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Bartender Latonza Hunter measures out a pour for a Yamazaki 12 at Wassabi Off the Hook in this March 2018 file photo.

published on January 15, 2021 - 4:02 PM
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Update: This story was updated to include a response from an official with the State of California regarding advice for restaurants and bars concerning fee renewals.

Restaurants and bars might get some relief in the form of fee waivers from the California Department of Alcoholic Beverage Control (ABC). And until that relief is finalized, the ABC is advising that license holders wait to renew until legislators make their decision on fee waivers.

In Gov. Gavin Newsom’s 2021-22 proposed budget, he set aside $45 million for fee waivers for liquor licenses from ABC that would affect approximately 59,000 restaurants and bars impacted by Covid lockdowns, according to a press release from the ABC.

Eligible for the waivers would be business owners needing to renew license types between 40 and 99 — including types 41 and 47, the most common ones allowing restaurants to sell beer, wine and liquor.

According to the proposal, the dates covered by waivers would be Feb. 1 of this year through Jan. 31, 2022.

A Type 41 license renewal can cost $455 a year, according to the ABC website. A Type 41 license allows a restaurant to serve beer or wine. A Type 47 license renewal is tiered based on a city’s population. For a restaurant in a city with more than 40,000 people, that license can be $1,235 annually.

The program is contingent on passage by the Legislature, which could put a damper on the availability of fee waivers with the current covered period.

The deadline for passing a budget by California legislators is June 15. The proposed budget will soon go before budget subcommittees where they will be examined by legislators. Newsom did request that certain items be considered for early action. Early action items can be approved before the upcoming year’s budget is approved and funds for those initiatives come out of the current year’s spending plans. Legislators have to decide which items are pressing enough to be considered for early action.

The longer it takes for the fee waiver to be approved by legislators may mean fewer fee waivers granted. According to the ABC website, if licensees pay the renewal fee and later find they were eligible for a waiver, they may be out of luck. The ABC will not provide any refunds, according to the frequently-asked-questions portion related to the fee waivers.

Because ABC does not have the authority to approve refunds, the ABC is advising that restaurants and bars wait to pay their renewals until fee waivers have been enacted, according to Russ Heimerich, deputy secretary of communications in the business, consumer services and housing agency with the State of California. The agency oversees the ABC.

“Although technically expired, ABC allows license holders to continue to operate past their expiration date, so long as the renewal fees are eventually paid,” Heimerich wrote. “ABC will allow license holders to continue to operate while they sort out waiver requests.”

The following ABC license types would be included in the fee waiver: 40, 41, 42, 47, 48, 49, 50, 51, 52, 57, 58, 59, 60, 61, 64, 68, 69, 71, 72, 75, 76, 77, 78, 83, 86, 87, 99.


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