Chapter 9.05 — ENTERTAINMENT ZONES

The purpose of this chapter is to implement Senate Bill 969 (2025) as codified in various sections of the Business and Professions Code through the establishment and regulation of entertainment zones to allow the purchase of open container alcoholic beverages for consumption outside in common spaces such as plazas, public streets, sidewalks or public rights-of-way during certain hours.

(Ord. 5698 § 1 (part), 2026)

The definitions set forth in this section shall govern the application and interpretation of this chapter.

(a) “ABC” means the California Department of Alcoholic Beverage Control.

(b) “Entertainment Zone” has the meaning set forth in Section 23039.5 of the California Business and Professions Code, as may be amended; and their locations are described under PAMC Section 9.05.050.

(c) “Entertainment Zone Event” means an event that occurs within the boundaries of an entertainment zone in compliance with state law, local laws, and regulations, including this Chapter 9.05, and subject to the requirements of a special event permit issued by the city.

(Ord. 5698 § 1 (part), 2026)

(a) All persons and legal entities of any type (including businesses and non-profit organizations) sponsoring an entertainment zone event, or selling alcoholic beverages at an entertainment zone event shall comply with all applicable state and local laws and regulations, including:

(1) All applicable ABC license and permitting requirements;

(2) Sections 23357, 23358, 23396 of the California Business and Professions Code, as may be amended from time to time regulating licensed

beer manufacturers, licensed wine growers, and on-sale licensees, respectively;

(3) All other laws governing the sale and consumption of alcoholic beverages; and

(4) All permit requirements for special events issued by the city.

(b) Open alcoholic beverages may only be consumed within an entertainment zone during an entertainment zone event, subject to any other restrictions imposed by state or local law, regulations, and permits.

(c) All open alcoholic beverages consumed during an entertainment zone event may only be purchased from a premises located within the entertainment zone that is authorized under California Business and Professions Code Section 23357, 23358, 23396, as may be amended, to permit the consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises, or an organization that is authorized by an ABC special event permit or license to make such sales within the entertainment zone.

(d) All types of beer, wine, spirits, and other alcoholic beverages that are allowed for sale and consumption by the State of California are permitted within an entertainment zone, subject to any further restrictions imposed by regulations, license, or permit conditions. This subsection does not authorize any specific ABC licensee to sell or serve types of alcohol not permitted by their license.

(Ord. 5698 § 1 (part), 2026)

Outdoor consumption of alcoholic beverages during an entertainment zone event shall only occur between the hours of 12:00 noon and 10:00 p.m., inclusive, and on Sundays from 10:00 a.m. to 10:00 p.m., inclusive, subject to more restrictive days or times imposed by state or local law, regulations, or permits.

(Ord. 5698 § 1 (part), 2026)

Car-Free California Avenue. All plazas, pedestrian malls, public streets, sidewalks and public rights-of-way that are located on either side of California Avenue between El Camino Real and Birch Street are hereby designated as the California Avenue Entertainment Zone under Sections 23039.5 and 25690 of the California and Business and Professions Code.

(Ord. 5698 § 1 (part), 2026)

(a) Within 90 days of the establishment or modification of an entertainment zone, the city’s Office of Economic Development, following consultation with the Police Department, shall provide the following information to ABC, pursuant to Section 25690 of the California Business and Professions Code:

(1) A copy of the ordinance establishing or modifying the entertainment zone;

(2) Information as may be necessary to identify the boundaries of the entertainment zone;

(3) The days and hours of operation of the entertainment zone;

(4) The types of alcoholic beverages permitted within the entertainment zone; and

(5) The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized.

(b) The City Manager or designee is authorized to promulgate regulations under this Chapter 9.05. The regulations shall include the following requirements:

(1) Establish a process or procedure to readily identify individuals purchasing or consuming alcoholic beverages within the entertainment zone

as being 21 years of age or older;

(2) Any person or organization seeking a special events permit shall comply with the insurance requirements applicable to that permit; and

(3) Any additional requirements not otherwise imposed by state or local law, including but not limited to additional requirements for approved

beverage containers, additional restrictions on hours and/or location of operation for the entertainment zone events, and other time, place and manner restrictions.

(c) Upon adoption or revision of the regulations, the Office of Economic Development shall transmit a copy of the regulations to ABC as applicable under ABC requirements.

(d) Any holder of an ABC license or permit that wishes to allow customers to leave the premises with open containers of alcoholic beverages for consumption off the premises during an entertainment zone event shall provide the city a copy of the notice provided to ABC under Section 23357, 23358, 23396, or any other applicable section of the California Business and Professions Code, as applicable, at the same time such notice is provided to ABC.

(e) In compliance with Section 25692(b) of the California Business and Professions Code, the City Manager or designee shall review the operation of the entertainment zone every two years following the adoption of the entertainment zone to ensure that the entertainment zone is being maintained in a manner that protects the health and safety of the general public. This review shall be conducted in consultation with the Palo Alto Police Department and any reports produced during the review shall be made available to the Department upon request.

(Ord. 5698 § 1 (part), 2026)