AB 2615: Alcoholic beverages: COVID-19 Temporary Catering Authorization: airside terminal space.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-04-11
Current Status:
Failed
(2024-05-16: In committee: Held under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill allows businesses with on‑sale alcohol licenses inside airport terminals to sell alcoholic drinks for use in secure “airside” areas under a COVID‑19 Temporary Catering Authorization (a temporary state approval letting a business serve alcohol outside its usual space). They must get written airport approval, serve drinks in clearly labeled, distinguishable containers, sell no more than two containers per customer (each container up to 6 ounces of wine, 12 ounces of beer, or 1.5 ounces of distilled spirits), post notices about open‑container rules, and licensees sharing the same area must be the same license type and share responsibility for following the law.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Alcoholic Beverage Control Act, is administered by the Department of Alcoholic Beverage Control and regulates application, issuance, and suspension of alcoholic beverage licenses within the state. Existing law, until July 1, 2026, authorizes the department to permit licensees to exercise license privileges in an expanded license area authorized pursuant to a COVID-19 Temporary Catering Authorization, as specified. Existing law includes duplicative provisions relating to COVID-19 Temporary Catering Authorizations.
This bill would authorize an on-sale licensee located in an airport terminal to, under a COVID-19 Temporary Catering Authorization, sell alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space if certain requirements are complied with. Those requirements include, among others, the licensee receiving written approval from the airport operator, serving the alcoholic beverages in distinguishable and labeled containers, selling no more than 2 containers to each customer per transaction, and posting appropriate signage regarding open container laws, as specified. The bill would make all licensees holding a COVID-19 Temporary Catering Authorization within a shared common licensed area jointly liable for compliance with laws that may subject their license to discipline in that shared common licensed area. The above-described provisions of the bill would be repealed on July 1, 2026. The bill would repeal the duplicative COVID-19 Temporary Catering Authorization provisions.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes specified licensees to sell alcoholic beverage for off-sale consumption for which their license permits on-sale consumption, subject to specified requirements, including that the beverages are packaged in specified containers.This bill would authorize an airport operator, as defined, to permit the sale of alcoholic beverages for on-sale consumption in an expanded license area that includes an airside terminal space, as defined, by the holder of an on-sale license located in the airport terminal. The bill would require an airport operator to consult with the airlines operating at the airport and local law enforcement before permitting the sale of alcoholic beverages, as specified. If so permitted, the bill would authorize an on-sale licensee to apply to the department for authorization to exercise license privileges in the expanded license area, subject to specified requirements, including posting appropriate signage regarding open container laws, as prescribed. The bill would authorize the department to subject a licensees authorization under this bill to terms and conditions, as specified.Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes specified licensees to sell alcoholic beverage for off-sale consumption for which their license permits on-sale consumption, subject to specified requirements, including that the beverages are packaged in specified containers.
This bill would authorize an airport operator, as defined, to permit the sale of alcoholic beverages for on-sale consumption in an expanded license area that includes an airside terminal space, as defined, by the holder of an on-sale license located in the airport terminal. The bill would require an airport operator to consult with the airlines operating at the airport and local law enforcement before permitting the sale of alcoholic beverages, as specified. If so permitted, the bill would authorize an on-sale licensee to apply to the department for authorization to exercise license privileges in the expanded license area, subject to specified requirements, including posting appropriate signage regarding open container laws, as prescribed. The bill would authorize the department to subject a licensees authorization under this bill to terms and conditions, as specified.
(a)The For purposes of this section, the following definitions apply:
(1)Airport operator means a local agency operating an airport open to the general public pursuant to a valid permit issued by the Department of Transportation in accordance with the State Aeronautics Act (Part 1 (commencing with Section 21001) of Division 9 of the Public Utilities Code) and does not include any military base or federally operated facility.
(2)Airside terminal space refers to the area within an airport terminal that is accessible only after passengers have undergone and passed security screening processes. This space includes, but is not limited to, boarding gates, passenger waiting areas, retail and dining areas, and walkways within the secure zone of the airport terminal. It excludes airline-specific membership lounges, other bars or restaurants not providing alcoholic beverages, the exterior of the airport terminal, including pet relief and smoking areas, and the aircraft. This space is delineated by the airports security perimeter, which is the boundary separating the secure areas of the terminal, or postsecurity areas of the terminal, from the nonsecure areas, or presecurity areas of the terminal.
(3)Post means to prominently display on the premises or present in whatever manner is necessary to ensure that the consumer purchasing the alcoholic beverages to which this section applies is given notice of the required warning.
(b)The Department of Alcoholic Beverage Control may permit licensees to exercise license privileges in an expanded license area authorized pursuant to a COVID-19 Temporary Catering Authorization approved in accordance with the Fourth Notice of Regulatory Relief issued by the department on May 15, 2020. A COVID-19 Temporary Catering Authorization authorizes the on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges on property that is adjacent to the licensed premises, under the control of the licensee.
(b)(c)The COVID-19 Temporary Catering Authorization approved by the department shall be subject to terms and conditions established by the department and stated in the Fourth Notice of Regulatory Relief and the related application form, including, but not limited to, that the authorization may be canceled as determined by the department, as provided in the Fourth Notice, which includes, but is not limited to, upon objection by local law enforcement or if operation of the temporarily authorized area is inconsistent with state or local public health directives.
(d)(1)An on-sale licensee located in an airport terminal may, only under a COVID-19 Temporary Catering Authorization approved pursuant to this section, sell alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space if done in compliance with all of the following:
(A)The licensee receives written approval from the airport operator allowing the licensee to exercise license privileges, including on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges, in an expanded license area that includes specified areas within the airside terminal space.
(B)An alcoholic beverage sold for consumption in an airside terminal space shall be served in a distinguishable container that is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.
(C)The licensee shall sell no more than two containers of alcoholic beverages to each consumer per transaction, and each container shall have no more than 6 ounces of wine, 12 ounces of beer, or 1.5 ounces of distilled spirits.
(D)The licensee shall post appropriate signage in the area or areas within the airside terminal space to notify consumers that open containers of alcoholic beverages may not be removed from the designated area.
(E)All licensees sharing a common licensed area of the airside terminal space under a COVID-19 Temporary Catering Authorization shall hold the same license type. This subdivision does not authorize any licensee to exercise license privileges that are not authorized by their license.
(2)All licensees holding a COVID-19 Temporary Catering Authorization within a shared common licensed area shall be jointly responsible for compliance with all laws that may subject their license to discipline in that shared common licensed area.
(c)(e)Notwithstanding any other law, if the department determines that any licensee is found to be abusing the relief provided by this section, or if the licensees actions jeopardize public health, safety, or welfare, the department may summarily rescind the relief as to that licensee licensees COVID-19 Temporary Catering Authorization at any time.
(d)(f)This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
SEC. 2.Section 25750.5 of the Business and Professions Code, as amended by Section 2 of Chapter 569 of the Statutes of 2023, is repealed.25750.5.(a)The Department of Alcoholic Beverage Control may permit licensees to exercise license privileges in an expanded license area authorized pursuant to a COVID-19 Temporary Catering Authorization approved in accordance with the Fourth Notice of Regulatory Relief issued by the department on May 15, 2020. A COVID-19 Temporary Catering Authorization authorizes the on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges on property that is adjacent to the licensed premises, under the control of the licensee.(b)The COVID-19 Temporary Catering Authorization approved by the department shall be subject to terms and conditions established by the department and stated in the Fourth Notice of Regulatory Relief and the related application form, including, but not limited to, that the authorization may be canceled as determined by the department, as provided in the Fourth Notice, which includes, but is not limited to, upon objection by local law enforcement or if operation of the temporarily authorized area is inconsistent with state or local public health directives.(c)Notwithstanding any other law, if the department determines that any licensee is found to be abusing the relief provided by this section, or if the licensees actions jeopardize public health, safety, or welfare, the department may summarily rescind the relief as to that licensee at any time.(d)This section shall remain in effect only until July 1, 2026, and as of that date is repealed.SECTION 1.Section 23401.7 is added to the Business and Professions Code, to read:23401.7.(a)For purposes of this section, the following definitions apply:(1)Airport operator means a local agency operating an airport open to the general public pursuant to a valid permit issued by the Department of Transportation in accordance with the State Aeronautics Act (Part 1 (commencing with Section 21001) of Division 9 of the Public Utilities Code) and does not include any military base or federally operated facility.(2)Airside terminal space refers to the area within an airport terminal that is accessible only after passengers have undergone and passed security screening processes. This space includes, but is not limited to, boarding gates, passenger waiting areas, retail and dining areas, and walkways within the secure zone of the airport terminal. It excludes airline-specific membership lounges, other bars or restaurants not providing alcoholic beverages, the exterior of the airport terminal including pet relief and smoking areas, and the aircraft. This space is delineated by the airports security perimeter, which is the boundary separating the secure areas of the terminal, or post-security areas of the terminal, from the nonsecure areas, or pre-security areas of the terminal.(3)Post means to prominently display on the premises or present in whatever manner is necessary to ensure that the consumer purchasing the alcoholic beverages to which this section applies is given notice of the required warning.(b)(1)An airport operator may permit the sale of alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space by the holder of an on-sale license located in an airport terminal.(2)Except as otherwise provided in a local ordinance regarding the possession of open containers in public places or the consumption of alcoholic beverages in public places, an airport operator may place health and safety restrictions on the on-sale consumption of alcoholic beverages within the airside terminal space, including, but not limited to, defining the specific areas within the airside terminal space where on-sale consumption is permitted and requiring alcoholic beverages sold for on-sale consumption to be in closed or open containers.(3)Before permitting the sale of alcoholic beverages pursuant to this subdivision, an airport operator shall consult with the airlines operating at the airport and local law enforcement.(c)(1)If permitted by the airport operator pursuant to subdivision (b), the holder of an on-sale license located in an airport terminal may apply to the department for an authorization to exercise license privileges, including on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges, in the expanded license area that includes specified areas within the airside terminal space, subject to all of the following requirements:(A)All licensees sharing a common licensed area of the airside terminal space shall hold the same license type. This subdivision does not authorize any licensee to exercise license privileges that are not authorized by their license.(B)The licensee shall sell no more than two containers of alcoholic beverages to each consumer, and each container has no more than (A) six ounces of wine, (B) 12 ounces of beer, or (C) four and one-half ounces of distilled spirits.(C)The licensee shall use a distinguishable container that is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.(D)All licensees holding licenses within a shared common licensed area shall be responsible for compliance with all laws that may subject their license to discipline.(E)The licensee shall post appropriate signage in the appropriate area or areas within the airside terminal space to notify consumers of restrictions regarding open container laws.(2)Nothing in this subdivision shall authorize license privileges that are not otherwise authorized by a license.(d)The department may subject an authorization pursuant to subdivision (c) to terms and conditions, including, but not limited to, that the department may terminate the authorization pursuant to Chapter 7 (commencing with Section 24200) as it deems necessary to effectuate its duties under this division, including, but not limited to, where any of the following has occurred:(1)An objection by local law enforcement.(2)The operation is inconsistent with state or local public health directives.(3)The licensee is abusing the authorization.(4)The licensees actions jeopardize public health, safety, or welfare.(a)For purposes of this section, the following definitions apply:
(1)Airport operator means a local agency operating an airport open to the general public pursuant to a valid permit issued by the Department of Transportation in accordance with the State Aeronautics Act (Part 1 (commencing with Section 21001) of Division 9 of the Public Utilities Code) and does not include any military base or federally operated facility.
(2)Airside terminal space refers to the area within an airport terminal that is accessible only after passengers have undergone and passed security screening processes. This space includes, but is not limited to, boarding gates, passenger waiting areas, retail and dining areas, and walkways within the secure zone of the airport terminal. It excludes airline-specific membership lounges, other bars or restaurants not providing alcoholic beverages, the exterior of the airport terminal including pet relief and smoking areas, and the aircraft. This space is delineated by the airports security perimeter, which is the boundary separating the secure areas of the terminal, or post-security areas of the terminal, from the nonsecure areas, or pre-security areas of the terminal.
(3)Post means to prominently display on the premises or present in whatever manner is necessary to ensure that the consumer purchasing the alcoholic beverages to which this section applies is given notice of the required warning.
(b)(1)An airport operator may permit the sale of alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space by the holder of an on-sale license located in an airport terminal.
(2)Except as otherwise provided in a local ordinance regarding the possession of open containers in public places or the consumption of alcoholic beverages in public places, an airport operator may place health and safety restrictions on the on-sale consumption of alcoholic beverages within the airside terminal space, including, but not limited to, defining the specific areas within the airside terminal space where on-sale consumption is permitted and requiring alcoholic beverages sold for on-sale consumption to be in closed or open containers.
(3)Before permitting the sale of alcoholic beverages pursuant to this subdivision, an airport operator shall consult with the airlines operating at the airport and local law enforcement.
(c)(1)If permitted by the airport operator pursuant to subdivision (b), the holder of an on-sale license located in an airport terminal may apply to the department for an authorization to exercise license privileges, including on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges, in the expanded license area that includes specified areas within the airside terminal space, subject to all of the following requirements:
(A)All licensees sharing a common licensed area of the airside terminal space shall hold the same license type. This subdivision does not authorize any licensee to exercise license privileges that are not authorized by their license.
(B)The licensee shall sell no more than two containers of alcoholic beverages to each consumer, and each container has no more than (A) six ounces of wine, (B) 12 ounces of beer, or (C) four and one-half ounces of distilled spirits.
(C)The licensee shall use a distinguishable container that is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.
(D)All licensees holding licenses within a shared common licensed area shall be responsible for compliance with all laws that may subject their license to discipline.
(E)The licensee shall post appropriate signage in the appropriate area or areas within the airside terminal space to notify consumers of restrictions regarding open container laws.
(2)Nothing in this subdivision shall authorize license privileges that are not otherwise authorized by a license.
(d)The department may subject an authorization pursuant to subdivision (c) to terms and conditions, including, but not limited to, that the department may terminate the authorization pursuant to Chapter 7 (commencing with Section 24200) as it deems necessary to effectuate its duties under this division, including, but not limited to, where any of the following has occurred:
(1)An objection by local law enforcement.
(2)The operation is inconsistent with state or local public health directives.
(3)The licensee is abusing the authorization.
(4)The licensees actions jeopardize public health, safety, or welfare.
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Date
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Status
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| May 16, 2024 | In committee: Held under submission. |
| May 8, 2024 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 1, 2024 | In committee: Hearing postponed by committee. |
| Apr 18, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (April 17). Re-referred to Com. on APPR. |
| Apr 15, 2024 | Re-referred to Com. on G.O. |
| Apr 11, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended. |
| Mar 4, 2024 | Referred to Com. on G.O. |
| Feb 15, 2024 | From printer. May be heard in committee March 16. |
| Feb 14, 2024 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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| Apr 17, 2024 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Airlines for America | ** Against | |
| California Airports Council | * Support | Apr 17, 2024 |
| California Council on Alcohol Problems SSP | ** Against | |
| Family Winemakers Of California | ** Support | |
| MCS Burbank LLC | ** Support | |
| SSP AMERICA | ** Support | |
| Transport Workers Union of America, AFL-CIO | ** Against |
Date of Hearing: May 8, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2615
Author:(McKinnor) – As Amended Ver:April 11, 2024
Policy Committee: | Governmental Organization | Vote: | 17 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill authorizes an on-sale licensee located in an airport terminal to obtain a COVID-19 Temporary Catering Authorization (TCA) and sell alcoholic beverages for consumption in an expanded license area that includes the airside terminal space.
Such alcohol sales must comply with the following conditions:
- The licensee must receive written approval from the airport operator allowing the licensee to exercise the privilege of on-sale consumption in the expanded license area that includes specified areas within the airside terminal space.
- The alcoholic beverage must be served in a distinguishable container, clearly and conspicuously labeled that it contains an alcoholic beverage.
- The licensee is prohibited from selling more than two containers of a single serving of an alcoholic beverage to each consumer per transaction.
- The licensee must post appropriate signage in the airside terminal space to notify consumers that open containers of alcoholic beverages may not leave the specified license area.
- Licensees under a common licensed area of an airside terminal space must hold the same license type and are jointly responsible for compliance with the Alcoholic Beverage Control Act (ABC Act).
FISCAL EFFECT:
Costs of an unknown, but potentially significant amount, in excess of $150,000, to the Department of Alcoholic Beverage Control (ABC) to issue new TCA permits and provide enforcement, partially offset by additional permit revenue gain ($100 per permit).
This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, bills such as this one that grant licensees a relatively limited new privilege do not generate major new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, ABC notes costs are largely contingent on the number of licensees in airports that seek to obtain a permit, which is unknown. Although the physical premises impacted by this bill are limited and workload associated with issuing or revoking a permit is relatively minor in relation to issuing or revoking a license, this bill imposes stricter standards for alcohol sales under the TCA permit in airports, thus increasing the likelihood of potential violations. Although ABC could simply revoke a permit upon a violation, it is unclear whether the licensee would reapply for a permit and whether ABC would reissue a permit, potentially resulting in a revolving cycle of enforcement.
COMMENTS:
- Purpose. According to the author:
AB 2615 will allow passengers to order a drink and enjoy it by their flight gate. When passengers are permitted to consume an alcoholic beverage at the flight gate, the sense of urgency to finish their drink is alleviated and are less prone to order supplemental drinks, resulting in lower instances of overconsumption. It also frees up space at often crowded airport bars.
- Support and Opposition. This bill is sponsored by the California Airports Council, which argues, “The ability to leave the concession area with an alcoholic beverage already exists at California’s smaller airports…The Long Beach and the San Luis Obispo Airports, for example, already operate with alcohol permits that allow free flow within the secure terminal space.” This bill is also supported by airport concession businesses and the Family Winemakers of California.
This bill is opposed by the California Council on Alcohol Problems, Airlines for America, and the Transport Workers Union of America, with the latter organization arguing that “Allowing alcoholic beverages, dispersed in an airport, consumed in boarding areas, serves to increase the risk of unruly passenger behavior, harassment and violence directed toward our members.”
- Background.
Alcohol Sales at Airports. In 2021, the Federal Aviation Administration (FAA) issued a letter to airport managers expressing concerns about alcohol service to passengers in airport restaurants and bars before flights, noting a surge in unruly passenger behavior (the FAA’s on-board mask mandate was also effective during this time). The FAA urged airports to take action regarding alcohol consumption by limiting alcohol service, arresting unruly passengers, and instituting an awareness campaign. The rate of unruly passenger incidents has since dropped by over 80%.
According to media reports, approximately 40 airports across the country also allow travelers to consume alcoholic beverages outside the premises of an airport restaurant or bar. Some examples include Chicago’s Midway and O’Hare Airport, Miami International Airport, and Harry Reid International Airport in Las Vegas.
TCA. ABC’s Fourth Notice of Regulatory Relief issued during the COVID-19 pandemic created the TCA, authorizing the on-site consumption of alcoholic beverages on property adjacent to the licensed premises and under the control of the licensee. An applicant must ensure the business has legal authority to use the adjacent area, and an issued permit may be revoked for disturbing nearby residents or upon objection by local law enforcement, among other reasons. This privilege was temporarily codified by AB 61 (Gabriel), Chapter 651, Statutes of 2021, and subsequently extended another two years, until July 1, 2026, by AB 1217 (Gabriel), Chapter 569, Statutes of 2023.
This bill allows an on-sale licensee located in an airport terminal to apply for a TCA and operate in an expanded license area that includes airside terminal space, thus allowing a passenger to buy a drink at an airport restaurant or bar and take the drink to their departure gate or another location within the airport. This bill also requires an airport licensee to follow certain rules not applicable to other licensees under a TCA, such as first receiving approval from the airport operator to exercise this expanded privilege and limiting the amount of drinks that may be sold to a customer.
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 2615 (
Author:McKinnor) – As Amended Ver:April 11, 2024
SUBJECT: Alcoholic beverages: COVID-19 Temporary Catering Authorization: airside terminal space
SUMMARY: Until July 1, 2026, this bill would authorize an on-sale licensee located in an airport terminal to, under a COVID-19 Temporary Catering Authorization approved by the Department of Alcoholic Beverage Control (ABC), to sell alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space if certain requirements are complied with. Those requirements include, among others, the licensee receiving written approval from the airport operator, serving the alcoholic beverages in distinguishable and labeled containers, selling no more than 2 containers to each customer per transaction, and posting appropriate signage regarding open container laws, as specified. The bill would make all licensees holding a COVID-19 Temporary Catering Authorization within a shared common licensed area jointly liable for compliance with laws that may subject their license to discipline in that shared common licensed area. Specifically, this bill:
1) Provides an on-sale licensee located in an airport terminal may, only under a COVID-19 Temporary Catering Authorization, as approved by the ABC, to sell alcoholic beverages for on-sale consumption in an expanded license area that includes the airside terminal space if done in compliance with all of the following:
a) The licensee receives written approval from the airport operator allowing the licensee to exercise license privileges, including on-sale consumption of those alcoholic beverages for which the licensee has on-sale privileges, in an expanded license area that includes specified areas within the airside terminal space.
b) An alcoholic beverage sold for consumption in an airside terminal space shall be served in a distinguishable container that is clearly and conspicuously labeled or otherwise identified as containing an alcoholic beverage.
c) The licensee shall sell no more than two containers of alcoholic beverages to each consumer per transaction, and each container shall have no more than 6 ounces of wine, 12 ounces of beer, or 1.5 ounces of distilled spirits.
d) The licensee shall post appropriate signage in the area or areas within the airside terminal space to notify consumers that open containers of alcoholic beverages may not be removed from the designated area.
e) All licensees sharing a common licensed area of the airside terminal space under a COVID-19 Temporary Catering Authorization shall hold the same license type. This subdivision does not authorize any licensee to exercise license privileges that are not authorized by their license.
2) Provides all licensees holding a COVID-19 Temporary Catering Authorization within a shared common licensed area shall be jointly responsible for compliance with all laws that may subject their license to discipline in that shared common licensed area.
3) Provides that if the ABC determines that any licensee is found to be abusing the relief provided by this section, or if the licensee’s actions jeopardize public health, safety, or welfare, the department may summarily rescind the licensee’s COVID-19 Temporary Catering Authorization at any time.
4) For purposes of this bill, the following definitions apply:
a) “Airport operator” means a local agency operating an airport open to the general public pursuant to a valid permit issued by the Department of Transportation in accordance with the State Aeronautics Act, as defined, and does not include any military base or federally operated facility.
b) “Airside terminal space” refers to the area within an airport terminal that is accessible only after passengers have undergone and passed security screening processes. This space includes, but is not limited to, boarding gates, passenger waiting areas, retail and dining areas, and walkways within the secure zone of the airport terminal. It excludes airline-specific membership lounges, other bars or restaurants not providing alcoholic beverages, the exterior of the airport terminal, including pet relief and smoking areas, and the aircraft. This space is delineated by the airport’s security perimeter, which is the boundary separating the secure areas of the terminal, or postsecurity areas of the terminal, from the nonsecure areas, or presecurity areas of the terminal.
c) “Post” means to prominently display on the premises or present in whatever manner is necessary to ensure that the consumer purchasing the alcoholic beverages to which this section applies is given notice of the required warning.
5) Provides the provisions of this bill shall remain in effect only until July 1, 2026, and as of that date is repealed.
6) Repeals a duplicative COVID-19 Temporary Catering Authorization in current law that was chaptered in a previous year.
EXISTING LAW:
1) Establishes ABC and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (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 and the collection of license fees for this purpose.
2) Requires ABC to make and prescribe rules to carry out the purposes and intent of existing state constitutional provisions on the regulation of alcoholic beverages, and to enable the department to exercise the powers and perform the duties conferred upon it by the state constitution and the act, not inconsistent with any statute of this state.
3) Provides that any person possessing an open container of an alcoholic beverage in any city, county, or city and county owned public place or any regional park or recreation and park district, is guilty of an infraction if the city or county has enacted an ordinance that prohibits the possession of those containers or the consumption of alcoholic beverages in those areas, except as specified.
4) Authorizes, under the Planning and Zoning Law, the legislative body of any city or county to adopt ordinances regulating zoning within its jurisdiction, as specified.
5) Makes selling, giving, delivering, or purchasing an alcoholic beverage between the hours of 2 a.m. and 6 a.m. of the same day a misdemeanor.
6) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
7) Defines a “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 and which has suitable kitchen facilities connected therewith. The facility must contain conveniences for cooking and assortment of foods, which may be required for ordinary meals, the kitchen of which must be kept in sanitary condition with the proper amount of refrigeration for the keeping of food on said premise and must comply with all the regulations of the local department of health.
8) Provides that an on-sale general licensee who maintains on their licensed premises more than one room in which a fixed counter or service bar is regularly maintained and at which distilled spirits are served to the public must apply for a duplicate license and pay a full annual fee for each such license. A duplicate license is not transferable by itself. (BPC §§ 24042.5 and 24042.5)
8) Prohibits, generally, a licensee from having upon its licensed premises any alcoholic beverages other than the alcoholic beverages for which the licensee is authorized to sell at the premises under his or her license, and provides that a violation of this prohibition is punishable as a misdemeanor and authorizes the ABC to seize any alcoholic beverages found in violation of this prohibition.
9) Allows a licensed winegrower and a licensed small beer manufacturer, whose premises of production are immediately adjacent to each other, to share a common area in which the consumption of alcoholic beverages is permitted, under specified circumstances. Allows on-sale licensees to share a common area under specified conditions, including that both on-sale licensees have joint responsibility.
10) Authorizes, until December 31, 2026, specified on-sale licensees that operate a bona fide public eating place (restaurant) to sell distilled spirits for off-sale consumption for which their license permits on-sale consumption if the beverages are in manufacturer-prepacked containers, and ordered and picked up by the consumer, as specified.
11) Authorizes, until December 31, 2026, specified on-sale licensees to sell the alcoholic beverages, except beer, for off-sale consumption for which their license permits on-sale consumption when the beverages are not in a manufacturer-prepackaged containers (cocktails and single-serve wine) if specified conditions are met.
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.
COMMENTS:
Purpose of the bill. According to the author’s office, “AB 2615 will allow passengers to order a drink and enjoy it by their flight gate. When passengers are permitted to consume an alcoholic beverage at the flight gate, the sense of urgency to finish their drink is alleviated and are less prone to order supplemental drinks, resulting in lower instances of overconsumption. It also frees up space at often crowded airport bars.”
Background.
Alcoholic beverages and the COVID-19 pandemic. The COVID-19 pandemic brought with it many significant changes to everyday life. One such change, in light of the pandemic's impact on the restaurant industry and the limited indoor dining capacity in many places, has been the modification of numerous state and local alcohol service rules to relate to where alcoholic beverages could be consumed and permitting to-go sales. For instance, before the pandemic, the Act largely forbade bars and restaurants from selling cocktails to-go, with a few notable exceptions. The department, pursuant to its powers and in furtherance of emergency declarations and orders of the Governor under the California Emergency Services Act regarding the spread of the COVID-19 virus, established prescribed temporary relief measures to suspend certain legal restrictions relating to, among other things, the expansion of a licensed footprint, sales of alcoholic beverages to-go, and delivery privileges. The temporary advisory was issued in response to restaurants' need to switch to delivery and takeout in an effort to make up for lost revenue during the pandemic while ensuring the patrons' health and safety. The temporary authorizations were set to expire on January 1, 2022.
In 2021, SB 389 (Dodd, Statutes of 2021) was chaptered to take effect after ABC’s regulatory relief expired on January 1, 2022. SB 389 only applied to the holder of an on-sale license that is issued for a bona fide public eating place that has off-sale privileges. This included Type 41, Type 47, and Type 75 licenses. The bill allowed for the sale of alcohol in prepackaged containers and cocktails, as well as single-serve wine. Similar to the regulatory relief, the bill required the purchase of cocktails for off-sale consumption to be in conjunction with meals and required licensees to prominently post a warning in a manner that puts consumers on notice of limitations regarding open containers laws. The bill also placed a two-drink per meal limit and required that alcoholic beverages be packaged in a container with a secure lid or cap, sealed in a manner designed to prevent consumption without the removal of the lid or cap. Whether the alcoholic beverage was a cocktail or in a prepackaged container, the bill mandated that the customer pick up any order containing distilled spirits. An ABC airport licensee would not be able to participate under the terms of SB 389 because the alcohol would be consumed in an unlicensed area that is not authorized under the Act.
During the COVID-19 pandemic, the ABC also instituted a regulatory relief notice that licensees who are authorized to sell alcohol to consumers for consumption on their licensed premises could obtain a COVID-19 Temporary Catering Authorization (TCA). The TCAs allowed expansions of licensed premises to limit the spread of the virus while allowing licensees to remain open for business. These expansions were done without prior ABC investigation, but could be revoked through complaints or objection by local law enforcement without a formal administrative hearing process. This led to licensees seeking a large amount of premises expansions in a short amount of time, some of them non-contiguous to the licensed premises.
A qualified licensee is required to apply to ABC and include a diagram, which clearly identifies where the requested area is in relation to the existing licensed premise. Prior to submitting an application, the licensee is responsible for, among other things, ensuring they have the legal authority to use the area requested, ensuring that the temporary expansion request has the approval of local agencies, and ensuring the temporary expansion request is being made in accordance with applicable city, county, and state guidelines regarding social distancing and the legality of the business being open for in-person service.
If approved, the licensee is authorized to exercise only those privileges authorized by the licensee's license and shall comply with all provisions of the ABC Act pertaining to the conduct of on-sale premises. Violations of these provisions, as well as the terms and conditions of the Covid-19 TCA, was grounds for suspension or revocation of the licensee's license, as though the violation occurred on the licensed premises. If the temporarily authorized area is being utilized by one or more other licensees, all licensees sharing the area are jointly responsible for compliance with all applicable laws and rules pertaining to their respective licenses and authorizations and for any violations that may occur within the shared common temporarily authorized area. If at any point a licensee wants to terminate its liability for a shared area, it must cancel its Covid-19 TCA.
The Covid-19 TCA could be further canceled by ABC for disturbance of the quiet enjoyment of nearby residents and upon objection by local law enforcement. In addition, while current law already includes a process by which licenses could permanently expand their licensed premises and thus continue to use the space, this process can be time consuming since it includes input from various stakeholders including local governments, law enforcement, and members of the public.
Pursuant to AB 61 (Gabriel, Statutes of 2021) and SB 314 (Wiener, Statutes of 2021), the Legislature temporarily continued the TCA by referring to the Fourth Notice of Regulatory Relief implemented by ABC within Business and Professions Code Section 25750.5. This authority was set to expire on July 1, 2024. Last year, AB 1217 (Gabriel, et al., Chapter 569) extended the provisions of AB 61 until July 1, 2026.
It should be noted that although it is within the ABC’s existing authority to approve licensing of areas that are separate from the main licensed premises, ABC has not historically done so, as this often leads to control and enforcement issues. However, there are exceptions, such as in resort areas or when a premises is separated by a walkway or similar public thoroughfare, where ABC has issued some limited permanent non-contiguous expanded premises on a limited case-by-case basis while making sure each one was not a danger to the public health, safety, or welfare.
To-go Alcohol Sales at Airports in the United States. According to media reports, there are approximately 40 other airports across the country that allow travelers to drink outside of airport restaurants and bars including Nashville International Airport (BNA), Louis Armstrong New Orleans International Airport (MSY), Chicago’s Midway Airport Code (MDW) and O'Hare Airport (ORD), George Bush Intercontinental (IAH) and William P. Hobby Airport (HOU) in Houston, Fort Lauderdale–Hollywood International Airport (FLL), Miami International Airport (MIA), Tampa International Airport (TPA), and Harry Reid International Airport (LAS) in Las Vegas. In some of these instances, there are designated locations within the airport where people can have an alcoholic beverage purchased from a kiosk or poured into a plastic to-go cup at a bar from the licensed premises.
Starting in June 2022, travelers in San Antonio International Airport (SAT) are able to purchase alcoholic beverages under a drink to-go system. The city council approved the airport’s alcohol-to-go program, which for the first time will allow travelers to carry their drinks around public areas at the airport. People who buy food along with the alcohol, in accordance with the Texas Alcoholic Beverage Code. Each alcoholic beverage that a consumer leaves with must have a lid and one of the airport's distinctive pink-and-yellow stickers on it.
Last year, the South Carolina state legislature passed and Governor McMaster signed a measure (SB 459) that allows the purchase and carrying of alcoholic beverages throughout TSA-screened areas of select airports (Charleston International Airport, Columbia Metropolitan Airport, Florence Regional Airport, Greenville-Spartanburg Airport, Hilton Head Island Airport, or Myrtle Beach International Airport) in the state under specified conditions. For instance, the bill only applies to designated airports and the privilege will only be allowed with the written approval of the respective airport authority.
Alcohol Sales at Los Angeles International Airport. Los Angeles International Airport (LAX) is the second-busiest air terminal in the U.S. and also the fourth-busiest in the world. The airport terminals offer a wide variety of restaurants and bars where travelers can consume alcohol within the ABC licensed premises. Some of the terminals have private and public lounges. Some are private lounges which require membership or a daily fee while others are tied to specific airline. For instance, the United Airlines United Club in Terminal 7 is a place where a traveler can relax and enjoy fresh, locally sourced food and have a cocktail from the fully stocked bar. Many of the paid or membership lounges include complimentary snacks, beverages, alcohol, Wi-Fi, TVs, recharge stations, work stations, and a no-smoking environment. In all these instances though, the alcoholic beverages can only be consumed within the ABC licensed premises and not carried out into areas within the terminal.
Concerns by the FAA on Alcohol Sales in Airports. In 2021, the Federal Aviation Administration (FAA) issued a letter to airport managers throughout the United States, which expressed concerns about serving alcohol to passengers in airport restaurants and bars before flights. The FAA has been monitoring the recent surge in unruly passenger behavior during flights citing a spike in unruly or dangerous behavior involving passengers who drink excessively. The letter stated, “As the number of passengers traveling has increased, so has the number of unruly and unsafe behavior incidents on planes and in airports. Every week, we see situations in which law enforcement was asked to meet an aircraft at the gate following an unruly passenger incident. In some cases, flight attendants have reported being physically assaulted.” While FAA has levied civil fines against unruly passengers, it has no authority to prosecute criminal cases.
To address this issue, the FAA has urged airports to take specific actions regarding alcohol consumption: 1) Limiting alcohol service; 2) Arresting unruly passengers; and 3) Instituting an awareness campaign.
In support. The California Airports Council, which represents the 31 commercial service airports across the state, writes that “AB 2615 will create a framework for airports to pursue to allow alcohol consumption throughout the secure area of an airport terminal. The initiative to formalize expanded alcohol consumption within airport terminals draws upon the successful operational experience of California airports during the temporary measures adopted in response to the COVID pandemic. These practices have been successfully implemented in over 50 airports nationwide, with AB 2615 creating similar procedures including clearly marked cups and signage to prevent passengers from bringing alcohol onto the aircraft, a violation of FAA regulations. Airport concessionaire companies, as alcohol license holders at airports, have the experience and best practice tools to ensure the responsible service and monitoring of the terminal space footprint for the consumption of alcohol. The ability to leave the concession area with an alcoholic beverage already exists at California’s smaller airports, where terminal footprints are much smaller. AB 2615 will extend this operating practice to larger California airports.”
In opposition. The California Council on Alcohol Problems writes, “We believe AB 2615 represents an irresponsible expansion of alcohol consumption into areas in which children and families are present and will add to the unruly nature of flights of overly intoxicated passengers. Given the spate of recent reports of said unruly intoxicants on planes, why would our elected representatives expand alcohol consumption throughout the boarding terminal (post TSA checkpoints), where such drinking will have to be monitored by airport personnel untrained in responsible beverage service and distracting airport law enforcement from their duties?”
Airlines for America (A4A) writes, “The bill may increase the risks of hostile interactions between consumers and airline personnel at boarding gates, who are responsible for ensuring that passengers do not carry alcoholic beverages on planes. Airports are inherently locations with limited space and are designed for passengers to eat and drink within designated restaurants and lounges. Hold areas within airports are not designed for large numbers of passengers eating and drinking, raising issues of cleanliness and litter. Lastly, the experience during the pandemic with allowing passengers to take alcoholic beverages from restaurants and lounges to gate areas was not positive.”
Related legislation. SB 495 (Dodd) of 2023. This bill would authorize the ABC to issue a consumer delivery service permit, which would allow the permittee to deliver alcoholic beverages on behalf of an alcohol licensee, as specified. In addition, the bill removes certain requirements related to cocktails to-go, including the requirement that the order be picked up by the consumer. (Pending in the Assembly Governmental Organization Committee)
SB 969 (Wiener) of 2024. Redefines the definition of an “entertainment zone” to mean a zone created by a city, county, or city and county ordinance on or after January 1, 2025, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way. Requires a city, county, or city and county that establishes an entertainment zone to establish a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older. (Pending in the Senate Committee on Appropriations)
Prior legislation. AB 1217 (Gabriel), Chapter 569, Statutes of 2023). This bill delayed the expiration of COVID-19 TCAs from February 28, 2024, to July 1, 2026. As such, all COVID-19 TCAs are scheduled to expire July 1, 2026, unless otherwise extended by the Legislature. This bill also extends other pandemic relief measures, unrelated to ABC, that impact food facilities and local governments.SB 76 (Wiener), Chapter 700, Statutes of 2023. Authorized specified licensees in the City and County of San Francisco to allow consumers to leave the licensed premises with open containers of alcoholic beverages for consumption off the premises within an entertainment zone, as specified.
SB 793 (Wiener), Chapter 468, Statutes of 2022. Authorized ABC to issue a music venue license that would allow the licensee to sell beer, wine, and distilled spirits for consumption on the premises in a music entertainment facility, as defined.
SB 930 (Wiener) of 2022. This bill, beginning January 1, 2025, and before January 2, 2028, would require the ABC to conduct a pilot program that issues an additional hours license to an on-sale licensee located in a qualified city (cities of Palm Springs, West Hollywood and the City and County of San Francisco), authorizing the licensee to serve alcoholic beverages at the licensed premises between the hours of 2 a.m. and 4 a.m. on Saturdays and Sundays and specified holidays, and between the hours of 2 a.m. and 3 a.m. on all other days, upon completion of specified requirements. (Failed passage on the Assembly floor)
AB 61 (Gabriel), Chapter 651, Statutes of 2021. This urgency bill authorized ABC to allow licensees to exercise license privileges in an expanded area authorized pursuant to a COVID-19 TCA, subject to the terms and conditions established in the ABC’s regulatory relief, for up to 365 days following the end of the Governor’s declared state of emergency related to the pandemic. The bill allowed the ABC to extend a COVID-19 TCA beyond 365 days if the licensee has a pending application for a permanent premises expansion. These provisions shall sunset on July 1, 2024. Lastly, the bill enacts other relief measures, unrelated to the ABC, that impact food facilities and local governments.
SB 389 (Dodd), Chapter 657, Statutes of 2021. Authorized, until December 31, 2026, specified on-sale licensees that operate a bona fide public eating place to sell distilled spirits for off-sale consumption for which their license permits on-sale consumption if the beverages are in manufacturer-prepacked containers, and ordered and picked up by the consumer. Additionally, the bill authorized a licensee to sell the alcoholic beverages, except beer, for off-sale consumption for which their license permits on-sale consumption when the beverages are not in a manufacturer-prepackaged containers in specified conditions are met.
REGISTERED SUPPORT / OPPOSITION:
Support
California Airports Council
Family Winemakers of California
MCS Burbank LLC
SSP America
Oppose
Airlines for America (A4A)
California Council on Alcohol Problems (CCAP)SSP
Transport Workers Union of America, AFL-CIO
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Discussed in Hearing
Assembly Standing Committee on Governmental Organization
Bill Author
Bill Co-Author(s):