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Attachment 2Department of Alcoholic Beverage Control COMMON ABC LICENSE TYPES AND THEIR BASIC PRIVILEGES State of California LICENSE TYPE DESCRIPTION 01 BEER MANUFACTURER - (Large Brewery) Authorizes the sale of beer to any person holding a license authorizing the sale of beer, and to consumers for consumption on or off the manufacturer's licensed premises. Without any additional licenses, may sell beer and wine, regardless of source, to consumers for consumption at a bona fide public eating place on the manufacturer's licensed premises or at a bona fide eating place contiguous to the manufacturer's licensed premises. May conduct beer tastings under specified conditions (Section 23357.3). Minors are allowed on the premises. 02 WINEGROWER - (Winery) Authorizes the sale of wine and brandy to any person holding a license authorizing the sale of wine and brandy, and to consumers for consumption off the premises where sold. Authorizes the sale of all wines and brandies, regardless of source, to consumers for consumption on the premises in a bona fide eating place that is located on the licensed premises or on premises owned by the licensee that are contiguous to the licensed premises and operated by and for the licensee. May possess wine and brandy for use in the preparation of food and beverage to be consumed at the bona fide eating place. May conduct winetastings under prescribed conditions (Section 23356.1; Rule 53). Minors are allowed on the premises. 20 OFF SALE BEER & WINE - (Package Store) Authorizes the sale of beer and wine for consumption off the premises where sold. Minors are allowed on the premises. 21 OFF SALE GENERAL - (Package Store) Authorizes the sale of beer, wine and distilled spirits for consumption off the premises where sold. Minors are allowed on the premises. 23 SMALL BEER MANUFACTURER - (Brew Pub or Micro -brewery) Authorizes the same privileges and restrictions as a Type 01. A brewpub is typically a very small brewery with a restaurant. A micro -brewery is a small-scale brewery operation that typically is dedicated solely to the production of specialty beers, although some do have a restaurant or pub on their manufacturing plant. 40 ON SALE BEER - (Bar, Tavern) Authorizes the sale of beer for consumption on or off the premises where sold. No wine or distilled spirits may be on the premises. Full meals are not required; however, sandwiches or snacks must be available. Minors are allowed on the premises. 41 ON SALE BEER & WINE — EATING PLACE - (Restaurant) Authorizes the sale of beer and wine for consumption on or off the premises where sold. Distilled spirits may not be on the premises (except brandy, rum, or liqueurs for use solely for cooking purposes). Must operate and maintain the licensed premises as a bona fide eating place. Must maintain suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the premises. 42 ON SALE BEER & WINE — PUBLIC PREMISES - (Bar, Tavern) Authorizes the sale of beer and wine for consumption on or off the premises where sold. No distilled spirits may be on the premises. Minors are not allowed to enter and remain (see Section 25663.5 for exception, musicians). Food service is not required. 47 ON SALE GENERAL — EATING PLACE - (Restaurant) Authorizes the sale of beer, wine and distilled spirits for consumption on the licenses premises. Authorizes the sale of beer and wine for consumption off the licenses premises. Must operate and maintain the licensed premises as a bona fide eating place. Must maintain suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the premises. 48 ON SALE GENERAL — PUBLIC PREMISES - (Bar, Night Club) Authorizes the sale of beer, wine and distilled spirits for consumption on the premises where sold. Authorizes the sale of beer and wine for consumption off the premises where sold. Minors are not allowed to enter and remain (see Section 25663.5 for exception, musicians). Food service is not required. 49 ON SALE GENERAL — SEASONAL - Authorizes the same privileges and restrictions as provided for a Type 47 license except it is issued for a specific season. Inclusive dates of operation are listed on the license certificate. ABC-616 (01-15) LICENSE TYPE DESCRIPTION 51 CLUB - Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for consumption on the premises where sold. No off -sale privileges. Food service is not required. Minors are allowed on the premises. 52 VETERAN'S CLUB - Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for consumption on the premises where sold. Authorizes the sale of beer and wine, to members and guest only, for consumption off the licensed premises. Food service is not required. Minors are allowed on the premises. 57 SPECIAL ON SALE GENERAL - Generally issued to certain organizations who cannot qualify for club licenses. Authorizes the sale of beer, wine and distilled spirits, to members and guests only, for consumption on the premises where sold. Authorizes the sale of beer and wine, to members and guests only, for consumption off the licensed premises. Food service is not required. Minors are allowed on the premises. 59 ON SALE BEER AND WINE — SEASONAL - Authorizes the same privileges as a Type 41. Issued for a specific season. Inclusive dates of operation are listed on the license certificate. 60 ON SALE BEER — SEASONAL - Authorizes the sale of beer only for consumption on or off the premises where sold. Issued for a specific season. Inclusive dates of operation are listed on the license certificate. Wine or distilled spirits may not be on the premises. Minors are allowed on the premises. 61 ON SALE BEER — PUBLIC PREMISES - (Bar, Tavern) Authorizes the sale of beer only for consumption on or off the licensed premises. Wine or distilled spirits may not be on the premises. Minors are not allowed to enter and remain (warning signs required). Food service is not required. 67 BED AND BREAKFAST INN - Authorizes the sale of wine purchased from a licensed winegrower or wine wholesaler only to registered guests of the establishment for consumption on the premises. No beer or distilled spirits may be on the premises. Wine shall not be given away to guests, but the price of the wine shall be included in the price of the overnight transient occupancy accommodation. Removal of wine from the grounds is not permitted. Minors are allowed on the premises. 70 ON SALE GENERAL — RESTRICTIVE SERVICE - Authorizes the sale or furnishing of beer, wine and distilled spirits for consumption on the premises to the establishment's overnight transient occupancy guests or their invitees. This license is normally issued to "suite -type" hotels and motels, which exercise the license privileges for guests' "complimentary" happy hour. Minors are allowed on the premises. 75 ON SALE GENERAL — BREWPUB - (Restaurant) Authorizes the sale of beer, wine and distilled spirits for consumption on a bona fide eating place plus a limited amount of brewing of beer. This license does not authorize the sale of alcoholic beverages for consumption off the premises where sold. Minors are allowed on the premises. 80 BED AND BREAKFAST INN — GENERAL - Authorizes the sale of beer, wine and distilled spirits purchased from a licensed wholesaler or winegrower only to registered guests of the establishment for consumption on the premises. Alcoholic beverages shall not be given away to guests, but the price of the alcoholic beverage shall be included in the price of the overnight transient occupancy accommodation. Removal of alcoholic beverages from the grounds is not permitted. Minors are allowed on the premises. 86 INSTRUCTIONAL TASTING LICENSE —Issued to the holder of and premises of a Type 20 or Type 21 licensee, authorizes the tasting of alcoholic beverages as authorized to be sold from the off -sale premises, on a limited basis. Requires physical separation from the off -sale premises while tasting is taking place and generally requires the participation of a specifically -authorized manufacturer or wholesaler licensee. ABC-616 (01-15) SPECIAL EVENTS The Department also issues licenses and authorizations for the retail sale of beer, wine and distilled spirits on a temporary basis for special events. The most common are listed below. Other less common ones are found in Business and Professions Code Section 24045.2, et seq. SPECIAL DAILY BEER AND/OR WINE LICENSE - (Form ABC-221) Authorizes the sale of beer and/or wine for consumption on the premises where sold. No off -sale privileges. Minors are allowed on the premises. May be revoked summarily by the Department if, in the opinion of the Department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State. In some instances, the local ABC office may require the applicant to obtain prior written approval of the local law enforcement agency. Issued to non-profit organizations. (Rule 59, California Code of Regulations) DAILY ON SALE GENERAL LICENSE - (Form ABC-221) Authorizes the sale of beer, wine and distilled spirits for consumption on the premises where sold. No off -sale privileges. Minors are allowed on the premises. May be revoked summarily by the Department if, in the opinion of the Department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State. In some instances, the local ABC office may require the applicant to obtain prior written approval of the local law enforcement agency. Issued to political parties or affiliates supporting a candidate for public office or a ballot measure or charitable, civic, fraternal or religious organizations. (Section 24045.1 and Rule 59.5 California Code of Regulations) CATERING AUTHORIZATION - (Form ABC-218) Authorizes Type 47, 48, 51, 52, 57, 75 and 78 licensees (and catering businesses that qualify under Section 24045.12) to sell beer, wine and distilled spirits for consumption at conventions, sporting events, trade exhibits, picnics, social gatherings, or similar events. Type 47, 48 and 57 licensees may cater alcoholic beverages at any ABC -approved location in the State. Type 51 and 52 licensees may only cater alcoholic beverages at their licensed premises. All licensees wishing to cater alcoholic beverages must obtain prior written authorization from the Department for each event. At all approved events, the licensee may exercise only those privileges authorized by the licensee's license and shall comply with all provisions of the ABC Act pertaining to the conduct of on -sale premises and violation of those provisions may be grounds for suspension or revocation of the licensee's license or permit, or both, as though the violation occurred on the licensed premises. (Section 23399 and Rule 60.5 California Code of Regulations) EVENT AUTHORIZATION - (Form ABC-218) Authorizes Type 41, 42, 47, 48, 49, 57, 75 and 78 licensees to sell beer, wine and distilled spirits for consumption on property adjacent to the licensed premises and owned or under the control of the licensee. This property shall be secured and controlled by the licensee and notvisible to the general public. The licensee shall obtain prior approval of the local law enforcement agency. At all approved events, the licensee may exercise only those privileges authorized by the licensee's license and shall comply with all provisions of the ABC Act pertaining to the conduct of on -sale premises (including any license conditions) and violations of those provisions may be grounds for suspension or revocation of the licensee's license or permit, or both, as though the violation occurred on the licensed premises. (Section 23399) WINE SALES EVENT PERMIT - (Form ABC-239) Authorizes Type 02 licensees to sell bottled wine produced by the winegrower for consumption off the premises where sold and only at fairs, festivals or cultural events sponsored by designated tax exempt organizations. The licensee must notify the city and/or county where the event is being held and obtain approval from ABC for each event (Form ABC-222). The licensee must also comply with all restrictions listed in Business and Professions Code Section 23399.6. Note: 1. "Minor" means any person under 21 years of age. 2. Consult Section 25663(b) regarding age of employees in off -sale premises; consult Sections 25663(a) and 25663.5 regarding age of employees in on -sale premises. 3. In certain situations, ABC may place reasonable conditions upon a license, such as restrictions as to hours of sale, employment of designated persons, display of signs, restrictions on entertainment or dancing, etc. If a license has been conditioned, it will be endorsed as such on the face of the license. (Conditional licenses, Sections 23800-23805.) ABC-616 (01-15) 4. Licensees whose license allows minors on the premises may have a "house policy" restricting minors from entering certain areas of the premises or prohibiting minors in the premises during certain hours. 5. This handout contains only abbreviated information. Contact your local ABC office for full information before doing anything which may jeopardize your license. Also available from the ABC: Quick Summary of Selected ABC Laws (form ABC-608); Alcoholic Beverage Control Act (complete laws); Rules & Regulations; and P-90 (describes privileges of non -retail licenses). ABC-616 (01-15) State of California • Department of Alcoholic Beverage Control ALCOHOLIC BEVERAGE LICENSE -APPLICATION PROCESS Includes application for a new license, premises -to -premises transfer, change in license privileges or ownership change (for example, transfer to new owner, change in stock ownership or adding/dropping a partner). 3 Local Officials Notified 1 Pre -Application Steps 2 Application Filed at District Office 4 Investigation Conducted Protests, Denial or Complex issues? 5 Applicant's Responsibilities SION■I♦N••I♦■■ 7 Fnal Reeirv. Issuance of License HOW LONG DOES IT TAKE? The following are the average waiting periods for a license: (includes a 30-day posting of Public Notice of Application) Non -Protested Application — From date application is filed at District Office to issuance 55-65 days Protested Application (Protests Withdrawn Atter Negotiations) —From date application is filed at District Office to issuance 95 days Protested Application —Investigation, hearing preparation and administrative review — Scheduling of Administrative Hearing —Administrative Law Judge Proposed Decision — Action by ABC Director — Appeal to ABC Appeals Board —ABC Appeals Board Decision — Appeal to District Court of Appeal — District Court of Appeal's Decision —Appeal to California State Supreme Court —Supreme Court Decision 175 days 60 days 30 days 3-10 days 40 days 120 days 30 days No time mandated 30 days No time mandated YES Grant t,cense7 End NO Legend Action � Decision Start/slop Direction o1 i process flow K Document Information flow ••• 8 Scheduling of Administrative Hearing 9 Administrative Hearing Held 10 Administrative Law Judge Proposed Decision 11 Action by ABC Director 12 Appeal to ABC Appeals Board 13 Appeal to ABC Appeals Board 14 Appeal to District Court of Appeal 15 District Cour: of Appeal's Decision 16 Appeal to California Supreme Court 17 California Supreme Court Decision 1—PRE—APPLICATION STEPS. A person who wants to apply for an ABC license must start with the nearest ABC District Office. An ABC staff member will ask the applicant questions about the proposed operation and determine the type of license needed. The staff member will then advise the applicant what forms and fees are needed to file the application. Some appli- cants, before filing an application with ABC, must first obtain approval from zoning officials, open an escrow, or go to the office of the County Recorder for a certified copy of a Notice of Intended Transfer. 2—APPLICATION FILED AT DISTRICT OFFICE. Generally, all parties must appear at the District Office. This is not generally a "mail-in"process because ABC requires personal information such as personal history affidavits. Fees are paid at this time. The applicant also views a video about ABC laws. A temporary permit may be issued under certain conditions. 3—NOTIFICATION TO LOCAL OFFICIALS. ABC mails a copy of the application to local officials as required by law. If the premises is in the city, a copy goes to the police department, city council and city planning department. If the premises is in the county, a copy goes to the sheriff's department, board of supervisors and district attorney. If local officials have concerns about the issuance of a license, they may request or impose restrictions on the business operation, or they may file a protest. Common concerns are that the license: (a) Would create a public nuisance, (b) Would cause or add to crime in the area, (c) Would be contrary to a zoning law, or (d) Is in a high -crime area or an area that has too many licenses and would not serve public convenience or necessity. In the case of (d), the City Council or Board of Supervisors has 90 days to determine this and notify ABC. If the City Council or Board of Supervisors does not decide within 90 days, ABC may issue the license if the applicant shows ABC that issuance would serve public con- venience or necessity. 4—INVESTIGATION. ABC conducts a thorough investigation, as required by law, to see if the applicant and the premises qualify for a license. Any person may protest the issuance of a license. The protestant must file a written protest within 30 days of either: (a) The date the Public Notice of Application is first posted at the premises, or (b)The date the applicant mails the Notice of Intention to Engage in the Sale of Alcoholic Beverages to persons living within a 500' radius, whichever is later. If a retail license application has been protested and the Department has recommended approval of the license, ABC may issue an Interim Operating Permit upon the applicant's written request. Some grounds for protest or denial of a license are: (a) Applicant is not qualified. For example, the applicant falsified his application, has a disqualifying police record, has a record of chronic insobriety, is not the true owner, or is not at least 21 years of age, and/or (b) Premises iv not suitable. For example the premises is too close to a school, church, hospital, playground, nonprofit youth facility or residence and would disturb the facility or resident; the premises is located in a high -crime area and does not serve public convenience or necessity; the applicant does not have legal tenancy; the license would create a public nuisance; zoning is improper for alcohol sales. License conditions are special restrictions placed on a license. Conditions may limit the hours of alcohol sales, the type of entertainment allowed or other aspects of the business. Conditions may eliminate the need to deny a license or may cause a protestant to withdraw his protest. 5—APPLICANT'S RESPONSIBILITIES. It is the applicant's responsibility to: (a) Post the Public Notice of Application at the premises for 30 days, and (b) Give information to ABC as needed for the investigation. In some cases, ABC may also require the applicant to: (a) Publish a notice in the newspaper, (b) Mail a notice to all persons living within a 500' radius of the premises, and/or (c) Obtain proof from the local planning department that the zoning permits an ABC license. 6—DIVISION OFFICE REVIEW. The Division Office reviews all applications that are (a) Protested, (b) Recommended for denial by the District Office, or (c) Nonroutine such as multilevel corporations and partnerships. 7—FINAL REVIEW. Headquarters does a final review. The following may delay issuance of a license: (a) Missing or incorrect documents, (b) Missing or incorrect fees, (c) Liens placed against escrow by the Board of Equalization, Franchise Tax Board, Employment Development Department, Cities and Counties, local Health Departments, and/or (d)The premises is under construction and not yet ready to operate. 8—SCHEDULING OF HEARING. A hearing is scheduled (a) When valid protests have been filed against an application and the applicant and protestant are not able to reach any agreements, and/or (b) If ABC has denied the application, and the applicant requests a hearing. The hearing is scheduled within 60 days. ABC mails a Notice of Hearing to all parties. 9—ADMINISTRATIVE HEARING. A public hearing is held before an administrative law judge (ALJ). ABC counsel represents ABC. The applicant and any protestant(s) may be represented by an attorney or other person, or they can represent themselves at the hearing. The ABC investigator will testify as to his or her investigation. The applicant and any protestant(s) may testify and/or present other evidence. The protestant must appear at the hearing or the protest is abandoned. 1O—ALJ PROPOSED DECISION. The ALJ has 30 days to prepare a Proposed Decision for consideration by the ABC Director. 11—ACTION BY ABC DIRECTOR.TheABC Director adopts or rejects the ALJ's Proposed Decision. If the ABC Director rejects the Proposed Decision, ABC sends a Notice of Rejection to the applicant and any protestant(s). Each party has 30 days from the date of the notice to submit written argument. 12—APPEAL TO ABC APPEALS BOARD. The applicant or any protestant(s) may appeal the Director's Decision to theABCAppeals Board within 40 days. The Board is a three -member panel appointed by the Governor. 13—ABC APPEALS BOARD DECISION. The Board reviews the record of the administrative hearing and accepts written or oral arguments. It may not accept any new evidence that was not offered at the administrative hearing. The Board usually makes a decision within 120 days. 14—APPEAL TO DISTRICT COURT OF APPEAL. The applicant, any protestant(s) or ABC may appeal to the California District Court of Appeal (DCA) within 30 days of the Appeals Board Decision. 16—DISTRICT COURT OF APPEAL'S DECISION. The DCA reviews the record and renders a decision. The Attorney General represents ABC at the hearing. There is no mandated time period for the DCA to render its decision. 16—APPEAL TO CALIFORNIA SUPREME COURT. The applicant, any protestant(s) or AB(' may appeal to the California Supreme Court within 30 days of the DCA decision. The Attorney General represents ABC before the Supreme Court. There is no time mandated for the Supreme Court to render its decision. 17—CALIFORNIA SUPREME COURT DECISION. The California Supreme Court makes a decision to issue or deny the license. STATE OF CALIFORNIA • DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL • (3/99) State of California • Department of Alcoholic Beverage Control ALCOHOLIC BEVERAGE LICENSE DISCIPLINARY PROCESS Case Report 4 . • 3a No Further Action 1 Violation Reported to ABC 2 Investigation Conducted 3b Warning Letter or Admonishment Legend Action � Decision Start/stop Direction of process flow Document Information flow ■�» 3 Case Evaluated 3c Notice of Public Nuisance 3d Incident File 4 Pre -Accusation Interview 5 Transmittal of Accusation Package Contested Case? NO YES Final Order of Suspension or Revocation 3e Accusation HOW LONG DOES IT TAKE? There is a wide variance in the time frame from the discovery of a violation to a final order of suspension or revocation. One factor is the complexity of the investigation. There are statutes of limitations for filing accusations against licensees. They are one or three years, depending upon the type of violation. The one- and three-year statutes of limitations commence to run from any one of the following, depending on the case: (a) from the dale of the transaction, (b) from the date of the last act or omission, (c) from the date of the discovery of any fraud, misrepresentation, or concealment, or. (d) from the date a criminal conviction becomes final. Investigation and Filing of Accusation (Steps 2-5) — Accusations to be filed within one year. Beer price posting and marketing regu- lations; labels and containers; free goods; habitual drunkard/obviously intoxicated per- son; unlawful possession on licensed premises; substitution of brands; destroying se- rial numbers; exterior signs; obnoxious signs/retail operating standards; alcoholic con- tent of beer; retail hours of sale; permitting consumption during restricted hours, whole- sale deliveries; sales to, or permitting consumption by, minors; employment of minors: advertising encouraging minors to drink; or minors in public premises. — Accusations to be filed within three years. Sales without a license; misuse of license privileges; license privileges (club or veterans' club); selling narcotics or solic- iting drinks on premises; tied -house restrictions; disorderly house: or false returns and records. YES Suspend or Revoke License? NO 6 Scheduling of Administrative Hearing 7 Administrative Hearing Held 8 Administrative Law Judge Proposed Decision 9 Action by ABC Director 10 Appeal to ABC Appeals Board 11 ABC Appeals Board Decision 12 Appeal to District Court of Appeal 13 District Court of Appeal's Decision 14 Appeal to California Supreme Court 15 California Supreme Court Decision Hearing and Appeals (Steps 6-15) -Scheduling of Administrative Hearing - Administrative Law Judge Proposed Decision -Action by ABC Director -Appeal to ABC Appeals Board -Appeals Board Decision - Appeal to District Court of Appeal - District Court of Appeal's Decision - Appeal to California Supreme Court - Supreme Court Decision 60 days 30 days 3-10 days 40 days 120 days 30 days No time mandated 30 days No time mandated INTRODUCTION State and local law enforcement and licensees all play an important role in pre- venting alcohol -related problems in our communities. The Department of Alco- holic Beverage Control (ABC) licenses and regulates the alcoholic beverage indus- try. The goal of ABC's disciplinary procedures is to secure voluntary compliance among licensees. Other law enforcement agencies are required to notify ABC of any arrest made involving a licensee or a licensed premises. Administrative penalties. Any person licensed by ABC, and his employees. must abide by all the laws of the State. If ABC has evidence of a violation involv- ing a licensee or a licensed premises, ii will file an administrative complaint, called an accusation. An accusation, if proven, will lead to the suspension or revocation of the license. An accusation is in addition to, and not a substitute for. possible criminal and civil penalties that local city and district attorneys may bring against the licensee or employee who committed the violation. Criminal penalties can result from violations that are criminal offenses. For example, the sale or service of alcoholic beverages to a minor or an obviously intoxicated person is not only grounds for an accusation, but constitutes a criminal offense. Thus, the seller/server could be arrested, charged with a crime, and face a line, community service work or imprisonment in county jail. Civil penalties are money judgments and penalties resulting from a lawsuit or a permanent injunction. A local district or city attorney may bring an injunction against a licensee in cases such as a public nuisance. Also. ABC may seek an injunction against a licensee for ongoing violations by sending its request to the Attorney General, who files in the local Superior Court. ABC will seek injunctive relief in aggravated cases when there have been prior, recent, similar violations and/or there is a pending accusation involving similar violations. 1—VIOLATION REPORTED TO ABC. The disciplinary process begins when ABC is informed of an alleged violation involving a licensee or a licensed premises. The information can come from a citizen complaint, police report, local legislative body, or ABC's own investigators who are sworn peace officers. A police report is usually sufficient in itself to warrant an accusation. With citizen complaints. an independent investigation by ABC is usually required. Citizens can assist the law enforcement effort by docnnenting violations. Neigh- bors are encouraged to keep logs of disruptive or illegal activities they see or hear at or around the premises. This can include incidents that disrupt the neighbor- hood, including noise, intoxicated patrons, fights, and the like. 2—INVESTIGATION CONDUCTED. Investigations to de- tect violations may be conducted by ABC investigators and/or other law enforce- ment agencies. Investigations may include any of the following strategies: (a) undercover operations to target specific incidents of unlawful activity (e.g., drunks, narcotics, drink solicitation activity, condition violations, minors. etc.); (b) surveillances to check for loitering, drinking in public, graffiti, litter. excessive signage, excessive noise, etc.; (c) premises inspections (the law authorizes peace officers to inspect licensed premises for violations of the ABC Act during the tithes when the license privileges are being exercised): and/or (d) contacting nearby residents and business owners (an accusation to revoke a license of a disorderly premises may he based solely on the testimony and/or other evidence from citizens who live or work near the licensed premises). After completing the investigation. the investigator submits a completed assignment sheet and/or case report. 3—CASE EVALUATED. After the investigation, the District Of- fice evaluates the case and takes one of six different actions, depending on the evidence and facts of the case. 3a—No Further Action. This means there was insufficient evidence of a viola- tion and ABC is dropping the case with no further action. 3b—Warning Letter or Admonishment. A warning letter may be sent to a licensee or a licensee may be called into the District Office for an interview when the circumstances surrounding a violation show that a warning letter or interview will achieve the desired effect of compliance and the filing of an accusation is not in the best interests of justice. With warnings, there must be sufficient evidence to indicate that a violation did occur. Anything less is an admonishment. 3c—Notice of Public Nuisance. This notice describes nuisance conditions ob- served at the premises and reminds the licensee of his duty to control his premises. ABC then monitors the licensed premises. If, after being notified by ABC, the licensee fails to correct public nuisance conditions at the licensed premises within a reasonable period of time, ABC may file an accusation. 3d—Incident File. A police report, including any call for service to the pre- mises by law enforcement, which does not by itself warrant an accusation, is placed in the licensee's file and accumulated. If a sufficient number of these reports or calls for service accumulate, ABC may file an accusation alleging "permitting a disorderly house" and/or "creating a law enforcement problem" at a future date. 3e—Accusation. If sufficient evidence exists that a violation occurred, the Dis- trict Office prepares an accusation. The accusation alleges specific violations of law. rule or regulation. 4—PRE—ACCUSATION INTERVIEW. The District Office conducts an interview with the licensee concerning the case prior to sending the accusation package to the Division Office. The licensee is informed of the disci- plinary procedure. his legal rights. the possibility of settling the case by a Stipula- tion and Waiver, the fine and appeal process, and the recommended penalty. The term Stipulation and Waiver means that the licensee agrees (stipulates► to the charges and gives up (waives) rights to an administrative hearing and appeal. Penalty rec- ommendations are made on a case by case basis. Consideration is given to the type of violation. the minimum penalty schedule, and all factors of aggravation or miti- gation, including the licensee's disciplinary history. Penalties are not meant as punishment for the licensee, but as protection for the public. Penalties are recom- mended based on their deterrent effect and to assure future compliance. 5—TRANSMITTAL OF ACCUSATION PACKAGE. The District Office forwards the accusation, the case report, supporting documents and a penalty recommendation to the Division Office. The Division Office re- views the accusation. makes a recommendation. and forwards the entire package to ABC Headquarters, Hearing and Legal, for filing (registration) of the accusa- tion. 6—SCHEDULING OF ADMINISTRATIVE HEAR- ING. Headquaners, upon receiving the accusation, case report and recommen- dation, will formally file the accusation, set the matter for hearing and serve the accusation, notice of defense and notice of hearing upon the respondent -licensee. Contested cases are scheduled for a hearing before an administrative law judge (ALJ) within 60 days. The purpose of the hearing is to determine whether a viola- tion has been proved, and if so, to set a penalty. 7—ADMINISTRATIVE HEARING. At the hearing, ABC counsel represents ABC. The licensee may he represented by an attorney or other person, or he can represent himself at the hearing. ABC presents evidence, includ- ing testimony of witnesses, etc. The licensee may testify and/or present other evidence. Rules of evidence are primarily those followed in civil hearings, and the burden is on ABC to prove, by a preponderance of evidence, the charges set forth in the accusation. 8—ALJ PROPOSED DECISION. The ALJ has 30 days to prepare a Proposed Decision for consideration by the ABC Director. In the pro- posed decision, each charge in the accusation is shown as proved or unproved and a penalty is proposed. The ALJ may propose the same penalty that ABC suggested or a greater or lesser penalty. 9—ACTION BY ABC DIRECTOR. The ABC Director adopts or rejects the AU's Proposed Decision. If the ABC Director rejects the Proposed Decision, ABC sends a Notice of Rejection to licensee. The licensee has 30 days from the date of the notice to submit written argument. 1 O—APPEAL TO ABC APPEALS BOARD. A licensee who is not satisfied with the ABC Director's decision may appeal the Director's Decision to the ABC Appeals Board within 40 days. The Board is a separate State agency comprised of a three -member panel appointed by the Governor. 11—ABC APPEALS BOARD DECISION. The Board reviews the record of the administrative hearing and accepts written or oral argu- ments. It may not accept any new evidence that was not offered at die original hearing. The Board usually makes a decision within 120 days. 12—APPEAL TO DISTRICT COURT OF APPEAL. The licensee and ABC may appeal to the California District Court of Appeal (DCA ) within 30 days of the Appeals Board Decision. 13—DISTRICT COURT OF APPEALS DECISION. The DCA reviews the record and renders a decision. The Attorney General repre- sents ABC at the hearing. There is no mandated time period for the DCA to render its decision. 14—APPEAL TO CALIFORNIA SUPREME COURT. The licensee and ABC may appeal to the California Supreme Court within 30 days of the DCA decision. The Attorney General represents ABC before the Supreme Court. There is no time mandated for the Supreme Coun to render its decision. 1S—CALIFORNIA SUPREME COURT DECISION. The California Supreme Court makes a decision to suspend or revoke the license. STATE OF CALIFORNIA • DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL • (3/99) PENALTY SCHEDULE Note: For purposes of this schedule of penalties, "revocation" stayed revocation as well as outright revocation of the license. Sales to minors - § 25658 B&P: Sales of alcoholic beverages to person(s) under 21 Permitting person(s) under 21 to consume Furnishing or causing to be furnished alcoholic beverages to person(s) under 21 2nd violation of Section 25658 within 36 months 3rd violation of Section 25658 within 36 months (Note: priors must be final — B & P § 25658.1) Minor(s) on public premises — 25665 B&P Employment of minor(s) — 25663 B&P Unsupervised sales by person(s) under 18 — 25663(b) B&P Sales to obviously intoxicated person(s) — 25602 B&P 2nd violation of 25602 within 3 years 3rd violation of 25602 within 3 years Sale and/or Consumption After Hours — 25631 & 25632 B&P: By public By employees and friends only By employees only Illegal Solicitation of Alcoholic Beverages: Violation of Section 24200.5(b) Violation of Section 25657(a) Violation of Section 25657(b) and Section 303a PC Employees accepting alcoholic drinks — Rule 143 CCR Refilling — 25176 & 25177 B&P Code: With different brand With same brand Contaminated Bottles (insects, etc.) — 347b PC Substitution of Brands — 25609 & 23614 B&P Penalty Guidelines, Policy, and Schedule Page 2 of 5 includes any period of 15 day suspension 15 day suspension 15 day suspension 25 day suspension Revocation 10 day suspension 10 day suspension 10 day suspension 15 day suspension 25 day suspension 45 day suspension to revocation 15 day suspension 10 day suspension 5 day suspension Revocation Revocation 30 day suspension To revocation 15 day suspension 15 day suspension 5 day suspension 5 day suspension 15 day suspension 12/17/2003 PENALTY GUIDELINES POLICY STATEMENT It is the policy of this Department to impose administrative, non -punitive penalties in a consistent and uniform manner with the goal of encouraging and reinforcing voluntary compliance with the law. PENALTY POLICY GUIDELINES The California Constitution authorizes the Department, in its discretion, to suspend or revoke any license to sell alcoholic beverages if it shall determine for good cause that the continuance of such license would be contrary to the public welfare or morals. The Department may use a range of progressive and proportional penalties. This range will typically extend from Letters of Warning to Revocation. These guidelines contain a schedule of penalties that the Department usually imposes for the first offense of the law listed (except as otherwise indicated). These guidelines are not intended to be an exhaustive, comprehensive or complete list of all bases upon which disciplinary action may be taken against a license or licensee; nor are these guidelines intended to preclude, prevent, or impede the seeking, recommendation, or imposition of discipline greater than or less than those listed herein, in the proper exercise of the Department's discretion. Higher or lower penalties from this schedule may be recommended based on the facts of individual cases where generally supported by aggravating or mitigating circumstances. Aggravating factors may include, but are not limited to: 1. Prior disciplinary history 2. Prior warning letters 3. Licensee involvement 4. Premises located in high crime area 5. Lack of cooperation by licensee in investigation 6. Appearance and actual age of minor 7. Continuing course or pattern of conduct Mitigating factors may include, but are not limited to: 1. Length of licensure at subject premises without prior discipline or problems 2. Positive action by licensee to correct problem 3. Documented training of licensee and employees 4. Cooperation by licensee in investigation 12/17/2003 Penalty Guidelines, Policy, and Schedule Page 3 of 5 Club Licenses, Sale to Public — 23431 B&P Sale to Purchase Between Retailers — 23402 B&P Not Operating Bona Fide Eating Place — 23038 & 23396 B&P Licensee or Bartender Working In Premises While Intoxicated -24200(a) B&P Licensee or Employee Resisting Arrest or Interfering With Investigation on The Premises — 24200(a) B&P & 148 PC Licensee or Employee Not Permitting Inspection Of: Premises — 25755 B&P Records — 25616 B&P 10 day suspension 15 day suspension 10 day suspension indefinite until compliance 30 day suspension 35 day suspension to revocation 30 day suspension 30 days and indefinite until records produced Alcoholic Beverage Not Permitted By License — 25607 & 23355 B&P: Sale 15 day suspension Possession 10 day suspension Gambling — 24200(a) B&P and 330 PC: Organized (bookmaking, football cards, etc.) Local (cards, dice, football & baseball pools, etc.) Electronic/video games (slot machines, Poker, 21, etc.) — possession Electronic/video with payoffs Disorderly House, Prostitution, Lewd Conduct — 25601 B&P: Occasional or isolated offenses Recurring/aggravated offenses Nude Entertainers, etc. — Rule 143.2 & .3 Narcotics — B&P 24200.5 and H&S Violations: Transactions on licensed premises Paraphernalia, possession for sale 30 day suspension 10 day suspension 15 day suspension 30 day suspension, with 15 days stayed for 2 years 30 day suspension Revocation 30 day suspension to revocation Revocation Revocation, stayed for 3 years and a 20 day suspension 12/17/2003 Penalty Guidelines, Policy, and Schedule Page 4 of 5 Failure to correct objectionable conditions -24200(e) and (f) B&P 30 day suspension to revocation Undisclosed Ownership — 23300 & 23355 B&P: Hidden owner qualified Hidden owner not qualified Hidden owner -priority license Commission of Crime Involving Moral Turpitude — 24200(a) B&P: Committed on premises Committed away from premises (petty theft/shoplifting) Committed away from premises (other than petty theft) 15 day suspension Indefinite until ownership corrected Revocation Revocation Revocation Revocation stayed 3yrs Revocation Conviction of a crime involving moral turpitude — 24200(d) B&P Revocation Violation Of Conditions — B&P 23804 Rule 65 — Chapter 1, Title 4 of the CCR Rule 107 — Chapter 1, Title 4 of the CCR Rule 108 — Chapter 1, Title 4 of the CCR Exceeding license privileges — 24200(a), 23300, 23355 B&P PC 313.1 — Harmful matter Sale of alcoholic beverages while under suspension Receiving Stolen Property — 24200(a) and 664 & 496 PC: By license on premises By employee on premises 15 day suspension with 5 days stayed for one year Revocation stayed for 180 days to permit transfer or reactivation of license 5 day suspension 5 day suspension to a suspension equal to double the original suspension 5 day suspension to revocation 5 day suspension Double the original suspension to revocation Revocation Revocation stayed for 3 years, and a 20 day suspension 12/17/2003 Penalty Guidelines, Policy, and Schedule Page 5 of 5 Food Stamp Violations — 24200(a) B&P: Allowing purchases of alcoholic beverages 10 day suspension Food stamp trafficking (Le. purchasing stamps at discount): By licensee Revocation By employee, with premises involvement Revocation, stayed for one year and a 20 day suspension. Keg Registration violations 10 day suspension Operating Condition Violations — Section 25612.5 B&P: Subsections (c) (3), (4), (5), (6), (7), (10) Subsections (c) (1), (2), (8), (9) 5 day suspension 10 day suspension indefinite until compliance Misrepresenting Material Fact on Application — 24200(c) B&P Revocation PETITION FOR OFFER IN COMPROMISE ("POIC"): Business and Professions Code Section 23098 authorizes the Department may accept a Petition for Offer in Compromise ("POIC") in lieu of the service of a suspension of 15 days or less. For purposes of determining whether the Department may accept a POIC in lieu of suspension, the total penalty imposed must be for 15 days or less, and shall not include any period of stayed suspension that would result in the potential suspension being for a period of greater than 15 days, nor can it include any period of stayed revocation. In the event that the suspension is for a period of 15 days or less with some portion thereof stayed, the POIC shall be calculated based upon the period of actual suspension (not including the stayed portion). In such cases, if the stayed period of suspension is later reimposed, the Department will generally not accept a POIC in lieu of serving the reimposed period of suspension. Abbreviation legend: B&P California Business and Professions Code PC California Penal Code H&S California Health & Safety Code CCR California Code of Regulations POIC Payment of Offer in Compromise (B&P Sections 23095 & 23096) 12/17/2003 Title 4 California Code of Regulations, Section 144. Penalty Guidelines In reaching a decision on a disciplinary action under the Alcoholic Beverage Control Act (Bus. and Prof. Code Sections 23000, et seq.), and the Administrative Procedures Act (Govt. Code Sections 11400, et seq.), the Department shall consider the disciplinary guidelines entitled "Penalty Guidelines" (dated 12/17/2003) which are hereby incorporated by reference. Deviation from these guidelines is appropriate where the Department in its sole discretion determines that the facts of the particular case warrant such a deviation — such as where facts in aggravation or mitigation exist. Note Authority cited: Section 25750, Business and Professions Code; and Section 22, Article XX, California Constitution. Reference: Section 23001, Business and Professions Code; and Section 11425.50(e), Government Code. History 1. New section filed 4-13-2004 as an emergency; operative 4-13-2004 (Register 2004, No. 16). A Certificate of Compliance must be transmitted to OAL by 8-11-2004 or emergency language will be repealed by operation of law on the following day. For prior history, see Register 68, No. 46. 2. Certificate of Compliance as to 4-13-2004 order transmitted to OAL 8-11- 2004; disapproved by OAL and order of repeal and deletion filed 9-23- 2004 (Register 2004, No. 39). 3. New section filed 9-23-2004 as an emergency; operative 9-23-2004 (Register 2004, No. 39). A Certificate of Compliance must be transmitted to OAL by 1-21-2005 or emergency language will be repealed by operation of law on the following day. 4. Certificate of Compliance as to 9-23-2004 order, including amendment of section, transmitted to OAL 11-18-2004 and filed 12-16-2004 (Register 2004, No. 51).