Defending Accusations from the Department of Alcoholic Beverage Control
Understanding California’s Alcohol Laws & How They Are Enforced
The California Constitution gives the Department of Alcoholic Beverage Control (ABC) the exclusive power to issue alcohol licenses in the state. The agency engages in rule-making, issues guidance to the industry (Industry Advisories), and enforces laws. It also collects annual fees from licensees and reports from winegrowers and wine blenders.
The Department of Alcoholic Beverage Control’s enforcement officers often operate as undercover agents in plain clothes (no uniforms). They investigate complaints and perform random sting operations. Sting operations tend to target those with a history of license violations. That means once a business has one violation, they are likely to face further enforcement scrutiny. ABC also carries out decoy operations, where agents send people who are twenty years old and younger into stores, restaurants, and bars to try to purchase alcoholic beverages.
When the ABC brings claims against licensees, it calls them “Accusations.” ABC’s administrative law judges decide accusation proceedings.
Licensees should contact an alcoholic beverage attorney as soon as they become aware of an investigation or an accusation. Hiring an alcohol lawyer and responding quickly to ABC problems will increase your chances of a favorable outcome.
Licensees have a short period of time to notify the ABC if they intend to defend themselves from accusations. Even if they intend to settle allegations, they should consult an alcohol attorney about negotiating the best possible penalty and mitigating the risk of further compliance problems.
Understanding Common ABC Violations and Their Consequences
Common enforcement problems include alleged:
- Exercise of license privileges without the appropriate license;
- Sharing profits from alcohol sales with unlicensed persons;
- Tied house violations, including failures to follow the rule prohibiting suppliers from giving “things of value” to retailers and other marketing regulations;
- Creation of a “disorderly house”;
- Sales to a minor; and
- Failures to comply with license conditions.
Licensees face severe consequences for violations of alcohol statutes. The Department of Alcoholic Beverage Control can suspend or revoke a license for good cause. It uses a range of penalties that include fines, suspensions of varying lengths, and in the most serious cases, revocation.
The California Department of Alcoholic Beverage Control’s rules set a default penalty schedule for the most common violations. The California Department of Alcoholic Beverage Control (ABC) may recommend a higher or lower penalty, depending on the circumstances. Judges will consider various mitigating and aggravating factors, such as whether the business has a prior history of misconduct.
Preparing Strategic Defenses for ABC Accusations
Licensees have a right to contest ABC accusations and request a hearing on the charges. If they do not prevail at the hearing, licensees have the right to seek an appeal before the Alcoholic Beverage Control Appeals Board.
Defending ABC accusations requires a thorough understanding of federal, state, and local alcohol laws, including strategies for defending cases before the ABC’s administrative law judges and pursuing related appeals. Defending an accusation should include an investigation and legal analysis. Each case is unique and requires a tailored strategy.
Consult an alcoholic beverage attorney before you provide any documents or employee interviews to the ABC or other enforcement agencies.
Proactive legal representation can protect your wine, beer, or liquor license and safeguard your reputation. Acting early maximizes the potential for positive outcomes and minimizes the risk of damages for you, your employees, and your business partners.
Navigating Complex Alcohol Laws and Regulations
A complex web of federal, state, and local alcoholic beverage control laws and regulations govern the manufacture, distribution, importation, transportation, sale, and service of wine, beer, and liquor. California’s legal framework is the most comprehensive in the country. It strictly controls who may own licenses and how they can operate.
Protecting Your Business and Liquor License
Protecting your wine, beer, or liquor license is crucial for your long-term business success. Violations remain on your record forever. They can never be expunged. Businesses with violations on their record face higher levels of enforcement, including ABC decoy operations and sting operations. In addition, once a licensee has a violation on his or her record, they must disclose it on future license applications.
Why Choose Gillian Garrett Law, PC for ABC Defense
Gillian Garrett Law, PC has extensive experience defending clients before the Department of Alcoholic Beverage Control. Gillian appears before ABC judges regularly. She’s a built a strong track record of successfully representing licensed businesses in ABC accusations and similar proceedings. She offers personalized services, tailored to each client’s strengths, needs, and challenges.
Gillian Garrett Law, PC can also conduct investigations and compliance audits, make recommendations to prevent future problems, and prepare alcohol law handbooks.
Frequently Asked Questions:
All of them! And if they want to be a manufacturer, importer, distributor, or warehouser, then they also need a federal permit or bond.
The single most common type involves selling alcohol to minors.
If you receive an accusation, you have only 10 days to submit a notice of defense. A notice of defense requests a hearing and preserves your right to defend against the allegations in the accusation.
Yes, depending on the severity of the conduct.
Penalties range from a 15 day suspension (which can usually be reduced to a fine), to revocation, depending on the number and frequency of misconduct.
Accusations based on decoy operations can be hard to defend. They often result in permanent violations on the business’s disciplinary record.
Yes. But penalties are higher when the owner is aware of, or involved in, the misconduct.
Yes. Industry members should consult an alcohol attorney about negotiating the lowest possible penalty.
It depends. Once an accusation is filed, the hearing process usually takes approximately 5-10 months.
Yes. Decisions can be appealed to the Alcoholic Beverage Control Appeals Board. From there, decisions can be appealed to the Court of Appeal (skipping the Superior Court) and then the state Supreme Court.
They tend to increase future penalties, particularly for the same category of misconduct.
Yes. Gillian can conduct audits, create compliance plans, and prepare handbooks. You can contact Gillian directly at [email protected].