Amended  IN  Assembly  May 24, 2021
Amended  IN  Assembly  April 28, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1242

Introduced by Assembly Member Bauer-Kahan
(Coauthor: Assembly Member Eduardo Garcia)

February 19, 2021

An act to add and repeal Section 23401.5 of the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


AB 1242, as amended, Bauer-Kahan. Alcoholic beverages: bona fide public eating place: off-sale privileges.
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 the department to issue various types of licenses and prohibits a person from exercising the privilege which a licensee may exercise or performing under the authority of a license unless the person is authorized to do so by a license. Existing law authorizes a person holding an on-sale general license, with respect to beer and wine, and any on-sale license, with respect to the particular beverage or beverages mentioned in the license, to exercise the rights and privileges granted by an off-sale beer and wine license.
This bill would authorize a bona fide public eating place holding an on-sale general license or a bona fide public eating place holding an on-sale license for beer and wine to exercise additional off-sale rights and privileges, subject to specified requirements. The bill would repeal this authorization 2 years after the end of the state of emergency proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic. The bill would authorize a licensee to sell alcoholic beverages for off-sale consumption for which their license permits on-sale consumption if the beverages are in manufacturer prepackaged containers. Additionally, the bill would authorize a licensee to sell the alcoholic beverages for off-sale consumption for which their license permits on-sale consumption when the beverages are not in manufacturer prepackaged containers if specified conditions are met, including that the beverages be sold in conjunction with meals prepared for pickup or delivery, as specified, and be packaged in a container with a secure lid or cap. The bill would prescribe requirements for the order and receipt of alcoholic beverages sold pursuant to these authorizations and would prohibit these alcoholic beverages from being ordered or picked up for delivery. The bill would prohibit a licensee from selling more than 2 of these alcoholic beverages per each bona fide meal ordered. The bill would require the licensee to notify the department of its intent to sell pursuant to this authorization. The bill would prohibit containers of alcoholic beverages sold for off-sale consumption pursuant to either of these authorizations from exceeding 41/2 ounces of distilled spirits.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 23401.5 is added to the Business and Professions Code, to read:

23401.5.
 (a) Notwithstanding any other law to the contrary, a bona fide public eating place holding an on-sale general license or a bona fide public eating place holding an on-sale license for beer and wine may exercise the following rights and privileges subject to the requirements of this section:
(1) The licensee may sell the alcoholic beverages for off-sale consumption for which their license permits on-sale consumption provided the beverages are in manufacturer prepackaged containers. containers and ordered and picked up by the consumer in compliance with subdivision (b).
(2) In addition to the privilege provided by paragraph (1), the licensee may sell the alcoholic beverages for off-sale consumption for which their license permits on-sale consumption when the beverages are not in manufacturer prepackaged containers if all of the following conditions are met:
(A) The alcoholic beverages are sold in conjunction with meals prepared for pickup or delivery either by the licensee or by a meal provider. meals, and the alcoholic beverages are ordered and picked up by the consumer in compliance with subdivision (b). The licensee shall not sell more than two alcoholic beverages that are not in manufacturer prepackaged containers per each bona fide meal ordered.
(B) The alcoholic beverages are packaged in a container with a secure lid or cap in a manner designed to prevent consumption without removal of the lid or cap. The cap or lid, and any seal, of the container shall be affixed to the container in a manner that makes it obvious when the cap or lid, and any seal, has been removed or broken.
(C) (i) The following warning sign is posted in a manner that notifies consumers of restrictions regarding open container laws:

Alcoholic beverages that are packaged by this establishment are open containers and shall not be transported in a motor vehicle except in the vehicle’s trunk or, if there is no trunk, the containers shall be kept in some other area of the vehicle that is not normally occupied by the driver or passengers. This does not include a utility compartment or glove compartment (See Vehicle Code Section 23225). Additionally, these beverages shall not be consumed in public or in any other area where open containers are prohibited by law.

(ii) For purposes of this subparagraph, “post” means to prominently display on the premises, post online, or present in whatever manner is necessary to ensure that the consumer purchasing, or delivery person transporting, the beverages to which this section applies is given notice of this warning.
(b) An alcoholic beverage sold pursuant to subdivision (a) shall meet the following conditions:
(1) The alcoholic beverage shall be ordered by the consumer directly with the licensee, either in-person or over the telephone.
(2) The consumer who places the order for an alcoholic beverage shall pick up the order directly from the licensee and shall present a bona fide identification card for purposes of confirming the age and identity of the consumer who placed the order. The alcoholic beverage shall not be ordered or picked up for delivery.

(b)

(c) Prior to exercising the privileges authorized in paragraph (2) of subdivision (a), the licensee shall notify the department in writing of its intent to do so.

(c)

(d) A container of alcoholic beverages sold for off-sale consumption pursuant to the authorization granted by this section shall not exceed four and one-half ounces of distilled spirits.

(d)

(e) This section shall remain in effect only for a period of two years following the end of the state of emergency proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic, and at the end of that period is repealed.