Alcoholic beverages: on-sale licenses: County of Napa.
The bill’s approval represents a significant adjustment to existing regulations around alcohol licensing. Traditionally, the number of on-sale licenses issued is controlled by the state and based on population metrics; SB866 seeks to adapt these regulations to better serve the business community in Napa County. The law could impact local restaurants by providing them with the necessary licenses to operate, thereby potentially boosting local employment and supporting the economy. However, this local set-aside may also raise concerns regarding fairness and competition with establishments in other counties that do not benefit from such preferential treatment.
Senate Bill 866, introduced by Senator Dodd, amends Section 23826.10 of the Business and Professions Code specifically for the County of Napa. This bill allows for the issuance of up to 10 additional new on-sale general licenses annually for bona fide public eating places with a seating capacity of at least 25 diners. This provision is set to commence on January 1, 2021, and will be limited to a five-year period. Under this new legislation, these additional licenses are intended to facilitate the growth of the restaurant industry in Napa County while addressing the unique economic conditions faced by local businesses.
While the bill aims to support the dining and hospitality sectors in Napa, it has faced scrutiny regarding the implications of creating a localized solution to a broader regulatory issue. Critics might argue that allowing additional licenses may create an uneven playing field, favoring new entrants at the expense of established businesses that already operate under stricter license limitations. Furthermore, the condition that these new licenses cannot be sold or transferred for more than the original fee may be contentious. It raises questions about investment and the ability for businesses to recoup costs associated with licensing. This special statute underscores distinct economic challenges that Napa County faces, reflective of broader discussions about regulatory flexibility versus standardized laws across California.