Alcohol Beverage Law & Wine Law
Legal Services
The manufacture, sale, purchase, possession or transportation of alcoholic beverages within and outside of California is heavily regulated by both state and federal law. See California Constitution, Article XX, §22, and U.S. Constitution, 21st Amendment, §2.
In California, the Department of Alcohol Beverage Control (“ABC”) (www.abc.ca.gov) licenses and regulates the manufacture, importation and sale of alcoholic beverages in the state and collects license fees. The Board of Equalization (BOE) regulates and enforces sales and use taxes (www.boe.ca.gov). Generally, the Alcoholic Beverage Control Act governs the manufacture, distribution and sale of alcohol along with various rules and regulations issued by the ABC. Activities regarding the alcohol beverages are prohibited unless expressly authorized by the ABC Act. (See Business and Professions Code §§2300 et seq.) According to its website, the goal of ABC’s disciplinary procedures is to secure voluntary compliance by its licensees. Failure to comply may result in various administrative penalties—criminal or civil.
Apart from purchases and sales, vineyard operations in California are subject to a wide variety of laws, rules and regulations including those found in the California Agricultural Code, Labor Code, California Occupational Safety and Health Act, California Government Code, California Code of Regulations, federal and state housing laws, etc., and various state and local agencies such as the State Water Resources Control Board.
At the federal level, alcohol governance comes under the jurisdiction of the Tax and Trade Bureau (“TTB”) (www.ttb.gov) (formerly known as the Bureau of Alcohol, Tobacco & Firearms or “ATF.”) The TTB handles a variety of legal issues pertaining to the alcohol beverage industry, including authorizing sales and use permits, regulating advertising and approving labels.
The ABC (or any person) can initiate action against any licensee or licensed premises by filing an administrative complaint known as an Accusation which seeks to suspend or revoke the license. See Business & Professions Code §24201, et seq. and Government Code §11503. For example, the sale of alcohol to a minor can result in criminal prosecution of the seller or server. If a licensee or licensed premises conducts itself such that it becomes a public nuisance, the local District Attorney can bring an injunction against it. Likewise, the ABC may also seek an injunction. Others can also initiate accusations such as a legislative body, the Chief of Police, the Board of Supervisors or the Sheriff of the county. The ABC receives its legal representation from the California Attorney General’s Offices located in major cities. The licensee is entitled to a hearing provided a notice of defense is filed. See Government Code §11506(2).
O’Brien, Watters & Davis, LLP provides advice, counsel and representation on all aspects of the alcoholic beverage business, from land acquisition and industry regulation, to estate planning and succession issues. Our Santa Rosa attorneys are experienced in all aspects of the industry and have written many of the laws regulating the industry.
Michael G. Watters handles litigation arising out of the above areas including disputes with suppliers with distributors as well as administrative law proceedings involving accusations, injunctions and administrative hearings before Administrative Law Judges (ALJ’s), handles appeals before the ABC Appeals Board, prosecuting appeals to the District Court of Appeal, and/or, ultimately, the California Supreme Court. Mr. Watters has appeared before the ABC Appeals Board and has defended other state licenses as well as handled administrative mandamus actions in the Superior Courts regarding other state licensees.