Liquor Licensing of Street Fairs and Festivals
The US Festival, Organized by Steve Wozniak, 1983
Street Fairs are a popular tradition in California and elsewhere, sometimes drawing tens of thousands of visitors. Street fairs typically provide food vendors, silent auctions, raffles, and live music. Some are focused narrowly as “beer and wine festivals.”
Non-profit 501c3 organizations often sponsor street fairs and festivals. Sponsors might include the “XYZ Street Fair,” a Chamber of Commerce or a business association, with proceeds going to charitable causes important to the community, such as Multiple Sclerosis.
Some street fairs and festivals collect entry fees, which go directly to the beneficiaries. Ticket price might include a discount at beverage booths, food tickets, commemorative wine glass, “goodie bag,” etc. Others offer entry at no cost. Often, for-profit or non-profit organizations rent beverage booths. There are even consultants who specialize in managing street fairs.
Qualified organizations that receive the proper license or permit from the California Department of Alcoholic Beverage Control (ABC) may sell alcoholic beverages at a beverage booth, beer garden or beer/wine garden.
There is no type of “blanket” liquor license the non-profit organizer obtains to allow others to sell alcohol. Rather, each organization running a booth or beer/wine garden obtains their own license or permit. All licensing or permitting for alcohol sales is subject to prior approval by the ABC, local law enforcement and the property owner.
The licensing options are:
SPECIAL DAILY LICENSE (“Temporary License”) – Authorizes the sale of beer and/or wine for consumption on the premises (e.g., street fair or festival) where sold. Issued only to existing non-profit organizations.
DAILY ON-SALE GENERAL LICENSE (“Temporary License”) – Authorizes the sale of beer, wine and distilled spirits for consumption on the premises (e.g., street fair or festival) where sold. Issued only to political parties or affiliates supporting a candidate for public office or a ballot measure or charitable, civic, fraternal or religious organizations.
CATERING PERMIT (“Type 58″) AND AUTHORIZATION (Form ABC-218) – Authorizes Type 41, 42, 47, 48, 57, 75 and 78 licensees (and certain catering businesses) to sell beer, wine and spirits for consumption at approved events (e.g., street fair or festival) off their licensed premises.
WINE SALES EVENT PERMIT (Type 81) - Authorizes Type 02 (Winegrower) licensees to sell bottled wine produced by the winegrower for consumption off the premises where sold and only at fairs, festivals or cultural events sponsored by designated tax exempt organizations.
The organization who obtains a liquor license or permit must receive all of the net proceeds from the sale of the alcohol. If there is an admission charge and it entitles patrons to obtain wine, beer and/or distilled spirits, then the net proceeds from the sale of alcoholic beverages must go to the non-profit organization. If the licensee charges a separate admission and/or sells advertising specialties (T-shirts, hats, etc.), the net profits from these sales may go to someone other than the non-profit organization.
There are numerous laws that apply, including those that prohibit sales to minors and obviously intoxicated patrons. There are also more obscure laws specific to special events. For example, the role of winegrowers, beer manufacturers and wholesalers. Participating organizations should be aware of these laws to prevent the suspension or revocation of a license or permit. The goal is a safe, legal and responsible event.
Timelines for temporary licenses and permits depend upon the license you are applying for. In general, you should apply no later than 10 days before, and no sooner than 30 days before, the event.
The forms and information for getting a special event license or permit can be found on ABC’s website. For information about getting a license or permit at certain location, you should contact the ABC district office nearest the proposed site.
March 19th, 2013 at 7:34 am
Justin – Yes, a Type 23 license permits the sale of wine, in addition to beer, in a “bona fide eating place” either on your licensed premises or in a bona fide eating place “contiguous to” your licensed premises. You will have to serve meals during the meal hours that you are open, and have the usual fixtures and equipment to prepare and serve the meals. This can include traditional fare or specialty entrees which combined with side orders and desserts, make a “meal.” Good luck with your venture. Lauren
March 17th, 2013 at 12:11 pm
Hey Lauren, not sure the proper place to ask questions regarding a California type 23 microbrewery question, so here goes:
With a California type 23 license is it permissible to also sell wine on-premise? We’re working on getting our type 23 and want to also serve food in our establishment, but want to plan accordingly for those that prefer wine over beer.
Thanks,
Justin
December 9th, 2012 at 6:04 am
Sean,
You are correct in that a private party would not require a license. Just to clarify, a private party is an event that (a) is not open to the general public, (b) has no direct or indirect sales of alcohol, and (c) is not a place that is maintained for the purpose of keeping, serving, consuming or otherwise disposing of alcoholic beverages. If any of these 3 exist, then it is not a private party and a license is required. Direct sale of alcohol would be money or other consideration exchanged for alcohol. An indirect sale of alcohol would include things like admission fees that include alcohol, accepting donations, etc. You may have a bartender serve the alcohol, but the ABC has guidelines to ensure the bartender is not acting as a “licensed caterer.” The bartender:
1. May NOT pick up the alcohol and then be reimbursed for it
2. May NOT get paid in advance for alcohol, then pick it up and deliver it to the party site
3. May NOT be paid for alcohol sales–only for bartending services (otherwise he/she would be exercising the privilege of a licensed caterer and that would be illegal)
4. May NOT return the alcohol to the seller after the party (all alcohol belongs to the host)
5. MAY suggest to the host what alcohol to buy and how much
6. MAY bring equipment to the party
7. MAY be paid a flat fee or by the hour, and collect tips for services only
Be sure to stay safe and legal by having food and non-alcoholic beverages available; not serving minors or any guest who looks or acts drunk; and encouraging designated drivers. Good luck with the event. Lauren
December 6th, 2012 at 9:45 pm
Hello
We are a 501c3 non profit who have successfully applied and been approved for multiple daily license permits in the past.
We have an event coming up that due to a staff miscommunication we were unable to secure a daily 221 license for.
We do not want to cancel the event as it is too close, however, we also do not want to break any laws or put ourselves at risk.
Thus, we were wondering if we make the event a private free admission, hosted by us, and do not sell alcohol yet simply make it available at the event and eat the costs ourselves are we alright?
Are we allowed to have a bartender serving the alcohol?
Thanks so much for your time!!!!
July 20th, 2012 at 9:14 pm
Harry,
Often, licensees engage in activities not realizing what the rules are (or knowing the rules and doing it anyway, figuring they won’t get caught). However, Rule 53e CCR prohibits retail licensees from participating in winetasting activities such as arranging for it, giving a lecture on the wine, pouring, etc.
A Type 01 or 23 licensed beer manufacturer (but not a Type 75 brewpub-restaurant, which is actually a RETAIL licensee with different privileges), may sell beer to holders of a special daily license; may donate beer to the special daily licensee if the daily licensee is a nonprofit exempt under the Internal Revenue Code; and may assist the special daily licensee at a beer tasting off the beer manufacturer’s licensed premises; however, all samples or tastes must be sold. Lauren
July 20th, 2012 at 9:48 am
Hi Lauren,
I am running a non-profit charity Food & Beverage event. Guests will pay one entrance fee and can sample any food, wine or beer during the 4-hour event.
We have applied for a Daily One-Day Special Event License……
There is a local retail wine shop (type 42 and type 21) and a local brewpub that we asked to join my event, but the local ABC said that these entities cannot provide samples of their beer and/or wine.
I have noticed the same establishments are participants in nearby events that happened before mine.
Can these entities pour at my event?
May 21st, 2012 at 8:11 pm
Sean,
There are two basic types of “daily” licenses for special events. Without looking at your non-profit paperwork, I don’t know which one you may qualify for.
A Special Daily Beer and/or Wine license allows the sale of beer and/or wine. It is issued only to existing nonprofit organizations. Rule 59 of the California Code of Regulations says it may be used for the following purposes: (1) Sales to members or guests of members of the organization at the site of and during an organized picnic, social gathering, or similar function of the organization; or (2) Sales to the general public from a premises temporarily occupied at the site of and during a county fair, civic celebration or similar event, or at a designated premises and during a fund-raising event sponsored by a nonprofit charitable, civic, cultural, fraternal, patriotic, religious, social or amateur sports organization.
A Daily On-Sale General license, on the other hand, authorizes the sale of beer, wine and distilled spirits (hard liquor). This one is issued only to organizations qualified under Section 24045.1 B&P Code. They are: Political party or affiliate supporting a candidate for public office or a ballot measure, an organization formed for a specific charitable or civic purpose, a fraternal organization in existence for over five years with a regular membership (e.g., Elks Lodge, Moose Lodge, etc.), or a religious organization.
The fee for a Special Daily Beer and/or Wine license is $25 per day for beer or wine; $50 for both beer and wine. These fees are per dispensing point. The fee for a Daily-On-Sale General license is $25 per day, per dispensing point. In other words, if you have two dispensing points, you would pay double the fee. There is no limitation on how many Special Daily licenses may be issued during one calendar year. However, a Daily On-Sale General license is limited to 12 days in one calendar year and not more than two consecutive days.
Licenses are issued at the discretion of the Department of Alcoholic Beverage Control (ABC). The ABC requires the property owner’s written approval. They may also require the police department’s approval, in some cases.
The first time a non-profit organization applies for a daily license, they must prove their tax-exempt status by showing the ABC their IRS and/or Franchise Tax Board documents. The documents must reflect the organization’s tax I.D. number.
To apply for a daily license, submit a Form ABC-221 to your local ABC District Office. This can be done in person or my mail.
I hope this helps.
May 21st, 2012 at 2:43 pm
Hi Lauren
I had a question about the “Special Daily General License”-
I own a small 99-seat theater in LA and have a non-profit 501c3 organization for it.
We currently do not have any sort of liquor license for the venue. We are hoping to hold a “Summer Concert Series” and have anywhere from 1-5 concerts as fundraisers for the non-profit at which we would like to sell alcohol.
Is this doable with individual “Special Daily” licenses? And is there a limit to the number of Daily licenses we can have per month/year?
Thanks