California’s SB-969 marks a major update to the state’s alcohol laws, enabling cities and counties to create designated “entertainment zones” where public consumption of alcohol is permitted under specific conditions. The law balances the need for economic and social vitality with clear regulatory frameworks to maintain public safety. With the City and County of San Francisco slated to implement the first entertainment zones in 2025, SB-969 sets the stage for how alcohol-related ordinances can coexist with public events and gatherings.

Download the full text of California Senate Bill-969

SB-969 defines an entertainment zone as “a zone created by a city, county, or city and county ordinance … that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights-of-way adjacent to and during a special event permitted or licensed by the department.” While this presents opportunities for public engagement, the law includes specific conditions to prevent misuse and ensure safety.

Key Legal Changes Under SB-969

The foundation of SB-969 lies in its structured approach to regulating public alcohol consumption. Cities and counties interested in creating entertainment zones must pass ordinances that define the zone’s boundaries, operating hours, and container requirements. Only approved nonglass and nonmetal containers are allowed, and alcohol consumption is restricted to beverages purchased from licensed establishments within the zone.

Moreover, open-container privileges come with strict controls. For example, the law states, “No alcoholic beverages purchased at the licensed premises may leave the premises in an open glass or metal container for consumption in an entertainment zone.” Additionally, businesses within the zones are prohibited from delivering alcohol via third-party services unless it is to a private residence or business outside the entertainment zone.

Impact on Businesses

SB-969 offers new privileges to licensed beer manufacturers and wineries operating within entertainment zones, but these privileges come with added responsibilities. Businesses may allow patrons to exit their premises with open containers for consumption in the zone, provided that annual notice of intent is submitted to the California Department of Alcoholic Beverage Control (ABC).

The law specifically prohibits outside alcohol in the zones and places accountability on businesses to prevent violations. Establishments are required to ensure that “all alcoholic beverages in the entertainment zone are purchased only at a licensed premises located within the entertainment zone.” This ensures that participating businesses benefit from the increased foot traffic without competing against unlicensed or unregulated sources.

Oversight and Law Enforcement

SB-969 requires cities to consult local law enforcement before establishing an entertainment zone. Law enforcement must assess potential public safety impacts and propose mitigation strategies, such as controlling access points, preventing underage drinking, and managing crowd behavior.

To maintain accountability, cities must review the operation of entertainment zones every two years in consultation with law enforcement. This biennial review evaluates the zone’s impact on public health and safety, and findings are made available to the ABC upon request.

State and Local Coordination

SB-969 carefully delineates the roles of state and local governments. While the ABC oversees alcohol licensing, local governments retain authority over land use and public safety measures. Ordinances creating entertainment zones must include processes to identify patrons over 21 and ensure compliance with statewide alcohol laws. Additionally, these ordinances cannot authorize alcohol consumption during hours prohibited by state law.

This balance between state and local authority allows cities to tailor entertainment zones to their unique needs while maintaining a consistent framework for alcohol regulation across California.

Future Implications

SB-969 establishes a precedent for how California cities can modernize alcohol laws to align with evolving consumer preferences. While the initial rollout will focus on San Francisco, other cities may follow suit, creating their own entertainment zones to attract tourism and foster economic growth.

However, challenges remain. Municipalities must address concerns about crowd safety, waste management, and potential disruptions for nearby residents. Balancing the benefits of entertainment zones with these challenges will require careful planning and public engagement.

As California takes its first steps toward integrating entertainment zones into its urban landscapes, SB-969 provides a detailed roadmap for cities to innovate responsibly. While the law opens new possibilities for public events, its success will depend on thoughtful implementation and ongoing oversight.