BILL ANALYSIS Ó
AB 525
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Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 525 (Ting) - As Amended: April 4, 2013
SUBJECT : Alcoholic beverages: licenses: theaters.
SUMMARY : Permits the Department of Alcoholic Beverage Control
(ABC) to issue a new special on-sale general license to the
operator of any for-profit theater located in the City and
County of San Francisco, configured with theatrical seating of
at least 1,000 seats and primarily devoted to live theatrical
performances, which would permit sales, service, and consumption
of alcoholic beverages in the lobbies and seating areas of the
theater at specified times. The bill would subject this license
to limitations regarding the number of licenses that may be
issued in a county and would not require the licensee to operate
as a bona fide public eating place. Specifically, this bill :
1) Provides ABC may issue a special on-sale general license to
the operator of any for-profit theater located within the City
and County of San Francisco, configured with theatrical seating
of at least 1,000 seats and primarily devoted to live theatrical
performances.
2) Specifies that the special on-sale general license shall
permit sales, service, and consumption of alcoholic beverages in
the lobbies and seating areas of the theater for two consecutive
hours prior to a live theatrical performance and one hour after
the live theatrical performance is completed, as defined.
3) Any special on-sale general license issued pursuant to this
section shall be subject to the licensing ratio limitation as
provided in current law, but shall not be required to be
operated as a bona fide public eating place.
4) Exempts the special on-sale general theater license from
other prohibitions relating to public premises licenses, as
specified.
5) Provides that the "for-profit theater" shall not include an
adult or sexually oriented business, as defined in the Penal
Code.
AB 525
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EXISTING LAW :
1) Establishes ABC and grants it exclusive authority to
administer the provisions of the ABC Act in accordance with laws
enacted by the Legislature. This involves licensing individuals
and businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection of
license fees or occupation taxes for this purpose.
2) Establishes various alcoholic beverage license categories
and a schedule of annual fees charged to the licensees.
3) Authorizes ABC to issue a special on-sale general license to
any nonprofit theater company . A theater company holding such a
license may sell and serve alcoholic beverages to ticket holders
only during, and two hours prior to and one hour after, a bona
fide theater performance of the company.
4) Defines an on-sale general license as a type which allows
the sale of all types of alcoholic beverages: namely, beer, wine
and distilled spirits, for consumption on the premises, and the
sale of beer and wine for consumption off the premises.
5) Defines "bona fide public eating place" as licensed premises
that are maintained in good faith and used for the regular
service of meals to patrons. The premises must have suitable
kitchen facilities and supply an assortment of foods commonly
ordered at various hours of the day.
6) Defines "public premises" as a 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 ABC. No person under 21 years of age is allowed
on public premises.
7) Caps the number of new on and off-sale general licenses
issued by the ABC at one for every 2,500 inhabitants of the
county where the establishment is located (2,000:1 for on sale
licenses). If no licenses are available from the state due to
the population restrictions, those people interested in
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obtaining a liquor license may purchase one from an existing
licensee, for whatever price the market bears.
FISCAL EFFECT : Unknown.
COMMENTS :
Background : ABC is vested with exclusive authority, in
accordance with laws enacted, to license and regulate the
manufacture, distribution, and sale of alcoholic beverages
within California. The ABC also has the power for good cause to
suspend, revoke or deny a license if it determines that granting
or continuance of the license would be contrary to public
welfare or morals.
Existing law establishes various alcoholic beverage license
categories and a schedule of annual fees charged to the
licensees. Under the Alcoholic Beverage Control Act, ABC may
issue a special on-sale general license to any nonprofit theater
company that meets specified requirements. Theater companies
holding a license pursuant to these provisions may only sell and
serve alcoholic beverages to ticketholders during, and two hours
prior to and one hour after, a bona fide theater performance of
the company. There are 70 Type 64 licenses in California for
non-profit theater companies who meet the specified
requirements.
Purpose of the bill : According to the author's office, the
purpose of this bill is to create a new general alcoholic
beverage license category that can accommodate the business
goals of an operator of any for-profit theater located in the
City and County of San Francisco.
The sponsor of the bill, Shorenstein, Hays, Nederlander Company
(SHN) states, the bill fixes a quirk in current law that
prevents our patrons from easily approaching service bars to
purchase alcoholic and non-alcoholic beverages and carrying all
drinks elsewhere in the lobby or to their seats. This is
extremely problematic in our historically renovated theaters
that have limited lobby space.
SHN owns and operates the Curran, Golden Gate, and Orpheum
Theatres and is the pre-eminent theatrical entertainment company
in San Francisco. SHN has evolved from its inception in 1977 as
a promoter of short engagements of national tours in one theatre
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to become the pre-eminent theatrical entertainment company in
San Francisco presenting a year round season of plays and
musicals. SHN has presented a Broadway series including
musicals and plays featuring world premieres, pre-Broadway
engagements, limited West Coast-only runs of productions
starring the original Broadway casts and national tours. i.e.,
Wicked, Jersey Boys, The Lion King, and Les Misérables, and The
Phantom of the Opera.
The three theaters are run as for-profit theaters and currently
hold Type 48 ABC licenses (On-Sale General for Public Premises),
which are licenses meant for over-21-only bars. Under the
license, SHN are able to serve beer, wine, and distilled spirits
to our attendees. However, under current license type, patrons
must consume their drinks in a segregated, partitioned-off space
- guests are unable to take their drinks into the lobby or
seating area and enjoy the show. Because of our unique set of
circumstances, as a for-profit theatre not operating in a civic
auditorium, we are unable to qualify for another license type
that would rectify the situation.
The author's states this bill solves the problem by allowing the
issuance of a special on-sale general license that would permit
sales, service, and consumption of alcoholic beverages in the
lobbies and seating areas of the theater at specified times.
The bill contains several provisions that ensure appropriate
license controls are in place.
The author further states, AB 525 is a narrowly crafted bill
that will simply allow patrons to further enjoy their experience
at three historic theatres in San Francisco.
In support : Family Winemakers of California (FWC) writes, this
bill addresses situations when theaters located in the City and
County of San Francisco present theatrical performances,
especially during the holiday season that attracts a broader
underage audience. There is little distinction between a
sporting arena with minors present and a theater except for the
presence of limited food items. AB 525 is a narrowly crafted
bill that will enhance the experience of theatergoers at many of
San Francisco's grand historically renovated theaters.
Prior legislation : AB 2793 (Governmental Organization
Committee), Chapter 273, Statutes of 2010. Permits a licensed
winegrower, to serve on the board of trustees of a nonprofit
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theater company operating a theater in the City of Livermore, as
specified. Authorizes ABC to issue a club license to nonprofit
lawn bowling clubs that do not discriminate or restrict
membership, as specified.
AB 2413 (Assembly Governmental Organization Committee), Chapter
579, Statutes of 2002. Clarified an existing exception to
tied-house rules for a non-profit theater in Napa County and
required ABC to include information on enforcement efforts
conducted in conjunction with local law enforcement in their
annual report to the Legislature.
AB 1429 (Governmental Organization), Chapter 567, Statutes of
2001. Among other things, deleted the requirement that a
nonprofit theater company must be in existence for at least ten
years in order for ABC to issue a special on-sale general
license.
REGISTERED SUPPORT / OPPOSITION :
Support
Family Winemakers of California
Mayor Edwin M. Lee of the City and County of San Francisco
San Francisco Chamber of Commerce
Shorenstein, Hays, Nederlander Company
The Market Street Association
Opposition
Alcohol Justice
California Council on Alcohol Problems
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531