Liquor
Q: My neighbor (who has a liquor license) is going out of business and is looking to sell off their liquor inventory. Is there any way that my business can legally buy it?
A:Yes. There is a mechanism for this. The liquor authority is allowing licensed establishments to purchase the remaining liquor inventory of another licensed establishment provided that the liquor inventory that you’re purchasing is covered by your existing license and ONLY if that establishment is going out of business. You CANNOT do this if the selling business intends to remain in business. Contact us for help on this today.
Last Updated: March 20, 2020
Q: I have 3 locations. One is jamming at the moment, as it’s geared for take-out and delivery to begin with, while the other two are relatively slow. Can I share alcoholic beverage inventory/stock amongst my three places, based on need?
A: NO. While the SLA is not actively looking to get licensees in trouble at the moment, they still do consider inventory sharing to be illegal. And while there have been some novel rule adjustments lately, they are not interested in suspending all rules of the ABCL.
Last Updated: March 20, 2020
Q: The CDC is recommending “contactless delivery” for our industry. If we are to practice true “contactless delivery,” how are we supposed to verify that the end-user/customer is truly 21 years of age or greater.
A: The original guidance given by the SLA years ago, when beer delivery really started to become popular, was that licensees should just use “best efforts” to ensure that the end customer was 21 and over. And they recommended taking the Drivers License ID # on the front end of the transaction, with a subsequent verification by the delivery person. This would obviously be impossible practice with “contactless delivery.” So, the SLA’s new position is that the new “best efforts” practice might be just having the end user send a photo of their [21 or older] ID, so the delivery person can just verify from afar, that there is a legitimate, legal recipient. personal editorial: if this becomes too complicated, don’t do it. just be smart and as vigilant as you can.
Last Updated: March 20, 2020
Q: What am I supposed to do with my liquor license right now?
A: That all depends on your situation. If you’re planning to shut your doors for good and go out of business, you should surrender your license, so that you get the maximum pro rata refund that you can get. If you’re going to close up for a short time, to regroup and see what happens – you may reopen or look to sell your restaurant/bar, if the climate is significantly improved, you should put your license into “safekeeping” with the SLA. And obviously if you’re making a go of it at the moment, converting to a delivery/take-out model, you don’t do anything just yet. Eventually, there may be a need to formally alter your method of operation with the State, but for right now, they’re cool with you just standing pat. Whatever your situation, we can help facilitate all of the above.
Last Update: March 19, 2020
Liquor License Implications
Q: Is the Liquor Authority doing anything to help licensees in this time of need?
YES! The SLA has agreed to make certain exceptions and allowances, to help their licensees get through this crazy time. They are: 1) When on-premises establishments are confined to just being “take out” or “delivery” hubs, the SLA is prepared to allow them to sell alcohol in this same fashion as well – NOT just beer (which is normally the case), but wine and spirits as well. They’re still sorting out the details re: whether mixed drinks could be sold, what type of restrictions are to be expected with bottle service, etc., but all will be decided by 5:00 PM today (March 16); 2) The SLA is suspending any kind of enforcement with regards to establishments not being open to the public while their licenses remain active. This is typically a violation, but in light of the circumstances, the SLA will not be writing these violations; 3) If you would like, you may return alcohol purchases to distributors, dating back to March 1, 2020, for credit; 4) All hearings [and counsel’s office] will be closed for two weeks, so if you have any hearings in the coming weeks, they have all been postponed.
Last Update: March 16, 2020
Q: Do I have to close my wine shop tonight, when all bars and restaurants close?
No. Retail wine and spirits stores are considered retail stores – not places for “on-premise consumption.” Therefore, they can remain open, much like grocery stores can.
Last Update: March 16, 2020
Q: Can the SLA suspend the COD requirements for late payments to alcohol distributors to allow us to work out payment plans and stay open in the interim?
We recommend dealing directly with the distributors for now. The SLA only renders you COD if a distributor reports you to them. We are tracking this issue and will get back to you.
Last Update: March 16, 2020
Q: Can I provide alcohol for takeout or delivery service?
Yes, but this is legally limited to Beer only (but in any format), and you must have a way to prove that the recipient is 21 years of age or older.
Last Update: March 15, 2020
Q: What should I do with my liquor license if I’m going to close for good?
If you are going to close permanently, you can surrender your liquor license and receive a pro rata refund for unused time left on the license (takes months to receive).
Last Update: March 15, 2020
Q: What should I do with my liquor license if I’m going to close temporarily or look to sell my business?
If you’re going to be closed on a temporary basis or you’re going to look to sell your business or move your business, you should place your liquor license into “Safekeeping” with the State Liquor Authority. This is the correct way to handle things if you are not currently open, but do not want to surrender your license for some reason. The SLA keeps it “safe” for you while you figure things out, and you are in no danger of accruing violations for being closed and in no danger of losing your license during this period.
Last Update: March 15, 2020
Q: I need to change/modify my concept/layout to survive, what do I do?
There is an SLA application and process to effectuate any and all changes to a licensed premise. And none of them happen instantaneously. We have spoken to the SLA brass, and they’ve indicated a willingness to work with licensees throughout this difficult time. Does that mean that you can convert your restaurant to a nightclub with no recourse? No. But it does mean that they will be likely to expedite applications for licensees looking to be compliant and stay in business. And you will likely see less enforcement during this period. We’re available to help you navigate these types of things. Just email or call.
Last Update: March 15, 2020
Q: I have a deadline with a city or state agency related to an application that I filed. I won’t be able to comply due to circumstances out of my control. What are my options?
We’ve spoken to most all City and State agencies that restaurant and bar owners have to deal with, and they’re all willing to be flexible. As a general rule for everything in times like this, it is much better to ask for permission rather than forgiveness. Therefore, it is much preferred to let them know in advance that you cannot comply and need an extension, than to just default or miss your deadline. All agencies have indicated that they are granting extensions of deadlines in a more liberal fashion than they normally do. It is easier for them to do, however, if they are notified BEFORE the deadline.
Last Update: March 15, 2020
Q: Can the SLA suspend the COD requirements for late payments to alcohol distributors to allow us to work out payment plans and stay open in the interim?
We recommend dealing directly with the distributors for now. The SLA only renders you COD if a distributor reports you to them. We are tracking this issue and will get back to you.
Last Update: March 15, 2020
