BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 525
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 525 (Ting)
          As Amended  June 17, 2013
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(May 20, 2013)  |SENATE: |38-0 |(August 15,    |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    G.O.  

           SUMMARY  :  Creates a new special on-sale general license in the  
          Alcoholic Beverage Control (ABC) Act that enables the operator  
          of any for-profit theater, as specified, to serve alcoholic  
          beverages during certain hours in specified areas of the  
          theater.

           The Senate amendments  clarify 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.

           EXISTING LAW  :

          1)Provides that the 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.

          2)Establishes various alcoholic beverage license categories and  
            a schedule of annual fees charged to the licensees.  Under the  
            ABC 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 of these Type 64 licenses in California for non-profit  
            theater companies who meet the specified requirements.








                                                                  AB 525
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           AS PASSED BY THE ASSEMBLY  , permitted 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.  
           This bill specifically prohibited the issuing of these new  
          licenses to adult or sexually oriented businesses, as defined in  
          the Penal Code.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  This bill, as amended in the Senate is consistent  
          with Assembly actions.  

          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.  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 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 the 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  








                                                                  AB 525
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          situation. 

          The author 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, this bill is narrowly crafted to  
          allow patrons to further enjoy their experience at three  
          historic theatres in San Francisco.


           Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 


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