Is it Hard to Get a Liquor License in California?

Are you in a position where you are wondering, “It is hard to get a liquor license in California?” Obtaining a liquor license in California can be a challenging process, but it is certainly not impossible. For individuals or businesses looking to serve alcohol, whether at a bar, restaurant, or retail store, understanding the steps, requirements, and the legal landscape is crucial.

California liquor licensing can be complex depending on certain circumstances, which is why it is advised to consult with an experienced attorney who may share tips on how to navigate the application process.

What Is a Liquor License in California?

In California, a liquor license is required to sell alcoholic beverages legally. The Department of Alcoholic Beverage Control (ABC) regulates the issuance of these licenses, ensuring compliance with state and local laws. The state’s Alcoholic Beverage Control Act outlines various licenses that businesses can obtain, each tailored to different types of alcohol sales, such as for on-premise consumption or off-premise consumption.

Types of Liquor Licenses

California offers numerous types of liquor licenses, depending on the nature of the business and the type of alcohol involved. Here are some of the common types:

• Type 41 – Beer and Wine License for Restaurants: This is one of the most commonly sought-after licenses for restaurants serving beer and wine only.
• Type 47 – On-Sale General License: This license allows businesses to serve distilled spirits, beer, and wine for on-premises consumption, typically seen in full-service restaurants or bars.
• Type 21 – Off-Sale General License: This license allows businesses to sell all types of alcoholic beverages for off-premises consumption, typically issued to liquor stores.

These licenses are issued by the ABC and come with strict regulations and requirements.

The Application Process

The process of applying for a liquor license in California can be lengthy and complex, requiring careful attention to detail. Here are the steps involved:

• Determine the Type of License You Need: The first step is to determine which type of liquor license you need based on your business model. This decision can affect both the cost and the difficulty of obtaining the license.
• Meet Location Requirements: A liquor license can only be issued if the location meets certain criteria. The business must be located in a zone where alcohol sales are permitted.
• Submit the Application: Once the appropriate license type and location have been determined, the next step is to submit an application with the California Department of Alcoholic Beverage Control. This process includes providing detailed information about the business, its owners, and financial information, along with paying a non-refundable application fee.
• Public Notice and Local Approval: In many cases, a public notice must be posted at the business location, and neighbors or community members may be allowed to protest the application.
• ABC Review: After receiving the application and local approval, the ABC will conduct its own review. The agency will ensure that all requirements are met and that no legal issues exist, such as violations of alcohol laws or restrictions at the location. The ABC may hold a hearing if there are protests or issues with the application.
• Issuance of the License: If all goes smoothly, the ABC will issue the liquor license. This can take a long time, depending on the complexity of the application and whether any objections are raised.

Factors That Make the Process Challenging

Several factors can make obtaining a liquor license in California more challenging than anticipated. These include:

• Zoning Restrictions
• Competition
• Community Opposition
• Costs
• Background Checks
• Licensing Fees

Recent Legislature for California Liquor Licensing

Recent legislative developments in California have introduced changes affecting the process of obtaining a liquor license, particularly aimed at revitalizing downtown areas and supporting local businesses.

• Low-Cost Liquor Licenses for Hospitality Zones: Senate Bill 395 proposes the creation of 20 new “low-cost” liquor licenses for designated hospitality zones in downtown San Francisco, including areas like Union Square, Moscone Center, and Yerba Buena.
  These licenses would be available to businesses within these zones at a one-time fee of $20,000, significantly lower than the current market rate, which can exceed $200,000 due to limited availability. The initiative aims to stimulate economic activity and attract more visitors to these areas
• Extended Alcohol Sales: In 2018, Senator Wiener introduced Senate Bill 930, which sought to establish a five-year pilot program allowing certain cities to permit alcohol sales until 4 a.m.
  The bill aimed to support nightlife and economic activity by extending service hours beyond the standard 2 a.m. cutoff. However, as of October 2024, the bill had not been enacted, and the standard last call remained at 2 a.m., except for at the Los Angeles Clippers’ Intuit Dome.

FAQs

Q: How Long Does It Take to Get a Liquor License in California?

A: In California, obtaining a liquor license can take a while, depending on factors like the type of license, location, and any complications with the application. Processing times can vary due to local government requirements and background checks. It is important to ensure all documents are completed on time to avoid delays.

Q: How Much Does It Cost to Get a Liquor License in California?

A: The cost of a liquor license in California varies depending on factors such as the type and location. Generally, fees range from $100 to several thousand dollars. For example, a beer and wine license may cost around $300, while a full liquor license can cost anywhere from $15,000 to $20,000 or more.

Q: Why Is a Liquor License So Expensive in California?

A: Liquor licenses in California can be very expensive due to high demand, strict regulations, and limited availability. The state imposes numerous requirements, including background checks, zoning laws, and financial stability, which increases the cost. Additionally, competitive markets drive prices up, as licenses are often bought and sold in secondary markets.

Q: What Happens If You Sell Liquor Without a License in California?

A: In California, selling liquor without a license is a serious offense. Violators can face fines of up to $1,000 and imprisonment of up to six months. Additionally, they may be subject to civil penalties, and businesses can face closure or legal actions from the California Department of Alcoholic Beverage Control.

Contact Our Firm Today

While obtaining a liquor license in California can be a challenging and sometimes time-consuming process, it is by no means impossible. It is essential to work with a skilled attorney or consultant who has experience in liquor license applications to navigate the legal and regulatory landscape effectively. Blake & Ayaz have years of success in helping others obtain liquor licenses. Contact us today so we can begin helping you.