10 Things to Know About Liquor License Policy

The Hermosa Beach City Council plans to develop stricter rules for businesses that serve alcohol. At a meeting last week, the council agreed to research the matter and develop a policy for the next meeting.

Liquor license adviser Lauren Tyson, who has worked for the Department of Alcoholic Beverage Control for 29 years, explained in an interview how the council's policy decisions would affect local restaurants and the community:

Patch: What exactly is the role of the Department of Alcoholic Beverage Control?

LT: The ABC is the state agency with the exclusive authority to grant or revoke a liquor license "for the protection of the safety, welfare, health, peace, and morals of the people of the state . . . to promote temperance in the use and consumption of alcoholic beverages."

Patch: Under current policy, how much control does the city of Hermosa Beach have over liquor licensing?

LT: Any time someone applies for a liquor license, whether a new license or transfer of an existing license, the public must be notified. This includes notice to the city and county in which the business is located. This gives any party who has legal grounds a chance to protest.

ABC cannot issue a license contrary to a valid zoning ordinance. City and county governments have constitutional authority to regulate land use to protect the health, welfare and safety of local residents.

By adopting local ordinances, the city can control how alcohol is sold. Any retail alcohol outlet going into business after the ordinance is adopted must comply with the ordinance, whether it be minimum distances to other alcohol outlets, limited hours of alcohol sales, lighting, trash management, loitering, security guards or whatever.

Patch: The discussion surrounding licensing had been raised earlier this month when a request was made to transfer a license from Il Boccaccio to Sharkeez by the owners of both establishments. Can you please summarize this case?

 LT: Yes. But since I'm not personally involved in this matter, I'm basing my summary on a review of the documents found on the vivahermosa.com website. The documents appear to be official records of the city and ABC.

In 1994, the current Type 47 liquor license was issued to Carla and James Venezia with restrictions by the city and the ABC to run a bona fide restaurant, not a nightclub. During 2006 and 2007, the city issued three warning letters to the Venezias about non-compliance with their conditional use permit.

In 2008, the Venezias applied to transfer the license at its current location to Il Boccaccio Inc., with the Venezias retaining 49 percent interest in the business and Greg and Lisa Newman, the owners of Sharkeez, holding 51 percent.

Police Chief Savelli wrote a letter to the ABC district office in Lakewood requesting that conditions be imposed to permit alcohol sales only until midnight. The ABC accepted the police department's letter as an official protest.

The Newmans would not agree to the limited hours, and requested an ABC hearing. Evidence was presented of law enforcement problems in the area... However, the administrative law judge found that there was insufficient evidence of a connection between the problems and the conditions designed to eliminate the problem.

On April 8, 2010, after reviewing the case, the ABC director adopted the judge's proposed decision. No appeals were filed during the 40-day appeal period, so the decision became operative on May 24, 2010.

Patch: What about the case do you think encouraged the City Council to discuss a new liquor license policy? 

LT: It appears that the city is experiencing substantial alcohol-related law enforcement problems in the area. This is not unusual where there are a number of licensed establishments with late hours in close proximity to each other and/or to residential areas.

If the places are poorly managed, don't have or enforce written alcohol policies and don't train their employees, it adds to the problem. When a community is experiencing alcohol-related problems, and existing policies are not adequate, then that community often looks for new solutions. Sometimes they need outside help.

This is one reason the ABC created the Grant Assistance to Law Enforcement Agencies Program in 1995. There is also expert help available from the Community Prevention Institute, a state-funded technical assistance program, and others.

Patch: As a consultant, have you noticed whether or not it is common for a city to craft liquor license policy?

LT: State ABC law can't be overridden by local government, but local governments can enact local ordinances that are more restrictive than state law. For example, the legal hours for sale and consumption of alcohol at a licensed business is 6 a.m. to 2 a.m. the next day.

A city could not extend the legal hours to 3 a.m., but it could limit the hours to 12 midnight. Likewise, the state does not mandate training for beverage servers, but several jurisdictions, especially in San Diego County, have enacted ordinances requiring the training.

Patch: Some residents have said that Hermosa Beach can turn into a "party town" on the weekends and at night. If the city agrees to establish stricter rules for restaurants serving alcohol, do you think we'll see a quieter Hermosa Beach in the future? 

LT: Stricter rules alone will not fix the problem. It takes a combination of  things. As one example, the Surfer's Paradise Safety Action Project was a community-based initiative in 1993 to reduce violence in and around licensed premises on Queensland's Gold Coast.

It found that a successful intervention included strong leadership, mobilization of community groups, multi-agency approach involving licenses, local government, police, health and other groups, safety audits to identify risks and engage the community, focusing on ways the businesses are managed, re-educating patrons, and attention to situational factors including serving practices that promote intoxication and violence.

Findings showed marked reductions in violence and crime, inside and outside of venues, and in practices that promote the irresponsible use of alcohol, improvement in security practices, handling of patrons and transport policies.

Researchers found that by 1996 the violence had returned, which suggested a need for business self-regulation, community monitoring and ongoing formal enforcement. There have been similar research studies conducted in the United States as well.

Patch: How have you seen stricter liquor license rules affect other communities?

LT: After 29 years with the ABC, I know that strict laws, rules and regulations alone are only part of the answer to prevent alcohol-related problems. Strict enforcement of existing laws, partnerships between the police, ABC, business and the community, and education/training all work together to prevent and reduce problems.

Patch: What major change in liquor licensing rules do you anticipate the city will make?

LT: As mentioned earlier, liquor licensing is up to the ABC, based on local zoning approval, but local ordinances that restrict the manner and mode of a business operation is up to the city.

I would only be speculating as to what the city of Hermosa Beach might do. But the alcohol industry should not underestimate the will of a city and the community to remedy its crime problems.

In Oakland, for example, the city won a legal battle with the industry to impose a $600 annual fee for enforcement and monitoring of liquor stores. There are many experts out there, for example, through the Community Prevention Institute who can help cities that are experiencing problems and seeking stricter controls.

Patch: What steps must a restaurant owner make to obtain a liquor license and then open shop in town?

LT: Beer and wine licenses for restaurants are readily available for a fee of $650, providing the applicant and the premises qualify. Full liquor licenses (Type 47) are limited in number and only available by either entering the ABC's annual drawing held in September, or finding one on the open market.

Check with the local planning department to ensure the site is properly zoned for the sale of alcohol; a conditional use permit may be required. Contact the ABC district office for the forms and filing fee required. There are fingerprinting and public notice requirements. To reduce risk of liability and ensure greatest success, have written alcohol management policies and require your employees to attend a state-certified responsible beverage service training program.

Patch: Why do you find the debate happening here in Hermosa Beach to be particularly interesting, and why should local residents care about this issue?

LT: After 29 years working for the Department of Alcoholic Beverage Control as an investigator, supervising investigator and district administrator, I have seen it all—the good, the bad and the ugly, from the finest restaurants to the worst gang-infested, crime-ridden bars in high-crime areas. I enjoy helping people improve the quality of their lives and their businesses.

People should care about this issue because poorly managed alcohol outlets create public health and safety problems that affect everyone. Local residents should support their local businesses, but also be proactive in monitoring what's going on in the community. If we all work together, our communities can be safer and our quality of life better.

If you have a question for Tyson, please leave a comment and she will reply.