AB 1217

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Date of Hearing: April 25, 2023

ASSEMBLY COMMITTEE ON HEALTH

Jim Wood, Chair

AB 1217 (Gabriel) – As Amended April 17, 2023

SUBJECT: Business pandemic relief.

SUMMARY: Extends until January 1, 2026 the following COVID-19 pandemic authorizations:

jurisdiction that is subject to retail food operation restrictions related to a COVID-19 public

health response to prepare and serve food as a temporary satellite food service without

obtaining a separate satellite food service permit or submitting written operating procedures,

as specified.

2) Extends to January 1, 2026, the authority of ABC to permit licensees to exercise license

privileges in an expanded license area authorized pursuant to a COVID-19 Temporary

Catering Authorization approved in accordance with the Fourth Notice of Regulatory Relief

issued by the ABC, as specified. Specifies that the COVID-19 Temporary Catering

Authorization authorizes the on-sale consumption of alcoholic beverages for which the

licensee has on-sale privileges on property that is adjacent to the licensed premises, under the

4) Makes other technical and conforming changes.

EXISTING LAW:

1) Establishes the California Retail Food Code (CRFC) to provide for the regulation of retail

food facilities. Establishes health and sanitation standards at the state level through the

CRFC, while enforcement is charged to local agencies, carried out by the 58 county

environmental health departments and four city environmental health departments (Berkeley,

Long Beach, Pasadena, and Vernon). [Health & Safety Code (HSC) § 113700, et.seq.]

2) Defines a “food facility” as an operation that stores, prepares, packages, serves, vends, or

otherwise provides food for human consumption at the retail level. Excludes various entities

from the definition of a “food facility,” including a cottage food operation, and a church,

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and not to the general public, at an event that occurs no more than three days in any 90 day

operation; that the permitholder of the permanent food facility submit to the enforcement

agency written standard operating procedures prior to conducting the service, as specified;

that all food preparation be conducted within a food compartment or fully enclosed facility;

and, that service areas have overhead protection that extends over all food handling areas.

[HSC §114067]

4) Requires ABC to administer the provisions of the Alcoholic Beverage Control Act, including

the licensing of individuals and businesses in the manufacture, importation, and sale of

alcoholic beverages. [Business & Professions Code (BPC) §23000 et.seq.]

7) Permits the legislative body of any city or county to adopt ordinances that regulate zoning

within its jurisdiction, as specified. Permits the granting of variances and conditional use

permits if provided for by the zoning ordinance. [Government Code §65000, et. seq.]

FISCAL EFFECT: Unknown. This bill has not yet been analyzed by a fiscal committee.

COMMENTS:

1) PURPOSE OF THIS BILL. According to the author, neighborhood restaurants are the

backbone of communities across California, but too many are barely hanging on by a thread.

Outdoor dining has been a critical lifeline that has helped these beloved establishments keep

their doors open during these challenging times. This bill preserves important regulatory

pandemic. Some local governments, however, are now seeking to roll back outdoor dining

regulatory flexibility that begun during the pandemic. For example, a proposed ordinance in

the City of Los Angeles would introduce new restrictions on outdoor dining and require

restaurants to apply for expensive new permits for existing patios.

2) BACKGROUND. On March 4, 2020, Governor Newsom declared the COVID-19

pandemic, and asked all restaurants statewide to suspend dine-in service and only allow take-

out or delivery food service. Subsequently, there was also an immediate shutdown of indoor

tasting rooms, breweries, and bars across the entire state. According to information provided

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by the author’s office, the COVID-19 pandemic has devastated small businesses in

hurdle. About 95% of a restaurant’s sales go to food, labor, and operating costs, all of which

are increasing each month. A survey released in fall of 2022 reported that wholesale food

prices increased 16.3% in the last 12 months while menu prices rose 7.6%. Recent surveys

also suggest restaurant spending is one of the first things people would cut because of rising

prices.

a) AB 61. To provide relief to restaurants that were struggling due to the impact of the

COVID-19, AB 61 granted local jurisdictions and the ABC regulatory flexibility to aid

neighborhood restaurant that were struggling due to the impacts of COVID-19. As a

temporary measure, AB 61 allowed restaurants to open and expand their dining areas. To

its licensees to exercise privileges in an expanded area, as authorized by a COVID-19

Temporary Catering Authorization. AB 61 granted ABC licensees the flexibility for a

period of 365 days following the end of the state of emergency.

In October 2021, Governor Gavin Newsom announced that the COVID-19 State of

Emergency will end on February 28, 2023.

The CRFC requires a permanent food facility to obtain a permit to operate a satellite food

service or operation. As part of this process, a permanent food facility is required to

submit to the local enforcement agency written standard operating procedures that

include specified information including all food products that will be handled and

dispensed; process or methods or food preparation and handling; how food would be

transported to and from the permanent food facility and satellite food service.

c) ABC regulatory relief due to COVID-19. ABC monitors over 93,000 licensees,

including but not limited to restaurants, bars, craft brewers, wineries, and large breweries.

Pursuant to Governor Newsom’s emergency declarations and orders regarding the spread

of the COVID-19, ABC temporarily suspended enforcement of specific legal prohibitions

in the Act, such as sales of alcoholic beverages to go; drive-thru windows for off-sale

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accorded to alcohol and restaurant industries, including allowing the sale of alcoholic

designated ABC licensees or third-party providers to deliver alcoholic beverages to

consumers at residences, businesses, and other locations away from the licensed premises

but ABC licensees remained ultimately responsible for the alcoholic beverages.

A COVID-19 temporary catering permit (COVID-19 permit) was also established by

ABC in May 2020 to assist qualified hospitality businesses with reopening consistent

with local and state health directives. The COVID-19 permit expanded existing licensed

premises to include an area that is adjacent to the licensed premises and under the control

of the licensee. Adjacent areas under the control of the licensee include, but are not

limited to:

iii) Indoor and outdoor areas under the control of the licensee and one or more other

businesses;

iv) Parking lots;

v) Sidewalks and other public thoroughfares that are closed to public access during the

period of service; and,

vi) Other areas within close proximity to the licensed premises that are immediately

accessible to the licensee, and that are secured by and under the control of the

licensee, at the discretion of ABC.

Assembly Governmental Organization Committee analysis.)

3) DOUBLE-REFERRAL. This bill is double referred; it passed the Assembly Committee on

Governmental Organization with a 19-0 vote on April 12, 2023.

4) SUPPORT. CRA, the sponsor of this bill and supporters such as the California Travel

term as California restaurants still work to recover from the pandemic. Without this bill,

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these restaurant relief measures will expire on February 28, 2024, and they conclude that this

5) OPPOSITION. The California Alcohol Policy Alliance and the Alcohol Justice oppose this

bill and state that the permanent and ongoing expansion of alcohol service has harms to the

health, peace, and wellbeing of communities that more than offsets the income bars can make

from it.

6) RELATED LEGISLATION. AB 1325 (Waldron) increases from $50,000 to $100,000 the

maximum verifiable gross annual sales for purposes of the microenterprise home kitchen

operation (MEHKO). Increases the number of meals that a MEHKO can prepare for a week

from 60 to 90 individual meals. AB 1325 is pending in Assembly Health Committee.

7) PREVIOUS LEGISLATION.

a) AB 61 authorizes ABC, for 365 days from the date the COVID-19 pandemic state of

emergency proclaimed by the Governor is lifted, to allow licensees to continue to

exercise license privileges in an expanded licensed area authorized pursuant to a COVID-

ABC to, for 365 days from the date the COVID-19 state of emergency is lifted, allow

that this bill also amends (reflected as Section 1 and Section 2 of this bill). As this bill moves

forward, the author may want to determine the need for two identical code sections in law.

9) AUTHOR’S AMENDMENTS. The author has proposed and the Assembly Governmental

Committee and Assembly Health Committee have agreed to extend the sunset date to July 1,

2026.

REGISTERED SUPPORT / OPPOSITION:

Support

California Restaurant Association (sponsor)

California Travel Association (CALTRAVEL)

Central City Association of Los Angeles

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County of Monterey

Opposition

Alcohol Justice