The California ABC just announced the application period for new general liquor licenses, which gives restaurant and bar owners the very limited opportunity to purchase a new Type 47 or Type 48 license from the ABC. The general liquor license is the most coveted license, as it authorizes the sale of beer, wine, and distilled spirits (as opposed to beer and wine-only licenses that are available year-round). The number of general licenses that the ABC can issue in a county is restricted by county population. If the maximum number of licenses has already been issued for the county, the only way to obtain a general license is to buy one from an existing licensee in the county, very often at a high premium. However, as a county’s population increases, the ABC authorizes new general licenses once per year during a priority application period by allowing the issuance of new licenses in the county and intercounty license transfers.
During the priority period, applicants can submit an application to obtain a new original general license in the county ($13,800 filing fee) or to transfer a license from anywhere in the state to the priority county ($6,000 filing fee). However, because the number of licenses in each county is restricted by population, only certain, growing counties are included in the priority application period and only for a specific number of the licenses.
The following Northern CA counties are eligible for new on-sale general licenses:
Alameda County – 25
Contra Costa County – 25
Monterey County – 18
Sacramento County – 25
San Mateo County – 8
Santa Clara County – 25
Santa Cruz County – 4
Solano County – 15
Unfortunately San Francisco, Sonoma, Napa, and Marin counties do not have any new general licenses available.
If you are interested in applying for a new general license in one of the authorized counties, here are a few things to keep in mind:
• The application period is September 12 – September 23, 2016. If you miss it, that’s it until next year. 5pm on September 23, 2016 is the hard deadline.
• An applicant must be a resident for California for at least 90 days (which includes being incorporated in California if the applicant is an LLC or corporation) to be eligible.
• This is a lottery system. If the number of applicants is less than the number of licenses available (unlikely), everyone wins. If the number of applicants is more than the number of licenses available, a public drawing is held. Unsuccessful lottery applicants will be refunded their application fee, minus a $100 processing fee.
• Successful lottery applicants will have 90 days to complete a formal application for their specific premises (formal applications require proof of a 2-year right of tenancy at the applied-for premises).
• Licenses issued through the priority system are subject to unique transfer requirements and restrictions, so be aware of these prior to applying.
Bend Law Group assists restaurants and bars in the start-up process, including incorporation, investment strategies, and ABC and health permitting, plus compliance and contractual matters after opening. We can help you submit your priority application for a general license and then the formal application once (fingers crossed!) it is approved. Please contact us at info@bendlawoffice.com or 415-633-6841 for more information.
Disclaimer: This article discusses general legal issues and developments. Such materials are for informational purposes only and may not reflect the most current law in your jurisdiction. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel in the relevant jurisdiction. Bend Law Group, PC expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this article.