SB 530: Beer bikes fine, but strictly BYOB

On Oct. 4, 2015, Gov. Jerry Brown signed Senate Bill 530 into law, amending the Vehicle Code to create a path for "beer bikes" to operate on California streets. Beer bikes are slow moving pedal-driven contraptions that accommodate up to 15 passengers plus a driver. Despite their name, beer bikes in California haven't legally been able to offer beer on board as they do in some states. To date, California beer bikes have merely stopped at places where alcohol is served, offering patrons the opportunity to disembark, imbibe, board the bike again, and then pedal on to their next destination - essentially a pub crawl on wheels.

SB 530 does not specifically allow beer bikes to sell alcohol, but rather establishes a mechanism for local jurisdictions to decide whether or not to allow consumption of alcoholic beverages aboard beer bikes within their borders. Rather, the law governs the operation of beer bikes, establishing standards and safety measures for all beer bikers in California. This is beneficial not only to the well-being of beer bikers, but also to the safety of everyone else on the road with them.

Existing California law generally regulates the operation of bicycles, including that a person operating a bicycle on the highway has all the rights and is subject to all the provisions that apply to a vehicle driver, including a prohibition against operating a bicycle while under the influence of alcohol. These provisions also apply to bicycles with three or more wheels that are used to transport passengers for hire, defined as a "pedicab" under the Vehicle Code.

SB 530 adds new Sections 21215 et seq. to the Vehicle Code. The new provisions do not preclude local authorities from imposing more stringent requirements on pedicabs. Section 21215 sets forth new laws for operating pedicabs, including that seating capacity be limited to not more than 15 passengers, that the pedicab operator be at least 21 years old, and that the pedicab be equipped with seatbelts, seat backs, brakes, reflectors, headlights, and other safety features. Section 21215 also requires a minimum of $500,000 general umbrella insurance and annual reporting to the California Highway Patrol of any accidents caused or experienced by a pedicab.

Whether to permit alcoholic consumption on board is left to the local jurisdiction, and the following section, 21215.2, sets forth additional new requirements specific to the consumption of alcoholic beverages aboard pedicabs. These include the presence of an operator and safety monitor who is at least 21 years old and not under the influence of an alcoholic beverage whenever alcohol is being consumed by passengers during the operation of the pedicab. The operator/monitor must be licensed by the Department of Alcoholic Beverage Control or otherwise trained to the satisfaction of the ABC, and is prohibited from providing alcohol. Alcoholic beverages must be supplied by the passengers themselves. So, Section 21215.2 permits the operator to host a rolling party - but it's strictly BYOB.

Louis Dienes is a corporate lawyer in the Los Angeles and San Diego offices of Ballard Spahr LLP where he represents innovative new businesses in a wide range of industries. You can reach him at dienesl@ballardspahr.com.