2024 Chaptered Legislation

Code Section Changes by Bill Number

AB 1940 (Villapudua, Chapter 218, Statutes of 2024) Alcoholic beverages: beer returns.

Amends Section 23104.2 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill allows a wholesaler or manufacturer, when accepting the return and exchange of a discontinued or seasonal brand of beer, to provide the retailer with beer produced by a different manufacturer if the original manufacturer has ceased doing business, as specified. Such exchanges will be subject to the existing rules in law, including, but not limited to, that the wholesaler or manufacturer must receive ABC approval for the exchange. This bill also clarifies that the return and exchange of a seasonal or discontinued brand of beer from a retailer to a wholesaler, as authorized in current law, requires the exchanged beer to be of similar quality.

AB 2069 (Gallagher, Chapter 306, Statutes of 2024) Sale of soju and shochu.

Amends Section 23398.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill allows domestically produced soju and shochu to qualify for an exception in law currently limited to soju and shochu imported into the United States. As a result, an on-sale licensed premises with wine privileges (e.g. type 41 or type 42 license) may sell soju or shochu that is up to 24 percent alcohol by volume and derived from agricultural products, regardless of where it was produced. To qualify for the exception, the alcohol must be legitimate soju or shochu and be labeled as such.

AB 2094 (Flora, Chapter 213, Statutes of 2024) Alcoholic beverage control: public community college stadiums: City of Bakersfield.

Amends Section 25608 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill authorizes the sale and consumption of alcoholic beverages at a public community college stadium with a capacity of at least 19,000 people in the City of Bakersfield for sporting events or concerts sponsored by a public community college or other events sponsored by noncollege groups.

AB 2174 (Aguiar-Curry, Chapter 308, Statutes of 2024) Alcoholic beverages: beer caterer’s permit.

Amends Section 23320 of, and adds Section 23399.01 to, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill establishes a beer catering permit (known as a type 91) that can be issued by ABC to a licensed beer manufacturer. The permit authorizes the sale of beer produced by or for the beer manufacturer for consumption at conventions, sporting events, trade exhibits, picnics, social gatherings, community events, or similar events held any place in the state approved by ABC.

In order to exercise the privileges of the permit, the beer manufacturer needs to apply to ABC for a catering event authorization and receive local law enforcement approval. If approved, the beer manufacturer could sell beer produced by or for them within a specified area at the event. The privileges of the permit are exclusively on-sale, meaning alcohol cannot be removed from the licensed area of the event. At all approved events, the beer catering permit holder will be restricted to only privileges authorized by their license and permit, and will be required to comply with all provisions of the ABC Act, such as completion of Responsible Beverage Service training. Violations at a catered event are grounds for discipline against the license, including suspension or revocation, as if the violation occurred at their licensed premises.

Limits on Events and Sales
A beer catering permitholder will be capped at receiving no more than 36 total event authorizations in a calendar year, and no more than two beer caterers may participate per day at a single event. At each event, a beer caterer will be limited to selling no more than 124 gallons of beer. Beer caterers will be required to maintain records of all beer sales conducted under their permit for a minimum of three years.

Associated Fees
Beginning January 1, 2025, the type 91 beer catering permit will have an annual fee of $275 that is subject to increases, as authorized in current law for other ABC license types, in amounts not to exceed annual differentials in the California Consumer Price Index. Separately, an event authorization will carry a fee of $100 when anticipated attendance is less than 1,000 people; $325 when anticipated attendance is 1,000-4,999; and $1,000 when anticipated attendance is 5,000 or more. A beer catering permit may be renewed annually at the same time as the licensee’s beer manufacturing license.

AB 2177 (McKinnor, Chapter 61, Statutes of 2024) Winegrowers: spirits of wine.

Amends Sections 23358 and 23502 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – Under current law, a winegrower is authorized under their license to produce spirits of wine and blend those spirits of wine into wine produced by the winegrower, to sell those spirits of wine to an industrial alcohol dealer (e.g. a hand sanitizer manufacturer) or to a distilled spirits manufacturer, or to destroy them. The authorization to sell spirits of wine to a type 04 distilled spirits manufacturer was codified last year under AB 1704.

This bill expands the authorization granted under AB 1704 to include any person holding a license authorizing the manufacture or rectification of distilled spirits, thereby enabling sales to rectifiers and craft distillers rather than solely type 04 licensees. This bill also makes a conforming update to the Craft Distillers Act of 2015 to reflect that the craft distillers license privilege of producing distilled spirits includes spirits of wine produced by a winegrower.

AB 2359 (Ting, Chapter 393, Statutes of 2024) Alcoholic beverage control: neighborhood-restricted special on-sale general licenses.

Amends Section 23826.13 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill allows 10 new type 87 licenses to be issued by increasing the cap from 30 to 40 total authorized licenses in specified census tracts. Of the new 10 licenses, five may be issued, in any combination, in the following census tracts: 612000, 232000, 234000, 233000, 230030; the other five new licenses may be issued, in any combination, in census tracts 255010, 255020, 256000, 260020, 260010, 260040, 261000, or 263010. This bill also repeals the preapplication meeting requirements currently applicable to the type 87 license. Additionally, this bill grants off-sale privileges for type 87 licenses that are issued on or after January 1, 2025, unless conditioned or prohibited by ABC as part of the existing licensing process. This bill also provides that the holder of a type 87 license issued before January 1, 2025, may submit a petition to ABC requesting to exercise off-sale privileges. If ABC determines good cause exists to deny the petition, in whole or in part, ABC shall endorse the prohibition or other restriction as a condition on the license. If denied, the licensee may make a written request for hearing as prescribed in current law.

AB 2375 (Lowenthal, Chapter 714, Statutes of 2024) Alcoholic beverages: on-sale general public premises: drink lids.

Amends Section 25624 of, and adds and repeals Section 25625 of, the Business and Professions Code, relating to alcoholic beverages.(Effective July 1, 2025)

Summary of Code Section Changes – This bill requires applicants for, and holders of, type 48 licenses to provide a lid with a customer’s drink upon their request. A “lid” is defined to mean a removable cover of any size that attaches to the rim of a beverage. The lid is not required to fit all containers in which alcoholic beverages are served on the premises but must fit at least one. Licensees will be authorized to offer the lid complimentary or charge a fee that does not exceed a reasonable amount based on the wholesale cost.

Type 48 applicants and licensees are also required by this bill to update their signage mandated by last year’s AB 1013 (Lowenthal) pertaining to drug testing kits so that the sign also references lids. Specifically, the signs must read, “Don’t get roofied! Drink lids and drink spiking drug test kits available here. Ask a staff member for details.”

This bill takes effect July 1, 2025, and is scheduled to repeal January 1, 2027, unless extended by the Legislature.

AB 2378 (Calderon, Chapter 309, Statutes of 2024) Alcoholic beverage control: licensing exemption: apprenticeship program for bartending or mixology.

Amends Section 23399.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill establishes an alcohol license exemption for bartending or mixology apprenticeship programs approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations, provided all of the following requirements are met:

1. Students enrolled in the apprenticeship program are at least 21 years of age.
2. The apprenticeship program adopts a policy that the students may taste, but may not consume, the alcoholic beverages served.
3. There is no extra charge or fee for the alcoholic beverages served.

AB 2389 (Lowenthal, Chapter 310, Statutes of 2024) Alcoholic beverages: on-sale general – eating place and on-sale general public premises: drug reporting.

Adds Section 25624.5 to the Business and Professions Code, relating to alcoholic beverages.(Effective January 1, 2025)

Summary of Code Section Changes – This bill requires an applicant for, or holder of, a type 48 license to contact and provide any of the following information to law enforcement or emergency medical services when they are notified by a customer that the customer or another customer believes they have been a victim of drink spiking:

1. A positive test result from a drug testing device.
2. Observation of someone tampering with a customer’s drink.
3. Verbal communication to staff that a customer has been drugged.
4. Observation of symptoms associated with the effects of drink spiking or the controlled substances used for drink spiking.

After contacting law enforcement or emergency medical services, the licensee or their staff must, to the best of their ability, follow any instructions provided by law enforcement or emergency medical services and, to the best of their ability, monitor the customer until law enforcement or emergency medical services arrive at the premises to assess the customer. For purposes of these laws, drink spiking includes, but is not limited to, adding a controlled substance or alcohol to a person’s drink without their knowledge or consent.

AB 2402 (Lowenthal, Chapter 829, Statutes of 2024) Drink spiking.

Amends Section 25681 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2027)

Summary of Code Section Changes – This bill requires, beginning January 1, 2027, Responsible Beverage Service training to include best practices on how to prevent or protect a person from drink spiking and best practices if a person has been drugged from drink spiking. For purposes of this bill, “drink spiking” means putting alcohol or drugs into another person’s drink without their knowing and express consent, also known as roofying.

AB 2589 (Joe Patterson, Chapter 312, Statutes of 2024) Alcoholic beverages: additional licenses: County of El Dorado and County of Placer.

Adds Section 23826.20 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill authorizes ABC to issue up to 10 additional new original type 47 licenses in a “retail center” in each the County of El Dorado and the County of Placer. Retail center is defined to mean “a multitenant shopping center that contains at least 300,000 square feet of retail shopping space open to the public”, and 3 of the 10 total licenses per county are reserved for premises in a retail center that contains at least 1,000,000 square feet of retail shopping space open to the public.

ABC may not issue more than 4 licenses per county in the first year this bill takes effect, and the respective county board of supervisors will be authorized to adopt and submit a resolution to ABC that further restricts the number of licenses that may be issued pursuant to the bill, as specified.

The licenses authorized by this bill will be subject to existing priority drawing laws. Existing 47s in a retail shopping center will be precluded from acquiring a license under this bill for their existing premises. Further, licenses issued pursuant to this section cannot be transferred to other counties or to premises not qualifying pursuant to this bill. Additionally, licenses issued pursuant to this bill cannot be sold or transferred for a price greater than the original fee paid. Among other provisions, these licenses may be issued as “for special use” by ABC, and the cancellation or revocation of a license issued pursuant to this bill will authorize ABC to issue an additional license during the regular priority drawing process.

AB 2991 (Valencia, Chapter 426, Statutes of 2024) Alcoholic beverage control: retailer payments: electronic funds transfers.

Amends, repeals, and adds Section 25509 of, and adds Section 25509.1 to, the Business and Professions Code, relating to alcoholic beverages.(Effective January 1, 2026)

Summary of Code Section Changes – This bill requires, beginning January 1, 2026, payment from a licensed retailer to a licensed wholesaler for the delivery of alcoholic beverages to occur via an electronic funds transfer (EFT), as specified. EFT payments pursuant to this bill will be subject to all of the following requirements:

1. The wholesaler must initiate the EFT through the withdrawal of funds from the retailer’s bank account.
2. The EFT must occur by the expiration of the 30th day from the date of delivery.
3. Any costs related to the electronic payment services must be paid by the party that incurred the costs. Wholesalers cannot pay for electronic payment fees incurred by retailers, and retailers cannot pay for electronic payment fees incurred by wholesalers, and service fees must be applied in an equitable manner to the licensee to match the services they receive. Retailers are precluded from accepting a rebate, incentive, or other thing of value from a third-party payment processor for EFTs required by this bill.

This bill designates the wholesaler licensee with the power to select the third-party payment processor used to facilitate the EFT transfer. The wholesaler and retailer may agree on the third-party payment processor, but if the parties are unable to agree, they must use the third-party payment processor used by the retailer as of July 1, 2025 to pay for wholesale alcohol purchase; and, if by July 1, 2025, the retailer does not use a third-party payment processor, the parties must use the third-party payment processor selected by the wholesaler.

This bill authorizes wholesalers to choose to accept credit card payments in lieu of an EFT. If payment is made using a credit card, the retailer will bear the cost of the transaction. In addition, this bill contains a narrow authorization for other non-EFT payments. Specifically, it allows the payment of cash, check, or money order only in the following instances:

1. During temporary service interruptions of the third-party payment processor.
2. If accepting payment following an EFT of insufficient funds.
3. If the retailer licensee holds an interim operating permit or a temporary permit pursuant to existing law.
4. During the first 30 days following the issuance of a license to the retailer.

AB 3069 (Davies, Chapter 429, Statutes of 2024) Tied-house restrictions: advertising exceptions: City of Oceanside.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 22, 2024)

Summary of Code Section Changes – This urgency bill authorizes alcohol manufacturers (including beer manufacturers, winegrowers, rectifiers, craft distillers, distilled spirits manufacturers or their agents) to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is the owner or operator of a fully enclosed arena with a fixed seating capacity in excess of 5,000 seats located in the City of Oceanside. Advertisements and sponsorships authorized by this bill will be subject to the existing requirements generally applicable to other arenas in the state with similar tied-house exceptions (particularly those specified in Business and Professions Code section 25503.6).

AB 3203 (Aguiar-Curry, Chapter 318, Statutes of 2024) Craft distillers: direct shipping.

Amends Section 23504.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill temporarily extends direct-to-consumer shipping privileges of California craft distillers from January 1, 2025, until January 1, 2026. Spirits shipped by a California craft distiller must still comply with the requirements set forth in current law, Business and Professions Code section 23504.5.

AB 3206 (McKinnor, Chapter 977, Statutes of 2024) Alcoholic beverages: hours of sale: arenas in the City of Inglewood.

Adds and repeals Sections 23398.7 and 25631.5 of the Business and Professions Code, relating to alcoholic beverages.(Effective January 1, 2025)

Summary of Code Section Changes – This bill allows, until January 1, 2030, alcohol service between 2:00 a.m. and 4:00 a.m. at an on-sale licensed premises operated in a fully enclosed arena with a seating capacity of at least 18,000 seats located in the City of Inglewood, as specified. The Intuit Dome, home of the Los Angeles Clippers, is the only qualifying arena. Alcoholic beverage sales pursuant to this bill must be limited to the morning immediately following a sporting event, concert, or other public or private event at the arena, and can only occur in a private area of the arena available only to members of a private club who are assessed dues in order to gain access to the area, and guests of those members. To exercise these privileges, the City of Inglewood must adopt a specified ordinance and the arena operator needs to receive a permit from ABC established by the bill.

AB 3285 (Committee on Governmental Organization, Chapter 230, Statutes of 2024) Alcoholic beverage control.

Amends Sections 23827 and 25600 of the Business and Professions Code, relating to alcoholic beverage control.(Effective January 1, 2025)

Summary of Code Section Changes – This bill extends the sunset date, from January 1, 2025, until January 1, 2030, applicable to provisions of law that allow specified alcohol manufacturers to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization if certain conditions are met. This bill also clarifies the authorization provided in existing law for the issuance of new on-sale general licenses in counties with populations of less than 7,000 so that 1) such licenses are available if the county depends upon tourism and 2) such licenses cannot be transferred to a premises that does not meet the requirements for which the license is issued.

SB 969 (Wiener, Chapter 869, Statutes of 2023) Alcoholic beverages: entertainment zones: consumption.

Amends Sections 23039.5, 23357, 23358, 23396, and 25690 of, and adds Sections 25691 and 25692 to, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill extends the entertainment zone provisions in law established by SB 76 (Wiener, Chapter 700, Statutes of 2023) so that they apply to any city or county rather than solely San Francisco. This bill also repeals provisions in SB 76 that limit alcohol consumption in an entertainment zone to only areas adjacent to and at the same time as a special event licensed by ABC, thereby allowing alcohol consumption in certain public areas of an entertainment zone regardless of whether a licensed special event is occurring. This means that a licensed beer manufacturer, winegrower, and on-sale licensed premises in an entertainment zone may sell alcoholic beverages, allowed by their license and local ordinance, for consumption within the entertainment zone. Specifically, those licensees will be allowed to permit consumers to leave their premises with open alcoholic beverages, not in metal or glass containers, if the premises is located within the entertainment zone, consumption of that type of alcoholic beverage is authorized by the local ordinance creating the zone, open alcohol containers only leave the premises during the hours allowed by the ordinance establishing the zone, and patrons with open containers exit the premises directly into the zone. Only alcohol purchased in an entertainment zone may be consumed within the zone, and licensees are prohibited from allowing alcoholic beverages on their premises that were acquired from another licensed location, among other various provisions. Before participating, the licensee is statutorily required to provide annual notice to ABC of their intent to do so.

SB 1224 (Ochoa Bogh, Chapter 132, Statutes of 2024) Alcoholic beverage control: on-sale general license: County of Riverside.

Amends Section 23824 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill exempts a premises operated as the Riverside County Fairgrounds, on land owned by the County of Riverside, from the requirement of operating as a bona fide public eating place while serving alcoholic beverages if food service is available to the public at all times during which licensed privileges are exercised.

SB 1371 (Bradford, Chapter 606, Statutes of 2024) Alcoholic beverage control: proof of age.

Amends Section 25660 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill establishes that utilization of a biometric system, as defined, that reviews bona fide evidence of majority and identity of a person and that verifies and authenticates the validity of that bona fide evidence, may qualify as an affirmative defense in a criminal prosecution or administrative hearing involving the licensee. For purposes of this bill, “biometrics” is defined to mean the unique characteristics of a person, including, but not limited to, fingerprints, iris, face, or other similar biometric characteristics, or any combination thereof. Further, a “biometric system” is defined as technology that links the identity of a person to that person’s biometrics.

SB 1495 (Wilk, Chapter 137, Statutes of 2024) Tied-house restrictions: for-profit cemeteries: City of Los Angeles.

Adds Section 25503.63 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2025)

Summary of Code Section Changes – This bill establishes a tied-house exception that allows alcohol manufacturers (including beer manufacturers, winegrowers and their agents, importers who do not also hold a wholesaler or retail license, distilled spirits manufacturers and their agents, and rectifiers) to purchase advertising space or event sponsorships from the operator of a for-profit cemetery that meets specified requirements. Hollywood Forever Cemetery is the only qualifying cemetery at this time. Advertising and sponsorships authorized by this bill must comply with specified requirements.

2023 Chaptered Legislation

Code Section Changes by Bill Number

AB 416 (Muratsuchi, Chapter 653, Statutes of 2023) Sale of shochu.

Amends Section 23398.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill establishes the same exception for shochu that already exists for soju, an imported Korean alcoholic beverage. Specifically, this bill allows an on-sale license with wine privileges (e.g. type 41 or type 42 license) to also sell shochu, an imported Japanese distilled spirit up to 24 percent alcohol by volume that is derived from agricultural products. The department has previously published industry guidance on its interpretation of the soju exception. Specifically, the department clarified that the exception applies to soju imported from any country and not solely Korea (it does not apply to soju made in the United States; imported product may be bottled in the U.S. as long as no other treatment occurs). This same interpretation and application of law will apply to shochu. Additionally, products labeled as containing a mix of soju and shochu qualify for this exception provided they meet the importation requirement and are within the ABV limit.

AB 546 (Villapudua, Chapter 532, Statutes of 2023) Alcoholic beverages: advertising and brandy tastings.

Amends Sections 23363.3, 25503, and 25611.1 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill clarifies that tied-house restrictions in Business and Professions Code section 25503 prohibiting manufacturers and wholesalers from providing anything of value to retailers, except as otherwise authorized by law, 1) applies to all alcoholic beverages and not solely distilled spirits, 2) extends to out-of-state beer manufacturer certificate holders, and 3) includes providing credit or rebates (rather than solely money) for sign or advertisement placement on a retailer’s premises; all of these technical modifications align with the Department’s interpretation of current law. This bill also expressly allows a wholesaler to provide customized signs to retailers for current market price. This authorization is limited to wholesalers, meaning they are the only license group that may sell customized signs for retailers. Lastly, this bill repeals the prohibition against brandy manufacturers offering tastings at their premises in the form of a cocktail or mixed drink. Such tastings must still occur in compliance with Business and Professions Code section 23363.3.

AB 840 (Addis, Chapter 346, Statutes of 2023) Tied-house exceptions: advertising.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill establishes a tied-house exception that allows specified alcohol manufacturers to purchase advertising space and event sponsorships in connection with events held at specified venues located on the campuses of California Polytechnic State University San Luis Obispo, California State University Fresno, California State University Sacramento, California State University Monterey Bay, California State University Fullerton, San Jose State University, California State University Northridge, and St. Mary’s College of California. This bill also amends the existing tied-house exception for a motorsports entertainment complex in the County of San Bernardino by reducing the seating requirement from 50,000 to 25,000.

AB 1013 (Lowenthal, Chapter 353, Statutes of 2023) On-sale general public premises: drug testing devices.

Adds and repeals Section 25624 of the Business and Professions Code, relating to alcoholic beverages. (Effective July 1, 2024)

Summary of Code Section Changes – This bill requires type 48 applicants and licensees, beginning July 1, 2024 and until January 1, 2027 (unless extended by the Legislature), to comply with all of the following:

1. Offer drug testing devices (such as test strips, stickers, straws, or other devices that are designed to detect the presence of controlled substances in a drink), which have not exceeded their expiration date or recommended period of use, that test for “controlled substances” commonly used to spike drinks. These drugs may include, but are not limited to, flunitrazepam, ketamine, and gamma hydroxybutyric acid, also known by other names, including GHB, gamma-hydroxybutyrate, 4-hydroxybutyrate, 4-hydroxybutanoic acid, sodium oxybate, and sodium oxybutyrate.
2. The drug testing devices shall be available for sale to customers, at a price not to exceed a reasonable amount based on the wholesale cost. Alternatively, they may be given to customers free of charge. 

3. Post the following notice in a prominent and conspicuous location: “Don’t get roofied! Drink spiking drug test kits available here. Ask a staff member for details.”

AB 1088 (Rubio, Chapter 829, Statutes of 2023) Licensed craft distillers: direct shipping.

Amends Section 23504.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill temporarily extends direct-to-consumer shipping privileges of California craft distillers from January 1, 2024, until January 1, 2025. Such sales must still comply with Business and Professions Code section 23504.5. To summarize, the temporary privilege allows a licensed craft distiller to directly ship distilled spirits manufactured or produced by the licensee at its premises to a consumer only if the sale complies with all of the following:

1. The amount shipped must not exceed the equivalent of 2.25 liters in any combination of prepackaged containers per day per consumer and shall be solely for the consumer’s personal use and not for resale.
2. The licensed craft distiller must maintain adequate records of the shipments and provide those records to the department upon request.
3. The licensed craft distiller must require the common carrier to obtain the signature of any individual 21 years of age or older before delivering any distilled spirits shipped to an individual in this state.
4. The containers in which the distilled spirits are shipped must be conspicuously labeled with the words: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”

This temporary privilege will now expire on January 1, 2025 unless extended by the Legislature.

AB 1217 (Gabriel, Chapter 569, Statutes of 2023) Business pandemic relief.

Amends Section 25607 of the Business and Professions Code, amends Section 65907 of the Government Code, and amends Section 114067 of the Health and Safety Code, relating to pandemic relief. (Effective January 1, 2024)

Summary of Code Section Changes – This bill delays the expiration of COVID-19 Temporary Catering Authorizations from February 28, 2024, to July 1, 2026. This bill also eliminates the authority of the department to continue a COVID-19 Temporary Catering Authorization beyond its expiration if the licensee has a pending application with the department for a premises expansion. As such, all COVID-19 Temporary Catering Authorizations 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.

AB 1294 (Boerner, Chapter 471, Statutes of 2023) Tied-house restrictions: advertising exceptions: County of Kings.

Adds Section 25503.62 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill establishes a tied-house exception that authorizes specified alcohol manufacturers to purchase advertising space and time from, or on behalf of, a company that owns a facility that includes a wave basin located in Kings County in connection with activities conducted on the premises of a permanent retail licensee located at the wave basin facility. Advertising and sponsorships authorized by this bill must comply with the following requirements: 

1. The premises of the permanent retail licensee includes a wave basin facility with a capacity of at least 9,000 individuals located in Kings County.
2. The sponsorship or advertising space or time must be purchased in connection with the sponsorship of activities that are held at the premises of a permanent retail licensee located at the wave basin facility.
3. Any sponsorship or purchase of advertising space must be accomplished by a written contract entered into by the alcohol manufacturer and the company that owns the wave basin facility in Kings County.
4. An agreement for advertising must not be contingent upon or otherwise require the licensee at the wave basin facility to purchase or sell any alcoholic beverages or other products produced by the event sponsor or purchaser of the advertising space and time.
5. The retail licensee at the wave basin facility must sell other brands of alcohol manufactured or distributed by a competing wholesaler or manufacturer in addition to any brand manufactured, distributed, or owned by the authorized licensee sponsoring an event or purchasing advertising space or time at the wave basin facility.

AB 1668 (Patterson J., Chapter 282, Statutes of 2023) Alcoholic beverages: licenses: County of Placer.

Adds Section 23826.19 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill authorizes 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. These new licenses would be precluded from being transferred from one county to another or to any premises that does not qualify pursuant to this bill and are not to be sold or transferred for a price greater than the original fee paid by the seller or transferor. Licensees that currently hold a valid on-sale general seasonal license may apply for these newly available licenses. The licenses will be subject to priority drawing laws and regulations.

AB 1704 (Santiago, Chapter 375, Statutes of 2023) Alcoholic beverage licenses.

Amends Sections 23015, 23358, 23961, and 24072.3 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective October 7, 2023)

Summary of Code Section Changes – This urgency bill requires ABC to conduct its priority drawings for on-sale and off-sale general licenses through a live video feed. This bill also allows winegrowers to sell spirits of wine to a type 4 license holder (distilled spirits manufacturer); this privilege does not authorize sales to craft distillers or other license types with distilled spirits production privileges. Additionally, this bill expands eligibility for the brewpub-restaurant license exchange program. Currently, the exchange option is only available to those that have held a brewpub-restaurant license before January 1, 2020.  AB 1704 will allow the exchange of a brewpub-restaurant license that was first issued before January 1, 2020, regardless of any subsequent transfers thereof. Exchanges must still comply with the existing requirements set forth in Business and Professions Code section 24072.3.

SB 76 (Wiener, Chapter 700, Statutes of 2023) Alcoholic beverages: music venue license: entertainment zones: consumption.

Amends Sections 23357, 23358, 23396, and 23552 of the Business and Professions Code, adds Section 23039.5 to, and adds Article 5 (commencing with Section 25690) to Chapter 16 of Division 9 of, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill authorizes the City and County of San Francisco to create “entertainment zones” where people may carry and consume alcoholic beverages on public streets, sidewalks, and public rights-of-way adjacent to and during special events licensed by ABC. Beer manufacturers, winegrowers, and on-sale licensees located in entertainment zones would be authorized to sell open alcoholic beverages for consumption off the premises within the local jurisdiction-approved entertainment zone if all of the following conditions are satisfied:

1. The premises is located within the entertainment zone.

2. Consumption of that type of alcoholic beverage is authorized by the San Francisco government’s ordinance creating the entertainment zone.
3. Open alcohol containers for consumption in the entertainment zone only leave the premises during the hours allowed by the ordinance establishing the entertainment zone (and only during the hours of alcohol service at the special event licensed by ABC).
4. Patrons with open containers exit the premises directly into an entertainment zone.
5. All alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone.
6. The premises expressly prohibits open containers or closed containers of alcoholic beverages acquired outside their premises.
7. Delivery of alcoholic beverages to consumers for consumption within the entertainment zone by the licensee or by any third-party delivery service is expressly prohibited unless the delivery is to a residential building or private business that is not a licensee.
8. No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.
9. Any other conditions established in the ordinance adopted by the City and County of San Francisco.
10. In order to participate, the licensee must annually notify ABC; those with restricted privileges due to operating conditions or statutory restrictions may be prohibited from exercising entertainment zone privileges that are contrary to their operating conditions. For purposes of this provision, any restrictions on the exercise of off-sale privileges would apply to the removal of alcoholic beverages from the licensed premises for consumption in an entertainment zone.

Before an entertainment zone becomes operable, the City and County of San Francisco must adopt an ordinance on or after January 1, 2024, that establishes a process or procedure by which persons in possession of alcoholic beverages in entertainment zones may be readily identifiable as being 21 years of age or older, among other specified requirements.

Music Venues

Unrelatedly, this bill makes music venue licenses eligible for duplicate licenses, subject to the same fees charged for a duplicate type 47 license. This bill also authorizes a music venue to sell, serve, and permit consumption of alcoholic beverages to guests during private events or private functions not open to the general public within any hours of operation permitted by its license, regardless of whether any live performance occurs. A music venue would not be required to have live entertainment during a private event or private function nor would they be subject to the standard eligibility criteria to be considered a music venue under current law (impose a paid ticket or cover charge for entrance, pay artists, or other general qualification requirements to be considered a music venue as identified in subdivision (c) of section 23550) during a private event or private function. This bill maintains the core intent of the music venue license by requiring the principal purpose of a music venue is to operate as a music entertainment facility, meaning the number of private events or private functions occurring at the music entertainment facility must not exceed the number of live entertainment events occurring at the facility in any calendar year; licensees must maintain records to demonstrate compliance with this requirement.

SB 247 (Wilk, Chapter 212, Statutes of 2023) Alcoholic beverages: licensing exemptions: barbering and cosmetology services.

Amends Section 23399.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – In 2016, the Legislature approved an alcohol license exemption for beauty salons and barbershops to serve a limited amount of beer or wine to their customers at no charge during a provided service, as specified in Business and Professions Code Section 23399.5. This bill seeks to further clarify who may be eligible to use this privilege as there is no definition in law of what constitutes a “beauty salon” or “beauty salon service”. Specifically, it makes clear that it applies to an establishment licensed by, and in good standing with, the California Board of Barbering and Cosmetology. The clarifications in the bill are consistent with ABC’s interpretation and application of existing law.

SB 269 (Laird, Chapter 176, Statutes of 2023) Alcoholic beverages: licensed premises: retail sales and consumption.

Amends Section 25607 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill adds craft distillers and brandy manufacturers to the shared-use privileges established by AB 1734 (Bennett, Chapter 175, Statutes of 2022). In practice, this means a beer manufacturer’s license, a winegrower’s license, a craft distiller’s license, or a brandy manufacturer’s license, that are held in any combination and under identical ownership, may overlap at the same premises without necessitating separate sales and consumption areas. Per this bill, this privilege may only be used by a craft distiller if it is at the master license locations of the brewery, winery, and/or distillery.

SB 392 (Bradford, Chapter 604, Statutes of 2023) Tied-house restrictions: advertising exceptions: City of Inglewood.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill authorizes specified alcohol manufacturers to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is the owner or operator of a fully enclosed arena with a seating capacity of at least 18,000 seats in the City of Inglewood. Advertising authorized by this bill could be placed on or in the arena and within the perimeter of the main entry area immediately adjacent to the arena, which includes an open plaza and bandshell. These advertisements would be permitted only if they are not placed on or in, or otherwise promote, a licensed alcohol retailer other than the arena or the premises located within the main entry that is wholly owned and operated by or for the owner of the arena.

SB 498 (Gonzalez, Chapter 613, Statutes of 2023) Alcoholic beverage control: violations.

Amends Sections 23095 and 25658 of, and adds Section 24200.8 to, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill authorizes the department to consider as an aggravating factor, when determining the discipline for the unlawful sale or furnishing of alcohol to minors or obviously intoxicated persons, whether there is subsequent death or great bodily injury. This bill also increases the maximum fine amount for an offer in compromise (POIC) that an alcohol licensee may pay in lieu of license suspension as follows:

1. An offer in compromise for retail licensees currently may not be less than $750 dollars or more than $3,000. This bill increases the cap from $3,000 to $6,000.
2. If the petitioning retailer has had any other accusation filed against them during the preceding three years, the offer in compromise currently may not be less than $1,500 or more than $6,000. This bill increases the cap from $6,000 to $12,000.
3. If the licensee is petitioning for an offer in compromise for a second violation of Business and Professions Code section 25658 that occurs within 36 months of the initial violation, the offer in compromise currently may not be less than $2,500 or more than $20,000. This bill increases the cap from $20,000 to $40,000.
4. Lastly, this bill increases the criminal fine, from $1,000 to $3,000, for the sale or furnishing of alcohol to a minor that results in death or great bodily injury.

SB 787 (Dahle, Chapter 113, Statutes of 2023) Number of licensed premises: County of Nevada.

Adds Section 23826.18 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill authorizes 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 Nevada. These new licenses would be precluded from being transferred from one county to another or to any premises that does not qualify pursuant to this bill and are not to be sold or transferred for a price greater than the original fee paid by the seller or transferor. Licensees that currently hold a valid on-sale general seasonal license may apply for these newly available licenses. The licenses will be subject to priority drawing laws and regulations.

SB 788 (Ashby, Chapter 114, Statutes of 2023) Beer manufacturers: cider and perry.

Amends Section 23357 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2024)

Summary of Code Section Changes – This bill removes the requirement that a beer manufacturer must annually produce at least 60,000 barrels of beer in order to manufacture cider or perry under their beer manufacturers license. This bill does not authorize tasting, consumption, or sales to customers at the brewery, which will still require a winegrower’s license.

SB 844 (Jones, Chapter 295, Statutes of 2023) Alcoholic beverage control: retail license transfers and beer returns.

Amends Sections 23104.2 and 24044 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 30, 2023)

Summary of Code Section Changes – This urgency bill expands the definition of “seasonal brand of beer”, which governs the allowance for wholesalers or manufacturers to accept returns of beer from retailers and is currently limited to only those commemorating a specific holiday season, so that it includes those that recognize either a season or a holiday. This bill also makes a technical and clarifying update related to public notification requirements involving pending alcohol license applications; these changes are technical in nature and consistent with the department’s interpretation and application of current law.

2022 Chaptered Legislation

Code Section Changes by Bill Number

AB 98 (Kalra, Chapter 267, Statutes of 2022) Tied-house restrictions: advertising exceptions: City of San Jose.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 13, 2022)

Summary of Code Section Changes – Business and Professions Code Section 25503.6 (a)(1)(X) grants a tied-house exception for an arena in San Jose with a fixed seating capacity in excess of 15,000 seats. This urgency bill reduces the minimum seating threshold from 15,000 to 4,000. As a result, this urgency bill authorizes a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits manufacturer’s agent to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is the owner or operator of a fully enclosed arena with a fixed seating capacity in excess of 4,000 seats located in the City of San Jose.

AB 631 (Bloom, Chapter 727, Statutes of 2022) Alcoholic beverage control: licenses: nonprofit cultural film exhibition companies.

Amends Sections 23039 and 24045.7 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – Section 24045.7 of the Business and Professions Code authorizes the Department to issue a special on-sale general license to a nonprofit theater company that is exempt from the payment of income taxes under Section 23701(d) of the Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. This license is known as a type 64 license. This bill makes nonprofit cultural film exhibition companies eligible for a type 64 license, subject to the same licensing fees as nonprofit theater companies. A “nonprofit cultural film exhibition company” is defined to mean a company that predominantly exhibits classic, foreign, independent, or rare movies by means of digital or film projection equipment for its members or the general public, or both, in a theater with a seating capacity of at least 100 seats, at least three days per week. Similar to nonprofit theater companies, a nonprofit cultural film exhibition company is not considered a public premises (it is open to all ages), may sell alcoholic beverages to ticketholders only two hours before, during, and one hour after a bona fide film exhibition of the company, and the license is only for a single specified premises.

AB 920 (Aguiar-Curry, Chapter 729, Statutes of 2022) Craft distillers: direct shipping.

Adds and repeals Section 23504.5 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 29, 2022)

Summary of Code Section Changes – This urgency bill authorizes a licensed craft distiller, until January 1, 2024, to directly ship distilled spirits manufactured or produced by the licensee at its premises to a consumer only if the sale complies with all of the following:

1. The amount shipped must not exceed the equivalent of 2.25 liters in any combination of prepackaged containers per day per consumer and shall be solely for the consumer’s personal use and not for resale.
2. The licensed craft distiller must maintain adequate records of the shipments and provide those records to the Department upon request.
3. The licensed craft distiller must require the common carrier to obtain the signature of any individual 21 years of age or older before delivering any distilled spirits shipped to an individual in this state.
4. The containers in which the distilled spirits are shipped must be conspicuously labeled with the words: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”

AB 1323 (Haney, Chapter 271, Statutes of 2022) Alcoholic beverage control: tied-house exceptions.

Amends Section 25503.35 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill expands an existing tied-house exception by reducing the minimum number of seats, from 2,100 to 1,600, that must be configured in a type 71 licensed premises (for-profit theater in San Francisco) in order for the license holder to receive compensation from a beer manufacturer, winegrower, rectifier, distilled spirits manufacturer, craft distiller, or distilled spirits manufacturer’s agent for advertising space, as specified.

AB 1330 (Mayes, Chapter 272, Statutes of 2022) Alcoholic beverage tied-house restrictions: exceptions: County of Riverside.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill establishes a tied-house exception for a fully enclosed arena in Riverside County with a seating capacity of more than 10,000 seats. This exception allows a beer manufacturer, the holder of a winegrower’s license, a rectifier, a craft distiller, a distilled spirits manufacturer, or distilled spirits manufacturer’s agent to purchase advertising space from the on-sale licensee that is the owner or operator of the arena, subject to the same general requirements applicable to other arena tied-house exceptions specified in Business and Professions Code Section 25503.6.

AB 1734 (Bennett, Chapter 175, Statutes of 2022) Alcoholic beverages: licensed premises: retail sales and consumption.

Amends Section 25607 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill authorizes the holder of a beer manufacturer’s license and a winegrower’s license, that are under identical ownership, to have an overlapping premises where retail sales and consumption under each license may be combined, as specified. This change eliminates the need for separate cash registers or points of sale. To exercise this privilege, each license must either be both master licenses or both branch offices, and not a combination of a master license and a branch office; for overlapping branch offices, only alcoholic beverages produced by the licensee may be sold. For additional information, an Industry Advisory is available on the ABC website.

AB 2037 (Flora, Chapter 155, Statutes of 2022) Polling places: alcoholic beverages.

Amends Section 12288 of the Elections Code, relating to elections. (Effective January 1, 2023)

Summary of Code Section Changes – This bill repeals the prohibition against polling places being in an establishment where the sale and dispensation of alcoholic beverages is its primary purpose. The impact of this change is that venues containing bars, such as a veteran’s club, may be utilized as polling locations only if there is no alcohol sales or service occurring while polls are open.

AB 2210 (Quirk, Chapter 391, Statutes of 2022) Cannabis: state temporary event licenses: venues licensed by the Department of Alcoholic Beverage Control: unsold inventory.

Amends Section 26200 of the Business and Professions Code, relating to cannabis. (Effective January 1, 2023)

Summary of Code Section Changes – This bill prohibits the Department of Cannabis Control from denying an application for a state temporary cannabis event license solely on the basis that the location possesses a license issued by the Department of Alcoholic Beverage Control. This bill also prohibits the Department of Alcoholic Beverage Control from taking disciplinary action against one of its licensees on the basis of a state temporary cannabis event license being issued for a premises that utilizes the same premises as the one licensed by ABC. This bill requires that all on-sale and off-sale privileges of alcoholic beverages at the venue must be suspended for the entire day of the event and may not resume until 6:00 a.m. the day after the event has ended. This bill further provides that alcohol consumption on the venue premises must be strictly prohibited for the entire day of the event and may not resume until 6:00 a.m. the day after the event has ended. This bill contains other provisions relating to temporary cannabis events.

AB 2301 (Wood, Chapter 961, Statutes of 2022) Alcoholic beverage sales: beer manufacturers: licensed premises.

Amends Section 25503.28 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill authorizes beer manufacturers to self-distribute beer they produce to on-sale retail licensed locations they operate that are located within a five-mile radius of their premises of production, as specified.

AB 2303 (Aguiar-Curry, Chapter 694, Statutes of 2022) Agave spirits: labeling.

Adds Section 25179 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill prohibits the use of the phrase “California agave spirits”, or substantially similar descriptions, on an agave spirits label unless the spirits are produced entirely from agave grown in California and do not contain flavoring or color additives. This does not, however, preclude the use of the word “California” on the label to describe the location of the distillery. This bill authorizes ABC to seize agave spirits labeled in violation of this bill and to dispose of them in compliance with Business and Professions Code Section 25355.

AB 2307 (Berman, Chapter 962, Statutes of 2022) Alcoholic beverages: beer manufacturers: branch offices.

Amends Sections 23389 and 25503.28 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill 1) increases the number of authorized beer manufacturer branch office locations, from six to eight, and increases the number of those branch offices that may be restaurants, from two to four; 2) requires beer manufacturers to have held their sixth branch office license for a minimum of one year before being eligible to receive the seventh or eighth license; 3) maintains the current cap that restricts beer manufacturers to operating no more than six on-sale licenses (for example, beer manufacturers may possess retail privileges at no more than 8 locations, provided that no more than six of which may be on-sale retail licenses, like a type 41 or 47); and 4) removes the requirement that a beer manufacturer branch office must purchase beer and wine from a licensed wholesaler that is not owned by the beer manufacturer.

AB 2921 (Santiago, Chapter 294, Statutes of 2022) Alcoholic beverages.

Amends Sections 23086 and 25503.24 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill modifies the deadline for the ABC Appeals Board to issue a determination after the filing of an appeal by requiring its completion 60 days after an appeal is submitted for decision rather than 60 days after the filing of an appeal. This bill also makes minor technical changes to existing law regarding licensees who conduct market research, including specifying that surveys, as stated, are to gather feedback.

AB 2971 (Committee on Governmental Organization, Chapter 296, Statutes of 2022) Alcoholic beverage control: fees.

Amends Sections 23320, 23399.52, 24045.78, 24072, 24079, 25600.05, and 25600.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill makes technical amendments to the ABC Act that 1) codifies the license designation (type 99) established by the Department to track rare, one-off licenses created by the Legislature; 2) eliminates duplicative licensing fees in several instances where multiple fees are charged for the same investigation; 3) resolves several erroneous referenced code sections; 4) extends the sunset date until January 1, 2028 applicable to invitation-only event authorizations pursuant to Business and Professions Code Section 25600.5; and 5) extends the sunset date until January 1, 2026 applicable to provisions of law allowing beer manufacturers to gift glassware to retailers.

SB 298 (Dodd, Chapter 980, Statutes of 2022) Brewpub-restaurant licenses: bona fide public eating place license.

Adds Section 24072.3 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill allows anyone who has held a brewpub-restaurant license as of December 31, 2019 to exchange the license for a bona fide public eating place license. The exchange would be authorized at any time upon the approval of the Department, provided the following:

1. Payment of a $100 exchange fee (the fee may be adjusted annually by the Department pursuant to subdivisions (d) and (e) of Section 23320).
2. Payment of the fee required for a new permanent license for an on-sale general eating place.
3. Compliance with statutory and regulatory licensing requirements.

Licenses issued pursuant to this bill may be designated as an “on-sale general license for special use” and shall not count towards the cap on on-sale general licenses available under Sections 23816 and 23821. Any license exchanged pursuant to this bill would be prohibited from being sold or transferred for a price greater than the fee paid by the seller or transferor.

SB 793 (Wiener, Chapter 468, Statutes of 2022)Alcoholic beverages: music venue licenses.

Amends Section 23320 of, and adds Article 7 (commencing with Section 23550) to Chapter 3 of Division 9 of, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill establishes a “music venue license” (designated as a type 90 license) to be issued by the Department to a music entertainment facility that may be open to all ages and provide alcoholic beverage service only to adults, including beer, wine, and distilled spirits. Alcoholic beverages may only be consumed on the premises during the time period from two hours before a live performance at the venue until one hour after the live performance. This bill establishes fees in connection with the license and creates a license exchange program that allows a type 47 or type 48 license to be exchanged for a type 90 license.

SB 1011 (Committee on Governmental Organization, Chapter 136, Statutes of 2022) Alcoholic beverages.

Amends Sections 23826.13, 24045.6, 24048, and 24300 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill 1) authorizes the Department to conduct its licensing and enforcement hearings electronically, as specified; 2) authorizes the Department to send its license renewal and cancellation notices electronically; 3) allows license reinstatement fees to be paid using electronic payment methods; 4) clarifies that licenses issued to those in specified census tracts apply to the districts corresponding to the 2010 census; and 5) increases the cap on permits, from three to four, for special temporary licenses that may be issued annually to a nonprofit tax-exempt organization pursuant to Business and Professions Code Section 24045.6.

SB 1013 (Atkins, Chapter 610, Statutes of 2022) Beverage container recycling.

Amends Section 23661.3 of the Business and Professions Code, and amends Sections 14509.4, 14510, 14547, 14549.1, 14549.2, 14550, 14560, 14560.5, 14561, 14571.5, 14571.8, 14575, 14581, and 14591.1 of, and amends and repeals Section 14571.6 of, and amends, repeals, and adds Sections 14504, 14528.5, 14570, 14571.9, and 14572.1 of, and adds Sections 14510.2, 14537.1, 14543, 14544, and 14545 to, and adds Chapter 6.5 (commencing with Section 14578) to Division 12.1 of, and adds and repeals Section 14549.7 of, the Public Resources Code, relating to recycling, and makes an appropriation therefor. (Effective January 1, 2024 or dates as otherwise specified)

Summary of Code Section Changes – This bill adds wine and distilled spirits to the California Beverage Container Recycling and Litter Reduction Act (Bottle Bill) commencing January 1, 2024. This bill, among other provisions, requires wine direct shipper permitholders to register with CalRecycle as a beverage manufacturer and distributor and requires wine direct shipper permitholders to comply with the Bottle Bill, including the reporting and payment provisions applicable to the permitholder as a beverage manufacturer and distributor. If a permitholders fails to comply with Section 14560 or 14575 of the Public Resources Code, ABC may suspend or revoke the wine direct shipper permit.

SB 1280 (Hueso, Chapter 304, Statutes of 2022) Tied-house restrictions: advertising: San Diego State University.

Amends Section 25503.6 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 13, 2022)

Summary of Code Section Changes – This urgency bill establishes a tied-house exception that allows alcohol manufacturers (including beer manufacturers, winegrowers, rectifiers, craft distillers, distilled spirits manufacturers or their agents) to purchase advertising space at five distinct stadiums and facilities located on the University campus. The tied-house exception established by this bill is subject to the existing requirements applicable to other exceptions as identified in Business and Professions Code Section 25503.6.

SB 1370 (Pan, Chapter 732, Statutes of 2022) Alcoholic beverages: licensees.

Amends Sections 23039 and 24045.7 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill makes nonprofit radio broadcasting companies eligible for a type 64 license, subject to the same licensing fees as nonprofit theater companies. Similar to nonprofit theater companies, a nonprofit radio broadcasting company is not considered a public premises (it is open to all ages), may sell alcoholic beverages to ticketholders only two hours before, during, and one hour after a bona fide performance, and the license is only for a single specified premises. This bill also expands a current provision in law which creates an exception to tied-house restrictions, by permitting certain licensees to serve on the board of trustees of a nonprofit theater company operating in the County of Napa, the City of Livermore, or the City of Modesto to also include a nonprofit radio broadcasting company and expands the list of cities to include the City of Sacramento.

SB 1452 (Dahle, Chapter 889, Statutes of 2022) Alcoholic beverages: licenses: Counties of El Dorado and Shasta.

Adds Sections 23826.16 and 23826.17 to the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2023)

Summary of Code Section Changes – This bill authorizes ABC to issue 10 additional new type 47 licenses in Shasta County and 10 additional new type 47 licenses in El Dorado County. The bill stipulates that while 10 additional licenses will be authorized for each county, no more than four of these licenses may be issued per year per county. These licenses would be subject to section 23961, meaning if there are more applicants than available licenses they will be subject to priority drawing. Licenses issued pursuant to this bill may not be transferred to another county nor shall they be transferred to any premises not qualify under the parameters of the bill. Further, such licenses may not be sold or transferred for a price greater than the original fee paid by the seller or transferrer. ABC may designate these licenses as on-sale general for special use.

2021 Chaptered Legislation

Code Section Changes by Bill Number

Assembly Bill No. 61 (Gabriel, Chapter 651, Statutes of 2021) Business pandemic relief.

Adds and repeals Section 25750.5 of the Business and Professions Code, adds and repeals Section 65907 of the Government Code, and amends Section 114067 of the Health and Safety Code, relating to business pandemic relief, and declaring the urgency thereof, to take effect immediately. (Effective October 8, 2021)

Summary of Code Section Changes – This urgency bill authorizes the Department of Alcoholic Beverage Control to allow licensees to exercise license privileges in an expanded area authorized pursuant to a COVID-19 Temporary Catering Authorization, subject to the terms and conditions established in the Department’s regulatory relief, for up to 365 days following the end of the Governor’s declared state of emergency related to the pandemic. This bill allows the Department to extend a COVID-19 Temporary Catering Authorization beyond 365 days if the licensee has a pending application for a permanent premises expansion. These provisions sunset July 1, 2024. Lastly, this bill enacts other relief measures, unrelated to the Department, that impact food facilities and local governments.

Assembly Bill No. 83 (Committee on Budget, Chapter 11, Statutes of 2021) Alcoholic beverage control: license renewal fees: waiver.

Amends and renumbers Section 23320.3 of the Business and Professions Code, relating to business and professions, and making an appropriation therefor, to take effect immediately, bill related to the budget. (Effective March 17, 2021)

Summary of Code Section Changes – This urgency bill authorizes the Department of Alcoholic Beverage Control to waive license renewal fees for small beer manufacturers, craft distillers, or winegrowers who produce less than 100,000 gallons annually, and whose licenses expire between March 1, 2021 and February 28, 2023, provided those licenses were active between March 1, 2020 and December 31, 2020.

Assembly Bill No. 239 (Villapudua, Chapter 192, Statutes of 2021) Winegrowers and brandy manufacturers: exercise of privileges: locations.

Amends Section 23390 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill deletes the current prohibition on winegrowers and brandy manufacturers to refill customer-supplied containers of wine at branch offices, warehouses, or United States bonded wine cellars located away from their place of production.

Assembly Bill No. 1149 (Villapudua, Chapter 271, Statutes of 2021) Alcoholic beverages: tied-house restrictions.

Amends Section 25503.2 of the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective September 23, 2021)

Summary of Code Section Changes – This urgency bill allows specified manufacturers and wholesalers to merchandise (e.g., stock and arrange products on shelves, etc.) single-serve containers of wine and distilled spirits, similar to as currently authorized for beer, at off-sale retail licensed premises.

Assembly Bill No. 1267 (Cunningham, Chapter 207, Statutes of 2021) Alcoholic beverages: advertising or promoting donation to a nonprofit charitable organization.

Amends Section 25600 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill, until January 1, 2025, allows specified alcohol manufacturers to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization if certain conditions are met, including, but not limited to, that the promotion of the donation does not directly encourage consumption of alcoholic beverages.

Assembly Bill No. 1275 (Jones-Sawyer, Chapter 208, Statutes of 2021) Alcoholic beverage control: minors.

Amends Section 25666 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill modifies the requirement that the Department of Alcoholic Beverage Control produce an alleged minor for examination in a hearing on an accusation charging a licensee with violating provisions relating to providing alcoholic beverages to a minor, employing a minor to prepare or serve alcoholic beverages, or permitting a minor to enter and remain in the licensed premises. This bill maintains the requirement that the Department produce at the administrative hearing any minor used by peace officers as a decoy in underage sales enforcement operations, but removes the requirement with respect to violations involving non-decoy minors.

Assembly Bill No. 1589 (Committee on Governmental Organization, Chapter 306, Statutes of 2021) Alcoholic beverages: appeals: tied-house restrictions.

Amends Sections 23081, 23081.5, 23083, 23088, and 25503.24 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill adds distilled spirits wholesalers to the list of licensees that a retailer is not required to purchase or sell alcoholic beverages from when selling marketing data to that wholesaler. This bill also authorizes the electronic filing of appeals to the Alcoholic Beverage Control Appeals Board and electronic delivery of final orders by the Board.

Senate Bill No. 19 (Glazer, Chapter 274, Statutes of 2021) Winegrowers: tasting rooms.

Amends Sections 23320 and 23390.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill authorizes winegrowers and brandy manufacturers to operate up to two off-site retail or winetasting outlets by increasing the number of duplicate licenses they are authorized from one to two. This bill also establishes a $440 application fee for a duplicate winegrower license.

Senate Bill No. 94 (Skinner, Chapter 9, Statutes of 2021) Alcoholic beverage control: barbering and cosmetology: license renewal fees: waiver.

Adds Section 23320.3 to, and adds and repeals Section 7427 of, the Business and Professions Code, relating to business and professions, and making an appropriation therefor, to take effect immediately, bill related to the budget. (Effective February 23, 2021)

Summary of Code Section Changes – This urgency bill authorizes the Department of Alcoholic Beverage Control to waive license renewal fees for specified licensees whose licenses expire between March 1, 2021 and February 28, 2023, provided those licenses were active between March 1, 2020 and December 31, 2020. This bill contains other provisions unrelated to the Department.

Senate Bill No. 314 (Wiener, Chapter 656, Statutes of 2021) Alcoholic beverages.

Amends Sections 23399 and 25607 of, and adds and repeals Section 25750.5 of, the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. (Effective October 8, 2021)

Summary of Code Section Changes – This urgency bill

1. authorizes the Department of Alcoholic Beverage Control to allow licensees to exercise license privileges in an expanded area pursuant to a COVID-19 Temporary Catering Authorization, subject to the terms and conditions established in the Department’s regulatory relief, for up to 365 days following the end of the Governor’s declared state of emergency related to the pandemic, as specified (this provision is identical to one contained in AB 61 (Gabriel));
2. authorizes alcohol manufacturers to share a common licensed area with multiple retailers, subject to various requirements; and
3. allows catering authorizations to be issued for up to 36 events, rather than 24, at a single location annually, except when the Department determines additional events may be catered to satisfy substantial public demand.

Senate Bill No. 386 (Umberg, Chapter 309, Statutes of 2021) Tied-house restrictions: advertising: mixed-use district.

Amends Section 25503.6 of, and adds Section 25503.61 to, the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill broadens the current tied-house exception for the Honda Center in Orange County, expanding it to the full 95-acre mixed-use development surrounding the stadium. Among other provisions, this expansion allows alcohol manufacturers to sponsor events and purchase advertising space from the on-sale licensee that is the owner or operator of the mixed-use district, subject to specified limitations.

Senate Bill No. 389 (Dodd, Chapter 657, Statutes of 2021) Alcoholic beverages: retail on-sale license: off-sale privileges.

Adds and repeals Section 23401.5 of the Business and Professions Code, relating to alcoholic beverages. (Effective January 1, 2022)

Summary of Code Section Changes – This bill authorizes specified restaurants and certain alcohol manufacturers to sell distilled spirits in manufacturer-sealed containers (e.g. cans or bottles) for off-site consumption for which their license permits on-sale consumption if the order is picked up by the consumer and they display identification, as specified. This bill also authorizes those same licensees to sell for off-site consumption distilled spirits and single-serve wine that is not in manufacturer-sealed containers (e.g. a cocktail or margarita) if the order is sold in conjunction with a meal, it is picked up by the consumer, and they display identification, among other requirements. Before exercising the privilege of selling nonmanufacturer-sealed alcoholic beverages for off-site consumption, the eligible licensee must notify the Department of their intent to do so. The Department could restrict or prohibit these privileges by placing conditions on the license under specified circumstances. The provisions of this bill sunset January 1, 2027.