The Small Business Commission voted unanimously Dec. 8 to support Board of Supervisors file 251103, a proposed amendment to the San Francisco Planning Code that would allow certain movie theaters to serve beer, wine or liquor as a minor/incidental use without being treated as restaurants under the code's gross-receipts test.

Lorenza Rosas, legislative director for Supervisor Cheryl, told the commission the ordinance makes three key changes: it amends the planning code definition of movie theaters to allow on-site alcohol with an ABC license as a minor/incidental use; it adds a subsection exempting movie theaters from the bona fide eating place gross-receipts requirement; and it specifically exempts the Clay Theater in the Upper Fillmore neighborhood commercial district from needing conditional-use authorization for modest alterations and for offering general entertainment uses.

Rosas said the current zoning nuance effectively requires theaters that serve alcohol to meet a restaurant revenue test (51% of gross receipts from on-site prepared food), which she called "illogical" and a barrier to small historic single-screen theaters. "We are therefore mandating that the newly renovated Clay Theater... make at least 51% of their revenue from food that they prepare on-site. That makes no sense," she said.

Commissioners expressed support for making it easier for neighborhood theaters to operate and for potential spillover benefits to nearby merchants. Commissioner Ortiz Cartagena called the change "common sense," and other commissioners emphasized how theaters can anchor foot traffic in commercial corridors.

Commissioner Benitez moved to approve a motion supporting Board of Supervisors file 251103; Vice President Zazunas seconded. The clerk recorded unanimous "Yes" votes from Commissioners Benitez, Cornett, Herbert, President Huey, Ortiz Cartagena and Vice President Zazunas, and the motion passed.

What this does and does not do: The ordinance as presented would change how the city's planning code treats alcohol service at movie theaters (zoning treatment and the bona fide eating place test) and would include a specific exemption for the Clay Theater. It would not alter State ABC licensing processes; Rosas said theaters would still have to obtain any required ABC liquor license.

The commission's vote is a formal expression of support for the Board of Supervisors file; the transcript does not record final Board action or next procedural steps for the Board of Supervisors within this meeting.