BILL ANALYSIS Ó
Bill No: SB
635
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 635 Author: Leno
As Amended: April 17, 2013
Hearing Date: April 23, 2013
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages
DESCRIPTION
SB 635 establishes a process, as described, involving local
government, local law enforcement, the general public and
the Department of Alcoholic Beverage Control (ABC) whereby
an on-sale licensee may apply to the ABC for the privilege
of extending hours of alcohol sales between 2 a.m. to 4
a.m. Specifically, this measure:
1)Permits the ABC to authorize, with or without conditions,
the selling, giving, delivering, or purchasing of
alcoholic beverages at individual on-sale licensed
premises between the hours of 2 a.m. and 4 a.m. within a
city, county or a city and a county provided the local
governing body:
a) Develops and approves a local plan, relative to the
additional hours of service, that: (1) shows the
public convenience or necessity will be served; (2)
identifies the area that will be affected and
indicates how the area will benefit; (3) exhibits
resident and business support; (4) includes an
assessment by local law enforcement regarding the
potential impact on the area and a public safety plan,
created by local law enforcement, for managing those
impacts; (5) shows that transportation services are
readily accessible in the area during the additional
service hours; and, (6) includes programs to increase
public awareness of the transportation services
available and the impacts of alcohol consumption.
SB 635 (Leno) continued
Page 2
b) Resolves and certifies the local plan and submits
it to the ABC.
2)Requires the ABC to review the local plan, within an
unspecified time frame, to ensure compliance with
existing law and regulations and notify the local
governing body of its approval or denial of the plan.
Also, requires the ABC, during the review process, to
post the plan on its Internet website.
3)Prohibits an on-sale licensee from applying for
additional hours of service until the ABC has approved
the local plan in which the licensed premise is located.
4)Provides that upon receipt of an application by an
on-sale licensee for additional hours the ABC shall make
a thorough investigation to determine whether the
additional hours would unreasonably interfere with local
residents quiet enjoyment of their property.
5)Requires the licensed applicant to notify law enforcement
agencies, residents within 500 feet of the premises, and
any other interested parties, as determined by the local
governing body, of the application for additional hours
within 30 consecutive days of the filing of the
application in a manner determined by the local governing
body.
6)Provides that protests may be filed within 30 days from
the first date of notice of the filing of an application
for additional hours. Also, permits the ABC to extend
the 30-day period by an additional 20 days.
7)Provides that the ABC may reject protests, except
protests made by a public agency or public official, if
it determines the protests are false, vexatious,
frivolous, or without reasonable or probable cause at any
time before hearing thereon. If after investigation, ABC
recommends that additional hours be authorized
notwithstanding a public protest by a public agency or a
public official, ABC must notify the agency or official
in writing of its determination and the reasons therefor.
8)Also, provides that if, after investigation, the ABC
recommends that additional hours be authorized, with or
without conditions on the applicant's license, the ABC
SB 635 (Leno) continued
Page 3
must notify the local governing body and all protesting
parties whose protests have been accepted in writing of
its determination.
9)Provides that any person who has filed a verified protest
in a timely fashion that has been accepted by ABC may
request a hearing on the issue or issues raised in the
protest. The request must be in writing and filed with
ABC within 15 business days of the date ABC notifies the
protesting party of its determination.
10)Requires ABC to notify the applicant of the outcome of
the application and provides that any conditions placed
upon the license shall be subject to existing provisions
of the ABC Act pertaining to conditional licenses.
11)Requires the applicant to include an unspecified fee
with his/her application for additional hours, which
shall be deposited in the ABC Fund.
EXISTING LAW
The enactment of the 21st Amendment to the U.S.
Constitution in 1933 repealed the 18th Amendment and ended
the era of Prohibition. Accordingly, states were granted
the authority to establish alcoholic beverage laws and
administrative structures to regulate the sale and
distribution of alcoholic beverages.
Existing law establishes the Department of Alcoholic
Beverage Control (ABC) and grants it exclusive authority to
administer the provisions of the ABC Act in accordance with
laws enacted by the Legislature.
Existing law (B&P code Section 25631) provides that any
on-sale or off-sale licensee, or agent or employee of the
licensee, who sells, gives, or delivers to any person any
alcoholic beverage between the hours of 2 a.m. and 6 a.m.
of the same day, and any person who knowingly purchases any
alcoholic beverages between those hours, is guilty of a
misdemeanor.
Existing law 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
SB 635 (Leno) continued
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authorizes the sale of all types of alcoholic beverages for
consumption off the premises in original, sealed
containers.
BACKGROUND
Purpose of SB 635: Currently, the ABC Act prohibits the
selling, giving, delivering or purchasing of alcoholic
beverages from 2 a.m. to 6 a.m. The author's office claims
that the current uniform closing hour of 2 a.m. creates
stress on public services, transportation, and local law
enforcement when patrons are simultaneously pushed out on
to the street at that hour. According to the author's
office, this bill is intended to grant local governments
and communities an optional tool to manage current problems
around uniform closing hours. It allows on-sale licensed
establishments to apply to the ABC for extended sales hours
up to 4 a.m. provided the local jurisdiction that is
supportive of extended service hours develops a plan, with
community guidance and local law enforcement input,
demonstrating among other things, that there is a clear
benefit and necessity and that residents and businesses
also support the additional hours. The ABC is charged with
reviewing and approving the local plan to ensure that it
does not conflict with any state laws or ABC rules and
regulations. The bill also contains various provisions
relative to procedures for protest and public hearings
regarding application for extended hours of service. The
bill would not permit extended hours at liquor stores and
other off-sale licensed premises.
The author's office notes that SB 635 simply allows
California's destination cities (e.g., San Francisco, Los
Angeles and San Diego) to initiate local conversations
about the possibility of expanding night life and the
benefits it could provide the community by boosting jobs,
tourism and local tax revenue.
The author's office points out that SB 635 would align
California with at least 15 other states where local
jurisdictions have the authority to decide alcoholic
beverage service hours. The author's office maintains there
is no evidence to suggest that places with flexible or
extended sales hours have experienced higher rates of
alcohol-related crashes and deaths compared to states with
extended sales hours of 2 a.m. or earlier. Currently,
SB 635 (Leno) continued
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numerous cities and towns throughout the country have
late-night service hours, including Chicago, Washington,
D.C., New York City, Buffalo, Las Vegas, Louisville,
Atlanta, Miami Beach, New Orleans and Albany. In addition,
many cities across the globe have extended or flexible
service times, including Barcelona, Tokyo, Berlin, Rio de
Janeiro and Sydney which allow local businesses to be
creative in their social and cultural offerings.
Arguments in Support: Proponents note that this bill would
establish a public process whereby the local community,
along with the ABC and law enforcement, may craft a local
plan for extended alcoholic beverage service hours that is
appropriate for their economy, public safety and community
needs. Proponents contend that SB 635 would enable certain
California cities to compete with other world-class cities
in attracting tourists, conventions and conferences from
around the world. Additionally, proponents emphasize that
social and nightlife venues are an economic driver in many
communities and they reference the fact that the State's
food service and entertainment industry generates billions
of dollars in consumer spending and employs well over a
million workers making these sectors an indisputable
driving force in the State's economy.
Arguments in Opposition: Opponents raise numerous health
and safety concerns and believe SB 635 will lead to:
unintended consequences, quality of life deterioration for
adjacent neighborhoods, drinkers driving from areas where
bars close earlier to bars with later last calls, late
night drinkers sharing the road with early morning
commuters, increased DUI accidents and fatalities, and
limited budgets and personnel to deal effectively with the
extra service calls. Also, opponents cite evidence that
shows that two more hours of alcohol sales will nearly
double alcohol-related violence, crime, police calls,
emergency visits, etc. Additionally, opponents argue that
SB 635 will reverse the very sensible direction that the
legislature has gone in years past and will "exacerbate the
growing phenomenon in which restaurants morph into
bars/dance clubs when they stop serving food late at
night." Furthermore, opponents contend that the legislative
findings contained in the bill have no basis in fact and
are simply statements of policy to promote late night
alcohol service.
SB 635 (Leno) continued
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PRIOR/RELATED LEGISLATION
AB 2433 (Leno) 2003-04 Session. Would have extended the
hours of alcohol sales for on-sale licensees in the City
and County of San Francisco from 2 a.m. to 4 a.m. (Failed
passage in Assembly policy committee)
SUPPORT: As of April 19, 2013:
Argent Ventures LLC
Bixel & Company Event Production
Blue Palms Brewhouse
California Hotel & Lodging Association
California Music and Cultural Association
California Restaurant Association
CalSmallBiz
California Teamsters Public Affairs Council
DeSoto Club
Golden Gate Restaurant Association
Hollywood Hospitality Association
Kitchen 24
San Francisco Chamber of Commerce
San Francisco Council of District Merchants
San Francisco Travel
Sbe Entertainment Group
The Sunset Landmark
Taxpayers for Improving Public Safety
The Honorable Edwin M. Lee, Mayor City of San Francisco
213 Spirited Ventures
Triptych
UNITE-HERE, AFL-CIO
Vessel, Audio and Bergerac - San Francisco
OPPOSE: As of April 19, 2013:
Alcohol Justice
Asian American Drug Abuse Program
Ban Billboard Blight
Bay Area Community Resources
California Alliance for Retired Americans
California Center for Youth Development and Health
Promotion
California Council on Alcohol Problems
California Narcotic Officers' Association
California Police Chiefs Association
California State Sheriffs' Association
Cole Valley Improvement Association
SB 635 (Leno) continued
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County Alcohol and Drug Program Administrators Association
of California
Crescenta Valley Drug & Alcohol Prevention Coalition
Friday Night Live
Hermosa Beach, City of
Institute for Public Strategies
Kern County Sheriff Donny Youngblood
Koreatown Youth and Community Center - Los Angeles
Los Angeles, City of
Los Angeles County Sheriff Lee Baca
Lutheran Office of Public Policy California
Metro United Methodist Urban Ministry
Partnership for a Positive Pomona
Paso Por Paso, Inc.
People Reaching Out
Phoenix House
Prevention Institute
Pueblo Y Salud, Inc.
Sacramento, County of
Social Model Recovery Systems
The Wall - Las Memorias Project
Woman's Christian Temperance Union of Southern California
Women Against Gun Violence
Writers in Treatment
Youth Leadership Institute
And, numerous private individuals
FISCAL COMMITTEE: Senate Appropriations Committee
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