Good News for Music Venues
In March, the amazing guys with NIVA CA invited me to be on a panel regarding the new Type 90 Music Venue license from Dept. of ABC. It was a great opportunity to learn more about how a baby liquor license comes into the world. I learned a LOT about the current iteration as well as some of the obstacles still to address. Right now it won’t work for everyone, but overall, it’s a great license option and it will be even better within the next year if all continues to go as it is going.
I wanted to take a few minutes to share what I learned on the license resulting from SB-793 for future reference. I hope this is helpful.
The Type 90 is an all-ages license for ‘music entertainment facility’. It requires that live shows are advertised and marketed, performers are paid, and tickets are sold to patrons (ie. no free shows). There must be distinct areas for performers and audience members. You need mixing equipment, PA system and a lighting rig, and you must employ staff for at least two of the following roles:
sound engineer
booker
promoter
stage manager
security
box office manager
You can serve alcohol 2 hours before and 1 hour after live performances. The best part is you do not have to serve food. Maintaining kitchen operations and facilities is a huge drawback to California music venue operators who want to serve all-ages under the Type 47 license. This license resolves that dilemma.
It costs $16,560 on the current fee schedule (increases each year), plus the annual fee of $860-$1,355, depending on the city’s population. Portable Bars (Type 68) are $495-$860 (more on that below). It also requires Public Convenience or Necessity (aka PCN) from the ‘local governing body’.
As I mentioned, it may not work for everyone. There are three main issues currently for this license, two of which should hopefully be resolved by 2024.
Duplicate Bars: Currently, you cannot have more than one fixed bar serving distilled spirits. Additional bars can serve beer & wine, or you can get a “Portable Bar” Type 68 for spirits, but without the “Duplicate” fee available, the second and third (or 5th) permanent bar on site cannot legally serve spirits.
Private Events: Private Events are a substantial part of many current music venue businesses, and currently they are not compliant with the music venue requirements of advertising for shows. Until there are changes in the legislation, Private Events are risky for Type 90 license holders as they are technically out of compliance with the license privileges.
Zoning and PCN (Public Convenience or Necessity): There are a lot of unknowns with how local Planning Departments and local governing bodies are going to handle this license. Prior to submitting an application, I HIGHLY RECOMMEND you reach out to decision-makers or experts with your city or county’s Planning Department to see how the use is determined. There may be additional fees for Conditional Use Permits, Planning Commission Hearings or one of the other torture devices cities and counties have come up with for business owners to endure when trying to start a business.
This license being so new means there are unknowns with enforcement as well, as ABC and local police departments train their agents on what to look for. Typically, they will focus on one or two areas to check compliance, and if a licensee is violating some code there, they may double down and look for more.
If I was to wager, I’d bet those main areas will be ensuring there are live performances when the venue is open to the public and the old favorite of NOT SERVING MINORS, but time will tell. I plan to have that insight for you Type 90 operators sooner than later.
I want to wholeheartedly commend the work of NIVA CA’s Casey Loudermilk and Joe Rinaldi, Ben VanHouten with SF’s office of Economic and Workforce Development, and the staff of state Senator Scott Weiner in the advocacy and making of this license.
Matt Botting, Alex MacIlraith and Jamie Taylor with Department of ABC have impressed me with their constructive and helpful engagement in getting the industry up to speed on this new license. I think a fruitful precedent has been set in how the businesses and regulators can work together and better California. Lord knows we need some good news these days.
It’s been incredible to be a part of this in my small way and even though I like to be in bed by 10, I’m looking forward to breaking curfew to see some shows in the newly minted Type 90’s. The first of which will be at The Independent, one of San Francisco’s pioneers on this.
Thank you to Dan Serot with Another Planet Entertainment for bringing me into the mix.
