Daly City Municipal Code Ch. 5.96 Entertainment Zones

A. This chapter is adopted in furtherance of the authority granted under California Business and Professions Code Section 23039.5 et seq., as amended by SB 969, to permit licensed businesses to sell or allow consumers to exit their licensed premises with open alcoholic beverage containers for consumption in designated public outdoor areas ("entertainment zones").

B. The purpose of this chapter is to promote economic activity, pedestrian-oriented social spaces, special events, and cultural activation, while protecting public health and safety, mitigating negative externalities such as underage consumption, littering, and nuisance activity, and ensuring proper coordination among the city, law enforcement, licensees and event organizers.

C. The city council intends that participation by licensed businesses, event operators and patrons be subject to clear standards, defined zones, hours of operation, approved container types, identification procedures, and annual review to ensure continued compliance and public safety.

D. Nothing in this chapter authorizes conduct otherwise prohibited by state or local law, including but not limited to public intoxication, disorderly conduct, violations of noise regulations, or violations of health and safety codes.

E. The city council acknowledges that the California Department of Alcoholic Beverage Control (ABC) retains full authority to enforce the ABC Act and applicable regulations notwithstanding the city's designation of an entertainment zone.

(Ord. No. 1487, § 1, 2-23-2026)

"ABC Act" means the California Business and Professions Code and the regulations promulgated by the California Department of Alcoholic Beverage Control (ABC) governing alcoholic beverage licenses.

"Entertainment zone" means a zone created by ordinance of the City of Daly City on or after January 1, 2025, that is designated in this chapter (or subsequent amendment) and authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks or public rights-of-way within its defined boundaries during approved days and hours. (See Business and Professions Code Section 23039.5.)

"Licensed premises" means a premises holding a valid on-sale ABC license (e.g., Type 41, 42, 47, 48) or a licensed beer manufacturer or licensed winegrower as permitted under the ABC Act and eligible to participate under this chapter.

"Participating licensee" means a licensee located within the boundaries of an entertainment zone that has submitted the required annual notice of intent to the ABC and the city (if required) and is permitted to allow patrons to exit its premises with open alcoholic beverage containers for consumption within the zone, subject to all applicable conditions.

"Open container" means an alcoholic beverage container that is open and that is permitted to leave the licensed premises for consumption in the entertainment zone in accordance with this chapter and the ABC Act.

"Public right-of-way" means a street, roadway, sidewalk, alley, plaza or other publicly owned pedestrian area open to the public.

"Non-glass/non-metal container" means a cup or container other than glass or metal approved by the city for use in the entertainment zone.

"Special event" means an event approved pursuant to the city's special event permit process, where the activation of the entertainment zone is described, the boundaries defined, and related city, law enforcement, event organizer, and licensee coordination has been completed.

(Ord. No. 1487, § 1, 2-23-2026)

A. The city council may by ordinance establish an entertainment zone program pursuant to this chapter and may, by resolution adopted in accordance with and pursuant to this chapter designate one or more entertainment zones within the city, identifying for each zone:

1. The geographic boundaries of the zone (streets/blocks/sidewalks/plazas).

2. The types of alcoholic beverages permitted for consumption within the zone (e.g., beer, wine, mixed drinks) and the approved container types.

3. The hours and days of operation during which open container consumption is permitted in the zone.

4. The process of activating the zone (e.g., during a special event permit) and if applicable recurring activations.

5. Safety and supervision requirements, signage, age-verification protocols (twenty-one plus wristbands, etc.), security/staffing plans, trash/recycling disposal measures, and other management requirements.

6. Zones designated by resolution shall be deemed established pursuant to and in reliance upon the authority granted by this chapter.

B. No alcohol consumption privileges under this chapter may be authorized outside the hours of operation of the zone as set forth in the ordinance, nor during times when at least one participating licensee within the zone is not permitted to sell alcoholic beverages under its ABC license. (See Business and Professions Code Sections 25691(a)—(b).)

C. Prior to enactment of a new zone or modification of an existing zone, or its activation, the city shall notify its law enforcement agency (e.g., the Daly City Police Department) and request feedback regarding:

1. Potential health and safety impacts (e.g., underage drinking, public intoxication, litter, traffic/parking, enforcement plans); and

2. Proposed boundaries, days/hours, permitted beverage types, and approved container types. (See Business and Professions Section 25692(a).)

D. The participating licensee shall annually submit its notice of intent to the ABC under the applicable state online tool.

E. The city may require that alcoholic beverage containers authorized for use within an entertainment zone bear an event-specific or zone-specific marking, logo, or identifier to assist city staff and law enforcement in determining whether a container originated from a participating licensee.

(Ord. No. 1487, § 1, 2-23-2026)

A. A licensed premises within an entertainment zone that wishes to participate must:

1. Be located within the defined zone boundaries.

2. Submit annually the ABC notification of intent to participate in the open container privilege under the entertainment zone.

3. Comply with all of the following conditions:

a. Only alcoholic beverages of the type(s) specified in the zone ordinance may be served/consumed.

b. Open alcoholic beverage containers may leave the licensed premises only through an exit that leads directly into the entertainment zone and only during the approved zone hours.

c. No alcoholic beverages acquired outside the licensed premises may be introduced into the zone by patrons (i.e., no BYOB or closed containers brought in).

d. The licensee must use containers that are approved (non-glass, non-metal) per the zone ordinance, and patrons must be provided with wristbands or other identifiable marking to show age (twenty-one plus) as required by the zone management plan.

e. Delivery of alcoholic beverages by the licensee or third-party service to patrons within the entertainment zone is prohibited unless the delivery is to a private residence or private business not licensed under the ABC Act.

B. Participation by a licensee does not obligate the licensee to sell or provide alcoholic beverages for consumption off the premises. (See Business and Professions Code Section 23357(b)(2).)

C. The city may suspend or revoke a licensee's local entertainment participation privilege (or require additional conditions) upon a determination by the city manager or designee, after consultation with the Daly City Police Department, that continued participation poses a risk to public health, safety, or welfare, or that repeated or material violations of this chapter or an approved zone management plan have occurred and if the licensee or associated event fails to comply with this chapter or the applicable zone ordinance, or if public safety or nuisance issues arise. Any suspension or revocation shall apply solely to the privilege to participation in an entertainment zone under this chapter. Such action shall not affect the underlying ABC license, which remains subject solely to ABC jurisdiction.

(Ord. No. 1487, § 1, 2-23-2026)

A. When a special event permit is sought to activate an entertainment zone, the event organizer shall, as part of the permit, include a "zone management plan" that addresses:

1. Age verification (twenty-one plus wristbands, checkout/entrance control);

2. Security/staffing (liaison with Daly City Police Department and other enforcement agencies);

3. Trash/recycling/disposal of containers (including separate receptacles for zone containers and requirements for returning or disposing containers before exit);

4. Signage (clearly identifying zone boundaries, permitted containers, "no outside alcohol" rule, hours of operation);

5. Patron flow/exit strategy (ensuring patrons exit licensed premises directly into the designated entertainment zone);

6. Noise/lighting/clean-up plan consistent with the city's special event regulations and local nuisance/quiet hours codes;

7. Coordination with participating licensees and training of their staff;

8. Reporting Procedures. Incident reporting to the Daly City Police Department within twenty-four hours if law enforcement responds to violence, public intoxication or other major incident (mirroring San José's model); and

9. Security Staffing and Public Safety Conditions. The zone management plan shall include a security and staffing plan commensurate with the size, duration, location, and nature of the event and the anticipated number of patrons. Based on objective event characteristics, including but not limited to anticipated attendance, alcohol service scope, hours of operation, location-specific considerations, and prior incident history, the city may require the use of state-licensed security guards as part of the approved security plan.

Nothing in this chapter shall be construed to establish fixed security ratios or to limit the authority of the city manager, police chief, or their designees to impose additional, modified, or alternative security conditions as necessary to protect public health and safety, including prior to or during an event.

(Ord. No. 1487, § 1, 2-23-2026)

A. Patrons consuming alcoholic beverages within the entertainment zone must be aged twenty-one or older.

B. The city (or its designee) shall establish a wristband or other uniform age-verification marking system for all patrons consuming alcohol in the zone; all participating licensees and event organizers must comply. (See Business and Professions. Code Section 25690(a).)

(Ord. No. 1487, § 1, 2-23-2026)

A. The city (or its designated official or body) shall conduct a review of each entertainment zone every two years following its adoption, in consultation with local law enforcement and other stakeholders, to evaluate whether the zone is being operated in a manner that protects health and safety, mitigates nuisance impacts, and supports economic goals. (See Business and Professions Code Section 25692(b).)

B. The results of the review, including incidents, enforcement actions, issues with litter or noise, business participation and economic metrics, shall be made available to the ABC upon request.

C. Based on the review, the council may modify, suspend or revoke a zone's designation, change its boundaries or hours, require additional conditions or terminate the zone if warranted.

(Ord. No. 1487, § 1, 2-23-2026)

A. Violation of any provision of this chapter by a licensee, event organizer or patron may result in administrative or criminal enforcement actions as authorized by the Daly City Municipal Code or state law, including revocation of the licensee's participation privilege, suspension of event permits, fines, or other penalties.

B. The city may adopt regulations, forms, fees and administrative procedures necessary to implement this chapter.

C. Enforcement of this chapter is cumulative and in addition to any enforcement authority exercised by the California Department of Alcoholic Beverage Control or other regulatory agencies.

(Ord. No. 1487, § 1, 2-23-2026)