Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would provide an exception to the limitation of on-sale general licenses described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

Existing law, until January 1, 2026, additionally authorizes a beer manufacturer to give, free of charge, up to 5 cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

This bill would extend operation of the authorization described above until January 1, 2029.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would provide an exception to the limitation of on-sale general licenses described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

Existing law, until January 1, 2026, additionally authorizes a beer manufacturer to give, free of charge, up to 5 cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

This bill would extend operation of the authorization described above until January 1, 2029.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would provide an exception to the limitation of on-sale general licenses described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale and off-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would also provide an exception to the limitation of on-sale general licenses described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale and off-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would also provide an exception to the limitation of on-sale general licenses described above by authorizing the issuance of up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would provide an exception to the limitation described above by authorizing the issuance of up to 5 10 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would require the department to issue at least one of these licenses to a premises within the trust lands of the Cachil Dehe Band of Wintun Indians of the Colusa Indian Community. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located.

This bill would provide an exception to the limitation described above by authorizing the issuance of up to 5 additional new original on-sale general licenses for bona fide public eating places in the County of Colusa. The bill would require the department to issue at least one of these licenses to a premises within the trust lands of the Cachil Dehe Band of Wintun Indians of the Colusa Indian Community. The bill would specify that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this authorization. The bill would prohibit transferring the new licenses out of the county or to a premises that does not qualify under these provisions. The bill would also prohibit selling or transferring the new licenses for a price greater than the original fee paid by the seller or transferor.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Colusa.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 445

Author:(Aguiar-Curry)

As Amended Ver:September 4, 2025

Majority vote

SUMMARY

This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified. The bill would also extend a sunset (January 1, 2029), currently set to expire on January 1, 2026, that allows beer manufacturers to provide free branded glassware to on-sale retailers, as specified.

Major Provisions

1. Provides in the County of Colusa, the ABC may issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places.
2. States as stipulated in the Alcoholic Beverage Control Act (Act), the ABC must adhere to the priority drawing process when issuing licenses.
3. Specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this measure.
4. States the license shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this measure.
5. Provides the license shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.
6. Provides the ABC may designate licenses issued pursuant to this bill as on-sale general for special use. This designation does not alter any license privileges or restrictions, as specified.
7. Extend a sunset provision, currently set to expire on January 1, 2026 that permits beer manufacturers to provide free branded glassware to on-sale retailers, as specified.

Senate Amendments

1) Make a technical change.

2) Extend a current tied-house exception, until January 1, 2029, which authorizes a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

3) Add chaptering out language.

COMMENTS

Background.

Type 47 alcohol license. A Type 47 license is specifically designated for businesses that primarily serve food (″bona fide eating place″). The license is meant for those who seek to serve beer, wine, and distilled spirits for consumption on the licenses premises. The license holder must maintain suitable kitchen facilities and make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. Minors are allowed on the premises. A Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses, and other eating establishments. There are 17,097 on-sale general (Type 47) licenses statewide.

Alcohol license limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses the ABC may issue each year based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a specific year, the ABC will issue five new licenses in that county.

If the ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals looking to open a full-service restaurant with a bar or cocktail menu who are unable to obtain a liquor license through the standard process must find a current license holder willing to sell theirs. This is typically done by working with an alcohol license broker. The price of acquiring a license on the secondary market is influenced by supply and demand and can be quite substantial in certain counties.

Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties. Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Tied-House Laws. Tied-house laws separate the alcoholic beverage industry into a three-tier license system (manufacturer, wholesaler, and retailers) and generally prohibit alcoholic beverage licensees from giving any gift in connection with the sale or distribution of an alcoholic beverage. Exceptions to these restrictions have been enacted throughout the years in those specific instances where the Legislature determined that the public's interests are protected.

AB 1133 (Low, Chapter 623, Statutes of 2019) authorized, until January 1, 2023, a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions. In 2022, AB 2971 (G.O., Chapter 296, Statutes of 2022) extended that sunset until January 1, 2026. AB 445 of 2025 will extend this sunset once again to January 1, 2029.

According to the Author

According to the author's office, "For over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive."

Arguments in Support

According to the Family Winemakers of California, "Colusa County has not received any new general alcoholic beverages licenses in 20 years, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the ABC to issue 10 additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive."

Arguments in Opposition

None received

FISCAL COMMENTS

According to the Senate Committee on Appropriations, "Minor increases in licensing and enforcement workload to the department, which is anticipated to be absorbable with current resources (Alcohol Beverage Control Fund). Additionally, the ABC's activities are funded by regulatory and license fees and generally, the department does not receive support from the General Fund. New legislative mandates, although modest in scope, may in totality create new cost pressures and impact the department's operating costs and future budget requests."

VOTES:

ASM GOVERNMENTAL ORGANIZATION: 20-0-2

YES: Blanca Rubio, Davies, Alvarez, Berman, Lowenthal, Carrillo, Dixon, Fong, Gipson, Macedo, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Valencia, Wallis

ABS, ABST OR NV: Gabriel, Ta

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ASSEMBLY FLOOR: 75-0-4

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Dixon, Flora, Jeff Gonzalez, Papan

UPDATED

VERSION: September 4, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001928

 THIRD READING  

Bill No: AB 445

Author: Aguiar-Curry (D)

Amended: 9/4/25 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/10/25

AYES: Padilla, Valladares, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Archuleta

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/29/25

AYES: Caballero, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab

ASSEMBLY FLOOR: 75-0, 5/19/25 - See last page for vote

SUBJECT: Alcoholic beverages

SOURCE: Author

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified. Additionally, this bill extends a current tied-house exception, until January 1, 2029, which authorizes a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

Senate Floor Amendments of 9/4/25 extend the sunset, currently set to expire on January 1, 2026, that allows beer manufacturers to provide free branded glassware to on-sale retailers. The amendments also add chaptering out language.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this State and the collection of license fees.
2. Provides that the Department of ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the Department of ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
3. Caps the number of new on-sale and off-sale general licenses issued by the Department of ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.
4. Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
5. Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health.
6. Authorizes, beginning January 1, 2017, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
7. Authorizes, beginning January 1, 2018, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Subsequent legislation increased the total number of these type of specific licenses to 40 total licenses.
8. Authorizes, beginning on January 1, 2023, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
9. Prohibits an alcoholic beverage licensee from giving any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as authorized by rules adopted by ABC.
10. Authorizes until January 1, 2026, a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail license, per license location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

This bill:

1. Authorizes the Department of ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified.
2. Provides that this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license.
3. Prohibits a license issued under this bill from being transferred from one county to another or from being transferred to any premises not qualifying under the provisions of this bill.
4. Provides that no license issued under this bill shall be sold or transferred for a price greater than the original fee paid by the seller.
5. Authorizes the Department of ABC to designate licenses issued by the provisions of this bill as on-sale general for special use.

Extends the current tied-house exception, until January 1, 2029, which authorizes a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions.

Background

Author Statement. According to the author’s office, “for over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the Department of ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premises. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of March 19, 2025, there were approximately 16,175 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.

If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $300,000 to $400,000 in certain counties. In Colusa County, a Type 47 license generally ranges from $75,000 to $100,000 on the open market.

Impact on Cities/Counties. As previously noted, when a county experiences a population growth, the Department of ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the Department of ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

According to the Department of ABC, in 2022 there were 31 counties that were eligible for more licenses because of population growth and 27 counties that were not eligible for more licenses because of a lack of population. Of those 27 counties, five counties received a handful of licenses through special legislation.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the Department of ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the license from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and are signed into law. Once those bills become law, the Department of ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Tied-House Laws. As noted, Tied-house laws separate the alcoholic beverage industry into a three-tier license system (manufacturer, wholesaler, and retailers) and generally prohibit alcoholic beverage licensees from giving any gift in connection with the sale or distribution of an alcoholic beverage.

The original policy rationale for this body of law was to (1) promote the state’s interest in an orderly market; (2) prohibit the vertical integration and dominance by a single producer in the market place; (3) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (4) discourage and/or prevent the intemperate use of alcoholic beverages. Exceptions to these restrictions have been enacted throughout the years in those specific instances where the Legislature determined that the public's interests are protected.

With respect to beer, existing law provides that premiums, gifts, or free goods, including advertising specialties that have no significant utilitarian value other than advertising, shall be deemed to have greater than inconsequential value if they cost more than $0.25 per unit, or cost more than $15 in the aggregate for all those items given by a single supplier to a single retail premises per calendar year. The Department of ABC Rule 106(e)(2) provides the following examples of the kinds of consumer giveaway items with “inconsequential” value: ash trays, bottle or can openers, litter or shopping bags, matches, recipe cards, pamphlets, pencils, post cards, hats, posters, bottle or can stoppers, etc.

In addition, AB 1133 (Low, Chapter 623, Statutes of 2019) authorized, until January 1, 2023, a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, per licensed location, each calendar year, and authorizes an on-sale retail licensee to accept, free of charge, up to 10 cases of retail advertising glassware, per licensed location, from licensed beer manufacturers each calendar year, subject to specified conditions. In 2022, AB 2971 (G.O., Chapter 296, Statutes of 2022) extended that sunset until January 1, 2026. This bill will extend this sunset once again to January 1, 2029.

Prior/Related Legislation

SB 395 (Wiener, 2025) authorizes the Department of ABC to issue up to 20 additional new original on-sale general licenses for bona fide public eating places located within a designated hospitality zone, as specified, in the City and County of San Francisco, as specified. (Pending on the Governor’s Desk)

AB 828 (Mark Gonzalez, 2025) authorizes the Department of ABC to issue no more than 12 new original neighborhood-restricted special on-sale general licenses per year to bona fide public eating places located in specified United States Census Bureau census tracts in the County of Los Angeles beginning on January 1, 2026, until a total of 40 new licenses have been issued, as specified. (Pending on the Senate Floor)

AB 1008 (Addis, 2025) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of San Luis Obispo, as specified. (Pending on the Governor’s Desk)

SB 1028 (Alvarado-Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating-places, as specified. (Held in the Senate Appropriations Committee Suspense File)

AB 2359 (Ting, Chapter 393 Statutes of 2024) revised an existing exemption in law authorizing the Department of ABC to issue no more than five new original neighborhood restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified.

AB 2589 (Joe Patterson, Chapter 312, Statutes of 2024) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.

SB 787 (Dahle, Chapter 113, Statutes of 2023) authorizes the Department of ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

AB 2971 (G.O., Chapter 296, Statutes of 2022) extended the sunset date on an existing provision in law that authorizes a beer manufacturer to give, free of charge, up to five cases of retail advertising glassware to an on-sale retail licensee, until January 1, 2029.

AB 1133 (Low, Chapter 623, Statutes of 2019) allowed, until January 1, 2023, a beer manufacturer to give up to five cases of glassware to an on-sale retail licensee, as specified.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, minor increases in licensing and enforcement workload to the department, which is anticipated to be absorbable with current resources (Alcohol Beverage Control Fund).

Additionally, the Department of ABC’s activities are funded by regulatory and license fees and generally, the department does not receive support from the General Fund.  New legislative mandates, although modest in scope, may in totality create new cost pressures and impact the department’s operating costs and future budget requests.

SUPPORT: (Verified 9/4/25)

Family Winemakers of California

OPPOSITION: (Verified 9/4/25)

None received

ARGUMENTS IN SUPPORT: According to the Family Winemakers of California, “Colusa County has not received any new general alcoholic beverages licenses in 20 years, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the Department of ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

ASSEMBLY FLOOR: 75-0, 5/19/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Dixon, Flora, Jeff Gonzalez, Papan

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/8/25 21:10:23

**** END ****

 THIRD READING  

Bill No: AB 445

Author: Aguiar-Curry (D)

Amended: 8/29/25 in Senate

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/10/25

AYES: Padilla, Valladares, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Archuleta

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/29/25

AYES: Caballero, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab

ASSEMBLY FLOOR: 75-0, 5/19/25 - See last page for vote

SUBJECT: Alcoholic beverages: licenses: County of Colusa

SOURCE: Author

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this State and the collection of license fees.
2. Provides that the Department of ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the Department of ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
3. Caps the number of new on-sale and off-sale general licenses issued by the Department of ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.
4. Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
5. Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health.
6. Authorizes, beginning January 1, 2017, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
7. Authorizes, beginning January 1, 2018, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Subsequent legislation increased the total number of these type of specific licenses to 40 total licenses.
8. Authorizes, beginning on January 1, 2023, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

This bill:

1. Authorizes the Department of ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified.
2. Provides that this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license.
3. Prohibits a license issued under this bill from being transferred from one county to another or from being transferred to any premises not qualifying under the provisions of this bill.
4. Provides that no license issued under this bill shall be sold or transferred for a price greater than the original fee paid by the seller.
5. Authorizes the Department of ABC to designate licenses issued by the provisions of this bill as on-sale general for special use.

Background

Author Statement. According to the author’s office, “for over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the Department of ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premises. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of March 19, 2025, there were approximately 16,175 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.

If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $300,000 to $400,000 in certain counties. In Colusa County, a Type 47 license generally ranges from $75,000 to $100,000 on the open market.

Impact on Cities/Counties. As previously noted, when a county experiences a population growth, the Department of ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the Department of ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

According to the Department of ABC, in 2022 there were 31 counties that were eligible for more licenses because of population growth and 27 counties that were not eligible for more licenses because of a lack of population. Of those 27 counties, five counties received a handful of licenses through special legislation.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the Department of ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the license from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and are signed into law. Once those bills become law, the Department of ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Prior/Related Legislation

SB 395 (Wiener, 2025) authorizes the Department of ABC to issue up to 20 additional new original on-sale general licenses for bona fide public eating places located within a designated hospitality zone, as specified, in the City and County of San Francisco, as specified. (Pending on the Assembly Floor)

AB 828 (Mark Gonzalez, 2025) authorizes the Department of ABC to issue no more than 12 new original neighborhood-restricted special on-sale general licenses per year to bona fide public eating places located in specified United States Census Bureau census tracts in the County of Los Angeles beginning on January 1, 2026, until a total of 40 new licenses have been issued, as specified. (Pending on the Senate Floor)

AB 1008 (Addis, 2025) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of San Luis Obispo, as specified. (Pending on the Senate Floor)

SB 1028 (Alvarado-Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating-places, as specified. (Held in the Senate Appropriations Committee Suspense File)

AB 2359 (Ting, Chapter 393 Statutes of 2024) revised an existing exemption in law authorizing the Department of ABC to issue no more than five new original neighborhood restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified.

AB 2589 (Joe Patterson, Chapter 312, Statutes of 2024) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.

SB 787 (Dahle, Chapter 113, Statutes of 2023) authorizes the Department of ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, minor increases in licensing and enforcement workload to the department, which is anticipated to be absorbable with current resources (Alcohol Beverage Control Fund).

Additionally, the Department of ABC’s activities are funded by regulatory and license fees and generally, the department does not receive support from the General Fund.  New legislative mandates, although modest in scope, may in totality create new cost pressures and impact the department’s operating costs and future budget requests.

SUPPORT: (Verified 8/28/25)

Family Winemakers of California

OPPOSITION: (Verified 8/28/25)

None received

ARGUMENTS IN SUPPORT: According to the Family Winemakers of California, “Colusa County has not received any new general alcoholic beverages licenses in 20 years, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the Department of ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

ASSEMBLY FLOOR: 75-0, 5/19/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Dixon, Flora, Jeff Gonzalez, Papan

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

9/2/25 17:56:29

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

AB 445 (Aguiar-Curry) - Alcoholic beverages: licenses

Bill Summary:

AB 445 authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to an additional 10 new original on-sale general licenses for bona fide public eating places (Type 47) in the County of Colusa. AB 445 also requires the Department of ABC to study and provide a report to the Legislature on the need for issuing additional off-sale general licenses.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 29, 2025

Fiscal Impact:

Minor increase in licensing and enforcement workload to the department, which is anticipated to be absorbable within current resources (Alcohol Beverage Control Fund).

Committee Amendments:

Delete the study and associated provisions.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

AB 445 (Aguiar-Curry) - Alcoholic beverages: licenses

Bill Summary:

AB 445 authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to an additional 10 new original on-sale general licenses for bona fide public eating places (Type 47) in the County of Colusa. AB 445 also requires the Department of ABC to study and provide a report to the Legislature on the need for issuing additional off-sale general licenses.

Fiscal Impact:

• Unknown, potentially significant workload for the Department of ABC to study and report on the need to issue additional off-sale licenses. To the extent this workload is not absorbable within existing resources, there may be a fiscal impact to the department (Alcohol Beverage Control Fund).
• Minor increase in licensing and enforcement workload to the department, which is anticipated to be absorbable within current resources.

Background:

Current law limits the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents.

A Type 47 license is a specific on-sale general license that authorizes the consumption of beer, wine, and distilled spirits on the licensed premises. A Type 47 licensee is required to operate and maintain the licensed premises as a bona fide public eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food.

Various counties have sponsored legislation to authorize the department to issue additional Type 47 licenses in their county because the demand for alcohol licenses far outweighs the current number of licenses available in those counties. The deficiency of Type 47 licenses is typically due to slow population growth but a high level of tourism in the county, which creates increased demand for these types of licenses.

Proposed Law:

• By January 1, 2027, requires the department to study the need for issuing additional off-sale general licenses and report its finding to the Legislature. Repeals this reporting requirement on January 1, 2031.
• Authorizes the department to issue no more than a total of 10 new original Type 47 licenses in the County of Colusa.
• Provides that a person who currently holds a valid on-sale general license for seasonal business is not prohibited from applying for an original on-sale general license as authorized by this bill.
• Prohibits a new Type 47 license issued under this bill to be sold or transferred for a price greater than the original fee paid by the seller.
• Authorizes the department to designate Type 47 licenses issued under this bill as on-sale general for special use.

Related Legislation:

AB 1008 (Addis, 2025) authorizes the Department of ABC to issue up to an additional 10 new original Type 47 licenses in San Luis Obispo County, but no more than five licenses per year. AB 1008 is pending in this committee.

Staff Comments:

The Department of ABC’s activities are funded by regulatory and license fees and generally, the department does not receive support from the General Fund. New legislative mandates, although modest in scope, may in totality create new cost pressures and impact the department’s operating costs and future budget requests.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Steve Padilla

Chair

2025 - 2026 Regular

Bill No: 445 Hearing Date: 6/10/2025

SUBJECT: Alcoholic beverages: licenses: County of Colusa

DIGEST: This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified.

ANALYSIS:

Existing law:

1. Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this State and the collection of license fees.
2. Provides that the Department of ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the Department of ABC is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.
3. Caps the number of new on-sale and off-sale general licenses issued by the Department of ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.
4. Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
5. Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health.
6. Authorizes, beginning January 1, 2017, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
7. Authorizes, beginning January 1, 2018, the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Subsequent legislation increased the total number of these type of specific licenses to 40 total licenses.
8. Authorizes, beginning on January 1, 2023, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

This bill:

1. Authorizes the Department of ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in the County of Colusa, as specified.
2. Provides that this bill does not prohibit a person that currently holds a valid on-sale general license for seasonal business from applying for an original on-sale general license.
3. Prohibits a license issued under this bill from being transferred from one county to another or from being transferred to any premises not qualifying under the provisions of this bill.
4. Provides that no license issued under this bill shall be sold or transferred for a price greater than the original fee paid by the seller.
5. Authorizes the Department of ABC to designate licenses issued by the provisions of this bill as on-sale general for special use.

Background

Author Statement. According to the author’s office, “for over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the Department of ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

Type 47 Alcohol License. An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premises. The licensee is required to operate and maintain the licensed premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California.

Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of March 19, 2025, there were approximately 16,175 on-sale general (Type 47) licenses statewide.

Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.

If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.

Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $300,000 to $400,000 in certain counties. In Colusa County, a Type 47 license generally ranges from $75,000 to $100,000 on the open market.

Impact on Cities/Counties. As previously noted, when a county experiences a population growth, the Department of ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale license. While this system tends to work for some counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in Napa County the number of visitors to Napa continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has therefore become one of the major economic drivers in the region. While legislation in 2017 authorized the issuance of five additional license over a four-year span, demand far outweighs the availability of these licenses. In 2018 for instance, while the Department of ABC issued five new licenses to Napa, there were a total of 38 applications for those five licenses.

According to the Department of ABC, in 2022 there were 31 counties that were eligible for more licenses because of population growth and 27 counties that were not eligible for more licenses because of a lack of population. Of those 27 counties, five counties received a handful of licenses through special legislation.

Issuance of Additional Licenses. Over the years, various counties have sponsored legislation to authorize the Department of ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the license from being transferred between counties.

Generally, these bills receive unanimous support in the Legislature and are signed into law. Once those bills become law, the Department of ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Prior/Related Legislation

SB 395 (Wiener, 2025) authorizes the Department of ABC to issue up to 20 additional new original on-sale general licenses for bona fide public eating places located within a designated hospitality zone, as specified, in the City and County of San Francisco, as specified. (Pending Referral in the Assembly Rules Committee)

AB 828 (Mark Gonzalez, 2025) authorizes the Department of ABC to issue no more than 12 new original neighborhood-restricted special on-sale general licenses per year to bona fide public eating places located in specified United States Census Bureau census tracts in the County of Los Angeles beginning on January 1, 2026, until a total of 40 new licenses have been issued, as specified. (Pending in the Senate Governmental Organization Committee)

AB 1008 (Addis, 2025) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of San Luis Obispo, as specified. (Pending in the Senate Governmental Organization Committee)

SB 1028 (Alvarado-Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating-places, as specified. (Held in the Senate Appropriations Committee Suspense File)

AB 2359 (Ting, Chapter 393 Statutes of 2024) revised an existing exemption in law authorizing the Department of ABC to issue no more than five new original neighborhood restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified.

AB 2589 (Joe Patterson, Chapter 312, Statutes of 2024) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places located in a retail center, in both the County of El Dorado and the County of Placer, as specified.

AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.

SB 787 (Dahle, Chapter 113, Statutes of 2023) authorizes the Department of ABC to issue to more than 10 new original on-sale general licenses for bona fide public eating places in the County of Nevada, as specified.

SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorizes the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.

SB 866 (Dodd, 2020) would have authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses per year to bona fide public eating places in Napa County for a period of five years. (Never heard in Senate Governmental Organization Committee)

SB 352 (Dodd, 2019) would have authorized the Department of ABC in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Suspense File)

AB 471 (Ting, Chapter 442, Statutes of 2017) authorized the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issues, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized the Department of ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in the County of Napa, as specified.

SB 1285 (Leno, Chapter 790, Statutes of 2016) authorized, beginning January 1, 2017, the Department of ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1670 (Dodd, Chapter 347, Statutes of 2016) authorized the Department of ABC to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places in the County of Napa, as specified.

AB 1558 (Mathis, Chapter 256, Statutes of 2016) authorized the Department of ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

None received

OPPOSITION:

None received

ASSEMBLY THIRD READING

ATR Bill Id:AB 445

Author:(Aguiar-Curry)

As Amended Ver:May 1, 2025

Majority vote

SUMMARY

This bill would authorize the Department of Alcoholic Beverage Control (ABC) to issue up to 10 additional new, original on-sale general licenses for bona fide public eating places in the County of Colusa.

Major Provisions

1. Provides in the County of Colusa, the ABC may issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places.
2. States as stipulated in the Alcoholic Beverage Control Act (Act), the ABC must adhere to the priority drawing process when issuing licenses.
3. Specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this measure.
4. States the license shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this measure.
5. Provides the license shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.
6. Provides the ABC may designate licenses issued pursuant to this bill as on-sale general for special use. This designation does not alter any license privileges or restrictions, as specified.

COMMENTS

Background.

Type 47 alcohol license. A Type 47 license is specifically designated for businesses that primarily serve food (″bona fide eating place″). The license is meant for those who seek to serve beer, wine, and distilled spirits for consumption on the licenses premises. The license holder must maintain suitable kitchen facilities and make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51 percent of all gross sales from food. Minors are allowed on the premises. A Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses, and other eating establishments. There are 17,097 on-sale general (Type 47) licenses statewide.

Alcohol license limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses the ABC may issue each year based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a specific year, the ABC will issue five new licenses in that county.

If the ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals looking to open a full-service restaurant with a bar or cocktail menu who are unable to obtain a liquor license through the standard process must find a current license holder willing to sell theirs. This is typically done by working with an alcohol license broker. The price of acquiring a license on the secondary market is influenced by supply and demand and can be quite substantial in certain counties.

Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the department and prohibit the licensed from being transferred between counties. Generally, these bills receive unanimous support in the Legislature and signed into law. Once those bills become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

Related legislation. AB 828 (Mark González) of 2025. Would authorize the ABC to issue up to 40 new, original neighborhood-restricted special on-sale general licenses (″neighborhood licenses″) to bona fide public eating places within specified census tracts in the County of Los Angeles.

AB 1008 (Addis) of 2025. Would authorize ABC to issue up to 10 additional Type 47 licenses in the County of San Luis Obispo.

SB 395 (Wiener) of 2025. Would authorize the issuance of up to 20 additional new original on-sale general licenses, as specified, for bona fide public eating places located within a designated retail district in the City and County of San Francisco, as defined.

According to the Author

According to the author, ″For over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the ABC to issue ten additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.″

Arguments in Support

None on file.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations analysis, ″Minor and absorbable costs to ABC. Any additional licensing and enforcement investigations generated by the 10 additional on-sale licenses should be covered by corresponding licensing fees. This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed increase in new licenses is relatively minor in volume.″

VOTES

ASM GOVERNMENTAL ORGANIZATION: 20-0-2

YES: Blanca Rubio, Davies, Alvarez, Berman, Lowenthal, Carrillo, Dixon, Fong, Gipson, Macedo, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Valencia, Wallis

ABS, ABST OR NV: Gabriel, Ta

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

UPDATED

VERSION: May 1, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0000431

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 445

Author:(Aguiar-Curry) – As Amended Ver:May 1, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill authorizes the Department of Alcoholic Beverage Control (ABC) to issue up to 10 additional new, original on-sale general licenses for bona fide public eating places in the County of Colusa.

The new license cannot be transferred out of the county or sold for a price greater than the original fee paid by the seller.

FISCAL EFFECT:

Minor and absorbable costs to ABC. Any additional licensing and enforcement investigations generated by the 10 additional on-sale licenses should be covered by corresponding licensing fees.

This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed increase in new licenses is relatively minor in volume.

COMMENTS:

1. Purpose. According to the author, this bill “will help promote economic development in Colusa County.” The author explains, “For over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings.”
2. Limited On-sale General Licenses. An on-sale general license for a business primarily serving food as a “bona fide eating place” (Type 47) allows the licensee to also serve beer, wine, and distilled spirits for consumption on the licensed premises. There are over 17,000 Type 47 licenses issued statewide to full-service restaurants, hotels, bowling alleys, golf courses and other eating establishments.

Existing law limits the number of new on-sale general licenses ABC may issue based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. Because many counties have reached their cap, businesses seeking a license may need to buy one on the secondary market, which can cost up to $400,000. While ABC’s formula generally works for most counties, demand for licenses far outweighs the population-based allotment in some counties, generally due to the county’s slower population growth or the local economy’s reliance on tourism. This bill authorizes ABC to additionally issue, outside of ABC’s population-based formula, up to 10 new Type 47 licenses in the County of Colusa.

1. Related Legislation. AB 1008 (Addis) authorizes ABC to issue up to 10 additional licenses in the County of San Luis Obispo, in a manner similar to this bill, but no more than five licenses per year. AB 1008 is pending referral in the Senate.

AB 828 (M. Gonzalez) authorizes ABC to issue up to 40 new, original, neighborhood-restricted special on-sale general licenses to bona fide eating places within specified census tracts in the County of Los Angeles. AB 828 is pending hearing by this committee.

1. Prior Legislation. AB 1668 (Joe Patterson), Chapter 282, Statutes of 2023, authorized ABC to issue up to 10 additional licenses in the County of Placer, in a manner similar to AB 1008.

SB 787 (Dahle), Chapter 113, Statutes of 2023, authorized ABC to issue up to 10 additional licenses in the County of Nevada, in a manner similar to AB 1008.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 445 (

Author:Aguiar-Curry) – As Introduced Ver:February 6, 2025

SUBJECT: Alcoholic beverages: licenses: County of Colusa

SUMMARY: This bill would allow the Department of Alcoholic Beverage Control (ABC) to issue no more than a total of five additional new original on-sale general licenses for bona fide public eating places in Colusa County, as specified. The ABC shall issue at least one of the new licenses to a premises within the trust lands of the Cachil DeHe Band of Wintun Indians of the Colusa Indian Community of the Colusa Rancheria, California (Tribe). Specifically, this bill:

1) Provides in the County of Colusa, the ABC may issue no more than a total of five additional new original on-sale general licenses for bona fide public eating places. The ABC shall issue at least one of the new licenses to a premises within the trust lands of the Cachil DeHe Band of Wintun Indians of the Colusa Indian Community of the Colusa Rancheria, California.

2) States as stipulated in the Alcoholic Beverage Control Act (Act), the ABC must adhere to the priority drawing process when issuing licenses.

3) Specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this measure.

4) States the license shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this measure.

5) Provides the license shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.

6) Provides the ABC may designate licenses issued pursuant to this bill as on-sale general for special use. This designation does not alter any license privileges or restrictions, as specified.

EXISTING LAW:

1) Establishes the ABC and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this State and the collection of license fees.

2) Provides the ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the department is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

3) Caps the number of new on-sale and off-sale general licenses issued by the ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons. (California Business and Professions § 23816 and 23817)

4) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers. (California Business and Professions § 23393, 23394, 23396 and 23399)

5) Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health. (California Business and Professions § 23038)

6) Provides that in Napa County, from January 1, 2017, to December 31, 2017, the ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places, for a period of one-year. Any premises to qualify for a license shall have a seating capacity for 50 or more diners. (California Business and Professions § 23826.10)

7) Authorizes the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses for bona fide eating places (Type 87) per year, until a total of 40 licenses are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (California Business and Professions § 23826.13)

8) Authorizes, beginning on January 1, 2021, the ABC to issue a total of 10 new original on-sale general licenses for bona fide eating places in Mariposa County and up to 10 additional new original on-sale general licenses for bona fide eating places per year in Napa County over a 5-year period. (California Business and Professions § 23826.10)

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Background.

Purpose of the bill. According to the author, “For over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the ABC to issue five additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

What problem does this bill solve? According to information provided by the author’s office. “The current limitations on the number of alcoholic beverage licenses each county can distribute, several small businesses in the county are often left without the ability to sell alcohol. Their only alternative to obtaining a license is to buy one from a broker, which can cost up to $400,000, posing a significant financial burden on small businesses and favoring larger businesses with backings from wealthy investors or corporations.”

Type 47 alcohol license. A Type 47 license is specifically designated for businesses that primarily serve food ("bona fide eating place"). The license is meant for those who seek to serve beer, wine, and distilled spirits for consumption on the licenses premises. The license holder must maintain suitable kitchen facilities and make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51 percent of all gross sales from food. Minors are allowed on the premises.

A Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses, and other eating establishments. There are 17,097 on-sale general (Type 47) licenses statewide. 

Alcohol license limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses The ABC may issue each year based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a specific year, the department will issue five new licenses in that county.

If the ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals looking to open a full-service restaurant with a bar or cocktail menu who are unable to obtain a liquor license through the standard process must find a current license holder willing to sell theirs. This is typically done by working with an alcohol license broker. The price of acquiring a license on the secondary market is influenced by supply and demand and can be quite substantial in certain counties.

Impact on counties. As previously noted, when a county experiences population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale general license. While this system tends to work for most counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in the County of Napa, the number of visitors continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has thus become one of the major economic drivers in the region. In 2016, AB 1670 (Dodd, Chapter 347), authorized the ABC to issue up to five additional new original on-sale general licenses to bona fide public eating places in the county, for a one-year period. While the bill allowed for the issuance of the five new licenses, demand far outweighed the availability of these licenses. In 2017, when the ABC issued the five new licenses, there were a total of 38 applications for those five licenses.

Issuance of additional licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the ABC and prohibit the license from being transferred between counties. Once those measures become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

County of Colusa. Colusa County is located in Northern California. It is known for its agricultural contributions, with crops like rice, almonds, and walnuts being significant in the region. The county seat is the city of Colusa, which is also the largest city in the area. The county is bordered by the Sacramento River to the west and is part of the Sacramento Valley. It's a largely rural area with farming being a major industry. The population of Colusa County is relatively small, with a focus on agriculture and rural living. Farming and agriculture are the primary economic drivers, and the area has a strong emphasis on outdoor recreation, including hunting, fishing, and wildlife observation.

Cachil DeHe Band of Wintun Indians. The Tribe is a federally recognized tribe. The Tribe’s reservation is the Colusa Rancheria, located in Colusa County. The reservation is along the Sacramento River, about 4 miles north of Colusa. The Tribe owns and operates the Colusa Casino Resort. Farming serves as an important source of tribal revenue and employment for the Colusa community. The Tribe's mission includes promoting health, education, and economic development, while their values emphasize open communication, youth involvement, integrity, and preserving their heritage and culture.

Committee amendments. Amendments will be adopted in committee to increase the total number of new original on-sale general licenses for bona fide public eating places in Colusa County from five to ten. Additionally, specific references to a Tribe will be removed from this measure. These amendments are consistent with recent actions taken by the committee on related legislation.

Related legislation. AB 342 (Haney) of 2025. This bill, beginning June 1, 2026, would allow an on-sale licensee, or their agent or employee, to sell or give alcoholic beverages until 4 a.m. on Fridays, Saturdays, or state holidays within a hospitality zone, as specified. (Assembly Committee on Appropriations)

AB 828 (M. González) of 2025. This bill would authorize ABC to issue no more than 20 new original neighborhood-restricted special on-sale general licenses to bona fide public eating places located in specified census tracts in the County of Los Angeles beginning on January 1, 2026, until a total of 40 new licenses have been issued, as specified. (Assembly Committee on Appropriations)

AB 1008 (Addis) of 2025. The bill would allow authorize the ABC to issue, in the County of San Luis Obispo, a total of 10 additional new original on-sale general licenses for bona fide public eating places. The ABC shall not issue more than five licenses under this measure per year. (Assembly Committee on Appropriations)

SB 395 (Wiener) of 2025. This bill would authorize the issuance of up to 20 additional new original on-sale general licenses, as specified, for bona fide public eating places located within a designated retail district in the City and County of San Francisco, as defined. (Assembly Committee on Governmental Organization)

Prior legislation. AB 2359 (Ting), Chapter 393, Statutes of 2024. Revised an existing exception in law by authorizing the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses for bona fide eating places (Type 87) per year, until a total of 40 licenses (was 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco.

AB 1668 (Joe Patterson), Chapter 282, Statutes of 2023. Authorized ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. The bill prohibited ABC from issuing more than four of these licenses per year. The bill prohibited transferring the new licenses out of the county or sold for a price greater than the original fee paid by the seller.

SB 787 (B. Dahle), Chapter 113, Statutes of 2023. Authorized the ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Nevada, but no more than four licenses per year.

SB 1452 (B. Dahle), Chapter 889, Statutes of 2022. Authorized the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized the ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in Mariposa County and up to 10 additional new original on-sale general licenses per year to bona fide public eating places in the County of Napa over a 5-year period.

AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Must operate and maintain the licensed premises as a bona fide eating place. Additionally, the bill authorized the issuance of 20 on-sale general licenses for bona fide eating places in Napa County over a period of four years (no more than five per year).

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized the ABC to issue no more than 5 additional new original on-sale general licenses to bona fide public eating places in the County of Napa with a seating capacity of 25 or more diners, for a period of one-year.

SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, the ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1558 (Mathis), Chapter 256, Statutes of 2016. Authorized the ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 445 (

Author:Aguiar-Curry) – As Introduced Ver:February 6, 2025

SUBJECT: Alcoholic beverages: licenses: County of Colusa

SUMMARY: This bill would allow the Department of Alcoholic Beverage Control (ABC) to issue no more than a total of five additional new original on-sale general licenses for bona fide public eating places, as specified. The ABC shall issue at least one of the new licenses to a premises within the trust lands of the Cachil DeHe Band of Wintun Indians of the Colusa Indian Community of the Colusa Rancheria, California (Tribe). Specifically, this bill:

1) Provides in the County of Colusa, the ABC may issue no more than a total of five additional new original on-sale general licenses for bona fide public eating places. The ABC shall issue at least one of the new licenses to a premises within the trust lands of the Cachil DeHe Band of Wintun Indians of the Colusa Indian Community of the Colusa Rancheria, California.

2) States as stipulated in the Alcoholic Beverage Control Act (Act), the ABC must adhere to the priority drawing process when issuing licenses.

3) Specifies that a person holding a valid on-sale general license for seasonal business is not prohibited from applying for licenses to be issued pursuant to this measure.

4) States the license shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this measure.

5) Provides the license shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.

6) Provides the ABC may designate licenses issued pursuant to this bill as on-sale general for special use. This designation does not alter any license privileges or restrictions, as specified.

EXISTING LAW:

1) Establishes the ABC and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this State and the collection of license fees.

2) Provides the ABC must deny an application for a license if issuance would create a law enforcement problem, or if issuance would result in, or add to, an undue concentration of licenses in the area where the license is desired. However, for liquor stores and other specified retail licenses, the department is authorized to issue a license if the respective local government determines that public convenience or necessity would be served by granting the license.

3) Caps the number of new on-sale and off-sale general licenses issued by the ABC. The ratios are one on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons. (California Business and Professions § 23816 and 23817)

4) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar) and an “off-sale” license as authorizing the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers. (California Business and Professions § 23393, 23394, 23396 and 23399)

5) Defines “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local Department of Health. (California Business and Professions § 23038)

6) Provides that in Napa County, from January 1, 2017, to December 31, 2017, the ABC, in addition to those licenses currently issued under the law may issue no more than five additional new original on-sale general licenses for bona fide public eating places, for a period of one-year. Any premises to qualify for a license shall have a seating capacity for 50 or more diners. (California Business and Professions § 23826.10)

7) Authorizes the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses for bona fide eating places (Type 87) per year, until a total of 40 licenses are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (California Business and Professions § 23826.13)

8) Authorizes, beginning on January 1, 2021, the ABC to issue a total of 10 new original on-sale general licenses for bona fide eating places in Mariposa County and up to 10 additional new original on-sale general licenses for bona fide eating places per year in Napa County over a 5-year period. (California Business and Professions § 23826.10)

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Background.

Purpose of the bill. According to the author, “For over 20 years, Colusa County has not received any new general alcoholic beverage licenses, creating a significant barrier for new businesses looking to open or existing ones hoping to expand their offerings. AB 445 will help promote economic development in Colusa County by authorizing the ABC to issue five additional general alcoholic beverage licenses in Colusa County, ensuring small businesses have a fair opportunity to grow and thrive.”

What problem does this bill solve? According to information provided by the author’s office. “The current limitations on the number of alcoholic beverage licenses each county can distribute, several small businesses in the county are often left without the ability to sell alcohol. Their only alternative to obtaining a license is to buy one from a broker, which can cost up to $400,000, posing a significant financial burden on small businesses and favoring larger businesses with backings from wealthy investors or corporations.”

Type 47 alcohol license. A Type 47 license is specifically designated for businesses that primarily serve food ("bona fide eating place"). The license is meant for those who seek to serve beer, wine, and distilled spirits for consumption on the licenses premises. The license holder must maintain suitable kitchen facilities and make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51 percent of all gross sales from food. Minors are allowed on the premises.

A Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses, and other eating establishments. There are 17,097 on-sale general (Type 47) licenses statewide. 

Alcohol license limitation. There are more than 60 different types of ABC licenses authorized in California, each with its own set of privileges and obligations specific to the category of license involved. Existing law provides for a limit on the number of new on-sale general licenses The ABC may issue each year based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a specific year, the department will issue five new licenses in that county.

If the ABC receives more applications than there are licenses available, a public drawing is held. To take part in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the scheduled drawing. ABC notifies successful drawing participants that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $17,335 each.

Individuals looking to open a full-service restaurant with a bar or cocktail menu who are unable to obtain a liquor license through the standard process must find a current license holder willing to sell theirs. This is typically done by working with an alcohol license broker. The price of acquiring a license on the secondary market is influenced by supply and demand and can be quite substantial in certain counties.

Impact on counties. As previously noted, when a county experiences population growth, the ABC issues additional licenses based on the population growth; currently 2,000 residents per one on-sale general license. While this system tends to work for most counties, there are a substantial number of counties where the demand for alcohol licenses far outweighs the current number of alcohol licenses in those counties. The reasons for the lack of licenses are generally a lack of population growth or because of the amount of tourism in the particular county, which results in higher demand for these types of businesses.

For example, in the County of Napa, the number of visitors continues to increase while the population of the county has not grown. While the majority of visitors to Napa take day trips, more than one million of these visitors spend at least one night in local lodgings. Tourism has thus become one of the major economic drivers in the region. In 2016, AB 1670 (Dodd, Chapter 347), authorized the ABC to issue up to five additional new original on-sale general licenses to bona fide public eating places in the county, for a one-year period. While the bill allowed for the issuance of the five new licenses, demand far outweighed the availability of these licenses. In 2017, when the ABC issued the five new licenses, there were a total of 38 applications for those five licenses.

Issuance of additional licenses. Over the years, various counties have sponsored legislation to authorize the ABC to issue additional Type 47 licenses in their county. Like this bill, previous bills also prohibit the sale of these licenses from being sold for a price greater than they were obtain from the ABC and prohibit the license from being transferred between counties. Once those measures become law, the ABC, if there are more applicants than there are licenses available to be issued, holds a random drawing that establishes priority rankings to apply for alcohol licenses. Applicants must still go through the normal application process, which includes local posting requirements and pay all appropriate fees.

County of Colusa. Colusa County is located in Northern California. It is known for its agricultural contributions, with crops like rice, almonds, and walnuts being significant in the region. The county seat is the city of Colusa, which is also the largest city in the area. The county is bordered by the Sacramento River to the west and is part of the Sacramento Valley. It's a largely rural area with farming being a major industry. The population of Colusa County is relatively small, with a focus on agriculture and rural living. Farming and agriculture are the primary economic drivers, and the area has a strong emphasis on outdoor recreation, including hunting, fishing, and wildlife observation.

Cachil DeHe Band of Wintun Indians. The Tribe is a federally recognized tribe. The Tribe’s reservation is the Colusa Rancheria, located in Colusa County. The reservation is along the Sacramento River, about 4 miles north of Colusa. The Tribe owns and operates the Colusa Casino Resort. Farming serves as an important source of tribal revenue and employment for the Colusa community. The Tribe's mission includes promoting health, education, and economic development, while their values emphasize open communication, youth involvement, integrity, and preserving their heritage and culture.

In support. There is no registered support on file for this bill.

Committee amendments. Amendments will be adopted in committee to increase the total number of new original on-sale general licenses for bona fide public eating places in Colusa County from five to ten. Additionally, specific references to a Tribe will be removed from this measure. These amendments are consistent with recent actions taken by the committee on related legislation.

Related legislation. AB 342 (Haney) of 2025. This bill, beginning June 1, 2026, would allow an on-sale licensee, or their agent or employee, to sell or give alcoholic beverages until 4 a.m. on Fridays, Saturdays, or state holidays within a hospitality zone, as specified. (Assembly Committee on Appropriations)

AB 828 (M. González) of 2025. This bill would authorize ABC to issue no more than 20 new original neighborhood-restricted special on-sale general licenses to bona fide public eating places located in specified census tracts in the County of Los Angeles beginning on January 1, 2026, until a total of 40 new licenses have been issued, as specified. (Assembly Committee on Appropriations)

AB 1008 (Addis) of 2025. The bill would allow authorize the ABC to issue, in the County of San Luis Obispo, a total of 10 additional new original on-sale general licenses for bona fide public eating places. The ABC shall not issue more than five licenses under this measure per year. (Assembly Committee on Appropriations)

SB 395 (Wiener) of 2025. This bill would authorize the issuance of up to 20 additional new original on-sale general licenses, as specified, for bona fide public eating places located within a designated retail district in the City and County of San Francisco, as defined. (Assembly Committee on Governmental Organization)

Prior legislation. AB 2359 (Ting), Chapter 393, Statutes of 2024. Revised an existing exception in law by authorizing the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses for bona fide eating places (Type 87) per year, until a total of 40 licenses (was 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco.

AB 1668 (Joe Patterson), Chapter 282, Statutes of 2023. Authorized ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. The bill prohibited ABC from issuing more than four of these licenses per year. The bill prohibited transferring the new licenses out of the county or sold for a price greater than the original fee paid by the seller.

SB 787 (Dahle), Chapter 113, Statutes of 2023. Authorized the ABC to issue up to 10 additional new original on-sale general licenses for bona fide public eating places in the County of Nevada, but no more than four licenses per year.

SB 1452 (B. Dahle), Chapter 889, Statutes of 2022. Authorized the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.

AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized the ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in Mariposa County and up to 10 additional new original on-sale general licenses per year to bona fide public eating places in the County of Napa over a 5-year period.

AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized the ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Must operate and maintain the licensed premises as a bona fide eating place. Additionally, the bill authorized the issuance of 20 on-sale general licenses for bona fide eating places in Napa County over a period of four years (no more than five per year).

AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized the ABC to issue no more than 5 additional new original on-sale general licenses to bona fide public eating places in the County of Napa with a seating capacity of 25 or more diners, for a period of one-year.

SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, the ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.

AB 1558 (Mathis), Chapter 256, Statutes of 2016. Authorized the ABC to issue, over a two-year period, five additional new on-sale general licenses for restaurants, with a seating capacity of 50 or more, in Inyo County.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531