Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue, except as specified, up to a total of 10 additional new original on-sale general licenses for bona fide public eating places, up to 4 in the first year the bill takes effect, in the County of El Dorado and in the County of Placer, to premises where the operation of a bona fide public eating place is located in a retail center, as defined. The bill would require the department to issue at least 3 of these licenses for a premises located in a retail center that contains at least 1,000,000 square feet of retail shopping space, as specified. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue, except as specified, up to a total of 10 additional new original on-sale general licenses for bona fide public eating places, up to 4 in the first year the bill takes effect, in the County of El Dorado and in the County of Placer, to premises where the operation of a bona fide public eating place is located in a retail center, as defined. The bill would require the department to issue at least 3 of these licenses for a premises located in a retail center that contains at least 1,000,000 square feet of retail shopping space, as specified. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue, except as specified, up to a total of 10 additional new original on-sale general licenses for bona fide public eating places, up to 4 in the first year the bill takes effect, in each county the County of El Dorado and in the County of Placer, to premises where the operation of a bona fide public eating place is located in a retail center, as defined. The bill would require the department to issue at least 3 of these licenses for a premises located in a retail center that contains at least 1,000,000 square feet of retail shopping space, as specified. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue, except as specified, up to a total of 10 additional new original on-sale general licenses for bona fide public eating places, up to 4 in the first year the bill takes effect, in each county to premises where the operation of a bona fide public eating place is located in a retail center, as defined. The bill would require the department to issue at least 3 of these licenses for a premises located in a retail center that contains at least 1,000,000 square feet of retail shopping space, as specified. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue issue, except as specified, up to a total of 10 additional new original on-sale general licenses for bona fide public eating places, up to 4 in the first year the bill takes effect, in each county to premises where the operation of a bona fide public eating place is, or is located in, in a retail center, as defined. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would authorize the department to issue up to 2 a total of 10 additional new original on-sale general licenses for bona fide public eating places per year places, up to 4 in the first year the bill takes effect, in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides an exception to the limitation described above by various exceptions to the limitation described above, including authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses. licenses, and authorizes the department to designate these licenses as on-sale general for special use. Existing law specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. Existing law prohibits these licenses from being, among other things, transferred from one county to another.

This bill would make a nonsubstantive change to these provisions. authorize the department to issue up to 2 additional new original on-sale general licenses for bona fide public eating places per year in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would also specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another.

Existing law, 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. Existing law limits 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.

Existing law provides an exception to the limitation described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. Existing law prohibits the department from issuing more than 4 of these licenses per year. Existing law requires the department to follow specified procedures concerning the issuance of these licenses.

This bill would make a nonsubstantive change to these provisions.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2589

Author:(Joe Patterson)

As Amended Ver:August 15, 2024

Majority vote

SUMMARY

This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

Senate Amendments

1) Authorize the ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

2) Define "retail center" to mean a multitenant shopping center that contains at least 300,000 square feet of retail shopping space open to the public.

3) Provide that a county board of supervisors may submit a resolution to the ABC that further restricts the number of licenses that may be issued in that county.

4) Provide following the cancellation or revocation of a license issued under this bill, ABC may issue one additional license, as specified.

COMMENTS

Background.

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the license premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2025, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses ABC may issue each year 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 specific year, the department will issue five new licenses in that county.

If ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who cannot obtain a liquor license through this process must locate an existing licensed owner willing to sell their license. This usually happens by contacting an alcohol license broker. The cost of acquiring a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

Impact on Counties. As previously noted, when a county experiences a population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

According to the Author

According to the author's office, "throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to cost of purchasing a Type 47 license from a broker. AB 2589 would simply allow tenants in large retail centers to obtain these licenses on a limited basis. The license would not be transferrable to a location outside of the retail center, thus ensuring these valuable assets continue to assist community based tax generators."

Arguments in Support

According to Westfield Galleria in Roseville, "the current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reason: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are economic hub of our communities."

Arguments in Opposition

According to Alcohol Justice, "by all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor."

FISCAL COMMENTS

According to the Senate Appropriations Committee, "unknown, but likely absorbable additional administrative, licensing, and enforcement workload for the ABC (ABC Fund). Actual workload impacts to the department will depend on how many new licenses are issued under this bill. Other costs may include one-time IT costs to create a new license type and to track new licensees."

VOTES:

ASM GOVERNMENTAL ORGANIZATION: 21-0-1

YES: Blanca Rubio, Lackey, Addis, Bains, Lee, Davies, Dixon, Gabriel, Gipson, Haney, Jones-Sawyer, Low, McKinnor, Pacheco, Papan, Jim Patterson, Ramos, Soria, Ta, Valencia, Wallis

ABS, ABST OR NV: Cervantes

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Friedman, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 71-0-9

YES: Aguiar-Curry, Alanis, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Grayson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Addis, Alvarez, Cervantes, Megan Dahle, Flora, Vince Fong, Gipson, Irwin, Mathis

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

UPDATED

VERSION: August 15, 2024

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0004842

 THIRD READING  

Bill No: AB 2589

Author: Joe Patterson (R)

Amended: 8/15/24 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 6/11/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto

NO VOTE RECORDED: Smallwood-Cuevas

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 71-0, 5/16/24 (Consent) - See last page for vote

SUBJECT: Alcoholic beverages: additional licenses: County of El Dorado and County of Placer

SOURCE: Westfield Galleria in Roseville

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

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.
2. Provides that the Department of ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the Department of ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
3. Caps the number of new on-sale and off-sale general licenses issued by the Department of ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.
4. 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) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
5. 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.
6. Authorizes, beginning January 1, 2017, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
7. Provides that in Napa County, from January 1, 2017, to December 31, 2017, the Department of ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license shall have a seating capacity for 25 or more diners.
8. Authorizes, beginning January 1, 2018, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco.
9. Authorizes, beginning on January 1, 2018, the Department of ABC, to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

This bill:

1. Authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center, in both the County of El Dorado and the County of Placer, as specified.
2. Defines “retail center” to mean a multitenant shopping center that contains at least 300,000 square feet of retail shopping space open to the public.
3. Provides that a county board of supervisors may submit a resolution to the Department of ABC that further restricts the number of licenses that may be issued in that county.
4. Prohibits a license issued under this bill to be transferred from one county to another, nor shall the license be transferred to any premises not qualifying under the provisions of this bill.
5. Prohibits a license issued under this bill from being sold or transferred for a price greater than the original fee paid by the seller or transferor.

Background

Author Statement. According to the author’s office, “throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to cost of purchasing a Type 47 license from a broker. AB 2589 would simply allow tenants in large retail centers to obtain these licenses on a limited basis. The license would not be transferrable to a location outside of the retail center, thus ensuring these valuable assets continue to assist community based tax generators.”

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2024, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

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.

Impact on Counties. As previously noted, when a county experiences a population growth, the Department of ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the Department of ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

According to the Department of ABC, in 2022 there were 31 counties that were eligible for more licenses because of population growth and 27 counties that were not eligible for more licenses because of a lack of population. Of those 27 counties, five counties received a handful of licenses through special legislation.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the Department of ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtained from the department and prohibit the license from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the Department of ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

This bill is slightly different than previous bills allowing the Department of ABC to issue additional licenses by requiring that these licenses be located in a retail center. As such, this bill restricts where these licenses can be located.

Related/Prior Legislation

SB 1028 (Alvarado-Gil) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale genera licenses for bona fide eating-places, as specified. (Held in the Senate Appropriations Committee’s Suspense File)

AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorized the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.

SB 787 (Dahle, Chapter 113, Statutes of 2023) authorized the Department of ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd, 2020) would have authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd, 2019) would have authorized 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 the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting, Chapter 442, Statutes of 2017) authorized the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the Department of ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno, Chapter 790, Statutes of 2016) authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd, Chapter 347, Statutes of 2016) authorized the Department of ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis, Chapter 256, Statutes of 2016) authorized the Department of ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

AB 461 (Achadjian, Chapter 110, Statutes of 2013) authorized the Department of ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.

AB 1320 (Allen, Chapter 467, Statutes of 2012) authorized the Department of ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of Marin.

AB 2266 (Evans, Chapter 130, Statutes of 2008) authorized the Department of ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in the County of Napa.

SB 762 (Cox, Chapter 193, Statutes of 2007) authorized the Department of ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in the County of Mono.

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

According to the Senate Appropriations Committee, unknown, but likely absorbable additional administrative, licensing, and enforcement workload for the Department of ABC (Alcohol Beverage Control Fund). Actual workload impacts to the department will depend on how many new licenses are issued under this bill. Other costs may include one-time IT costs to create a new license type and to track new licensees.

SUPPORT: (Verified 8/15/24)

Westfield Galleria in Roseville (Source)

El Dorado County Chamber of Commerce

El Dorado Hills Chamber of Commerce

Elk Grove Chamber of Commerce

Folsom Chamber of Commerce

Lincoln Area Chamber of Commerce

Rancho Cordova Chamber of Commerce

Rockling Area Chamber of Commerce

Roseville Area Chamber of Commerce

Shingle Springs/Cameron Park Chamber of Commerce

United Chambers Advocacy Network

Yuba Sutter Chamber of Commerce

OPPOSITION: (Verified 8/15/24)

Alcohol Justice

ARGUMENTS IN SUPPORT: According to Westfield Galleria in Roseville, “the current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reason: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are economic hub of our communities.”

ARGUMENTS IN OPPOSITION: According to Alcohol Justice, “by all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor.”

ASSEMBLY FLOOR: 71-0, 5/16/24

AYES: Aguiar-Curry, Alanis, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Grayson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Addis, Alvarez, Cervantes, Megan Dahle, Flora, Vince Fong, Gipson, Irwin, Mathis

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

8/19/24 10:55:47

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2589 (Joe Patterson) - Alcoholic beverages: licenses: counties

Bill Summary:

AB 2589 authorizes the Department of Alcoholic Beverage Control (ABC) to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating places located in a retail center, as specified.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 15, 2024

Fiscal Impact:

• Unknown, but likely absorbable additional administrative, licensing, and enforcement workload for the Department of ABC (Alcohol Beverage Control Fund). Actual workload impacts to the department will depend on how many new licenses are issued under this bill. Other costs may include one-time IT costs to create the new license type and to track new licensees.

Author Amendments:

Narrow scope of bill to apply only to the County of El Dorado and the County of Placer.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2589 (Joe Patterson) - Alcoholic beverages: licenses: counties

Bill Summary:

AB 2589 authorizes the Department of Alcoholic Beverage Control (ABC) to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating places located in a retail center, as specified.

Fiscal Impact:

• Unknown but likely significant additional administrative and licensing workload for the Department of ABC. This bill would authorize the issuance of up to 580 new licenses, and while the bill caps the number of new licenses the department may issue in the first year to 232, ongoing licensing workload may increase over time as licenses are cancelled or revoked and added back into the available license count.

The Department of ABC estimates costs of $102,000 in the first year, $102,000 in the second year, and $51,000 in the third year if all licenses authorized by this bill were issued (Alcohol Beverage Control Fund). License fee revenue may offset the department’s administrative costs to some extent.

• Unknown potentially significant ongoing enforcement costs, the magnitude of which will depend on, among other things, how many new licenses are issued under this bill, volume of complaints received against these new licensees, and the complexity of any subsequent investigations. The Department of ABC estimates annual enforcement costs may reach $400,000 for 580 new licensees. The department notes that while license fee revenue is likely to surpass expenditures in initial years, ongoing enforcement costs will eventually exceed total new revenues.
• One-time IT costs of approximately $20,000 to create the new license type and to track new licensees.

Background:

An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2024, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

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.

Proposed Law:

• Authorizes the department to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating places for premises located in a retail center.
  • Defines a “retail center” as a multitenant shopping center that contains at least 300,000 square feet of retail shopping space open to the public.
  • Prohibits the department from issuing more than four of these specific licenses in the first year.
  • Requires the department to issue at least three of these licenses for a premises located in a retail center that contains at least 1,000,000 square feet of retail shopping space open to the public.
• Provides that a licensee that holds a Type 47 license that is in a retail center is not eligible to apply for a license pursuant to this bill for the same licensed premises.
• Authorizes a county board of supervisors to submit a resolution to the department by July 1 of any year in which licenses authorized by this bill have not been issued to further restrict the maximum number of licenses that may be issued.
• Prohibits a license issued under this bill to be transferred from one county to another, nor shall the license be transferred to any premises not qualifying under the provisions of this bill.
• Prohibits a license issued under this bill from being sold or transferred for a price greater than the original fee paid by the seller or transferor.
• Authorizes the department to designate licenses issued under this bill as on-sale general for special use, as specified.

Related Legislation:

SB 1028 (Alvarado-Gil, 2024) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new Type 47 licenses, as specified. SB 1028 was held on the Suspense File in this committee.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2023 - 2024 Regular

Bill No: AB Hearing Date: 6/11/2024

SUBJECT:

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center, as specified.

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.
2. Provides that the Department of ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the Department of ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
3. Caps the number of new on-sale and off-sale general licenses issued by the Department of ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.
4. 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) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
5. 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.
6. Authorizes, beginning January 1, 2017, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
7. Provides that in Napa County, from January 1, 2017, to December 31, 2017, the Department of ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license shall have a seating capacity for 25 or more diners.
8. Authorizes, beginning January 1, 2018, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco.
9. Authorizes, beginning on January 1, 2018, the Department of ABC, to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

This bill:

1. Authorizes the Department of ABC, to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. The department shall not issue more than four licenses in the first year after the provisions of this bill take effect.
2. Defines “retail center” to mean a group of two or more retail establishments, including, but not limited to, a multitenant shopping center, that is at least 1,300,00 square feet.
3. Prohibits a license issued under this bill to be transferred from one county to another, nor shall the license be transferred to any premises not qualifying under the provisions of this bill.
4. Prohibits a license issued under this bill from being sold or transferred for a price greater than the original fee paid by the seller or transferor.
5. Authorizes the Department of ABC to designate licenses issued under this bill as on-sale general for special use, as specified.

Background

Author Statement. According to the author’s office, “throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to cost of purchasing a Type 47 license from a broker. AB 2589 would simply allow tenants in large retail centers to obtain these licenses on a limited basis. The license would not be transferrable to a location outside of the retail center, thus ensuring these valuable assets continue to assist community based tax generators.”

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2024, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

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.

Impact on Counties. As previously noted, when a county experiences a population growth, the Department of ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the Department of ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

According to the Department of ABC, in 2022 there were 31 counties that were eligible for more licenses because of population growth and 27 counties that were not eligible for more licenses because of a lack of population. Of those 27 counties, five counties received a handful of licenses through special legislation.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the Department of ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtained from the department and prohibit the license from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the Department of ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

This bill is slightly different than previous bills allowing the Department of ABC to issue additional licenses by requiring that these licenses be located in a retail center. As such, this bill restricts where these licenses can be located.

Suggested Amendments. The author has agreed to take the following amendments in committee designed to (1) provide local control to counties; (2) focus the definition of “retail center to large multi-tenant shopping centers; (3) ensure these licenses are issued to individuals who are having difficulties obtaining an alcohol license; and (4) provide the Department of ABC the authority to issue additional licenses if and when one of these licenses is cancelled or revoked.

Amendment 1. As currently written the bill does not give counties the ability to refuse or reduce the number of licenses that the Department of ABC can issue in their respective communities. As such, the author may wish to amend the bill to allow counties the ability to reduce or refuse the additional licenses that can be issued under the provisions of this bill as follows:

A county board of supervisors may submit a resolution to the department by July 1 of any year in which licenses authorized by this section have not been issued that further restricts the maximum number of those additional licenses that may be issued in that county. If the county board of supervisors does not submit a resolution the department may issue any licenses that have not been issued.

Amendment 2. The current definition of “retail center” is extremely broad and may include small retail centers with only two retail establishments. If the goal of the bill is to provide additional licenses for large multi-tenant shopping centers, the author may wish to amend the bill as follows:

For purposes of this section, “retail center” means a group of two or more retail establishments, including, but not limited to, a multitenant shopping center, that is at least 1,300,000 square feet. multi-tenant shopping center that contains at least 300,000 square feet of retail shopping space open to the public.

Amendment 3. As currently written, a holder of an on-sale general license for bona fide eating-place in a retail center could apply and receive one of the licenses under this bill. That individual could then sell their original license at a huge profit and use their newly acquired license under this bill to operate their business. If the goal of the bill is to help individuals who are facing difficulties obtaining alcohol licenses to open up new restaurants, the author may wish to amend the bill in the following manner:

A licensee that holds an on-sale general license for bona fide eating place in a retail center shall not be eligible to apply for a license under this section for the same licensed premises.

Amendment 4. The bill currently does not allow the Department of ABC to issue a replacement license in those cases where the license has been cancelled or revoked. The author may wish to add a provision to the bill to allow the Department of ABC to issue an additional license when a license issued under the provisions of this bill is either cancelled or revoked, as follows:

Following the cancellation or revocation of a license issued under this section, the department shall issue one additional license pursuant to the procedures set forth in Section 23961 and this section.

Prior/Related Legislation

SB 1028 (Alvarado-Gil) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale genera licenses for bona fide eating-places, as specified. (Held in the Senate Appropriations Committee’s Suspense File)

AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.

SB 787 (Dahle, Chapter 113, Statutes of 2023) authorizes the Department of ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd, 2020) would have authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd, 2019) would have authorized 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 the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting, Chapter 442, Statutes of 2017) authorized the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the Department of ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno, Chapter 790, Statutes of 2016) authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd, Chapter 347, Statutes of 2016) authorized the Department of ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis, Chapter 256, Statutes of 2016) authorized the Department of ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

AB 461 (Achadjian, Chapter 110, Statutes of 2013) authorized the Department of ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.

AB 1320 (Allen, Chapter 467, Statutes of 2012) authorized the Department of ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of Marin.

AB 2266 (Evans, Chapter 130, Statutes of 2008) authorizes the Department of ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in the County of Napa.

SB 762 (Cox, Chapter 193, Statutes of 2007) authorized the Department of ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in the County of Mono.

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

SUPPORT:

Westfield Galleria in Roseville (Source)

El Dorado County Chamber of Commerce

El Dorado Hills Chamber of Commerce

Elk Grove Chamber of Commerce

Folsom Chamber of Commerce

Lincoln Area Chamber of Commerce

Rancho Cordova Chamber of Commerce

Rockling Area Chamber of Commerce

Roseville Area Chamber of Commerce

Shingle Springs/Cameron Park Chamber of Commerce

United Chambers Advocacy Network

Yuba Sutter Chamber of Commerce

OPPOSITION:

Alcohol Justice

ARGUMENTS IN SUPPORT: According to Westfield Galleria in Roseville, “the current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reason: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are economic hub of our communities.”

ARGUMENTS IN OPPOSITION: According to Alcohol Justice, “by all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor.”

Date of Hearing: May 8, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2589

Author:(Joe Patterson) – As Amended Ver:April 24, 2024

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

SUMMARY:

This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue, in each county, up to 10 new on-sale general licenses for a bona fide public eating place located in a retail center.

This bill defines a “retail center” to mean a group of two or more retail establishments, including a multi-tenant shopping center, of at least 1.3 million square feet. No more than four licenses may be issued in a county in the initial year, and the new license cannot be transferred out of the county, transferred to a non-retail center premises, or sold for a price greater than the original fee paid by the seller.

FISCAL EFFECT:

Costs of approximately $102,000 in the first year, $102,000 in the second year, and $51,000 in the third year to ABC to issue new additional licenses and provide enforcement (Alcohol Beverage Control Fund). ABC notes this bill could result in a total of 580 new licenses, with up to 232 licenses issued in the first year, 232 licenses issued in the second year, and 116 licenses issued in the third year. Although revenue from license fees would surpass expenditures in initial years, ongoing enforcement costs would eventually exceed total new revenues. Additionally, costs of approximately $15,000 to ABC for information technology costs, if ABC determines an additional license type must be created and programmed to track and regulate this specific type of on-sale general license in a retail center.

COMMENTS:

1. Purpose. According to the author:

Throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting new restaurants due to the cost of purchasing a Type 47 license from a broker. [This bill] would simply allow tenants in large retail centers obtain these licenses on a limited basis. The license would not be transferrable to a location outside the retail center, thus ensuring these valuable assets continue to assist community-based tax generators.

1. Support and Opposition. This bill is supported by Westfield Galleria in Roseville, which argues, “the lack of available liquor licenses has made it extremely difficult to contract with new restaurants who must be able to get a license for them to want to move forward with securing a lease,” thus hampering expansion and new economic development opportunities to support the region.

This bill is opposed by Alcohol Justice, which argues, “Placer County has already appealed for additional licenses based on the fact that they had issued enough to be in excess of thresholds that are commonly regarded as risk-conducive by California law.”

1. Limited On-sale General Licenses. An on-sale general license for a business primarily serving food as a “bona fide eating place” (Type 47) allows the licensee to also serve beer, wine and distilled spirits for consumption on the licensed premises. There are over 17,000 Type 47 licenses issued statewide to full-service restaurants, hotels, bowling alleys, golf courses and other eating establishments.

Existing law limits the number of new on-sale general licenses ABC may issue 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. Because many counties have reached their cap, businesses seeking a license may need to buy one on the secondary market, which can cost up to $400,000. While ABC’s formula generally works for most counties, demand for licenses far outweighs the population-based allotment in some counties, generally due to the county’s slower population growth or the local economy’s reliance on tourism. This bill authorizes ABC to additionally issue in each county, outside of ABC’s population-based formula, up to 10 new licenses for a bona fide public eating place located in a retail center.

1. Related Legislation. AB 1668 (Joe Patterson), Chapter 282, Statutes of 2023, authorized ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer.

SB 1028 (Alvarado-Gil) authorizes ABC to issue up to 10 additional new original on-sale general licenses for bona fide eating places in counties that have reached their limit of new licenses. SB 1028 is pending on the Senate Appropriations Committee’s suspense file.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 2589 (

Author:Joe Patterson) – As Amended Ver:March 21, 2024

SUBJECT: Alcoholic beverages: licenses: counties

SUMMARY: This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue up to 2 additional new original on-sale general licenses for bona fide public eating places per year in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. ABC would be required to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another. Specifically, this bill:

1) Provides that in each county, ABC may issue two additional new original on-sale general licenses for bona fide public eating places per year. To qualify for a license under this section, the premises upon which a bona fide public eating place is operated shall be, or be located in, a retail center.

2) Defines “retail center” to mean a group of two or more retail establishments, including, but not limited to, a multitenant shopping center, that is at least 1,300,000 square feet.

3) Provides the ABC shall follow the procedure set forth in the Act pertaining to license applications and a public drawing, if need be.

4) Provides this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license pursuant to this section.

5) Allows a license issued under this bill shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.

6) Provides a license issued under this bill shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.

7) States the ABC may designate licenses issued pursuant to this section as on-sale general for special use. This designation does not alter any license privileges or restrictions established by this section.

EXISTING LAW:

1) Establishes the 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.

2) Provides that the ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

3) Caps the number of new on-sale and off-sale general licenses issued by ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.

4) 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) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.

5) 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.

6) Provides that in Napa County, from January 1, 2017, to December 31, 2017, the ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license shall have a seating capacity for 25 or more diners.

7) Authorizes, beginning January 1, 2018, the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco.

8) Authorizes, beginning on January 1, 2018, the ABC, to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

9) Authorizes, beginning on January 1, 2023, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

10) Authorizes the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Placer.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, "Throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to the cost of purchasing a Type 47 license from a broker. AB 2535 would simply allow tenants in large retail centers obtain these licenses on a limited basis. The license would not be transferrable to a location outside the retail center, thus ensuring these valuable assets continue to assist community-based tax generators."

Background.

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the license premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2025, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses ABC may issue each year 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 specific year, the department will issue five new licenses in that county.

If ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who cannot obtain a liquor license through this process must locate an existing licensed owner willing to sell their license. This usually happens by contacting an alcohol license broker. The cost of acquiring a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

Impact on Counties. As previously noted, when a county experiences a population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Policy statement. It should be noted, this bill would not diminish the value of any existing liquor license because these new licenses will continue to not be transferrable to a new business owner in the specified census tracts. Furthermore, the owners of existing liquor licenses (bona fide public eating places) across the state would remain able to sell or transfer their licenses citywide and reap the value of their investment on the private market.

Policy consideration. To be consistent with previous actions by this Committee and previous Governors, the author should consider the following amendments: 1) ABC may issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places where the operation of the license is, or is located in, a retail center, as defined; and 2) In the first year that this bill is effective, the ABC may issue up to four licenses under this measure.

In support. The Westfield Galleria in Roseville, writes that “For shopping centers like Westfield Galleria Roseville, AB 2589 would address a much-needed relief in the market, and thereby, allow us to support businesses in the community and contribute towards the State’s overall economic development and growth opportunities. The current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reasons: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. We face this exact challenge at Westfield Galleria in Roseville, as we undergo changes and improvements. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are the economic hub of our communities.”

In opposition. Alcohol Justice writes, “Placer County has already appealed for additional licenses based on the fact that they had issued enough to be in excess of thresholds that are commonly regarded as risk-conducive by California law. Not only does this bill ignore that threshold, it ignores it in light of an already existing bill pleading for an exemption. There is nothing calm, measured, or evidence-based about these loopholes. They simply treat county residents’ wellbeing as obstacles to a moneymaking opportunity. By all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor.”

Related legislation. AB 2359 (Ting) of 2024. The bill would revise an existing exception in law by authorizing the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (Pending in the Assembly Committee on Appropriations)

SB 1028 (Alvarado-Gil) of 2024. This bill would authorize the ABC to issue up to 10 additional new original on-sale general licenses for bona fide eating places in counties that have reached their limit of on-sale general licenses. (Pending in the Senate Committee on Appropriations)

Prior legislation. AB 1668 (J. Patterson), Chapter 282, Statutes of 2023. Authorized ABC to issue 10 new original Type 47 licenses (on-sale general licenses for bona fide public eating places), but no more than four per year, in the County of Placer, as specified.

SB 787 (Dahle), Chapter 113, Statutes of 2023. Authorized the ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle), Chapter 889, Statutes of 2022. Authorized, beginning on January 1, 2022, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized the ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd of 2020). This bill would have authorized the ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd of 2019). This bill would have authorized the 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 the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized the ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis), Chapter 256, Statutes of 2016. Authorized the ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

AB 461 (Achadjian), Chapter 110, Statutes of 2013. Authorized the ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.

AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of Marin.

AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in the County of Napa.

SB 762 (Cox), Chapter 193, Statutes of 2007. Authorized the ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in the County of Mono.

REGISTERED SUPPORT / OPPOSITION:

Support

Westfield

Oppose

Alcohol Justice

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

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 2589 (

Author:Joe Patterson) – As Amended Ver:March 21, 2024

SUBJECT: Alcoholic beverages: licenses: counties

SUMMARY: This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue up to 2 additional new original on-sale general licenses for bona fide public eating places per year in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. ABC would be required to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another. Specifically, this bill:

1) Provides that in each county, ABC may issue two additional new original on-sale general licenses for bona fide public eating places per year. To qualify for a license under this section, the premises upon which a bona fide public eating place is operated shall be, or be located in, a retail center.

2) Defines “retail center” to mean a group of two or more retail establishments, including, but not limited to, a multitenant shopping center, that is at least 1,300,000 square feet.

3) Provides the ABC shall follow the procedure set forth in the Act pertaining to license applications and a public drawing, if need be.

4) Provides this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license pursuant to this section.

5) Allows a license issued under this bill shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.

6) Provides a license issued under this bill shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.

7) States the ABC may designate licenses issued pursuant to this section as on-sale general for special use. This designation does not alter any license privileges or restrictions established by this section.

EXISTING LAW:

1) Establishes the 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.

2) Provides that the ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

3) Caps the number of new on-sale and off-sale general licenses issued by ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.

4) 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) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.

5) 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.

6) Provides that in Napa County, from January 1, 2017, to December 31, 2017, the ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license shall have a seating capacity for 25 or more diners.

7) Authorizes, beginning January 1, 2018, the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco.

8) Authorizes, beginning on January 1, 2018, the ABC, to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

9) Authorizes, beginning on January 1, 2023, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

10) Authorizes the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Placer.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, "Throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to the cost of purchasing a Type 47 license from a broker. AB 2535 would simply allow tenants in large retail centers obtain these licenses on a limited basis. The license would not be transferrable to a location outside the retail center, thus ensuring these valuable assets continue to assist community-based tax generators."

Background.

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the license premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2025, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses ABC may issue each year 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 specific year, the department will issue five new licenses in that county.

If ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who cannot obtain a liquor license through this process must locate an existing licensed owner willing to sell their license. This usually happens by contacting an alcohol license broker. The cost of acquiring a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

Impact on Counties. As previously noted, when a county experiences a population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Policy statement. It should be noted, this bill would not diminish the value of any existing liquor license because these new licenses will continue to not be transferrable to a new business owner in the specified census tracts. Furthermore, the owners of existing full liquor licenses across the state would remain able to sell or transfer their licenses citywide and reap the value of their investment on the private market.

Policy consideration. To be consistent with previous actions by this Committee and previous Governors, the author should consider the following amendments: 1) ABC may issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places where the operation of the license is, or is located in, a retail center, as defined; and 2) In the first year that this bill is effective, the ABC may issue up to four licenses under this measure.

In support. The Westfield Galleria in Roseville, writes that “For shopping centers like Westfield Galleria Roseville, AB 2589 would address a much-needed relief in the market, and thereby, allow us to support businesses in the community and contribute towards the State’s overall economic development and growth opportunities. The current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reasons: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. We face this exact challenge at Westfield Galleria in Roseville, as we undergo changes and improvements. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are the economic hub of our communities.”

In opposition. Alcohol Justice writes, “Placer County has already appealed for additional licenses based on the fact that they had issued enough to be in excess of thresholds that are commonly regarded as risk-conducive by California law. Not only does this bill ignore that threshold, it ignores it in light of an already existing bill pleading for an exemption. There is nothing calm, measured, or evidence-based about these loopholes. They simply treat county residents’ wellbeing as obstacles to a moneymaking opportunity. By all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor.”

Related legislation. AB 2359 (Ting) of 2024. The bill would revise an existing exception in law by authorizing the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (Pending in the Assembly Committee on Appropriations)

SB 1028 (Alvarado-Gil) of 2024. This bill would authorize the ABC to issue up to 10 additional new original on-sale general licenses for bona fide eating places in counties that have reached their limit of on-sale general licenses. (Pending in the Senate Committee on Appropriations)

Prior legislation. AB 1668 (J. Patterson), Chapter 282, Statutes of 2023. Authorized ABC to issue 10 new original Type 47 licenses (on-sale general licenses for bona fide public eating places), but no more than four per year, in the County of Placer, as specified.

SB 787 (Dahle), Chapter 113, Statutes of 2023. Authorized the ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle), Chapter 889, Statutes of 2022. Authorized, beginning on January 1, 2022, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized the ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd of 2020). This bill would have authorized the ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd of 2019). This bill would have authorized the 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 the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized the ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis), Chapter 256, Statutes of 2016. Authorized the ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

AB 461 (Achadjian), Chapter 110, Statutes of 2013. Authorized the ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.

AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of Marin.

AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in the County of Napa.

SB 762 (Cox), Chapter 193, Statutes of 2007. Authorized the ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in the County of Mono.

REGISTERED SUPPORT / OPPOSITION:

Support

Westfield

Oppose

Alcohol Justice

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

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 2589 (

Author:Joe Patterson) – As Amended Ver:March 21, 2024

SUBJECT: Alcoholic beverages: licenses: counties

SUMMARY: This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue up to 2 additional new original on-sale general licenses for bona fide public eating places per year in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. ABC would be required to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would prohibit licenses issued under its provisions from being, among other things, transferred from one county to another. Specifically, this bill:

1) Provides that in each county, ABC may issue two additional new original on-sale general licenses for bona fide public eating places per year. To qualify for a license under this section, the premises upon which a bona fide public eating place is operated shall be, or be located in, a retail center.

2) Defines “retail center” to mean a group of two or more retail establishments, including, but not limited to, a multitenant shopping center, that is at least 1,300,000 square feet.

3) Provides the ABC shall follow the procedure set forth in the Act pertaining to license applications and a public drawing, if need be.

4) Provides this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license pursuant to this section.

5) Allows a license issued under this bill shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.

6) Provides a license issued under this bill shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.

7) States the ABC may designate licenses issued pursuant to this section as on-sale general for special use. This designation does not alter any license privileges or restrictions established by this section.

EXISTING LAW:

1) Establishes the 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.

2) Provides that the ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

3) Caps the number of new on-sale and off-sale general licenses issued by ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.

4) 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) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.

5) 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.

6) Provides that in Napa County, from January 1, 2017, to December 31, 2017, the ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license shall have a seating capacity for 25 or more diners.

7) Authorizes, beginning January 1, 2018, the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco.

8) Authorizes, beginning on January 1, 2018, the ABC, to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

9) Authorizes, beginning on January 1, 2023, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

10) Authorizes the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Placer.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, "Throughout California, our malls and large shopping centers are struggling to keep their doors open. These facilities are crucial for local government tax bases but are in jeopardy due to a variety of social and economic reasons. As these centers evolve, they often have issues attracting restaurants due to the cost of purchasing a Type 47 license from a broker. AB 2535 would simply allow tenants in large retail centers obtain these licenses on a limited basis. The license would not be transferrable to a location outside the retail center, thus ensuring these valuable assets continue to assist community-based tax generators."

Background.

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the license premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2025, there were approximately 15,934 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses ABC may issue each year 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 specific year, the department will issue five new licenses in that county.

If ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who cannot obtain a liquor license through this process must locate an existing licensed owner willing to sell their license. This usually happens by contacting an alcohol license broker. The cost of acquiring a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.

Impact on Counties. As previously noted, when a county experiences a population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Policy statement. It should be noted, this bill would not diminish the value of any existing liquor license because these new licenses will continue to not be transferrable to a new business owner in the specified census tracts. Furthermore, the owners of existing full liquor licenses across San Francisco would remain able to sell or transfer their licenses citywide and reap the value of their investment on the private market.

Policy consideration. To be consistent with previous actions by this Committee and previous Governors, the author should consider the following amendments: 1) ABC may issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places where the operation of the license is, or is located in, a retail center, as defined; and 2) In the first year that this bill is effective, the ABC may issue up to four licenses under this measure.

In support. The Westfield Galleria in Roseville, writes that “For shopping centers like Westfield Galleria Roseville, AB 2589 would address a much-needed relief in the market, and thereby, allow us to support businesses in the community and contribute towards the State’s overall economic development and growth opportunities. The current dearth of available licenses is dire. Many new or growing businesses are deterred from moving forward with their venture or expanding their operations for a couple of reasons: first, the application process often takes months before there is even the possibility of securing a license. Second, a license from the state is usually unavailable due to population restrictions, and the few available on the market are cost prohibitive. A secondary license easily costs over $250,000 or more. This is a major impediment for businesses that are starting out. We face this exact challenge at Westfield Galleria in Roseville, as we undergo changes and improvements. AB 2589 would help support businesses and ensure restaurants thrive by allowing additional Type 47 licenses in retail centers that are the economic hub of our communities.”

In opposition. Alcohol Justice writes, “Placer County has already appealed for additional licenses based on the fact that they had issued enough to be in excess of thresholds that are commonly regarded as risk-conducive by California law. Not only does this bill ignore that threshold, it ignores it in light of an already existing bill pleading for an exemption. There is nothing calm, measured, or evidence-based about these loopholes. They simply treat county residents’ wellbeing as obstacles to a moneymaking opportunity. By all indications, these additional licenses would go into a shopping center. This creates a number of distinct hazards. First, shopping centers revolve around automobile traffic and heavy traffic/pedestrian congestion, making it a very high-risk place to have intoxicated drivers. Second, malls are emphatically not adult-centered environments, and this increases the odds that a teenager or child will be victim of alcohol harm. Third, it creates a chaotic, hard-to-track environment where it can be difficult to engage in responsible beverage service, including assuring the drinks are not sold to a minor.”

Related legislation. AB 2359 (Ting) of 2024. The bill would revise an existing exception in law by authorizing the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (Pending in the Assembly Committee on Appropriations)

SB 1028 (Alvarado-Gil) of 2024. This bill would authorize the ABC to issue up to 10 additional new original on-sale general licenses for bona fide eating places in counties that have reached their limit of on-sale general licenses. (Pending in the Senate Committee on Appropriations)

Prior legislation. AB 1668 (J. Patterson), Chapter 282, Statutes of 2023. Authorized ABC to issue 10 new original Type 47 licenses (on-sale general licenses for bona fide public eating places), but no more than four per year, in the County of Placer, as specified.

SB 787 (Dahle), Chapter 113, Statutes of 2023. Authorized the ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle), Chapter 889, Statutes of 2022. Authorized, beginning on January 1, 2022, the ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized the ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd of 2020). This bill would have authorized the ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd of 2019). This bill would have authorized the 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 the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized the ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis), Chapter 256, Statutes of 2016. Authorized the ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

AB 461 (Achadjian), Chapter 110, Statutes of 2013. Authorized the ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.

AB 1320 (Allen), Chapter 467, Statutes of 2012. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of Marin.

AB 2266 (Evans), Chapter 130, Statutes of 2008. Authorized the ABC to issue a maximum of 15 new original on-sale general licenses, over a three-year period, for bona fide public eating places in the County of Napa.

SB 762 (Cox), Chapter 193, Statutes of 2007. Authorized the ABC to issue 10 new original on-sale general licenses for bona fide public eating-places in the County of Mono.

REGISTERED SUPPORT / OPPOSITION:

Support

Westfield

Oppose

Alcohol Justice

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