What is the Department of Alcoholic and Beverage Control?

The Department of Alcoholic Beverage Control ("ABC") is the unit of State Government that is charged with regulating the commerce of alcoholic beverages within the State of California . The 21st amendment to the United States Constitution gave each state the right to determine whether to allow alcoholic beverages, and, if so, how to regulate them. In California , the ABC was created by constitutional amendment effective January 1, 1955 , as an independent department of the executive branch of the State government. The Board of Equalization no longer has any responsibility in liquor control matters except as a taxing authority. (Section 22 of Article XX, California Constitution)

The Division of ABC is headed by a Director, whose function is to supervise the manufacture, distribution and sale of alcoholic beverages in such a number as to fulfill the public policy and legislative purpose of the Alcoholic Beverage Control Law.

ABC has the exclusive power, in accordance with laws enacted, to license and regulate the manufacture, importation and sale of alcoholic beverages in this State. It also has the power for good cause to deny, suspend or revoke any specific alcoholic beverage license. (Section 22 of Article XX, California Constitution)

        What is an alcoholic beverage license?

An alcoholic beverage license is issued under the Alcoholic Beverage Control Act and is a permit to sell alcoholic beverages, which would otherwise be against the law. A license is seen as a privilege, which can be suspended or revoked by administrative action because of a violation of the act or a departmental rule.

        What types of licenses are required?

  •    On-Sale General-authorizes the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises, and the sale of beer and wine for consumption off the premises.

•    Off-Sale General-authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.

•    On-Sale Beer and Wine-authorizes the sale of all types of wine and malt beverages (e.g., beer, porter, ale, stout and malt liquor) for consumption on and off the premises.

•    Off-Sale Beer and Wine-authorizes the sale of all types of wine and malt beverages for consumption off the premises in original, sealed containers.

•    On-Sale Beer-authorizes the sale of malt beverages for consumption on and off the premises. (Sections 23393, 23394, 23396 and 23399)

        How do I apply for a liquor license?

Any person wishing to obtain an alcoholic beverage license should apply at the nearest office of
the Department of Alcoholic Beverage Control. All parties concerned, applicants for new licenses or transferors (present licensees), and transferees (applicants) should be present. Applications should not be mailed since considerable detailed personal information is required, including fingerprints, from all individual applicants, managers, and managing officers of applicant corporations. Moreover, it is desirable for an employee of the Department to advise all applicants in person of pertinent laws, rules, and regulations. Also, in the case of a transfer, the transferee may desire information regarding a temporary retail permit.

        How long does the process usually take?

Section 23987 of the Alcoholic Beverage Control Act requires the Department to mail a copy of each application to certain local officials. Section 23985 of the Act requires a 30-day posting period. Most investigations take approximately 45 to 50 days and, by law, the license cannot be issued for a minimum of 30 days. Circumstances often result in a longer waiting period; therefore, before final approval and issuance of a license, caution should be used regarding extensive financial commitments, plans for grand openings, etc. If new construction or considerable remodeling is necessary, prior approval under Section 24044 should be sought before beginning any actual work.

        What “ special conditions” can be placed on my license?

A municipal issuing authority may, by resolution, impose any condition at the time of issuance, renewal, or transfer of any license deemed necessary and proper to accomplish the objectives of the California laws. Conditions may not be imposed for matters not directly related to alcoholic beverage control, such as zoning matters, or to compel payment of property taxes. The implementing resolution is subject to the approval of the Director, which may be given, nunc pro tunc , at the time that an appeal from a violation of the conditions is heard. Special conditions should be attached to the implementing Resolution and forwarded to the Licensing Bureau for review. Licenses may be subject to disciplinary action for violation of special conditions. To remain effective, special conditions must be re-imposed at time of transfer or renewal. Sec of Act 23800

        Can I do anything about these restrictions?

A licensee may petition for the removal or modification of a condition. The fee for the petition is $100. By law, ABC must notify the local governing body of any petition to remove or modify conditions. the local governing body has 30 days in which to object to the modification or removal. A hearing is then held if the local government objects.

When conditions have been imposed on a license, where otherwise the license would be denied, for reasons relating to the premises, no petition for removal of the conditions may be filed within one year from the date the license was issued, or from the date a similar petition was denied. However, ABC may, at its discretion, accept a petition to remove conditions, if the reasons which caused the imposition of conditions no longer exists . (Section 23803 and Rule 66)

        If an accusation is filed against me as a licensee, what rights do I have?

The licensee is entitled to have a public hearing on the accusation to present a defense against the charges made. The hearing will be presided over by an Administrative Law Judge of the Administrative Hearing Office. At the hearing the licensee is entitled to the issuance of subpoenas to compel the attendance of witnesses and materials and may be represented by counsel (but not at public expense), may present relevant evidence and may cross-examine all witnesses. The Administrative Law Judge makes a proposed decision which is filed with the ABC Director. (Government Code Sections 11500-11528)

        What happens if my city suspends or revokes my liquor license?

Within 30 days after a municipality adopts a resolution suspending or revoking a license, the licensee may appeal by filing with the Division a ““Notice and Petition of Appeal.”” The only administrative penalties available to a municipal issuing authority as a result of a license violation hearing are suspension or revocation of license privileges. When a suspension is imposed on a license by the municipal issuing authority, the licensee may file an appeal in the same manner described above to request that the Director accept a monetary penalty in lieu of the suspension. When the appeal is properly filed, the Director may stay the effective date of the suspension or revocation until the appeal has been considered

        May local law enforcement agencies use minor decoys to buy alcoholic
        beverages from licensed premises?

Yes. The California Supreme Court has held that the Decoy Program is legal and not entrapment. The Decoy Program allows local law enforcement agencies to use persons under age 20 as decoys to buy alcoholic beverages from licensed premises. The decision to use the Decoy Program is up to each law enforcement agency.

        What is the ABC penalty for selling an alcoholic beverage to a minor or
        permitting a minor to consume an alcoholic beverage in an on-sale
        premises?

The law requires the suspension of a license for a second or subsequent violation within a 36-month period. The section also authorizes the revocation of a license for a third violation within a 36-month period. ABC may revoke a license prior to a third violation when the circumstances warrant it. (Section 25658.1 )

        What other defense is available to me as a licensee accused of selling to
        minors?

A licensee accused of selling to minors has only three defenses:

1. No sale or serving of alcoholic beverages was made to the minor.

2. The person sold or served is in fact twenty-one years of age or older.

3. The person to whom the alcoholic beverage was sold or served furnished bona fide
documentary evidence of legal age and identity as described in Q.74. An example would be a motor vehicle operator's license or an identification card issued by the Armed Forces which the licensee in good faith carefully examined and reasonably relied upon as such evidence. (Section 25660)

        What happens if I do not renew my license on time?

It is the responsibility of the licensee to renew his license whether or not he has received a renewal notice from ABC.

All licenses may be renewed by paying the required renewal fee before the license expires.
Following the expiration of a license, the licensee may legally operate for an additional 60 days during which time the license may be renewed by paying the renewal fee and a 50% penalty. If the renewal fee and penalty fee has not been paid within 60 days of the expiration of a license, the license is canceled and the licensee may not exercise any privileges of the license. The licensee does have and additional 30 days in which to reactivate the license by paying the renewal fee and a 100% penalty. If the penalty and renewal fee are not paid by the end of the 30th day following cancellation, the license is revoked. (Section 24048)

        May ABC deny the renewal of an existing license?

Yes, if the licensee has not paid an annual license fee. Otherwise, every license now in effect (other than temporary retail permits and special daily licenses) is renewable unless such license has been revoked after hearing on an accusation. (Section 24048)

        Is there a limit on the number of off-sale beer and wine licenses that may
        be issued in cities or counties?

The number of off-sale beer and wine licenses is limited to one for each 2,500 people in a city or county, and the number of beer and wine licenses that can be issued in a city or county in combination with off-sale general licenses in limited to one for each 1,250 people. (Section 23817.5)

        May I, as a retail licensee, give samples of alcoholic beverages?

An on-sale retail licensee licensed to sell wine or distilled spirits may offer instruction on the product by furnishing not more than three tastings to any individual in one day. A single tasting of distilled spirits may not exceed one-quarter of an ounce, while a single tasting of wine may not exceed one ounce. (Section 23386 and Rule 52)

        What are Retail Operating Standards?

The law requires stores (license Types 20 and 21), bars, and taverns (license Types 40, 42, 48, and 60) to do the following:

•    Post "No Loitering" signs upon written notice from the Department

•    Post "No Open Container" signs upon written notice from the Department

•    Prohibit consumption of alcoholic beverages on the premises of a Type 20 or 21 license

•    Illuminate the exterior of the premises during all hours of darkness when open for business

•    Remove litter daily from the premises, adjacent sidewalks and parking lots under the
licensee's control and sweep/clean these areas weekly.

•    Remove graffiti from the premises and parking lot within 120 hours of application.

•    Have no more than 33% of windows covered with advertising or signs.

•    Have incoming calls blocked at pay phones upon request of local law enforcement or ABC.

•    Have a copy of the operating standards available during normal business hours for viewing by the general public. (The above requirements do not apply to restaurants [License Types 41 and 47], convention centers, exhibit halls, auditoriums, ballparks, stadiums, coliseums, hotels, motels, a certain marine park, wineries, or beer manufacturers.)
(Section 25612.5)