Issuance and Transfer of LicensesTransfer of Licenses
Section § 24070
This law explains how certain alcohol licenses can be transferred between different people and premises, especially regarding transferring between counties. For off-sale general licenses, a county cannot increase its licenses by more than 25 in a year, or by more than 10% of what's already there. There are similar rules for on-sale licenses, limiting how much a county can increase its licenses. Both off-sale and on-sale licenses have specific limits on how many can be moved from one county to another. Additionally, if a license is transferred between counties after certain dates, it can't be sold or transferred again for a few years, unless special conditions apply. There's also a 5-year waiting period before a transferred license can be sold for more than the original fee.
Section § 24070.1
Section § 24070.2
This law allows certain liquor licenses that were issued before April 29, 1992, and located in specific areas within Los Angeles County, to be moved to a different county. This can be done even if there are rules that usually limit this kind of transfer. Additionally, the cost to transfer a license under these circumstances is set at $100.
Section § 24070.5
If a winegrower hasn't actively run their business for a year, their license can only be transferred to someone else who meets the qualifications to be a winegrower, according to specific sections of the code.
Section § 24071
This law explains how different types of licenses in the alcohol beverage industry can be transferred under various circumstances. For example, a liquor license can be transferred between spouses if done before a divorce is finalized, or it can be transferred in cases of death, bankruptcy, or when a company changes ownership structure. There are specific fees for these transfers ($100 or $115 depending on the situation), but no fee for transferring an importer's license. Money from these fees goes into the Alcohol Beverage Control Fund. Additionally, fee changes may occur as per other regulations, and creating a limited liability company with only one member is not allowed. Special conditions apply for stock transfers within families where the fee is reduced.
Section § 24071.1
This law covers what happens when there is a major change in who owns a corporation or limited partnership that holds an alcohol license. If someone new ends up owning 50% or more of the company's shares, the business needs to transfer its liquor license to the newly structured company. The transfer comes with a fee, and special rules apply if multiple licenses are being transferred at the same time. Additionally, the company must notify the county and fulfill specific recording and filing procedures before applying for the license transfer. The law also limits the newly structured company's eligibility for new credit until any outstanding payments are cleared.
Section § 24071.2
This law talks about what happens when more than half of the ownership in a limited liability company (LLC) changes hands. If new people take over 50% or more, the LLC's liquor license must be officially transferred. This process comes with a fee, which varies depending on the license type. The law also requires that an announcement is made in the county where the business is located before the license transfer can happen. This notice needs to include specific details like the names, addresses, and the price for the ownership change. After filing this notice, the LLC has to submit a certified copy with their transfer application. Moreover, any new LLC owners can't get new credit until the previous LLC's debts are settled, and transferring a license won't allow them to bypass existing credit rules. Finally, this law doesn't permit forming a single-member LLC if that's against corporate rules.
Section § 24072
This law outlines the fees involved in transferring alcohol licenses for different scenarios. If you're transferring an on-sale or off-sale license, it costs $1,250. Other license transfers are $335, and moving a license from one location to another costs $780. Transferring licenses between counties is $6,000. Transferring a license to a family member, without payment, is half the normal cost. If multiple licenses are involved, you only pay for the highest fee. There's an annual fee for each license transferred, and costs apply to reactivate surrendered licenses. Changing the physical setup of a licensed venue involves a fee of $345 or $380, depending on the changes. Fees can be adjusted, and various fees collected go into a specific fund. Refunds are possible if applications are denied or withdrawn.
Section § 24072.1
This law allows businesses with on-sale alcohol licenses, issued for genuine public eating places, to transfer those licenses to a different location, as long as the new place is also a genuine public eating place or public premises. Likewise, licenses initially issued for public premises can be moved to a new location that is either another public premises or a bona fide public eating place.
Section § 24072.2
If you have a liquor license for either a restaurant or a bar, you can swap it for the other type at renewal time. This can only happen once between renewal periods and requires approval, a $100 fee (which can change), and following the rules for getting a new license. The fee goes to the Alcohol Beverage Control Fund.
Section § 24072.3
If you have a brewpub-restaurant license issued by the end of 2019 in California, you can trade it for a public eating place license after paying a $100 fee and meeting certain requirements. However, you'll also need to pay for a new permanent license, and the money goes to a specific fund. The new license can have special designations, but it won't change what you're allowed to do with it. Plus, you can't sell the new license for more than what you paid for it. Basically, it's a way to switch your license type if it was initially granted by 2019.
Section § 24072.5
If you have an on-sale general license or a special on-sale general license for selling alcohol, you can swap it for the other type of license. To do this, you need the department's approval, pay a $100 fee, and follow the rules for getting a new license. Some specific rules don't apply to this exchange. The fee collected goes into a special fund for alcohol-related regulation.
Section § 24073
In California, if you want to transfer a particular type of alcohol sales license, like those for selling beer and wine, you need to follow some specific steps before applying. You or the person who will get the license have to file a notice at the county recorder's office where the business is located. This notice must include various details such as both parties' names and addresses, the type of license being transferred, and the business addresses involved. It must also outline the payment agreement for the transfer and provide details about the escrow or guarantor handling the transaction. Plus, you have to attach a certified copy of this notice to your transfer application.
Section § 24074
This law outlines the steps needed when transferring a business or license, especially if there's a purchase price involved. Before filing a transfer application, both parties (the current license holder and the person buying) must set up an escrow account managed by someone not involved in the transfer. The buyer has to deposit the full purchase value in escrow. They also have to detail all parts of the payment, such as cash or property. The escrow holder will pay the seller’s creditors in a set order, starting with taxes owed to the U.S. government, then employee wages, secured creditors, mechanics’ liens, and so on. Some payments, like those for past-due rent, come after other prioritized debts. If the seller disagrees with a claim, the escrow waits on payment. Overall, the escrow ensures creditors are paid before the seller receives any remaining funds from the sale.
Section § 24074.1
If someone wants to serve as an escrow holder under this law, they must follow specific rules. First, they need to comply with certain financial regulations. Second, when a creditor submits a claim, the escrow holder must confirm they've received it within 10 days. Lastly, once the license is transferred, the escrow holder must inform creditors if there are enough funds to pay everyone back completely. If there isn't enough money, they must provide detailed information to each creditor about the available funds, list of creditors, payment amounts proposed, and payment schedule.
Section § 24074.2
If you want to be an escrow holder under certain rules, you can't exchange escrow funds for a promissory note or anything worth less than the funds for the creditors.
Section § 24074.3
If you're buying a business and need to transfer a specific kind of license in California, you have to prove you've paid or put the money in escrow within 30 days. This means you need to send a sworn statement to a government department and share copies with the seller and escrow holder. You can get more time if there's a good reason, but the license won't officially transfer until they have this proof. This rule doesn't apply if someone else has guaranteed payment separately.
Section § 24074.4
This law section allows the transfer of certain businesses or licenses, specifically off-sale beer and wine licenses, without the need to set up an escrow account if a corporation agrees to pay all true creditors of the licensee. The corporation must have a net worth of at least $5 million and the creditors must accept this guarantee. The transfer won’t happen until all creditor claims are fully paid and confirmed by a statement under oath.
Section § 24075
This law says that certain rules about transferring licenses do not apply when the transfer is done by specific people like executors, guardians, or trustees who are carrying out their official duties. This also includes transfers for the benefit of creditors or to a surviving spouse, among others specified in related sections.
Section § 24076
Section § 24077
This law states that you can't move a professional license into a county if its population is 35,000 people or fewer, regardless of other laws.
Section § 24078
This law allows a special onsale general license to be transferred either from one person to another or from one location to another. However, the transfer must comply with specific rules outlined in the law, particularly focusing on the continued operation of the licensed premises.
Section § 24079
If you buy a general license to sell alcohol, you can't sell it for more than you paid for it during the first two years. After those two years, you can sell it for any price you want.
Section § 24080
When someone wants to transfer an onsale or offsale general license, they must tell the department if they're paying for inventory, fixtures, or the license itself. They also need to list the specific amounts paid for each item in their application.
Section § 24081
If your business gets hit by fire or another uncontrollable event, you can temporarily operate somewhere else nearby while repairing your original place, and it won't affect your license. This applies to both regular and off-sale licenses, allowing you to continue operations for up to 180 days at a location within 1,000 feet. The director can extend this temporary period by another 60 days if necessary.
Section § 24082
If a business's licensed location is destroyed by a fire or natural disaster, or taken by the government for public use, they can move their license to a new spot in the same county without paying a transfer fee. If they rebuild the destroyed location within 18 months and haven't already transferred the license to someone else, they can move the license back to the original spot without paying a fee.