Defending Your License Application from Protests
Understanding ABC License Protests
During the alcohol license application process, any person can protest the issuance of the license. Most protests are filed by neighbors of the propose licensed premises, or local law enforcement agencies.
The Department of Alcoholic Beverage Control (ABC) can reject protests, except those by public officials and agencies, if it finds they are “false, vexatious, invalid or unreasonable,” or “without probable cause.”
If the ABC finds the protest is timely and valid, then a Licensing Representative will investigate the protestant’s concerns and prepare a written report. Cases may involve more than one, and sometimes many, protestants.The investigation report will make a formal recommendation about whether the license application should be granted.
After the Department notifies the applicant and the protestant(s) about whether it will grant the license application, the losing party has the opportunity to request a hearing before one of the Department’s administrative law judges.
It’s important to consult an alcohol attorney when you learn a valid protest has been filed against your license application. Protests and protest hearings complicate and delay the licensing process. The Department imposes more special conditions on protested licenses, including limits on business hours and noise. Don’t agree to any license conditions without speaking to an alcohol attorney first.
Filing a Protest Against a Liquor License
The protestant must file a written protest within 30 days of either the date the “Public Notice of Application” is first posted at the premises, or the date the applicant mails the “Notice of Intention to Engage in the Sale of Alcoholic Beverages” to persons living within a 500-foot radius, whichever is later.
Protests by public officials must be filed with the Department within 30 days of the Department’s mailing.
Preparing for a Public Hearing on a Protest
Applicants should hire an alcohol attorney to represent them at protest hearings. Protest hearings involve presenting witness testimony and evidence, cross examining protestants and other witnesses, objecting to protestant’s evidence, and making legal arguments before the judge.
Hiring legal counsel to defend your application from protests will make it more likely your application will be granted with fewer conditions.
Protestors also have the same right to be represented by a lawyer at the hearing, present evidence, and examine witnesses.
Obtaining Interim Operating Permits
If the investigation report recommends issuance of the license, then the Department will issue the applicant business an Interim Operating Permit while the protest is pending.
While doing business with an Interim Operating Permit, businesses must pay for all alcohol deliveries COD (no credit terms).
Appealing a Protest Outcome
Any party can appeal an administrative law judge’s decision in a protest case to the Alcoholic Beverage Control Appeals Board.
To appeal, you or your attorney must file a “Notice of Appeal” with the Appeals Board within the time limit.
Why Work with Gillian Garrett Law, PC on ABC License Protests
Gillian regularly defends license applicants in protest hearings and related appeals. Gillian’s background in complex commercial litigation, together with her thorough knowledge of alcohol law, make her uniquely positioned to handle protest hearings and appeals.
Frequently Asked Questions:
Anyone can file a protest. The most common protestants are neighbors of the applicant business and local law enforcement.
Common grounds include concerns issuance of the license would:
• Interfere with neighbors’ quiet enjoyment of their properties;
• Create a public nuisance, including loitering, and/or litter;
• Cause or add to crime in the area;
• Violate applicable zoning laws; or
• Create an overcncentration of licenses in the neigborhood;
The protestant must file a written protest within 30 days of either the date the “Public Notice of Application” is first posted at the premises, or the date the applicant mails the “Notice of Intention to Engage in the Sale of Alcoholic Beverages” to persons living within a 500-foot radius, whichever is later. Protests by public officials must be filed with the Department within 30 days of the Department’s mailing.
Protests delay the time it takes to obtain an alcohol license. The ABC can also decide not to issue a license because of a protest, though outright denials are relatively rare.
To address protests, the ABC often imposes–or tries to impose–special conditions on the license. When applicants agree to conditions, they sign a petition for conditional license. It’s important for applicants to consult an alcohol lawyer before signing a petition for conditional license so that they minimize restrictions on their business.
Yes. And if the protestant doesn’t show up for the hearing, they forfeit their protest.
A protest hearing is the public hearing before the ABC administrative law judge to decide whether the license should be issued despite the protest, and if so, whether additional conditions should be placed on the business to address the protestant’s concerns.
It’s important to present witness testimony and documentary evidence at protest hearings. Applicants should consult an alcohol attorney to prepare a thorough defense.
Yes. Any party can appeal the decision to the Alcoholic Beverage Control Appeals Board.
The protest process, including the investigation and hearing, can take approximately 9-15 months. The ABC publishes these timelines for applications:
• Non-protested applications – 55 to 65 days
• Protested applications (protest(s) withdrawn after negotiations) – 95 days
• Protested application — 275 days or more
Applicants should stay in close contact with their local ABC office to stay abreast of the timeline.