or its designated subordinate officer or agency.
(2) A licensee may petition the department to modify or remove a condition within 10 days following imposition of the condition. A petition under this paragraph shall be subject to the same fee as provided in Section 23803. If the department denies the licensee’s petition, the licensee may request a hearing, which shall be conducted in the same manner as provided in Section 23805. In any hearing pursuant to this paragraph, the licensee shall have the burden to establish that the condition is unreasonable or that no good cause exists for it. The condition shall remain in effect during any appeal of its imposition.
(g) Notwithstanding that a consumption area permit authorizes the consumption of, but not the sale of, alcoholic beverages, Sections 25500 to 25503, inclusive, shall apply to any thing of value that is given, loaned, furnished, or paid to permitholder.
(h) Notwithstanding any provision to the contrary, a licensed manufacturer may sell alcoholic beverages consumed in the permitted consumption area as authorized in this section along with multiple licensed retailers that are authorized to sell alcoholic beverages consumed in the permitted consumption area, subject to the provisions of this subdivision.
(1) No retail licensee that sells for consumption in the permitted consumption area shall sell or serve any alcoholic beverages that are manufactured, produced, bottled, processed, imported, rectified, distributed, represented, or sold by the manufacturer, directly or indirectly. This prohibition shall apply to all licensed premises owned or operated, in whole or in part, by the retail licensee anywhere in the state. No wholesaler shall be responsible for compliance with this paragraph.
(2) A licensed manufacturer may, in connection with sales of alcoholic beverages consumed in the permitted consumption area, advertise or promote the permitted consumption area, including, but not limited to, advertising or promotion related to the licensed retailers that sell alcoholic beverages consumed in the permitted consumption area, provided that each retailer pays its pro rata share of the costs of that advertising or promotion. The cost attributed to each retailer’s pro rata share shall not be less than the current market price for that advertising or promotion.
(3) Except as provided in paragraph (2), nothing of value may be given, loaned, or furnished by the manufacturer to the retailers.
(4) The manufacturer shall maintain records necessary to establish its compliance with this subdivision.

(d)

(i) The application fee for a consumption area permit shall be as specified in paragraph (1) of subdivision (a) of Section 23320 and the annual fee shall be as specified in paragraph (31) of subdivision (b) of Section 23320.

(e)

(j) The department may suspend or revoke a consumption area permit for cause in the manner provided for the suspension and revocation of licenses and after a hearing that shall be held in the City of Sacramento or in another county seat in the state as the department determines to be convenient to the holder of the permit. as provided under Chapter 7 (commencing with Section 24200).

(f)(1)Other

(k) Other than the limited authorization that a consumption area permit issued pursuant to this section provides for the off-premises consumption of alcoholic beverages in a restricted permitted consumption area, this section does not limit or expand any other provision of this division. Specifically, this section does not create any exception to the general prohibition against tied interests other than those described in subdivision (h).

(2)Specifically, this section does not create any exception to the general prohibition against tied interests.

(g)

(l) This section shall apply to an identified outdoor area of area with at least 15,000 contiguous square feet outdoors located within a mixed-use project of no less than 35 contiguous acres containing that contains both commercial and residential properties in the City of San Jose.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of premises located in the City of San Jose.

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.