Requests to Modify Alcohol License Conditions
Introducing ABC License Conditions
Some licenses, especially retail licenses, may be subject to special conditions imposed by the California Department Alcoholic Beverage Control (ABC
California law requires licensed businesses to comply with their conditions. If the Department finds you in violation of a license condition, it can file a claim against your business. Depending on the severity of the conduct, penalties can include fines, license suspensions, and license revocations.
Since the COVID pandemic, the ABC has required more onerous license conditions for many retail businesses. The Department justifies the conditions as being necessary to discourage homelessness and loitering, but in many cases they are imposing significant restrictions on premises with no loitering problems.
Licensees should not agree to any license conditions without consulting an alcohol attorney. Once you have a condition on your license, it can be difficult and expense to remove it.
Understanding What License Conditions Can Cover
License conditions can significantly impact your business. They can cover any matter related to license privileges or the physical condition of the building or premises, including limits on any of the following:
- Hours of alcohol sales;
- Permissible levels of noise;
- Permissible categories of entertainment, including game machines, dancing, live music, etc.;
- Alcohol promotions, including happy hours;
- Whether alcohol may be served on outside areas, and if so, when;
- Whether alcohol may be taken off the licensed premises;
- Size or strength of wine, beer, or liquor that maybe sold or served;
- Minimum staffing requirements;
- Security staffing requirements;
- Minimum valet parking requirements;
- Display of signs;
- For restaurants, whether a bar is allowed on the premises;
- For restaurants, the percentage of gross sales that must involve food;
- For bars and nightclubs, whether they must serve food;
- For nightclubs and theaters, the number of alcoholic beverages that may be purchased at one time by a single person; and
- Other aspects of business operations.
License conditions are listed on the license. ABC sometimes refers to a license with special conditions as a “conditional license.” The Department posts the license conditions for many licenses, but not all, on its online license records.
Understanding When ABC May Put Conditions on Retail Licenses
The ABC may put conditions on your retail license:
- During the application process, when there are potential grounds for denying the application.
- During the application process, when the conditions address concerns raised by a protest or ABC.
- When the ABC finds a licensed business has failed to correct objectionable conditions.
- During a license transfer.
- When physical changes are made to a licensed premises that substantially alter the premises or its use from the plan in the license application.
Filing a Request for to Modify License Conditions
Once licensees have complied with conditions for one year, they can submit a written request asking the Department of Alcoholic Beverage Control to change the license conditions. Removing restrictive conditions can create new business opportunities and potential for growth.
To succeed, licensees need to show the original circumstances warranting the conditions have changed. Licensed businesses must be able to support their requests for condition modification with facts showing substantial changes in the overall circumstances.
Navigating the Process of Requesting Modifications, Including Public Hearings
If the ABC denies a licensee’s petition for modification of license conditions, the business can challenge the decision by requesting a hearing.
Hearings are held before ABC’s administrative law judges. At the hearing, your attorney will have the opportunity to present witnesses and evidence, and cross-examine the Department’s representative.
It’s important to work with an experienced alcohol attorney to maximize your potential for improving license conditions. Negotiation with ABC is a key part of the process because ABC has substantial discretion over conditions.
Appealing ABC Decisions and Other Next Steps
Any party can appeal a decision by an ABC judge to the Alcoholic Beverage Control Appeals Board.
Licensed businesses should consult an experienced alcohol attorney about challenging ABC decisions and filing appeals.
Why Work with Gillian Garrett Law, PC for License Modifications
Gillian Garrett Law, PC has extensive experience with negotiating license conditions, petitioning for condition changes, and handling related hearings and appeals.
Frequently Asked Questions:
All kind of conditions can be changed, depending on the circumstances.
It’s a good idea to start by consulting an alcohol attorney. You or your attorney can request changes by filing a written petition for modifying license conditions with your local ABC district office. You can submit the petition in person or by email.
No. You will have the burden of showing the changes are appropriate because the original circumstances justifying the conditions have changed.
It depends on the unique factual circumstances justifying the conditions in the first place.
Yes, if the same conditions are also in your Conditional Use Permit (CUP).
Yes. Protestors can protest and request a hearing on your application, where they can testify and show evidence that weighs against your request.
The ABC will require a public notice. There will only be a hearing if you or a protestor asks for it.
It depends on the circumstances and the workload at your local ABC district office. The process can take 3-18 months, depending on whether it involves a hearing.
You should consult an alcohol attorney about negotiating with ABC and whether it’s a good idea to ask for a hearing.
Yes, you can appeal decisions made by ABC administrative law judges to the Alcoholic Beverage Control Appeals Board.
No, it only affects the conditions, not the license itself.