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CH_LA Lodging News Spring 2016

Q&ACalifornia’s Alcoholic Beverage Control Act A larg e numb er of th e members of the California Hotel & Lodging Association and the California Association of Boutique & Breakfast Inns possess various types of licenses issued by the California Department of Alcoholic Beverage Control (ABC) and have to comply with the Alcoholic Beverage Control Act (Act). We receive many inquiries from members about the requirements and prohibitions of the Act, and this article discusses some of the more commonly asked questions about the do’s and don’ts of selling and serving alcoholic beverages. (This article will only deal with “on sale” activities—i.e., those that involve consumption on the premises—as opposed to “off sale” transactions, such as those at liquor stores.) The most fundamental issue we are asked about is: Do I need an ABC license to do insert activity in question? For example, “Does my B&B need a license to serve guests wine in the afternoon”? “Does my hotel need a license to include a bottle of champagne in a special ‘romantic getaway’ package”? The answer to these and many other questions is YES. The Act states that, “No person shall exercise the privilege or perform any act which a licensee may exercise or perform under the authority of a license unless the person is authorized to do so by a license issued pursuant to the Act.” This means, among other things, that it is illegal (and a misdemeanor) for anyone to “sell” alcoholic beverages of any kind. What kinds of lodging establishments are eligible to get a license? For many years, the only establishments that could obtain on sale licenses were “bona fide 22 California Hotel & Lodging Association Spring 2016 public eating places” (restaurants) and “public premises” (bars and night clubs). This meant that B&Bs and limited service hotels could not get licenses at all. CH&LA introduced legislation that now permits these types of lodging establishments to obtain on-sale licenses. What types of licenses are available for hotels, inns, and other transient lodging establishments? The most common types of ABC licenses available to lodging establishments are set out in Table 1. Can a licensee give alcoholic beverages to someone, such as a special guest”? Generally, yes, as long as this is limited to the alcoholic beverages(s) covered by the hotel’s license and that it is an occasional act that does not take place on a recurring basis (that is, the fewer the incidents, the lower the risk). May minors be employed in “on-sale” premises? In a bona fide public eating place, minors between 18 and 21 years of age may serve


CH_LA Lodging News Spring 2016
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