BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 525|
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THIRD READING
Bill No: AB 525
Author: Ting (D), et al.
Amended: 6/17/13 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 6/25/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, De León,
Galgiani, Hernandez, Lieu, Padilla
NO VOTE RECORDED: Correa
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/20/13 - See last page for vote
SUBJECT : Alcoholic beverages: licenses: theaters
SOURCE : Author
DIGEST : This bill creates a new special on-sale general
license in the Alcoholic Beverage Control Act (ABC Act) that
enables the operator of any for-profit theater, as specified,
located within the City and County of San Francisco, to serve
alcoholic beverages during certain hours in specified areas of
the theater.
ANALYSIS :
Existing law:
1. Authorizes the Department of Alcoholic Beverage Control
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(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.
2. Caps the number of new on and off-sale general licenses
issued by 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 obtaining a liquor license may purchase one from an
existing licensee, for whatever price the market bears. (In
1994, the Legislature approved a three-year moratorium on the
issuance of new off-sale beer and wine licenses, which at the
time was not bound by any population to license restriction.
In 1997, this moratorium was made permanent.)
3. Defines "public premises" as 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. Furthermore, the law provides
that "public premises" does not include 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; nor does it include historic units of the state
park system, premises being operated under a temporary
on-sale license, as specified, or on-sale beer licensed
stadia, auditoria, fairgrounds, or racetracks; nor does it
include non-profit theater companies licensed, as specified;
nor does it include winegrowers' premises.
4. Defines "bona fide public eating place" to mean a place which
is regularly and in a bona fide manner used and kept open for
the serving of meals to guests for compensation and which has
suitable kitchen facilities connected therewith, containing
conveniences for cooking an assortment of foods which may be
required for ordinary meals, the kitchen of which must be
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kept in a sanitary condition with the proper amount of
refrigeration for keeping of food on said premises and must
comply with all the regulations of the local Department of
Health.
5. Defines an "on-sale" license as authorizing the sale of all
types of alcoholic beverages: namely, beer, wine and
distilled spirits, for consumption on the premises (such as
at a restaurant or bar). An "off-sale" license authorizes
the sale of all types of alcoholic beverages for consumption
off the premises in original, sealed containers.
6. Provides that a violation of any of the provisions of the ABC
Act, for which another penalty or punishment is not
specifically provided, is a misdemeanor.
7. Defines "adult or sexually oriented business" to include any
establishment that regularly features live performances which
are distinguished or characterized by an emphasis on the
exposure of the genitals or buttocks of any person, or the
breasts of any female person, or specified sexual activities
that involve the exposure of the genitals or buttocks of any
person, or the breasts of any female person. (Penal Code
Section 318.5)
This bill creates a new special on-sale general license in the
ABC Act that enables the operator of any for-profit theater, as
specified, located within the City and County of San Francisco,
to serve alcoholic beverages during certain hours in specified
areas of the theater. Specifically, this bill:
1. Authorizes ABC to issue a special on-sale general license to
the operator of any for-profit theater, configured with
theatrical seating of at least 1,000 seats and primarily
devoted to live theatrical performances, located within the
City and County of San Francisco.
2. Stipulates 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 the
period beginning two consecutive hours prior to a live
theatrical performance and ending one hour after the
performance is completed.
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3. Makes it explicit that any special on-sale general license
issued shall be subject to the limitations provided in
existing law that caps the number of new on-sale general
licenses issued by the ABC at one for every 2,000 inhabitants
of the county where the establishment is located. Also,
provides that the license issued does not mandate that the
premises be operated as a bona fide public eating place.
4. Stipulates that the theater shall not be subject to an
existing provision of the ABC Act that prohibits the
transferring of a license unless the applicant can show that
substantial public demand cannot otherwise be satisfied.
5. Makes it explicit that a special on-sale general license
provided for in this bill is not to be issued until any
existing licenses issued by the ABC for the premises of the
for-profit theater are cancelled.
6. Specifies that a "for-profit theater" shall not include an
adult or sexually oriented business, as defined in Penal Code
Section 318.5.
Background
The author's office states that this bill is intended to create
a new on-sale 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.
This bill has been introduced on behalf of Shorenstein, Hays,
Nederlander and Company (SHN) which owns and operates the
Curran, Golden Gate, and Orpheum Theatres in San Francisco. SHN
has evolved from its inception in 1977, as a promoter of short
engagements of national tours in one theatre, to become the
pre-eminent theatrical entertainment company in San Francisco
presenting a year round season of plays and musicals. SHN has
offered 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 (e.g., Wicked, Jersey Boys, the Lion
King, Les Misérables, and the Phantom of the Opera).
The three theaters are operated as for-profit theaters and
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currently hold Type 48 licenses (on-sale general for public
premises) which are meant for over 21-only bars. Such a license
enables each theater to serve beer, wine, and distilled spirits
to patrons. However, under the current license type, patrons
must consume their drinks in a segregated, partitioned-off space
and are precluded from taking their beverages into the lobby or
seating area of the performance. SHN points out that due to its
unique set of circumstances, as a for-profit theatre not
operating in a civic auditorium, they are unable to qualify for
another license type that would rectify the situation.
According to SHN, this bill addresses the above-stated problem
in existing law that prevents their patrons from easily
approaching service bars to purchase alcoholic and non-alcoholic
beverages and carrying those drinks elsewhere in the lobby or to
their seats. SHN emphasizes that this is extremely problematic
in their historically renovated theaters that have limited lobby
space and that this bill will solve the problem by allowing the
issuance of a special on-sale general license that will permit
sales, service, and consumption of alcoholic beverages in the
lobbies and seating areas of the theater at specified times.
Additionally, SHN notes that this bill contains several
provisions that ensure appropriate license controls are in
place.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 7/18/13)
City and County of San Francisco, Mayor Edwin M. Lee
Family Winemakers of California
Market Street Association
San Francisco Chamber of Commerce
Shorenstein, Hays, Nederlander and Company
OPPOSITION : (Verified 7/18/13)
Alcohol Justice
California Council on Alcohol Problems
ARGUMENTS IN SUPPORT : Proponents claim that there is little
distinction between a sporting arena with minors present and a
theater except for the presence of limited food items.
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Proponents also contend that this bill is a narrowly crafted
bill that will enhance the experience of theatergoers at many of
San Francisco's grand historically renovated theaters.
Additionally, proponents emphasize that this bill contains
several provisions that ensure appropriate license controls are
in place.
ARGUMENTS IN OPPOSITION : Opponents have expressed concern
about expanding the current exemption banning on-sale alcohol in
public premises to "for-profit" theaters. Opponents argue that
theaters are frequented by children as well as adults and
children should not be exposed to yet another public venue where
adults may consume alcohol. Additionally, opponents contend
that this bill will be a slap in the face to non-profit theaters
in San Francisco which have a difficult time making it
financially and will lose a slight competitive advantage of
alcohol sales.
ASSEMBLY FLOOR : 74-0, 5/20/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones,
Levine, Linder, Lowenthal, Maienschein, Mansoor, Medina,
Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande,
Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk,
Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
Pérez
NO VOTE RECORDED: Holden, Jones-Sawyer, Logue, Melendez,
Vacancy, Vacancy
MW:d 8/13/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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