Alcoholic beverage control: neighborhood-restricted special on-sale general licenses.
The bill seeks to amend existing laws governing the issuance of alcoholic beverage licenses which historically have seen tight controls based on population density. The introduction of these special licenses aims to facilitate the opening and operation of more restaurants and eateries within underserved areas of Los Angeles, fostering economic activities in these neighborhoods. By creating more opportunities for public eating places to serve alcoholic beverages, it is anticipated that the bill will improve local economies and provide better dining options for residents and tourists alike.
Assembly Bill 828, introduced by Assembly Member Mark Gonzlez, proposes the addition of Section 23826.21 to the Business and Professions Code, specifically addressing the regulation of alcoholic beverages. The bill aims to introduce a new set of neighborhood-restricted special on-sale general licenses for bona fide public eating places located in specified census tracts in Los Angeles County. It permits the Department of Alcoholic Beverage Control (ABC) to issue no more than 12 new licenses annually, beginning January 1, 2026, with a cap of up to 60 total licenses permitted under this section. This initiative reflects an ongoing response to the market dynamics surrounding liquor licenses in the densely populated urban areas of Los Angeles.
The general sentiment surrounding AB 828 appears to be supportive among restaurant owners and local entrepreneurs who see it as a way to enhance business opportunities in their communities. Advocates for the bill argue that the regulations established will ensure that responsible establishments are given the chance to thrive in a competitive environment. However, there is some contention regarding the equitable distribution of licenses and the potential for existing liquor license holders to be adversely impacted by the increased market competition.
A notable point of contention lies in the restrictive nature of the proposed licenses, including criteria like the specified census tracts and the total number of licenses that can be held across these areas. Critics argue that while the intent to provide more licenses is favorable, the rigorous stipulation of locations and limitations on how many licenses an applicant can hold could stifle the growth for some businesses and potentially lead to market monopolization among a few established entities. Furthermore, the bill's special status may raise concerns about fairness and transparency in the licensing process.