San Luis Obispo: Getting Your Beer And Wine License

If you want to sell beer and wine in San Luis Obispo, you'll need to obtain a liquor license from the California Department of Alcoholic Beverage Control. The type of license you need will depend on the nature of your business, with different licenses for restaurants, bars, and liquor stores. For example, a Type 41 license is for a restaurant or eating place, while a Type 20 license is for a liquor store. The process of applying for a new license involves meeting various requirements, including surveying the premises and submitting an application, which can take up to 90 days to process. There are also fees associated with obtaining and renewing a license, including application fees and annual fees.

Application fees and annual fees

The California Department of Alcoholic Beverage Control is funded by fees paid by licensees. These fees fall into two categories: application fees and annual fees. The Department is authorised to increase alcohol license fees annually by an amount not exceeding inflation to keep up with rising costs.

Application Fees

Application fees are charged when an application is submitted for a new license, or to transfer or change an existing license. These fees cover the average cost of processing the application, including the investigation of the proposed premises and the background of the applicant. Application fees are generally non-refundable and vary based on the privileges provided by the license. "General" licenses, which authorise the retail sale of all types of alcoholic beverages, have higher fees. The number of General licenses is limited based on the population of each county, and the process for applying for a new license for most General license types occurs only once per year through a public lottery referred to as the "Priority" process.

Annual Fees

Annual fees are charged each year and must be paid to keep a license active. The annual fee for the first year of operation of a new license is due at the time of application and will allow the license to be active for approximately one year from the date of issuance. This fee is refundable if the application is withdrawn or denied. Prior to the license expiration date, licensees will receive a renewal notice reflecting the annual fees that are due, the payment deadline, and optional payment methods. Penalty fees are imposed if full payment is not received or postmarked by the payment deadline.

For some license types, the annual fees charged will vary based on production, population, or the number of months of the year the licensee operates. These tiers are as follows:

• Production-based fees: For License Type 02 Winegrowers and Type 22 Wine Blender, the annual fee is based on the number of gallons produced. Production is reported annually, and there is a process to compute an additional payment or refund if the licensee’s production moves them into a different tier from the previous year.
• Population-based fees: For On-Sale General licenses, the annual fee is based on the population of the city in which the licensed premises is located. There are three tiers: cities with populations over 40,000, cities with populations between 20,000 and 40,000, and then all other jurisdictions.
• Seasonal fees: For seasonal licenses, annual fees vary based on the number of months the licensee has indicated they will operate. These fees generally vary based on three-month increments. The ABC no longer issues new seasonal licenses.

Requirements to meet

To obtain a beer and wine license in San Luis Obispo, you must meet several requirements. Here are the key requirements to fulfill:

• Determine the License Type: Before initiating the application process, it is crucial to understand the specific type of license you need. San Luis Obispo offers various license types, including Type 20 (Off-Sale Beer and Wine), Type 41 (Original Beer and Wine), and others. Each license type corresponds to the nature of your business, such as a liquor store or a restaurant.
• Contact the Department of Alcoholic Beverage Control (ABC): All applications for alcoholic beverage licenses should be made through the Department of Alcoholic Beverage Control. You need to apply at the nearest district office, and it is advisable to have all concerned parties present, including applicants, licensees, and transferees. An employee of the Department can provide in-person guidance on the relevant laws, rules, and regulations.
• Understand Application and Annual Fees: Acquiring a license incurs both application and annual fees. The application fees cover the cost of processing the application and conducting investigations. These fees are typically non-refundable and vary based on the license type and privileges granted. Annual fees, on the other hand, must be paid each year to keep the license active, with the first year's fee due at the time of application.
• Complete the Application Process: The application process involves submitting the necessary documents and undergoing investigations. You will need to provide detailed information about your business, including the proposed licensed premises and your background as the license applicant. The ABC will conduct investigations into the proposed licensee and premises, which can take approximately 45 to 50 days.
• Post Public Notice: After submitting your application, you will receive a notice from the ABC that must be posted on your premises for a period of 30 days. This public notice is a mandatory step in the licensing process.
• Obtain Necessary Permits: In addition to the license, you must possess a seller's permit from the State Board of Equalization. Operating without this permit is considered a misdemeanor in the state of California. Additionally, depending on your business type and location, you may need to obtain a Conditional Use Permit (CUP) or a local business license.
• Adhere to Zoning Regulations: Before engaging in business, it is essential to consult with local county or city officials to ensure compliance with zoning regulations. This step is crucial, especially if your business is in a new location or an area not previously used for this type of business.
• Establish an Escrow: If there is a purchase price or consideration involved in the transfer of a business operated under a retail license, you must establish an escrow with an independent third party before filing the transfer with the Department. The full amount of the purchase price or consideration must be placed in escrow, and you must provide the necessary documentation within 30 days of the application.
• Federal Requirements: Before opening your alcoholic beverage business, contact the nearest office of the United States Treasury Department, Alcohol and Tobacco Tax and Trade Bureau. If required, apply for a Federal basic permit or a special Occupational Tax Stamp, ensuring that these are issued to the same persons applying for the license and at the same address.
• License Renewal: All licenses are valid for a 12-month period and must be renewed annually. Renewal fees must be paid on or before the last day of the month posted on the license. If you have paid your renewal fee on time, you can expect to receive your renewed license approximately 4 to 6 weeks after the expiration date of your current license.

Where to apply

To apply for a beer and wine license in San Luis Obispo, you must contact the nearest district office of the Department of Alcoholic Beverage Control. The San Luis Obispo office is located at:

3220 S. Higuera St., Suite 103A San Luis Obispo, CA 93401

You can also contact the San Luis Obispo office via email:

SanLuisObispo@abc.ca.gov

All parties concerned—applicants for new licenses or transferors (present licensees), and transferees (applicants)—should be present. It is recommended that an employee of the Department advise all applicants in person of the pertinent laws, rules, and regulations.

The California Department of Alcoholic Beverage Control is funded by fees paid by licensees. There are two main categories of fees: application fees and annual fees. Application fees are charged when an application is submitted for a new license, or to transfer or change an existing license. These fees are used to cover the cost of processing the application, including investigating the proposed licensed premises and the background of the license applicant. Annual fees are charged each year and must be paid to keep a license active. The annual fee for the first year of operation of a new license is due at the time of application.

License types

The type of license you need will depend on the nature of your business and the kind of alcoholic beverages you wish to sell. Here are the different types of licenses available in San Luis Obispo:

Type 20: Off-Sale Beer and Wine

This license allows the holder to sell beer and wine for off-site consumption, for example, from a liquor store or a general off-sale establishment.

Type 21: Off-Sale Full Liquor

This license permits the sale of all types of alcoholic beverages, including beer, wine, and distilled spirits, for off-site consumption.

Type 41: Original Beer and Wine

This license is for restaurants or eating places that want to sell beer and wine. It allows for the sale of these alcoholic beverages for on-site consumption.

Type 47: Full Liquor Restaurant

The Type 47 license is for restaurants that want to sell beer, wine, and distilled spirits for on-site consumption. This license is also transferable anywhere in San Luis Obispo County.

Type 48: Full Liquor Bar

This license is suitable for bars, taverns, or nightclubs. It allows for the sale of all alcoholic beverages, including beer, wine, and spirits, for on-site consumption.

Type 57: Full Liquor Private Club

This license is designed for private members' clubs, allowing them to sell all types of alcoholic beverages to their members for on-site consumption.

Type 75: Brew-Pub

A Type 75 license is specific to brew-pubs and allows them to sell beer, wine, and distilled spirits to customers for on-site consumption.

It's important to note that the fees for these licenses vary based on the privileges they provide. "General" licenses, which authorize the retail sale of all types of alcoholic beverages, typically have higher fees. Additionally, the number of "General" licenses available is limited based on the population of San Luis Obispo County.

Application processing time

The application process for a beer and wine license in San Luis Obispo involves several steps and can take some time to complete. Here is an overview of the typical application processing time:

Firstly, it is important to understand all the requirements that must be met before initiating the application process. The application should be submitted at the nearest district office of the Department of Alcoholic Beverage Control (ABC), with all concerned parties present. The ABC will then mail a copy of the application to local officials, as mandated by law, and a 30-day posting period will follow.

After the posting period, the ABC will conduct an investigation into the business, which typically takes around 45 to 50 days. The time required for the entire process depends on the type of license transfer. A Person-to-Person transfer usually takes around 75 days, while an Original license can take up to 90 days. It is important to note that circumstances can often lead to longer waiting periods. Therefore, it is advisable to exercise caution when making extensive financial commitments or planning grand openings until final approval and license issuance.

If new construction or significant remodeling is required, prior approval should be obtained before commencing any work. The annual fee for the first year of operation is due when submitting the application and is refundable if the application is denied or withdrawn. Applicants will receive a renewal notice before the license expiration date, outlining the annual fees, payment deadline, and methods.

Frequently asked questions