California Department of Alcoholic Beverage Control Penalty Guideline Emergency Rule; Effective 4-14-2004
June 9, 2004
Michael Brill Newman - San Francisco
Important News for Alcohol Beverage Retailers, Wholesalers,
Importers,
Suppliers, Brand Owners, and Manufacturers
The California Department of Alcoholic Beverage Control (ABC) has just
received approval for its emergency administrative rule dealing with penalties
the ABC will assess for purported violations of laws and regulations committed
by ABC licensees, their employees or agents. This emergency rule became
effective retroactively on April 14, 2004, and will be followed for the 120-day
period following April 14. During this period the ABC will begin the
administrative process of adopting a permanent administrative rule on the
subject of Penalty Guidelines. The ABC will hold public hearings on the
permanent rule on July 12 in Los Angeles and July 13 in Sacramento. Interested
persons may also submit written comments to the ABC on or before July 13.
This is too important for California licensees to ignore, since it will
create the penalties the ABC will seek for violations by licensees, their
employees and patrons at a licensed premises. You are encouraged to participate
in the rule-making process to protect your investment from penalties that are
too harsh or unreasonable, which government officials may propose for
violations. All licensees should participate in this process to try to define
the point at which the business owner should be held accountable for conduct on
their licensed premises or when their patrons, agents, servants, or employees
violate a California law or administrative rule in the scope of employment.
Holland & Knight’s Alcohol Beverage Team has two former directors of state
alcohol beverage regulatory agencies (Manny Espinoza retired California ABC
Director and John Harris, retired Florida Division of Alcoholic Beverages &
Tobacco Director) and several other former senior staff members of the U.S.
Trade and Tax Bureau as well as Michael Newman, who has been a practicing
alcohol beverage attorney for the past 18 years in California. Manny, John, and
Michael have a total of 100 years experience in the area of administrative rule
making and how to accomplish a client’s objectives in a manner consistent with
good government.
If you have any questions about this new emergency rule or the rule making
process in California, please feel free to contact Michael Newman 415-743-6989
or michael.newman@hklaw.com, who
is our Alcohol Beverage Team’s lead client advisor regarding the California
Penalty Guideline Rule Making Process that began April 14. Our two state
governmental consultants, Manny Espinoza and John Harris, believe that the
creation of a state ABC penalty guideline rule is probably the single most
important issue a licensed business owner should be involved in. According to
Manny and John, the rule-making process gives licensees the opportunity to
provide input and help shape state policy on the fairness of proposed penalties
which impose license suspensions or revocation which can threaten the survival
of a business.
For more information, e-mail Michael Newman at
michael.newman@hklaw.com, or call
toll free,
1-888-688-8500.
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