Amended in Assembly August 2, 2016

Amended in Senate April 6, 2016

Senate Bill No. 1285

Introduced by Senator Leno

February 19, 2016

An act to add Section 23826.13 to the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

SB 1285, as amended, Leno. Alcoholic beverages: licenses.

The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. The act also provides for a limitation on the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located, as provided. Existing law also provides for various annual fees for the issuance of alcoholic beverage licenses, depending on the type of license issued.

This bill would, beginning January 1, 2017, provide an exception to the license limitation for a county of the 6th class, as specified, for begin delete 28 end delete begin insert 5 end insert new original neighborhood-restricted special on-sale general licenses for premises located within specified census tracts in that county, subject to specified requirements. This bill would impose an original fee and annual renewal fee for the license, which would be deposited in the Alcohol Beverage Control Fund, and would require an applicant for this license to submit a specified application, submitted under the penalty of perjury, to the Department of Alcoholic Beverage Control. This bill would also require the applicant to submit a signed verification by the local government in which the licensed premises would be located stating that the applicant has completed certain preapplication requirements.

By requiring an applicant to submit an application under penalty of perjury, thereby expanding the crime of perjury, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason and that no reimbursement shall be made pursuant to those statutory provisions for costs mandated by the state pursuant to this act, but would recognize that local agencies and school districts may pursue any available remedies to seek reimbursement for these costs.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 23826.13 is added to the Business and
Professions Code, to read:

23826.13.  

(a) Notwithstanding any other provision of this
chapter, in any county of the sixth class, the department may issue
no more than a total of begin delete 28 end delete begin insert five end insert new original neighborhood-restricted
special on-sale general licenses begin insert end insert begin insert to premises located in any of the
census tracts listed in subdivision (b) end insert beginning on January 1,
2017.

(b) To qualify for a license issued pursuant to this section, the
premises for which the license would apply shall be located within
one of the following United States Bureau of Census census tracts
located within the City and County of begin delete San Francisco, subject to
the following limitations: end delete begin insert San Francisco: end insert

(1)  begin delete For end delete United States Bureau of the Census census tracts 612000,
232000, 234000, 233000, begin delete and 230030, no more than a total of four
new original neighborhood-restricted special on-sale general
licenses shall be issued to premises located within all of these
tracts. end delete begin insert or 230030. end insert

(2)  begin delete For end delete United States Bureau of the Census census tracts 258000 begin delete and 257020, no more than a total of four new original
neighborhood-restricted special on-sale general licenses shall be
issued to premises located within both of these tracts. end delete begin insert or 257020. end insert

(3)  begin delete For end delete United States Bureau of the Census census tract begin delete 264030,
no more than a total of four new original neighborhood-restricted
special on-sale general licenses shall be issued to premises located
within this tract. end delete begin insert 264030. end insert

(4)  begin delete For end delete United States Bureau of the Census census tracts 255000,
256000, 260020, 260010, 260040, 261000, begin delete and 263010, no more
than a total of four new original neighborhood-restricted special
on-sale general licenses shall be issued to premises located within
all of these tracts. end delete begin insert or 263010. end insert

(5)  begin delete For end delete United States Bureau of the Census census tracts 309000,
310000, begin delete and 312010, no more than a total of four new original
neighborhood-restricted special on-sale general licenses shall be
issued to premises located within all of these tracts. end delete begin insert or 312010. end insert

(6)  begin delete For end delete United States Bureau of the Census census tracts 330000,
329010, 328010, 353000, begin delete and 354000, no more than a total of four
new original neighborhood-restricted special on-sale general
licenses shall be issued to premises located within all of these
tracts. end delete begin insert or 354000. end insert

(7)  begin delete For end delete United States Bureau of the Census census tracts 328020,
329020, 351000, begin delete and 352010, no more than a total of four new
original neighborhood-restricted special on-sale general licenses
shall be issued to premises located within all of these tracts. end delete begin insert or
352010. end insert

(c) In issuing the licenses pursuant to this section, the department
shall follow the procedure set forth in Section 23961. A license
shall not be issued pursuant to this section to an applicant until
any existing on-sale licenses issued to the applicant for the same
premises are canceled.

(d) (1) A person who currently holds an on-sale general license
for a premises shall not apply for a license issued pursuant to this
section for that licensed premises.

(2) In addition to the other requirements of this section, an
application for a neighborhood-restricted on-sale general license
shall be subject to all the requirements that apply to an on-sale
general license for a bona fide eating place.

(3) Prior to submitting an application for a license issued
pursuant to this section, the applicant shall conduct a minimum of
one preapplication meeting to discuss the application with
neighbors and members of the community within the census tract
in which the premises are located.

(A) The applicant shall hold the meeting either on the premises
or at an alternate location within a one-mile radius of the premises.

(B) The applicant shall mail notification of the preapplication
meeting to all of the following individuals and organizations at
least 14 calendar days before the meeting:

(i) Each resident within a 500-foot radius of the premises for
which the license is to be issued.

(ii) Any relevant neighborhood associations for the
neighborhood in which the premises is located, as identified on a
list maintained by the Planning Department of the City and County
of San Francisco.

(iii) The Chief of Police for the San Francisco Police
Department.

(C) Applicants for a neighborhood-restricted special on-sale
general license shall submit, on a form provided by the department,
signed verification by the local government body that states the
applicant has completed the preapplication meeting pursuant to
this section.

(e) (1) A license issued pursuant to this section shall not be
transferred between counties.

(2) A license issued pursuant to this section shall not be
transferred to any other premises. This provision shall not apply
to any licensee whose premises have been destroyed as a result of
fire or any act of God or other force beyond the control of the
licensee, for whom the provisions of Section 24081 shall apply.

(3) A license issued pursuant to this section shall not be
transferred to any person, partnership, limited partnership, limited
liability company, or corporation. This provision shall not apply
to licenses transferred under Section 24071, 24071.1, or 24071.2.

(f) Upon the cancellation of any license issued pursuant to this
section, the license shall be returned to the department for issuance
to a new applicant following the procedure set forth in Section
23961 and the provisions of this section.

(g) A person that holds a neighborhood-restricted special on-sale
general license issued pursuant to this section shall not exchange
his or her license for an on-sale license for public premises.

(h) Except as specified herein, a neighborhood-restricted special
on-sale general license may exercise all of the privileges, and is
subject to all the restrictions, of an on-sale general license for a
bona fide eating place.

(i) A neighborhood-restricted special on-sale general license
issued pursuant to this section shall not, with respect to beer and
wine, authorize the exercise of the rights and privileges granted
by an off-sale beer and wine license.

(j) (1) The original and annual fees, and any additional fees
and surcharges, shall be the same as those imposed upon an on-sale
general license for a bona fide eating place.

(2) All moneys collected from the fees imposed pursuant to this
section shall be deposited in the Alcohol Beverage Control Fund,
pursuant to Section 25761.

(k) The department shall adopt rules and regulations to enforce
the provisions of this section.

SEC. 2.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique distribution and market
conditions of liquor licenses in the City and County of San
Francisco, that apply only to the City and County of San Francisco.

SEC. 3.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

No reimbursement shall be made pursuant to Part 7 (commencing
with Section 17500) of Division 4 of Title 2 of the Government
Code for costs mandated by the state pursuant to this act. It is
recognized, however, that a local agency or school district may
pursue any remedies to obtain reimbursement available to it under
Part 7 (commencing with Section 17500) and any other provisions
of law.