Glossary of Commonly Used Terms

“ABC” or “the Department” are the commonly used names for California’s Department of Alcoholic Beverage Control. 

The ABC Act is the law that regulates alcoholic beverages in California. This act sets forth the powers and duties of the Department and the Appeals Board.  The ABC Act can be found in Business and Professions Code section 23000 through 25762. 

The Appeals Board uses the “abuse of discretion” standard. This helps determine whether the Department properly used its discretion to regulate alcoholic beverages.

A document the Department uses to allege that a manufacturer, wholesaler, or retailer of alcoholic beverages violated the ABC Act. 

A judge who presides over administrative hearings. The judge will receive evidence during the hearing, and he or she will issue a proposed decision that the Department may accept or reject. 

If the Appeals Board agrees with the Department’s decision to suspend or revoke a liquor license, the Board will affirm the decision. 

A term indicating that the Department has discovered facts during its investigation or the administrative hearing that warrant increasing the penalty beyond the standard punishment for a violation.

The legal definition of an alcoholic beverage is any beverage that has one-half of one percent (.5%) or more of alcohol by volume. 

If a person disagrees with the Department’s final decision, he or she may appeal it. That party becomes the appellant during the appeal.

A person who has applied for a license with the Department to sell or allow the consumption of alcoholic beverages. 

Making decisions without good reasons or ignoring the facts. In legal terms, it describes decisions made randomly or without fair thought.

Documents submitted by both the appellant and the Department to the Appeals Board before a hearing or decision. The appellant’s brief argues why the Department’s decision is incorrect. The Department’s brief justifies their decision. The appellant may also submit a closing brief to further support their case.

A legal term indicating that the person advocating for an issue carries the responsibility of proving it. If the Department accuses a licensee, it must prove the allegations. This burden may shift in certain cases. For example, in a license application, if the Department denies it, it must justify the denial based on the facts. If nearby residents are affected, once the Department meets its burden, the applicant must prove that issuing the license will not disrupt the residents’ quiet enjoyment of their property. 

A schedule of cases that the Appeals Board will review during oral arguments.

When the Department agrees with an Administrative Law Judge’s decision, they certify the decision by attaching a Certificate of Decision. Once the Certificate of Decision is mailed to all parties, the judge’s decision becomes the Department’s final decision.

A license granted with specific conditions that limit its use. These conditions may include restrictions on operating hours, items sold, and other operations.

Any party may ask the Appeals Board to delay the date that his or her appeal will be heard. The party asking for the delay must show good cause for the delay. 

A decision made by the Department after an appeal that has been sent back (remanded) or returned to the Department for further action. This decision can also be appealed.

A formal document issued by the Department that imposes discipline, grants/denies a license application, or upholds/dismisses a protest.

When the Department rejects the proposed decision of an Administrative Law Judge (ALJ) and issues its own decision, which becomes the final decision.

Law enforcement or the Department can send minors (people under 20) into licensed premises to try to buy alcoholic beverages. The decoy must remain supervised by a law enforcement officer or Department investigator.

A Department hearing held when the licensee/applicant does not attend (despite receiving proper notice of the hearing).

The section of the Department’s decision that presents its final conclusions.

A term used when the Department has the authority to choose between two solutions to a problem. The Appeals Board cannot second-guess or replace its views with the Department’s – unless the Department’s discretion was used in an abusive or arbitrary way.

The termination or withdrawal of an appeal. The Appeals Board may dismiss an appeal due to lack of jurisdiction, incomplete documents, or late payment/deadlines. An appellant can withdraw their appeal by submitting a written request to the Appeals Board.

A term used to describe alcoholic beverages that are distilled (e.g., whiskey, vodka, rum, and gin), not wine and beer.

A Department decision becomes final when it is certified and sent to everyone involved. Only these final decisions can be appealed to the Appeals Board. The enforcement of the final decision is paused, or “stayed,” during the appeal process.

The Department’s findings are the factual determinations in a decision. They serve as the foundation for the Determination of Issues. These findings must be supported by substantial evidence.

A sum of money paid instead of serving a suspension, often referred to as POICs (Petitions for Offers in Compromise). Typically, the Department’s decisions suspend a license. However, once finalized (either by final decision, completed appeal, or signed stipulation and waiver), the Department may allow licensees to pay a fine instead.

In most cases, a licensee is accountable for any criminal or unlawful acts committed by an employee on the premises. Depending on the nature of the unlawful act and any potential negligence by the licensee, this responsibility could either increase or reduce the penalty.

The Department is authorized to grant licenses for the distribution of alcoholic beverages. These licenses can be for off-premises sales (such as convenience and liquor stores) or on-premises sales (such as bars, restaurants, and nightclubs). The different types of ABC licenses can be found on their website. 

According to the ABC Act, a “minor” is anyone under the age of 21.

If the Department uncovers facts during its investigation or at the administrative hearing that cause a reduction from the standard penalty for a violation.

When a licensee allows a violation to occur on the premises (e.g., employees illegally soliciting drinks from customers or selling alcoholic beverages to obviously intoxicated people).

The physical location or facility of a licensed operation. This specific place is defined by boundaries and outlined on Department forms.

Each license grants specific privileges that must be followed. For example, a restaurant license allows minors on the premises, and a bar license does not.

After an administrative hearing, the ALJ writes a proposed decision including facts, findings, conclusions, and an order. This proposed decision is submitted to the Department, which may either adopt the ALJ’s opinion or reject it and issue its own decision.

Any person can protest the issuance of a license to an applicant or for a specific location. The protestant then becomes involved in litigation involving the Department and the applicant. As a party to the Department’s action, the protestant can appeal to the Appeals Board if the decision goes against their cause. Similarly, if an applicant appeals, the protestant can respond to the appeal.

When some of the Department’s penalties are temporarily suspended (e.g., a 30-day suspension with 10 days stayed). Similarly, a license revocation can be stayed under certain conditions and terms. If any violations occur during the probation, the stay is lifted, and the full penalty is enforced.

The complete record of the proceedings before an appeal is made to the Board. This record includes the transcript of the administrative hearing and the relevant parts of the Department’s file. The Appeals Board can ask the Department to supplement or add to the record at any time.

Law allows the Appeals Board to affirm or reverse the Department’s decision, including penalty orders, either in whole or in part. The ABC Act also allows the Appeals Board to send the case back to the Department to consider additional evidence if warranted. If the Appeals Board affirms the Department’s decision but finds the penalty excessive, it may remand the case for reconsideration. The Department may then either reduce or maintain the penalty. The Board does not have statutory authority to simply remand.

When the Appeals Board reverses the Department’s decision, it voids the decision, rendering it without any force or effect. Then, the Department must alter its licensee action or appeal the Board’s decision to the California Court of Appeal.

The Department may revoke a license if its continued operation is deemed “contrary to public welfare or morals,” or as permitted by law.

The Department and the Appeals Board have established rules governing their specific operations. The Board’s rules outline the appeal process, including document formats for appeals, time limits for oral arguments, etc.

During an appeal, the enforcement of the ABC decision is temporarily halted or “stayed.”

When sufficient evidence exists to reasonably support a specific fact or issue. In Appeals Board cases, if the Department’s findings are supported by substantial evidence, the Board must uphold the decision – even if another conclusion could also be considered reasonable.

A license may be suspended due to a legal violation. During a suspension the licensee is prohibited from exercising the license’s privileges. The Department places large banner-type posters at the premises, which can only be removed by Department personnel.

When protests are filed against issuing a license, and the Department finds the protestant’s concerns to be valid, the Department may uphold the protests and deny the license application.

A situation where a licensee has acted against the ABC Act or Department rule.