ABC-521 Instructions

Instructions for filling out the Issuance of Original and Intercounty Transfer of On-Sale General and Off-Sale General Licenses (Forms ABC-521 and attachments B-F). Please read all instructions before filing your application.

Revised 08/24

Printable Instructions

Download a printable copy of the ABC-521 Instructions by clicking the PDF download button.

Introduction

Licenses to sell beer and wine are available year-round from the state if the applicant and the premises qualify. However, general licenses, which authorize the retail sale of beer, wine, and distilled spirits, are restricted in number and are authorized to be issued originally and via inter-county transfer only once per year, based upon population vs. existing license ratios within each county. Where there are more applicants than licenses available, drawings are held, and “priority” rankings are assigned. Licenses applied for and issued via the priority system are subject to unique requirements and restrictions. The only other way to obtain a general license is to purchase an existing license from someone who has one already within the same county.

Priority Filing Period

During the period of September 9, 2024, through September 20, 2024, ABC offices will accept applications for priority licenses in eligible counties (see page 7).

Priority Application Fees

  • Original On-Sale General                                    $18,635
  • Original Off-Sale General                                    $18,635
  • Intercounty Transfer On-Sale General           $7,060
  • Intercounty Transfer Off-Sale General           $7,060

The priority application fee must be paid by certified check, cashier’s check, or money order only. Additional fees (i.e.; fingerprint, annual fees, etc.) are to be collected at the time of filing the formal application.

Unsuccessful drawing participants or those who withdraw their interest in a priority license prior to the drawing or prior to filing a formal application, may request a full refund, minus a $100 service charge.

Refunds will be made payable to the applicant(s) listed on the priority application form submitted to the department.

Successful participants who withdraw their interest after filing a formal application for a priority license will be entitled to a refund in accordance with Business and Professions Code (BPC) § 23320 and 23959. Pursuant to the provisions of § 12419.5 of the Government Code, if an applicant owes money to California taxing agencies, a claim against the priority application fee may be made by the taxing agency. If such a claim is made, the amount owed will be deducted from the priority application fee at the time of refund and remitted to the taxing agency.

Filing the Priority Application

Applications may be filed in person by filing the application at one of the ABC offices listed on Page 8 or by mail.

You may file your application at the local ABC office overseeing the county where your proposed premises will be located, or at any of the listed ABC offices that is more convenient for you. During the priority period, ABC offices will plan to be open Monday through Friday from 8 a.m. until 5 p.m. We encourage all applicants to submit their application early.

Deadline

  • In person: On Friday, September 20, 2024, only those applicants within the doors of the office by 5 p.m. may file priority applications.
  • By mail: Your envelope containing Items (1) through (2) below must be postmarked on or before Friday, September 20, 2024.

The following items are required:

  1. Fee – certified check, cashier’s check or money order, payable to: Alcoholic Beverage Control.
  2. Priority License Application – To be completed in full by all applicants, including previously qualified ‘P-12’ licensees.
    • Simply noting “P12 licensee” under the officer/shareholder area will not be accepted.
    • P-12 licensees and current/active licensees are not exempt from thoroughly completing the application.
    • An incomplete application will result in disqualification from participating in the priority drawing.
    • The application requires a single signature from the applicant entity. In signing, the applicant agrees to comply with conditions and requirements unique to the established priority licensing process.
    • Failure to comply with the conditions and requirements will result in automatic withdrawal of the application and cancellation of an applicant’s priority position.

The ABC-521 form must be completed for every priority license application. If the applicant entity is not a sole owner, then you must also complete the appropriate attachment for your entity type in addition to your ABC-521 form.

  1. ABC-521-ATT-B (General Partnership) – For multiple individuals, multiple corporate entities, or a combination of the two, such as an individual partnering with a corporate entity, applying for a license.
  2. ABC-521-ATT-C (Limited Partnership) – For a limited partnership with general partners and limited partners applying for a license.
  3. ABC-521-ATT-D (Corporations and Non-Profits) – For a corporation with officers/directors and stockholders, and non-profit organizations applying for a license.
  4. ABC-521-ATT-E (Limited Liability Company) – For a limited liability company with managers and/or members applying for a license.
  5. ABC-521-ATT-F (Trusts) – For a trust with all controlling individuals, trustees, and beneficiaries applying for a license.

Names(s) on Priority Application

The application for a priority license must include the names of all persons or entities who have an ownership interest in the priority application or in the business to be licensed per § 69.2., of Chapter 1, Title 4, of the California Code of Regulations. Failure to list all persons/entities is grounds for disqualification and loss of priority status.

Any priority license application received by ABC that is incomplete or untimely shall be disqualified.

Residency

To be eligible to participate in a priority drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the drawing. If a drawing is necessary, an applicant for a priority license will be required to prove residency via submission of the below-described documents:

  • Individuals — Proof of residency can be established via documents such as a California Driver’s License, utility bills, voter registration, etc.
  • Partnerships — Each partner must provide proof of residency; see information under “Individuals”, above.
  • Corporations — The 90-day residence begins with the date its Articles of Incorporation are filed with the Secretary of State. For out-of-state corporations, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
  • Limited Partnerships — The 90-day residency begins with the date the form LP-1 is filed with the Secretary of State. For out-of-state limited partnerships, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
  • Limited Liability Companies — The 90-day residency begins with the date the form LLC-1 is filed with the Secretary of State. For out-of-state limited liability companies, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
  • Trusts — Proof of residency can be established via documents such as a California Driver’s License, utility bills, voter registration, etc. of the trustee or other controlling person of the trust. If the trustee or other controlling person of the trust is a general partnership, limited partnership, corporation, non-profit, or limited liability company, proof of 90-day residency begins with the date registered with the Secretary of State.

Failure to provide proof of residency as described above will result in being disqualified from the priority licensing process.

Conditions and Restrictions

Applicant:

No person or entity who files for a priority license may have an interest in any other priority application for the same type of license in the same county and drawing. However, an applicant for an original general license may also file an application for the inter-county transfer of a general license of the same type in the same county.

  • Applicants may not pool funds to file more than one priority application for the same type of license and transaction.
  • A married couple may file only one priority application for the same type of license and transaction.
  • No corporation, limited partnership, or limited liability company may file a priority application if it holds an interest in another entity that has filed for the same type of license and transaction in the same county.
  • If more than one corporation, limited partnership, or limited liability company is a subsidiary of the same parent, only one may file a priority application for the same type of license and transaction.
  • A person or entity who holds ownership interest in a priority applicant entity, or who is a principal (officer, director, LLC manager, general partner, etc.) of an applicant entity, may not hold interest in or be a principal of another applicant entity for the same type of license and transaction in the same county.

Each priority application must show the names of all persons having an interest in the license application and related business, including all:

  • Partners
  • General and limited partners of a Limited Partnership
  • Corporate officers and directors
  • Stockholders or prospective stockholders
  • Limited liability company officers, managers, and members
  • Controlling individuals, trustees, and beneficiaries of a Trust

Priority of Applicants

If the number of applicants is equal to or less than the number of licenses available, all applicants will be notified that they have 90 days to complete a formal application for their specific premises.

If there are more applicants than licenses available, a virtual drawing will be held. The date, time, and details of any drawing will be posted on the ABC website (www.abc.ca.gov). After the drawing is held, the department will notify each applicant by mail of their priority position.

Successful Drawing Participants

  • A successful drawing participant is one whose priority position (number) is lower than the number of licenses available. These applicants will be notified that they have 90 days to complete a formal application for their specific premises.
  • Successful drawing participants who do not wish to proceed with filing a formal application may withdraw their interest and request a full refund, minus a $100 service charge. Once a formal application has been filed, the applicant will only be entitled to a refund in accordance with BPC § 23320 & 23959. (Also, see Application Fees [page 1] above regarding claims by California taxing agencies).

Unsuccessful Drawing Participants:

  • An unsuccessful drawing participant is one whose priority position (number) is higher than the number of licenses available.
  • The priority application fee, minus a $100 service charge, will be refunded to each unsuccessful drawing participant. Refund checks will be mailed within 90-120 days of the priority drawing (See Application Fees section above regarding claims by California taxing agencies).
  • Unsuccessful drawing participants will maintain the priority position assigned to them at the priority drawing. In the event a successful applicant is disqualified or withdraws, the next drawing participant in order of priority will be contacted and will have 30 days to repay the previously refunded priority application fee, and an additional 60 days to file a formal application.
  • In order to maintain priority position, unsuccessful drawing participants are encouraged to notify ABC of any change in mailing address that occurs while the priority drawing lists are active.

Expiration of Priority:

The numeric list of priority applicants who are not priority winners in the randomized ordering shall be retained by the department until the following year pursuant to Chapter 1, Title 4 of the California Code of Regulations (CCR) § 69.3 (c).

Formal Application For Priority License

A priority applicant must file a formal application for a specific location within 90 days of the department’s notification and authorization to do so. Failure to file a formal application within the 90-day period will result in loss of priority position and the opportunity to apply will be extended to the next applicant on the list. In addition to the below, all statutory requirements and departmental procedures set forth for issuing other original retail licenses apply to formal applications for priority licenses.

A priority winner can only submit a formal application with the same individuals and entities listed in its priority application unless it is under the exceptions listed in subdivision (e)(1) and (e)(2) of § 69.4 of Chapter 1, Title 4, of the California Code of Regulations. Any changes in ownership or management that occur within an applicant entity between the time of filing a priority application and actual issuance of a priority license which results in the entity, via its principals or owners, having more than one opportunity in a single priority drawing, will be cause for disqualification.

Proof of Tenancy:

Prior to license issuance, a priority applicant must present proof of a two-year right of tenancy (rental agreement, lease, grant deed, etc.) at the applied-for premises. As the required two-year tenancy requirement starts when the license issues and there is no guarantee that a license will be granted, it is suggested that any financial agreements be contingent upon actual issuance of the priority license.

Premises:

At the time of filing formal application, an on-sale general priority applicant is to designate planned operation as one of the below:

  1. A bona fide public eating place as defined by BPC § 23038; or
  2. A public premises as defined by BPC § 23039, but only if the applicant is able to establish during the formal application process that substantial public demand for issuance of the license cannot otherwise be satisfied; or
  3. A club as defined and authorized by BPC § 23037 and 23399.2, but only if an applicant is a non-profit organization, engaged in some volunteer work in their community, has at least 100 members, and has been in existence for at least one year; or
  4. A on-sale general brew-pub restaurant as defined by BPC § 23396.3.

Once a formal application for a priority license has been made, no change in the location of the applied-for license will be permitted after the expiration of the 90-day period in which the priority application must be filed, except for causes beyond the control of the applicant and with approval of the ABC Director.

An on-sale license and an off-sale license may be located at the same location only if they are physically separated and operated independently of each other, and the privileges granted to each are to be exercised in a bona fide manner.

In any case, involving the denial of a priority license application, the applicant’s priority position will be canceled, and the fee refunded.

For a Period of Two (2) Years After Issuance of the Priority License:

  • The license shall not be transferable from the licensee to any other person except as provided in BPC § 24071, and only when the department determines that the transfer is necessary to prevent undue hardship.
  • The licensee shall not, directly or indirectly, enter into any negotiations or agreements respecting the sale or transfer of the license, unless the department has determined that undue hardship exists.
  • If an undue hardship transfer is authorized by the department, an original priority license may not be sold for more than the original fee paid for the license.
  • Certain changes in ownership and interest within an entity holding a priority license are allowed before the above-described time periods elapse. For instance, a corporation holding an original priority license may appoint new directors, elect new officers, and transfer less than 50% of its outstanding stock within two years of license issuance. However, a change in ownership/interest in such a licensed entity may not result in a person who had ownership/interest in another priority application for the same type of license and transaction, within the same county and year, obtaining ownership/interest in the licensed entity. If this occurs, the license will be subject to administrative action which could result in its revocation.
  • The license shall not be exchanged for a public premises license unless the licensee can show that a substantial public demand cannot otherwise be satisfied.

Additional Restrictions on Intercounty Priority Licenses:

Generally, for a period of five years following the issuance of an inter-county priority license, such license cannot be transferred for a purchase price exceeding the original priority fee paid to the department within the past five years, regardless of amount(s) paid for the license in any previous transfer(s).

Eligible Counties

This year, the following counties will be eligible for additional on-sale general and off-sale general licenses, as follows:

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List of ABC Offices and their Applicable Counties

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Footnotes

[1] Article XX. Section 22 of the State Constitution and Sections 23793, 23816, 23817, 23821, 23954.5, 23961, 23962, 24070, 24071, 24072, and 24079 of the ABC Act, and Rule 60.2 of Division 1, Title 4 of the California Code of Regulations.

Contact

For additional information,
contact your local district office.

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