At the August 12, 2019 City Council meeting, staff received direction to explore changes to the Sparks Municipal Code (SMC) that would allow bars and pubs to fill growlers and crowlers. A growler is a refillable, resealable bottle or jug used to carry beer. Growlers are typically 64 ounces, but there is some variation in growlers' sizes. A crowler is a 32-ounce metal can that is filled with beer, mechanically sealed, and opened with a tab just like a soda can. As craft beer has grown in popularity, the popularity of growlers and crowlers has also grown, and staff has received inquiries from several businesses about their abilities to fill growlers.

SMC Chapter 5.28 governs alcoholic beverage licenses. Various provisions of SMC Chapter 5.28 permit the sale of alcoholic beverages for consumption on the licensed premises or in "packages." SMC 5.28.010(O) defines "package" as "any immediate container of an alcoholic beverage which is filled or packaged by the manufacturer or bottler thereof for sale by such manufacturer or bottler." Only a holder of a manufacturer's license is permitted to bottle alcoholic beverages. SMC 5.28.030. Because filling a growler or crowler with beer constitutes bottling an alcoholic beverage, only licensed alcoholic beverage manufacturers may fill growlers or crowlers under existing ordinances.

Staff has also received inquiries from catering businesses about serving alcohol at catered events. The existing alcoholic beverage licenses in SMC Chapter 5.28 are tied to specific locations, meaning that caterers who serve events at various locations throughout the City cannot legally serve alcohol under current ordinances.

If approved, Bill No. 2765 would fill both of these gaps in the City's alcoholic beverage licensing scheme, allowing businesses to adapt to these changing trends in alcohol sales and service.

Section 1 of the Bill adds definitions of the words "growler," "crowler," and "caterer" to SMC 5.28.010. Section 1 also amends the definition of "bartender" to include a person who fills a growler or crowler.

Section 2 creates a new "growler license," which would only be available to holders of other alcoholic beverage licenses that permit on-premises or package sales of alcoholic beverages. Bars, restaurants, or grocery stores licensed to serve or sell beer at retail could obtain growler licenses, allowing those businesses to sell beer in growlers or crowlers. Licensed manufacturers would be exempt from the new growler license requirement, meaning that the new growler license would have no impact on manufacturers' existing ability to fill growlers and crowlers. Because a growler license would only be available to a holder of another alcoholic beverage license, no additional background investigation would be required to obtain a growler license.

Section 3 of the Bill creates a new "caterer's alcoholic beverage license," which would allow licensed caterers to serve alcohol along with food at catered events. Holders of such licenses would be required to comply with all other licensing requirements, such as obtaining a City business license. If a caterer already holds another type of alcoholic beverage license, no additional background investigation would be required. On the other hand, if a caterer seeking a caterer's alcoholic beverage license does not have another type of alcoholic beverage license, a background investigation would be required. Similarly, bartenders working for caterers would be required to obtain work permits, just like bartenders in establishments with fixed locations. Creating this new license type would allow caterers to serve alcohol while also ensuring that individuals serving alcohol at catered events are qualified to do so.

Section 4 amends SMC 5.28.280 to establish fees for growler licenses and caterer's alcoholic beverage licenses.

In conclusion, Bill No. 2765 would allow businesses to grow and adapt to changing customer demands while also providing appropriate limitations on sales and service of alcoholic beverages in the City.

City Council may approve Bill No. 2765 as written, amend Bill No. 2765 and approve it with amendments, or reject Bill No. 2765 in its entirety.

I move to approve Bill No. 2765, an ordinance amending Chapter 5.28 of the Sparks Municipal Code by adding provisions allowing some alcoholic beverage licensees to fill growlers and crowlers; allowing alcohol service by caterers; and providing other matters properly related thereto.