BILL ANALYSIS Ó AB 525 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 525 (Ting) As Amended June 17, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |74-0 |(May 20, 2013) |SENATE: |38-0 |(August 15, | | | | | | |2013) | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 FN: 0001518