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CALIFORNIA ALCOHOLICBEVERAGE CONTROL ACTѤіѡѕ ђєѢљюѡіќћѠюћё ђљюѡђёȱ ѡюѡѢѡђѠ2020Statutes Include Amendments through all 870 Chapters of the 2019 RegularSession of the 2019-2020 California LegislatureAmendments to Regulations Updated Through 2019 Register No. 45Dated November 8, 2019

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PREFACEWe are pleased to present the 2020 Edition of the California Alcoholic Beverage ControlAct. This compilation of selected laws incorporates all changes required by legislative enactmentsup to and including all 870 Chapters of the 2019 Regular Session of the 2019-2020 CaliforniaLegislature.We appreciate the opportunity to work with the California Department of AlcoholicBeverage Control to create this publication. The Department’s regulations, contained in Division1 of Title 4 of the California Code of Regulations, are also set out in this edition.Included herein is a Table of Sections Affected which may be utilized to facilitateresearch into recently enacted legislation affecting these Codes. Through the use of state-ofthe-art computer software, attorney editors have created the comprehensive descriptive wordindex to include the enactments of the 2019 legislature.We publish a number of California Codes as well as National and state law enforcementtitles for more than 30 states. Please refer to our web site at www.lexisnexis.com or contact ourcustomer service department for more information on any of our products.LexisNexis remains committed to utilizing technological advances to assist legalresearchers. The California Codes are now available in an eBook format allowing users to accessinstantly the text of a statute, bookmark, highlight, enter notes, and utilize enhanced searches.LexisAdvance users may also link directly to case material. For more information concerningCalifornia eBooks, please call our Customer Service department toll-free at 1-800-833-9844.We are committed to providing legal professionals with the most comprehensive,current and useful publications possible. If you have comments and suggestions, please writeto California Codes Editor, LexisNexis, 701 E. Water Street, Charlottesville, Virginia, 22902;call us toll-free at 1-800-833-9844; or E-mail us at llp.clp@lexisnexis.com. By providing us withyour informed comments, you will be assured of having available a working tool which increasesin value each year.Visit the LexisNexis Internet home page at www.lexisnexis.com for an online bookstore,technical support, customer service, and other company information.January 2020

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL 3927 LENNANE DRIVE, SUITE 100 SACRAMENTO, CA 95834Director’s Message for 2020 ABC Act This 2020 publication of the Alcoholic Beverage Control Act celebrates the 65thanniversary of the Department of Alcoholic Beverage Control (or ABC).In 1920, the Eighteenth Amendment to the United States Constitution establishedProhibition, which banned the manufacture and sale of alcoholic beverages acrossthe country. This “Noble Experiment” lasted for 13 years, until passage of the TwentyFirst Amendment to the Constitution in 1933, which reserved to the states the authorityto regulate alcoholic beverages. And so it was that in 1933 California’s State LiquorControl Act was enacted. The name was changed in 1935 to the Alcoholic BeverageControl Act, and that is how it has been known ever since.In 1933, the State Liquor Control Act was an appendix to the California Penal Code,and it was approximately nine pages long. Today, the published Alcoholic BeverageControl Act is over 500 pages, and it includes copies of the Twenty First Amendment,Article XX, Section 22, of the California Constitution (which created ABC), the Act itself(along with case references and annotations), and related regulations and statutes.This rather hefty tome reflects not just the transformation in complexity of the legallandscape from the State Liquor Control Act to the Alcoholic Beverage Control Act,but also the myriad changes over the past 86 years to the alcoholic beverage industryand to the public perception of alcohol in society.The Department of Alcoholic Beverage Control was established in 1955 by anamendment to California’s Constitution. Previously, all licensing and regulatoryauthority was vested in the State Board of Equalization. Yet from its earliest days, theBoard suggested it was more appropriate to place this authority in an independentagency that could dedicate its resources to the immense task of alcoholic beveragecontrol. However, it wasn’t until 1954 that Article XX, Section 22 of the StateConstitution was amended to establish the Department of Alcoholic Beverage Controland to transfer all functions for the licensing and regulation of alcoholic beverages(except for taxation) to this new department.There are many milestones that illustrate how the ABC has advanced its mission ofprotecting California’s communities and assisting alcohol businesses to prosperresponsibly. These are a few of the more noteworthy:

ABC Milestones The lawprohibitingfemalebartenderswas repealed ABC hired its first femalelaw enforcement officer(they were then called“investigators”) ABC implemented itsInformed MerchantsPreventing AlcoholCrimes Tendencies (IMPACT)educational program ABC hired its firstfemale DistrictAdministrator(today known as“SupervisingAgent in Charge”) The Licensee Educationon Alcohol and Drugs(LEAD) program wascreated to educatelicensees The Grant Assistance toLaw Enforcement (GALE)program was established,currently known as theAlcohol PolicingPartnership (APP) The TargetResponsibility forAlcohol ConnectedEmergencies (TRACE)was developed to bringresources to bear onserious incidentsinvolving youth &alcohol The Drug EnforcementNarcotics Team (DENT) wasestablished to crack down ondrug problems in & aroundABC-licensed locations The CaliforniaSupreme Courtupholds the use of minor decoys in theenforcement ofunderage drinkinglaws The shoulder TapDecoy Program wasestablished to hold accountable thoseadults who buy alcoholfor youth The Responsible BeveragesService Training Program Act of2017 was enacted, mandatingthe training of all persons whoserve alcohol for consumption onthe premises

As Director of the ABC, I am proud of the work all ABC employees do on a daily basisto keep the citizens of California safe through our licensing and enforcement activitiesand ABC’s contribution to the vibrancy of California’s culture and economy. Eachday, these fine people help good businesses get into business and take action againstthose who violate the law. We look forward to the next 65 years serving the public ofthis great state. Sincerely,Jacob Appelsmith, DirectorDepartment of Alcoholic Beverage Control

TABLE OF CONTENTSPageDirector’s Message .vSections Affected by 2019 Legislation . xiiiCONSTITUTION OF THE UNITED STATES OF AMERICAAmendment 21 .1CONSTITUTION OF THE STATE OF CALIFORNIAArticle XX. Miscellaneous Subjects, § 22.17BUSINESS & PROFESSIONS CODEDivision 9. Alcoholic Beverages&KDSWHU *HQHUDO 3URYLVLRQV DQG 'HÀQLWLRQV WR . Chapter 1.5. Administration UWLFOH 7KH 'HSDUWPHQW RI OFRKROLF %HYHUDJH &RQWURO WR .62 UWLFOH 3URKLELWHG FWLYLW\ . UWLFOH 7KH OFRKROLF %HYHUDJH &RQWURO SSHDOV %RDUG WR . UWLFOH SSHDOV )URP 'HFLVLRQV RI WKH 'HSDUWPHQW WR .69 UWLFOH -XGLFLDO 5HYLHZ WR . UWLFOH 6WD\ RI 6XVSHQVLRQ WR . &KDSWHU XWKRUL]HG 8QOLFHQVHG 7UDQVDFWLRQV DQG ([HPSWLRQV WR . &KDSWHU /LFHQVHV DQG )HHV UWLFOH ,Q *HQHUDO WR .100 UWLFOH )HHV WR .102 UWLFOH 5LJKWV DQG 2EOLJDWLRQV RI /LFHQVHHV WR .125 UWLFOH &OXE /LFHQVHV WR . UWLFOH 9HWHUDQV· &OXE /LFHQVHV WR . UWLFOH &UDIW 'LVWLOOHU·V /LFHQVHV WR .196&KDSWHU ,PSRUWV WR .199Chapter 5. Restrictions on Issuance of Licenses UWLFOH ,Q *HQHUDO WR .210 UWLFOH &RQGLWLRQDO /LFHQVHV WR .225 UWLFOH /LPLWDWLRQ RQ 1XPEHU RI /LFHQVHG 3UHPLVHV WR .229Chapter 6. Issuance and Transfer of Licenses UWLFOH SSOLFDWLRQV IRU /LFHQVHV WR . UWLFOH 1RWLFHV DQG 3URWHVWV WR .256 UWLFOH 'HQLDO RI /LFHQVHV WR .259 UWLFOH ,VVXDQFH DQG 5HQHZDO RI /LFHQVHV WR . UWLFOH 7UDQVIHU RI /LFHQVHV WR . &KDSWHU 6XVSHQVLRQ DQG 5HYRFDWLRQ RI /LFHQVHV WR . &KDSWHU HDULQJV WR . &KDSWHU ([FLVH 7D[HV WR . &KDSWHU OFRKROLF %HYHUDJHV )DLU 7UDGH &RQWUDFWV DQG 3ULFH 3RVWLQJ WR . &KDSWHU :LQH )DLU 7UDGH &RQWUDFWV DQG 3ULFH 3RVWLQJ WR . Chapter 12. Beer Price Posting and Marketing Regulations, §§ 25000 to 25010 . &KDSWHU /DEHOV DQG &RQWDLQHUV UWLFOH 'LVWLOOHG 6SLULWV WR . Article 2. Beer, §§ 25200 to 25212 . UWLFOH :LQH WR . &KDSWHU 6HL]XUH DQG )RUIHLWXUH RI 3URSHUW\ WR . Chapter 15. Tied-House Restrictions, §§ 25500 to 25512. Chapter 16. Regulatory Provisions UWLFOH ,Q *HQHUDO WR . ix

xTABLE OF CONTENTSPage UWLFOH RXUV RI 6DOH DQG 'HOLYHU\ RI OFRKROLF %HYHUDJHV WR . UWLFOH :RPHQ DQG 0LQRUV WR . UWLFOH 5HVSRQVLEOH %HYHUDJH 6HUYLFH 5%6 7UDLQLQJ 3URJUDP FW RI WR . &KDSWHU GPLQLVWUDWLYH 3URYLVLRQV WR .505&KDSWHU OFRKROLF 5HKDELOLWDWLRQ 5HSHDOHG@ .515Index of ABC Precedential Decisions .517CALIFORNIA CODE OF REGULATIONS7LWOH %XVLQHVV 5HJXODWLRQVDivision 1. Department of Alcoholic Beverage Control UWLFOH 9LRODWLRQ RI 5XOHV 5HSHDOHG@.521 UWLFOH 5HFRUGV WR .521 UWLFOH ,QYRLFHV WR .522Article 5. Inventories, §§ 27 to 29 . UWLFOH 5HSRUWV 5HSHDOHG@ . UWLFOH /RVVHV DQG OORZDQFHV 5HSHDOHG@ . UWLFOH &ODVVLÀFDWLRQ RI 3DUWLFXODU %HYHUDJHV 5HSHDOHG@ .525 UWLFOH 6DPSOHV WR .525 UWLFOH 6DOHV IRU ([SRUW . UWLFOH SSOLFDWLRQV DQG /LFHQVHV WR .529 UWLFOH 0LOLWDU\ DQG 1DYDO 5HVHUYDWLRQV DQG &DPSV 5HSHDOHG@ . UWLFOH 3ULYDWH :DUHKRXVHV . UWLFOH 6DOHV :LWKRXW /LFHQVHV WR . Article 15. Prices, §§ 90 to 105 . Article 16. Signs and Notices, §§ 106 to 111 .550 UWLFOH 'LVWLOOHG 6SLULWV DQG :LQH &UHGLW 5HJXODWLRQV 5HSHDOHG@ . UWLFOH 6WDQGDUG &DVHV IRU 'LVWLOOHG 6SLULWV 5HSHDOHG@ .555 UWLFOH 0DOW %HYHUDJH 5HJXODWLRQV WR .555 UWLFOH 0HDVXUHPHQW RI 7LPH 5HSHDOHG@ .556 UWLFOH ,QWHULRU ,OOXPLQDWLRQ RI /LFHQVHG 3UHPLVHV .556 UWLFOH 6XVSHQVLRQ RU 5HYRFDWLRQ RI /LFHQVHV WR .557 UWLFOH GPLQLVWUDWLYH 3URFHGXUH .561 UWLFOH 'HSDUWPHQW RI OFRKROLF %HYHUDJH &RQWURO³&RQÁLFW RI ,QWHUHVW &RGH .561Appendix .562Division 1.1. Alcoholic Beverage Control Appeals Board UWLFOH *HQHUDO WR . UWLFOH )LOLQJ RI SSHDO WR .565 UWLFOH 5HFRUG RQ SSHDO WR .565 UWLFOH )LOLQJ RI %ULHIV WR .566Article 5. Oral Argument, § 197.566 UWLFOH 1HZO\ 'LVFRYHUHG (YLGHQFH .567 UWLFOH 0RWLRQV .567 UWLFOH 'LVPLVVDO RI SSHDO .567 UWLFOH 'LVTXDOLÀFDWLRQ RI %RDUG 0HPEHUV .567 UWLFOH &RQÁLFW RI ,QWHUHVW &RGH . MISCELLANEOUS RELATED STATUTESGENERAL LAWCalifornia Statutes of 1976&KDSWHU 8QFRGLÀHG@ . 571