SB 294

Current law prohibits a person from selling alcohol beverages at retail unless

the seller possesses a license or permit authorizing the sale. A "Class B" license

authorizes the retail sale of intoxicating liquor for consumption on the licensed

premises and, depending on the type of intoxicating liquor and whether a municipal

ordinance has been adopted, may also authorize the retail sale of intoxicating liquor

for consumption off the licensed premises, subject to certain limitations. Current law

imposes a quota on the number of "Class B" licenses that a municipality may issue.

This quota is generally determined by a formula based on the number of licenses

previously issued by the municipality and the municipality's population. Current

law provides quota exceptions for a full-service restaurant that has a seating

capacity of 300 or more persons and for a hotel that has 50 or more rooms and has

a restaurant or banquet room meeting certain criteria. Current law also provides a

quota exception for certain opera houses and theaters, but a "Class B" license issued

under this exception authorizes the sale of intoxicating liquor only for consumption

on the premises and only in connection with ticketed performances.

This bill modifies the quota exception for full-service restaurants. The bill

provides a quota exception for a full-service restaurant regardless of seating

capacity, but creates a definition of "full-service restaurant" that limits the exception

to an establishment where meals are prepared, served, and sold for consumption on

the premises and in which the sale of alcohol beverages accounts for 50 percent or

less of the establishment's gross receipts. In addition, a "Class B" license issued

under this exception authorizes the sale of intoxicating liquor only for consumption

on the premises. The bill prohibits a person holding a "Class B" license, other than

one issued under this exception, from surrendering that license and applying for a

new license under this exception.