BILL ANALYSIS Ó
SB 1285
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Date of Hearing: August 10, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1285
(Leno) - As Amended August 2, 2016
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|Policy |Governmental Organization |Vote:|12 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill authorizes the California Department of Alcoholic
Beverage Control (ABC) to issue additional on-sale general
alcohol licenses within the County and City of San Francisco.
Specifically, this bill:
1)Allows for a maximum of 5 new and nontransferable on-sale
general licenses to bona fide eating places located within
specific Census Tracts in the County and City of San
Francisco, starting on January 1, 2017.
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2)Requires applicants to hold a pre-application meeting to
discuss the application with community members and neighbors
and requires the applicant to notify certain organizations,
officials, and residents, as defined, prior to this meeting.
FISCAL EFFECT:
Any additional licensing and oversight costs for ABC associated
with this legislation will be minor and absorbable.
COMMENTS:
1)Purpose and Background. According to the author, SB 1285 will
create a new type of neighborhood-restricted, nontransferable
liquor license for restaurants in order to promote economic
development in San Francisco's underdeveloped commercial
areas.
Existing state law caps the number of new on and off-sale
general licenses issued by ABC at 1 for every 2,500
inhabitants of a county. If no licenses are available from the
state due to the population restrictions, those interested in
obtaining a license may purchase one from an existing licensee
at the market price According to the author, the market price
for a liquor license is around $300,000, making them
inaccessible for small business owners in San Francisco's
outer neighborhoods.
2)Other related legislation. AB 1670 (Dodd), pending in the
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Senate Appropriations Committee, allows 5 on-sale general
licenses, over a 1-year period, for bona fide public eating
places public premises in Napa County. AB 1558 (Mathis) of
2016, pending on the Senate Floor, allows 5 new on-sale
general licenses, over a 2-year period, for bona fide public
eating places public premises, or both, in Inyo County.
In addition to the two aforementioned bills, a number of
recent bills have created specific license exemptions for
individual counties. Those bills are:
a) AB 461 (Achadjian), Chapter 110, Statutes of 2013:
Authorized ABC to issue no more five new original on-sale
general licenses, over a three-year period, for bona fide
public eating places in San Luis Obispo County.
b) AB 1320 (Allen), Chapter 467, Statutes of 2012:
Authorized ABC to issue no more 15 new original on-sale
general licenses, over a three-year period, for bona fide
public eating places in Marin County.
c) SB 762 (Cox), Chapter 193, Statutes of 2007: Authorized
ABC to issue 10 new original on-sale general licenses for
bona fide public eating places in Mono County.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081
SB 1285
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