Can Any Person Obtain an Alcoholic Beverage License in California?

It is illegal to sell alcohol in California without possessing the appropriate permit from the Department of Alcoholic Beverage Control. In addition to specific requirements to acquire the permit, there are also disqualifications that can prevent you from being approved for a liquor license. If you are considering applying for a license, you may be wondering if any person can obtain an alcoholic beverage license in California.

The U.S. and California Alcoholic Beverage Industry

The U.S. alcoholic beverages market was valued at $519.89 billion in 2023 and is estimated to grow to $770.61 billion by the year 2032. For savvy business owners, this is an excellent industry to break into and grow within; however, there are important regulatory standards that must be met for legal compliance.

This is especially true in California, as the Department of Alcoholic Beverage Control (ABC) staunchly regulates portions of the alcohol industry. The ABC acts within the state’s executive branch as an independent department. The agency’s mission is to facilitate public safety and equitable service to Californians through education, licensing, and enforcement. It is responsible for regulating the import, manufacture, and sale of alcoholic beverages in California.

ABC agents are fully sworn peace officers with a duty to enforce the provisions of the ABC Act. The ABC Act states the basis for the liability of licensees for employees, establishments, and owners.

Acquiring a California Liquor License

Not everyone is qualified to obtain a liquor license in California, and the California liquor licensing process can be incredibly difficult. The total number of available liquor licenses issued in California is capped, meaning new businesses often must privately purchase an existing license from a pool of proprietors who already possess pre-existing licenses. This means choosing the right license type is crucial for your success, as is understanding the requirements for that license.

The most in-demand types of California liquor licenses are:

• Type 20. This license type allows the sale of beer and wine but not liquor, and is commonly found in convenience stores and grocery stores.
• Type 21. Generally, the most popular type for liquor stores, this license type allows the sale of beer, wine, and liquor.
• Type 41. This license type permits the sale of beer and wine alongside food.
• Type 47. One of the more expensive license options, this type allows the sale of beer, wine, and spirits in a full-service restaurant.
• Type 48. The most difficult to obtain and the most expensive, this license type permits the sale of beer, wine, and liquor to patrons aged 21 and above. The sale of food is not required.

Requirements for a California Liquor License

The additional requirements will apply depending on the type of liquor license you seek to acquire, but the following conditions must generally be met before you can apply for a liquor license:

• You are over the age of 21
• You can show proof of lease or ownership of the named venue
• You possess a zoning permit known as a Conditional Use Permit (CUP)
• You do not have a criminal record that disqualifies you from possessing a liquor license
• You do not have a history of alcohol dependence
• You have applied for a seller’s permit for sales tax
• You have purchased a liquor liability insurance plan

It must be noted that a liquor license is tied both to you and your business’s location. Different locations may very well have different license requirements, and it is crucial to identify the requirements that affect you.

Why Hire a Liquor License Lawyer With Blake & Ayaz?

Managing the process of applying for a liquor license can be complex and stressful, especially while you manage other aspects of your business. A significant amount of time and financial investment is required, but these investments can grow exponentially if mistakes are made.

A liquor license attorney from The Blake & Ayaz team can advise you on the appropriate license for your needs, as well as the necessary steps to qualify for the license. Our experience also enables us to assist you in creating policies and processes that ensure compliance with ABC policies and standards.

FAQs

Q: What Does the California Department of Beverage Control Do?

A: The California Department of Beverage Control regulates the sale, manufacture, and import of alcohol in California. The department’s duties fall under three main categories: compliance, administration, and inspection. If there is good cause, the organization can revoke, suspend, or deny alcohol licenses. This is the agency you will go through to acquire an alcoholic beverage license.

Q: Is it Against the Law to Sell Alcohol Without a Liquor License in California?

A: It is against the law to sell alcohol without a liquor license in California. If you or your business is caught selling beer, wine, or liquor without a license from ABC, you could be arrested or mandated to appear in court. You will most likely face criminal charges, and your ability to obtain a license from ABC in the future may be negatively affected.

Q: How Much Does an Alcohol License Cost in California?

A: Determining how much an alcohol license will cost in California can be difficult, as the cost is impacted by the license type and the business’s location. In general, the cheapest license type allows a business to sell beer and wine for off-site consumption, while the most expensive type permits the sale of all liquor types for on-site consumption.

Q: How Difficult Is it to Get a Liquor License in California?

A: The difficulty you face when acquiring a liquor license depends on several factors, including the type of liquor license you need and your business’s location. It is not uncommon for the process to be incredibly time-consuming and challenging, especially if your business is located in a popular location. Factors that can make the process difficult include a limited number of licenses, high cost, and local regulations.

Explore Alcoholic Beverage License Requirements

Determining your eligibility for a liquor license in California is one of the first steps of selling alcohol in the Golden State. Unfortunately, understanding the requirements and which ones apply to the license you need can be difficult. With 9,700 license applications submitted to the ABC between July 2023 and July 2024, efficiency in your application process is critical.

With over 100 years of experience supporting California business owners, Blake & Ayaz can help you determine the type of license you need, whether you are eligible, and how to comply with alcohol beverage regulations. Contact our office today to discover how we can be a valuable resource for you and your business.