SR-6F (9)
6F . 1
MAV 2 3 1995 4
P&Z:DKW:f:\plan\share\pc\strpt\alcno Santa Monica, Callfornia
City Counell Meetlng: May 23, 1995
TO: Mayor and City Cou~cil
FROM' Clty Staff
SUBJECT: Des~gnatlon of Plannlng & Community Development Dlrector
as Reciplent of Notlficatlons for Certain Alcohollc
Beverage Control License Applicatlons
INTRODUCTION
In response to problems ldentified wlth certain types of alcohol
outlets, the state leglslature made amendments ~n 1994 to
provlslons of state law pertalnlng to alcohollc beverage llcenslng
Due to Santa Monica's stYlct local regulatlon of alcohol ou~lets,
the changes to state law are not expected to have slgnlficant
impact locally. One of the changes requlres that the state
Department of Alcohollc Beverage Control (ABC) notlfy local
]urisdlctlons of certain types of llcense appllcatlons.
Under the new law, localities have the ablllty to evaluate and
effectlvely preclude lssuance of certain types of llcenses. Unless
a local ]urisdlction speciflcally des~gnates a partlcular person as
the reclplent of these notlces, they are addressed to the local
governlng body l t Be 1 = . This report recommends that the Dlrector of
Plannlng & Communlty Development be designated as the offlclal
reciplent of such notices to streamllne City responses.
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MAY 2 3 1995 -
BACKGROUND
Assembly Blll 2897 was approved durlng the 1994 leglslative
session. The blll was developed In response to problems associated
wlth certain types of alcohol outlets, partlcularly liquor stores
Under this law, where there lS an "undue concentratlon" of alcohol
licenses ~n an area as determined by the ABC, the local
jurisdlctlon lS provlded an opportunity to evaluate whether or not
the "publlc convenlence and necesslty" would be met wlth approval
of certa~n types of alcohol licenses. Types of licenses that
would be subJect to this reVlew lnclude off-sale llcenses (such as
llquor stores) , and some on-sale llcenses. Llcenses for bona flde
eating places, certaln hotel and motel licenses, and beer
manufacturlng or wlnegrower licenses would not be subJect to these
determlnatlons.
The law would not change a Clty'S ablllty to protest approval of
part~cular alcohol licenses, nor would It adversely lmpact present
local zoning regulations for alcohol outlets In the case of Santa
Monica, the pollce Department receives notlces of pendlng ABC
appllcations, and has protested issuance of some llcenses. In
addition, Clty zonlng regulatlons provide the C~ty substantlal
authorlty over new outlets. Santa Monlca's regulatlons ln this
area exceed those of many jurlsdlctlons For example, In some
commerclal areas of Santa Monlca, liquor stores are prohlblted, and
where allowed at all, would requlre a Condltlonal Use Permlt before
an ABC approval could be obtalned. AB 2897 provides further
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opportunities for review Under this state law, where the local
Jurlsdictlon determlnes that the publlC convenlence and necesslty
would not be served by the approval of subject licenses, that
determlnation would preclude ~ssuance of the license Given Santa
Monlca's eXlsting St~lct regulatlon of alcohol outlets, relatively
few notlces under AB 2897 to Santa Monlca are anticipated.
In the event that notices are recelved by the Clty, it is lmportant
that the Clty respond expeditlously. To ensure qUlck reVlew and
response to these notlces, staff is recommendlng that the Dlrector
of Planning & Community Development ( PCD ) be designated as the
City's reclplent of notlces under this law. ThlS department
rout.:..nely evaluates alcohol permits subJect to the City Zoning
Ordinance, In consultatlon wlth o~her City departments. The
Dlrector would consult with the Police Department, the City
Attorney's office, any other affected City departments and the Clty
Manager in revlewlng notices Glven the slgnificance of any actlon
taken on permits subJect to the determinatlon of publlc convenlence
and necessity, staff will provide the Clty Council with an
lnformatlon item In advance of any actlon taken on s~bject permlts
to provide an opportun~ty for Counell input
BUDGET/FINANCIAL IMPACT
The recommendatlon of this report would have no budgetjflnancial
lmpact.
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RECOMMENDATION
Staff reco'T'mends that the Clty Councll deslgnate the Dlrector of
Plannlng & Communlty Development as the reciplent of notlces from
the Depayt'T'ent of Alcohollc Beverage Control pursuant to AB 2897.
Prepared by: Suzanne Frick, PCD Director
D. Kenyon Webster, Plannlng Manager
Attachment. Assembly B~ll 2897
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Assembly Bill No. 2897
CHAPTER 630
An act to amend Section 23958 of, and to add Section 23958 4 to,
the Business and ProfesslODS Code, relatmg to alcohohc beverages.
[Approved by Governor Se~ember 19, 1994 Filed WIth
Secretary of State ptember 10, 1994 1
LEGISLATIVE COUNSEL.S DIGEST
AB 2897, Caldera. Alcohohc beverages: retau. licenses' undue
concentration.
EX1sbng law prOVIdes that the Department of Alcoholic Beverage
Control may deny an apphcabon for a hcense If the Issuance would,
among other thIngs, result ill or add to an undue concentrahon of
hcenses, and the applicant fatis to show that pubhc convemence or
necessity would be served by the issuance EXlSbng regulatory law
defines "undue concentrahon" with regard to apphcabons for
on-sale and off-sale retail lIcenses
Tlns bill would InStead reqUIre the Department of Alcoholic
Beverage Control to deny an applicatIon If issuance would tend to
create a law enforcement problem, or would result m or add to an
undue concentrahon of licenses The bill would change the
defuunon of undue concentrabon, and would prOVIde that,
notwtthstandmg the reqwrement that the department deny an
apphcatlon that would result m or add to an undue concentrahon of
licenses, a hcense may be issued WIth respect to a nonretalilicense,
a reta1l on-sale bona fide eatlng place license, a retali hcense issued
for a hotel, moteL or other lodgmg estabhshment, as defined, a retail
license issued 10 con)\IDcb.on With a beer manufacturer's lIcense, or
. lIcense, If the apphcant shows that public
a ",'lDegrower s convemence or necessity would be served by the issuance, and WIth
respect to any other hcense, If the local governmg body of the area
ill wmch the apphcant premises are located detemunes that publIc
converuence or neceSSIty would be served by the Issuance
The people of the State of Califomla do enact as follows.
SECfION 1. Secbon 23958 of the Busmess and ProfeSSIons Code
1S amended to read
23958 Upon receipt of an applIcatIon for a hcense or for a transfer
of a license and the apphcable fee, the department shall make a
thorough mvestlgahon to determme whether the applicant and the
prermses for winch a license is applIed qualIfy for a license and
whether the~proVlSlons of thiS dlvlSlon have been comphed WIth. and
shall mvesngate all matters connected thereWlth winch may affect
the pubhc welfare and morals. The department shall d~ny an
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Ch 630 -2-
applicabon for a license or for a transfer of a hcense If either the
apphcant or the prermses for wluch a hcense IS apphed do not qUflhfy
for a lIcense under tlus chVlSlon
The department further shall deny an applIcabon for a hcense If
Issuance of that lIcense would tend to create a law enforcement
problem, or If issuance would result m or add to an undue
concentrabon Df licenses, except as proVIded In Section 23958 4.
SEe. 2. Secbon 23958 4 IS added tD the Busmess and PrDfessIOns
CDde, to read,
239584 (a) FDr purposes Df Secbon 23958, "undue
cDncentration" means the appbcant premises for an Dngmal Dr
preIlllSesRto.premlSes transfer Df any retau hcense are located In an
area where any of the fDllowmg conrntlOns eXist
(1) The applicant prermses are located In a cnme reportIng
chstnct that has a 20 percent greater number of reported cnmes, as
defined m subdIvlSlon (c), than the average number of reported
cnmes as determmed from all cnme reporting dtstncts Wlthm the
Junschcbon of the IDcallaw enforcement agency
(2) As tD on-sale retatl lIcense applicahons, the ratIo of Dn-sale
retail lIcenses to pDpulatIon III the census tract or census dIviSIOn m
which the apphcant prermses are located exceeds the ratIo of onRsale
retail hcenses to populabon m the county m which the apphcant
prermses are located.
(3) As to off-sale retatl hcense applicatIons, the raho of offRsale
retau hcenses to populahon m the census tract or census diVISIon In
which the apphcant premIses are located exceeds the raho of offRsale
retaIl hcenses tD populatIon In the county In whIch the applicant
premises are located
(b') ;.JotwIthstandmg SectIon 23958, the department may Issue a
lIcense as follows
(1) With respect tD a nonretali lIcense, a retali on-sale bona fide
eatIng place hcense, a retall lIcense Issued for a hotel, motel, or other
lodgmg establIshment, as defined III subchvlSlon (b') of Secbon
25503.16, a retatl hcense Issued m conjunctIon WIth a beer
manufacturer's hcense, or a wmegrower's hcense. if the applicant
shows that publIc convemence or necessIty would be served by the
Issuance
(2) WIth respect to any other hcense, If the local gDverrung body
of the area m which the applIcant prermses are located deterI11L.ieS
that pubhc convemence or necessity would be served by the
Issuance
Ic) For purposes Df tlus secbon, the followmg defimtIons shall
apply
(1') "Reportmg dlstncts" means geographical areas WIthIn the
boundanes of a smgle govemmental enbty I city or the
unmcorporated area of a county), that are Identrlied by the IDcallaw
enforcemeI!t agency III the compilatIon and mamtenance of
statIstIcal mformabon on reported cnmes and arrests.
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-3- Ch. 630
(2) "Reported cnmes" means the most recent yearly compuabon
by the local law enforcement agency of reported offenses of cnmmal
hOIll1Clde, forcIble rape, robbery, aggravated assault, burglary,
larceny theft, and motor velncle theft, combmed WIth all arrests for
other cnmes, both felorues and rrusdemeanors, except traffic
cltabons.
(3) "Populabon Wlthm the census tract or census dJ.V1slonu means
the populabon as determined by the most recent United States
decenmal or specIal census The populabon determmabon shall not
operate to prevent an apphcant from estabhshmg that an Increase of
reSldent populabon has occurred WithIn the census tract or census
chvlSlon
(4) "Populabon III the county" shall be determmed by the annual
populabon esbmate for Cahforrua counties pubhshed by the
PopulatIon Research Urut of the Department of Fmance
(5) "Retail lIcenses" shall mclude the followmg.
(A) Off-sale retail hcenses: Type 20 (off-sale beer and wme) and
Type 21 (off-sale general)
(B) On-sale reta.1llicenses: All retail on-sale hcenses, except Type
43 (on-sale beer and wine for tram), Type 44 (on-sale beer and wme
for f1shmg party boat), Type 45 (on-sale beer and wme for boat),
Type 46 (on-sale beer and WIlle for aIrplane), Type 53 (on-sale
general for tram and sleepmg car), Type 54 (on-sale general for
boat), Type 55 (on-sale general for arrplane), Type 56 (on-sale
general for vessels of more than 1,000 tons burden), and Type 62
(on-sale general bona fide public eabng place mtermIttent dockSIde
lIcense for vessels of more than 15,000 tons chsplacement)
(6) .\ "prermses to prermses transfer" refers to each lIcense bemg
separate and chstmct and transferable upon approval of the
department.
(d) For purposes of thIS section, the number of reta.1llicenses in
the county shall be determmed by the most recent yearly rebul
lIcense count publIshed by the department m lts Procedure Manual
(e) The enactment of thIS sechon shall not affect any eXlsbng
nghts of any holder of a retatl hcense Issued pnor to Apnl29, 1992,
whose prermses were desIToyed or rendered unusable as a result of
the clVll dIsturbances occurnng m Los Angeles from Apnl 29 to May
2, 1992. to reopen and operate those lIcensed prermses
(f) TIns sechon shall not apply where the prermses have been
lIcensed and operated WIth the same type lIcense Wlthm 90 days of
the apphcation
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