THIRD READING  

Bill No: AB 1370

Author: Chiu (D)

Amended: 3/21/19 in Assembly

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 6/25/19

AYES: Dodd, Wilk, Allen, Archuleta, Borgeas, Bradford, Chang, Galgiani, Glazer, Hill, Hueso, Jones, Nielsen, Portantino, Rubio, Wiener

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-0, 5/16/19 (Consent) - See last page for vote

SUBJECT: Alcoholic beverage licenses: nonprofit arts foundation

SOURCE: Saint Joseph’s 1913, Inc.

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue a special on-sale general license to Saint Joseph’s Church in San Francisco.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for these purposes.
2. Establishes various alcoholic beverage license categories and a schedule of annual fees charged to the licensees.
3. Authorizes the Department of ABC to issue a special on-sale general license to any nonprofit theater company. A theater company holding such a license may sell and serve alcoholic beverages to ticket holders only during, and two hours prior, to and one hour after a bona fide theater performance of the company.
4. Caps the number of new on- and off-sale general licenses issued by the ABC at one for every 2,500 inhabitants of the county where the establishment is located (2,000:1 for on sale licenses). If no licenses are available from the state due to the population restrictions, those people interested in obtaining a liquor license may purchase one from an existing licensee, for whatever price the market bears.
5. Defines “public premises" as premises licensed with any type of license other than an on-sale beer license, and maintained and operated for the selling or serving of alcoholic beverages to the public for consumption on the premises, and in which food shall not be sold or served to the public as in a bona fide public eating place, but upon which premises food products may be sold or served incidentally to the sale or service of alcoholic beverages, in accordance with rules prescribed by ABC. No person under 21 years of age is allowed on public premises.
6. 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 authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
7. Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health.
8. Authorizes the Department of ABC to issue a special on-sale general license to the Hollywood Forever Cemetery, as specified.

This bill:

1. Authorizes the Department of ABC to issue a special on-sale general license to a nonprofit arts foundation operating within a former church that is over 100 years old, on the National Register of Historic Places, and is located in designated Landmark No. 120 by the City and County of San Francisco, and is exempt from specified income taxes under the Revenue and Taxation Code and Section 510 (c)(3) of the Internal Revenue Code.
2. Specifies that the license shall permit sales, service, and consumption of beer, wine, and distilled spirits on the licensed premises. Any special on-sale general license issued pursuant to this bill shall not be subject to the current county license limitations, and shall not be required to be operated as a bona fide public eating place.
3. States that the fee for the new license shall be the same as an original on-sale general license.
4. Provides the annual license fee for the special on-sale general license shall be the same of that for an on-sale general license.
5. Makes legislative findings and declarations as to the necessity of a special statute in the City and County of San Francisco.
6. Makes conforming and technical changes.

Background

Purpose of this bill. According to the author’s office, “St. Joseph’s Church is a cultural asset, a National Landmark and a San Francisco Landmark. [It] provides a space for our local artists and community groups for exhibitions, performances, events and fundraisers and serves as a beacon to people of all ages to engage with the artistic community in the warm and inviting atmosphere of a former community asset and parish. Currently, no ABC license exists that would permit these types of events at St. Joseph’s. This bill will simply create a new ABC license type to the St. Joseph’s Arts Society can fully server our artists and community events.”

Saint Joseph’s Church in San Francisco. Saint Joseph’s Church is a Romanesque revival church located in San Francisco. The church was constructed by John J. Foley in 1913 and replaced a previous structure that was destroyed by fire following the 1906 earthquake. In 1980, Saint Joseph’s Church was designated a National Historic Landmark as well as a San Francisco Landmark. Nine years later, after having received significant damage as a result of the 1989 Loma Prieta earthquake, the structure was closed and abandoned. Over the next 20 years, Saint Joseph’s Church sat vacant, exposed to the elements, decaying, crumbling and falling into significant disrepair.

In 2008, a local developer and contractor purchased Saint Joseph’s Church and began the process of obtaining National Park Service and local approvals for the rehabilitation and restoration of Saint Joseph’s Church. In 2016, the necessary approvals were granted, and work began on the restoration. The restoration was completed in 2018 and Saint Joseph’s Church re-opened its doors on October 1, 2018.

When Saint Joseph’s Church re-opened its doors in 2018, it did so as the home for the Saint Joseph’s Art Society, a cultural institution and non-profit dedicated to celebrating fine art, design, food, fashion, literature and performance. Through the Saint Joseph’s Arts Foundation, Saint Joseph’s Church is open to the public and available to local artists and community groups for exhibitions, performances, events and fundraisers and serves as a beacon to people of all ages to engage with the artistic community in the warm and inviting atmosphere of a former community asset and parish.

Currently, any event held at the church where alcohol is served requires partnership with an existing ABC licensee. This requires the license holder applying in person at least three days in advance at the local ABC District Office for a caterer permit, which authorizes the licensee to serve and charge for alcoholic beverages upon the premises of the church. Not only is this time consuming but based on current rules, such events are limited to a maximum of 24 licensed events per year.

Additionally, the Saint Joseph’s Church is unable to obtain an on-sale general license because that license requires the establishment to be used and kept as a “bona fide public eating place,” a requirement that the Saint Joseph’s Church is unable to fulfill. This bill specifically provides that the special license provided by this bill shall not be required to operate as a “bona fide public eating place.”

Alcohol license limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.

If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

This bill specifies that the license issued under the provisions of this bill should not be subject to these limitations.

Related/Prior Legislation

AB 1217 (Santiago, Chapter 474, Statutes of 2018) authorized the Department of ABC to issue a special on sale general license to the Hollywood Forever Cemetery.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 7/9/19)

Saint Joseph’s 1913, Inc. (source)

American Conservatory Theater

Community Housing Partnership

San Francisco Chamber of Commerce

San Francisco Heritage

OPPOSITION: (Verified 7/9/19)

None received

ARGUMENTS IN SUPPORT: According to the San Francisco Chamber of Commerce, “AB 1370 would allow for an ABC license that would allow the Saint Joseph’s Arts Foundation to operate within Saint Joseph’s Church, host and support events, and provide access to cultural and artistic assets throughout the year to people of all ages while allowing for the sale of alcohol to support the mission of the foundation as well as the various non-profits and community groups sponsoring and hosting the events. No license currently exists that would allow Saint Joseph’s Church to operate or host the types of art, community and non-profit events envisions for this National and local Landmark.”

ASSEMBLY FLOOR: 74-0, 5/16/19

AYES: Aguiar-Curry, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Gabriel, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Arambula, Burke, Cooley, Friedman, Cristina Garcia, Ting

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

7/10/19 14:21:41

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2019 - 2020 Regular

Bill No: 1370 Hearing Date: 6/25/2019

SUBJECT: Alcoholic beverage licenses: nonprofit arts foundation

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue a special on-sale general license to Saint Joseph’s Church in San Francisco.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for these purposes.
2. Establishes various alcoholic beverage license categories and a schedule of annual fees charged to the licensees.
3. Authorizes the Department of ABC to issue a special on-sale general license to any nonprofit theater company. A theater company holding such a license may sell and serve alcoholic beverages to ticket holders only during, and two hours prior, to and one hour after a bona fide theater performance of the company.
4. Caps the number of new on- and off-sale general licenses issued by the ABC at one for every 2,500 inhabitants of the county where the establishment is located (2,000:1 for on sale licenses). If no licenses are available from the state due to the population restrictions, those people interested in obtaining a liquor license may purchase one from an existing licensee, for whatever price the market bears.
5. Defines “public premises" as premises licensed with any type of license other than an on-sale beer license, and maintained and operated for the selling or serving of alcoholic beverages to the public for consumption on the premises, and in which food shall not be sold or served to the public as in a bona fide public eating place, but upon which premises food products may be sold or served incidentally to the sale or service of alcoholic beverages, in accordance with rules prescribed by ABC. No person under 21 years of age is allowed on public premises.
6. 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 authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
7. Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health.
8. Authorizes the Department of ABC to issue a special on-sale general license to the Hollywood Forever Cemetery, as specified.

This bill:

1. Authorizes the Department of ABC to issue a special on-sale general license to a nonprofit arts foundation operating within a former church that is over 100 years old, on the National Register of Historic Places, and is located in designated Landmark No. 120 by the City and County of San Francisco, and is exempt from specified income taxes under the Revenue and Taxation Code and Section 510 (c)(3) of the Internal Revenue Code.
2. Specifies that the license shall permit sales, service, and consumption of beer, wine, and distilled spirits on the licensed premises. Any special on-sale general license issued pursuant to this bill shall not be subject to the current county license limitations, and shall not be required to be operated as a bona fide public eating place.
3. States that the fee for the new license shall be the same as an original on-sale general license.
4. Provides the annual license fee for the special on-sale general license shall be the same of that for an on-sale general license.
5. Makes legislative findings and declarations as to the necessity of a special statute in the City and County of San Francisco.
6. Makes conforming and technical changes.

Background

Purpose of the bill. According to the author’s office, “St. Joseph’s Church is a cultural asset, a National Landmark and a San Francisco Landmark. [It] provides a space for our local artists and community groups for exhibitions, performances, events and fundraisers and serves as a beacon to people of all ages to engage with the artistic community in the warm and inviting atmosphere of a former community asset and parish. Currently, no ABC license exists that would permit these types of events at St. Joseph’s. This bill will simply create a new ABC license type to the St. Joseph’s Arts Society can fully server our artists and community events.”

Saint Joseph’s Church in San Francisco. Saint Joseph’s Church is a Romanesque revival church located in San Francisco. The church was constructed by John J. Foley in 1913 and replaced a previous structure that was destroyed by fire following the 1906 earthquake. In 1980, Saint Joseph’s Church was designated a National Historic Landmark as well as a San Francisco Landmark. Nine years later, after having received significant damage as a result of the 1989 Loma Prieta earthquake, the structure was closed and abandoned. Over the next 20 years, Saint Joseph’s Church sat vacant, exposed to the elements, decaying, crumbling and falling into significant disrepair.

In 2008, a local developer and contractor purchased Saint Joseph’s Church and began the process of obtaining National Park Service and local approvals for the rehabilitation and restoration of Saint Joseph’s Church. In 2016, the necessary approvals were granted, and work began on the restoration. The restoration was completed in 2018 and Saint Joseph’s Church re-opened its doors on October 1, 2018.

When Saint Joseph’s Church re-opened its doors in 2018, it did so as the home for the Saint Joseph’s Art Society, a cultural institution and non-profit dedicated to celebrating fine art, design, food, fashion, literature and performance. Through the Saint Joseph’s Arts Foundation, Saint Joseph’s Church is open to the public and available to local artists and community groups for exhibitions, performances, events and fundraisers and serves as a beacon to people of all ages to engage with the artistic community in the warm and inviting atmosphere of a former community asset and parish.

Currently, any event held at the church where alcohol is served requires partnership with an existing ABC licensee. This requires the license holder applying in person at least three days in advance at the local ABC District Office for a caterer permit, which authorizes the licensee to serve and charge for alcoholic beverages upon the premises of the church. Not only is this time consuming but based on current rules, such events are limited to a maximum of 24 licensed events per year.

Additionally, the Saint Joseph’s Church is unable to obtain an on-sale general license because that license requires the establishment to be used and kept as a “bona fide public eating place,” a requirement that the Saint Joseph’s Church is unable to fulfill. This bill specifically provides that the special license provided by this bill shall not be required to operate as a “bona fide public eating place.”

Alcohol license limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department ABC will issue five new licenses in that county.

If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

This bill specifies that the license issued under the provisions of this bill should not be subject to these limitations.

Prior/Related Legislation

SB 352 (Dodd, 2019) would authorize the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year that limit is reached. (Pending in the Assembly Governmental Organization Committee.)

AB 1217 (Santiago, Chapter 474, Statutes of 2018) authorized the Department of ABC to issue a special on sale general license to the Hollywood Forever Cemetery.

AB 1670 (Dodd, Chapter 347, Statutes of 2016) among other things, authorized the Department of ABC to issue a special on-sale general license to the operator of any for-profit theater located within the County of Napa (Uptown Theater).

AB 525 (Ting, Chapter 235, Statutes of 2013) created a new special on-sale general license in ABC Act that enabled the operator of any for-profit theater, as specified, to serve alcoholic beverages during certain hours in specified areas of the theater.

AB 2793 (Governmental Organization Committee, Chapter 273, Statutes of 2010) among other things, authorized a licensed winegrower to serve on the board of trustees of a nonprofit theater company operating a theater in the City of Livermore, as specified. Also, authorized the Department of ABC to issue a club license to nonprofit lawn bowling clubs that do not discriminate or restrict membership, as specified.

AB 23 (Ma, Chapter 23, Statutes of 2008) allowed those licensees operating a cabaret theater to admit persons under 21 years of age to theater performances at any time, provided that alcoholic beverages are not sold, served, or consumed on the premises during those performances.

AB 1429 (Governmental Organization, Chapter 567, Statutes of 200) among other things, deleted the requirement that a nonprofit theater company must be in existence for at least ten years in order for ABC to issue a special on-sale general license.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Saint Joseph’s 1913, Inc. (Source)

American Conservatory Theater

Community Housing Partnership

San Francisco Chamber of Commerce

San Francisco Heritage

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the San Francisco Chamber of Commerce, “AB 1370 would allow for an ABC license that would allow the Saint Joseph’s Arts Foundation to operate within Saint Joseph’s Church, host and support events, and provide access to cultural and artistic assets throughout the year to people of all ages while allowing for the sale of alcohol to support the mission of the foundation as well as the various non-profits and community groups sponsoring and hosting the events. No license currently exists that would allow Saint Joseph’s Church to operate or host the types of art, community and non-profit events envisions for this National and local Landmark.”

Date of Hearing: May 8, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1370

Author:(Chiu) – As Amended Ver:March 21, 2019

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue a special on-sale general license to Saint Joseph’s Church in San Francisco. This special license will allow for the sale, service and consumption of beer, wine and distilled spirits on the premise of the church.

FISCAL EFFECT:

No additional state costs.

COMMENTS:

Background and purpose. Existing law limits the number of new on-sale general licenses in a given year based on population growth of the county. One license for every 2,000 residents may be issued, and ABC holds a drawing when there are more buyers than available licenses. If there are no new licenses available, then a license can be bought on the secondary market.

Saint Joseph’s Church, following a long rehabilitation and restoration process, reopened in October 1, 2018. The Saint Joseph’s Arts Foundation makes the church open to the public and available to local artists and community groups for events and fundraisers. Because the church cannot obtain a new alcohol license or afford to purchase one on the secondary market, it must partner with an existing licensee to hold events where alcohol is served through a catering permit. This can be an arduous process, and current law restricts the church to hold a maximum of 24 such events a year.

According to the author, AB 1370 will allow Saint Joseph’s Arts Foundation to operate within Saint Joseph’s Church and more easily provide the sale of alcohol during cultural and artistic events throughout the year.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: April 24, 2019

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 1370 (

Author:Chiu) – As Amended Ver:March 21, 2019

SUBJECT: Alcoholic beverage licenses: nonprofit arts foundation

SUMMARY: Authorizes the Department of Alcoholic Beverage Control (ABC) to issue a special on-sale general license (Saint Joseph’s Church in San Francisco) to a nonprofit arts foundation with specified characteristics, including that it be located in a former church in the City and County of San Francisco, as defined. Specifically, this bill:

1) Provides ABC may issue a special on-sale general license to a nonprofit arts foundation operating within a former church that is over 100 years old, on the National Register of Historic Places, and is located in designated Landmark No. 120 by the City and County of San Francisco, and is exempt from the payment of income taxes under Section 23701d of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code.

2) States the special on-sale general license shall permit sales, service, and consumption of beer, wine, and distilled spirits on the licensed premises. Any special on-sale general license issued pursuant to this bill shall not be subject current county license limitations, and shall not be required to be operated as a bona fide public eating place.

3) States that the fee for the original special on-sale general license shall be the same as specified in current law for an original on-sale general license.

4) Provides the annual license fee for the special on-sale general license shall be the same of that for an on-sale general license.

5) Makes legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.

6) Makes conforming and technical changes.

EXISTING LAW:

1) Establishes ABC and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees or occupation taxes for this purposes.

2) Establishes various alcoholic beverage license categories and a schedule of annual fees charged to the licensees.

3) Allows ABC to issue a special on-sale general license to any nonprofit theater company. A theater company holding such a license may sell and serve alcoholic beverages to ticket holders only during, and two hours prior to and one hour after a bona fide theater performance of the company. Existing law authorizes ABC to issue various special on-sale licenses, including to nonprofit theater companies and symphony associations.

4) Caps the number of new on and off-sale general licenses issued by the ABC at one for every 2,500 inhabitants of the county where the establishment is located (2,000:1 for on sale licenses). If no licenses are available from the state due to the population restrictions, those people interested in obtaining a liquor license may purchase one from an existing licensee, for whatever price the market bears.

5) Defines "public premises" as premises licensed with any type of license other than an on-sale beer license, and maintained and operated for the selling or serving of alcoholic beverages to the public for consumption on the premises, and in which food shall not be sold or served to the public as in a bona fide public eating place, but upon which premises food products may be sold or served incidentally to the sale or service of alcoholic beverages, in accordance with rules prescribed by ABC. No person under 21 years of age is allowed on public premises. Furthermore, the law provides that "public premises" does not include railroad dining or club cars, passenger ships, airplanes, or bona fide clubs after the clubs have been lawfully operated for not less than one year; nor does it include historic units of the state park system, premises being operated under a temporary on-sale license, as specified, or on-sale beer licensed stadia, auditoria, fairgrounds, or racetracks; nor does it include non-profit theater companies licensed, as specified; cemeteries, as specified; nor does it include winegrowers' premises.

6) 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 authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.

7) Defines "bona fide public eating place" to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local department of health.

FISCAL EFFECT: Unknown

COMMENTS:

Background: Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by ABC based on the population growth of the county in which the licensed premises are located (one licensee for every 2,000 residents). Thus, if a county grows by 10,000 people in a given year, ABC will sell five new licenses in that county. ABC holds a drawing if there are more buyers than licenses available. The cost of these new licenses is $15,835 each. According to ABC, there are more than 15,000 (Type 47) licenses statewide. Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell his/her license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand.

Saint Joseph’s Church in San Francisco. Saint Joseph’s Church is a Romanesque revival church located in San Francisco. The church was constructed by John J. Foley in 1913 and replaced a previous structure that was destroyed by fire following the 1906 earthquake. In 1980, Saint Joseph’s Church was designated a National Historic Landmark as well as a San Francisco Landmark (#120). Nine years later, after having received significant damage as a result of the 1989 Loma Prieta earthquake, the structure was closed and abandoned. Over the next 20 years, Saint Joseph’s Church sat vacant, exposed to the elements, decaying, crumbling and falling into significant disrepair.

In 2008, a local developer and contractor purchased Saint Joseph’s Church and began the laborious process of obtaining National Park Service and local approvals for the rehabilitation and restoration of Saint Joseph’s Church. In 2016, the necessary approvals were granted, and work began on the restoration. The restoration was completed in 2018 and Saint Joseph’s Church re-opened its doors on October 1, 2018.

When Saint Joseph’s Church re-opened its doors in 2018, it did so as the home for the Saint Joseph’s Art Society, a cultural institution and non-profit dedicated to celebrating fine art, design, food, fashion, literature and performance.

Through the Saint Joseph’s Arts Foundation, Saint Joseph’s Church is open to the public and available to local artists and community groups for exhibitions, performances, events and fundraisers and serves as a beacon to people of all ages to engage with the artistic community in the warm and inviting atmosphere of a former community asset and parish.

Purpose of the bill. According to the author's office, currently, no ABC license exists that would permit Saint Joseph’s Church to hold the license for the types of events they have envisioned. Because of this, any event at Saint Joseph’s Church where alcohol is served requires a partnership with an existing ABC licensee. That licensee typically holds an active Type 47 or Type 48 license at an ABC licensed premises in San Francisco.

For each event at Saint Joseph’s, a holder of an existing on-sale liquor license is required to apply in person at least three business days in advance with the local ABC District Office for a Type 58 license (Caterer’s Permit) which authorizes the licensee to serve and charge for alcoholic beverages for consumption upon the premises. Each application incurs a fee of $142 and $25 for each day of service. In addition, current law restricts Saint Joseph’s Church to a maximum of 24 licensed events per year.

The author further states that the process and time to obtain each catered event permit (Type 58) is arduous and complex, and the limit on the number of licensed caterer permit events allowed in one year significantly constrains Saint Joseph’s Arts Foundation’s ability to support the foundation’s mission of making the landmark structure available for local community groups, non-profits, and local artists.

The author asserts, the creation of a new ABC license, will allow the Saint Joseph’s Arts Foundation to operate within Saint Joseph’s Church and provide the sale of alcohol during cultural and artistic events throughout the year. This bill will ensure that Saint Joseph’s Church can truly become a place for San Francisco’s artists and community to come together.

In support. In support of this measure, the Community Housing Partnership writes, authorizing this special license will enable the Saint Joseph’s Arts Foundation to operate within Saint Joseph’s Church, providing access to cultural and artistic assets throughout the year to people of all ages and allowing for the sale of alcohol during these events to support the mission of the foundation, as well as various non-profits and community groups sponsoring and hosting the events. The Saint Joseph’s Church sat vacant and unused for 30 years and now is a restored community and cultural asset that is proposed for public and community use in support of the arts.

Prior legislation. AB 1217 (Santiago), Chapter 474, Statutes of 2018. Authorized ABC to issue a special on-sale general license to the operator of a specified for-profit cemetery (Hollywood Forever Cemetery).

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Among other things, authorized ABC to issue a special on-sale general license to the operator of any for-profit theater located within the County of Napa (Uptown Theater).

AB 525 (Ting), Chapter 235, Statutes of 2013. Created a new special on-sale general license in Act that enabled the operator of any for-profit theater, as specified, to serve alcoholic beverages during certain hours in specified areas of the theater.

SB 1531 (Wolk) Chapter 334, Statutes of 2012. Created a narrow tied-house exception, until January 1, 2018, enabling the Napa Valley Opera House to accept wine and monetary donations from wineries located within the Counties of Napa, Sonoma, Lake, and Mendocino.

AB 2793 (Governmental Organization Committee), Chapter 273, Statutes of 2010. Among other things, authorized a licensed winegrower to serve on the board of trustees of a nonprofit theater company operating a theater in the City of Livermore, as specified. Also, authorized ABC to issue a club license to nonprofit lawn bowling clubs that do not discriminate or restrict membership, as specified.

SB 131 (Wiggins), Chapter 638, Statutes of 2009. Created an exception to the Act, until December 31, 2014, authorizing the San Francisco Symphony, which holds an on-sales liquor license, to accept monetary and alcoholic beverage product contributions (for free) from licensed alcoholic beverage manufacturers.

AB 23 (Ma), Chapter 18, Statutes of 2008. Allowed those licensees operating a cabaret theater to admit persons under 21 years of age to theater performances at any time, provided that alcoholic beverages are not sold, served, or consumed on the premises during those performances.

REGISTERED SUPPORT / OPPOSITION:

Support

American Conservatory Theater

Community Housing Partnership

San Francisco Chamber of Commerce

San Francisco Heritage

Opposition

None on file

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