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Posts from the ‘Liquor License’ Category

Feb 1

District of Columbia Alcohol License Renewals for Restaurants begin Feb/March 2013

Every three (3) years, alcohol licenses in the District of Columbia come up for renewal.  The renewal period begins in March of 2013 for CR/CX/DR/DX licenses, and September of 2013 for CT/CN/DT/DN licenses.

In order to renew a license,  all licensees must submit the following documents to the Alcohol Beverage Regulation Administration (ABRA):

  • Certificate of Good Standing from DCRA – this form demonstrates that the licensee is properly registered with the District of Columbia and has submitted all of its 2 year reports;
  • Business Clean Hands Form from OTR – this form certifies that the licensee does not owe the District any outstanding taxes (sales & use taxes, unincorporated business tax, etc);
  • Individual Clean Hands Forms from OTR – this form certifies that the owners of the entity do not owe the District of Columbia any outstanding taxes; and
  • Annual License Fee – Please refer to the chart below to determine the license fee that applies to your particular license.

During the renewal period, all establishments (licensees) will be re-placarded, and the ANC Commissions as well as neighbors will have an opportunity to review the license.  Because all licensees will be placarded, it is a good time for you to consider requesting substantial changes to your license (i.e., increase hours or seating occupancy) or changes to your Voluntary Agreement, if you have one.

If your Voluntary Agreement has been in effect for at least 4 years, you may request that the ABRA board terminate the Voluntary Agreement.  To do so, however, you must first negotiate with your ANC to request this change.

Please let us know if you need any assistance with renewals or negotiations with you respective ANC for any changes to your Voluntary Agreement.

  Class       Type                   Capacity           Fee

CR-01    Restaurant          99 or fewer         $1,000

CR-02    Restaurant        100 to 199             $1,300

CR-03    Restaurant          200 to 499          $1,950

CR-04    Restaurant          500 or more       $2,600

CX         Multipurpose    facility                      $1,950

DR-01    Restaurant          99 or fewer         $600

DR-02    Restaurant          100 to 199           $780

DR-03    Restaurant          200 to 499          $1,170

DR-04    Restaurant          500 or more       $1,560

DX        Multipurpose    facility                       $650

Jul 13

Changes to the District’s Alcohol Laws Debated at D.C. Council Committee Hearing

During a five hour hearing by the D.C. Council Committee on Human Services, over 30 witnesses testified about the Omnibus Alcoholic Beverage Regulation Amendment Act of 2012.  Chairman Jim Graham (Ward One) presided over the hearing and mediated between the concerns of local restaurant owners and neighborhood community leaders.

The amendments to the bill are a result of a taskforce, assembled by Chairman Graham, which met from December 2011 until April 2012, to help draft the legislation.  The taskforce consisted of 26 stakeholders including 14 Advisory Neighborhood Council (“ANC”) Commissioners, six alcohol licensees, two Business Improvement District (“BID”) representatives, the Restaurant Association of Metropolitan Washington, and government officials.

Out of the 43 changes proposed by the taskforce and codified in the bill, the most controversial provisions relate to 1) standing requirements for a D.C. resident to protest an alcohol license; 2) the conditions that are permitted in Voluntary Agreements; and 3) the enforcement of noise complaints against licensees.

Standing Requirements to Protest a License:

Currently, D.C. Code § 25-601 lists the persons or entities that may protest a new alcohol license as 1) an abutting property owner to the establishment; 2) a group of five D.C. residents;  3) a property owner within 600 feet of the establishment; 3) a citizen’s association; and 4) affected ANCs.

The new regulation would require the group of five residents to live within 400 feet of the establishment.  During the hearings, it was established that 400 feet is the equivalent of one city block, which many of the neighborhood witnesses believed was too restrictive, although most conceded some geographical limitation is appropriate.

Voluntary Agreement Provisions:

The D.C. code does not enumerate what types of provisions a Voluntary Agreement may contain, but the new regulations provides greater clarity as to what types of restrictions or affirmative requirements may be imposed on the licensee regarding entertainment, noise, litter, parking, security, hours of operation, and occupancy.

Additionally, Section § 25-446 is to be amended to give Voluntary Agreements negotiated between ANCs and applicants precedent over Cooperative Agreements negotiated between residents and applicants.   Graham corrected a typo in the current bill, which states that once a Voluntary Agreement is signed between an ANC and the applicant, all other protests would be dismissed by the ABRA board.

The purpose of this provision is to reduce the number of duplicate voluntary agreements, unnecessary paperwork and extreme delays in the licensing process caused by duplicate protest groups.  It was included to give due respect to the opinions of the democratically elected representatives of the ANCs and grant them greater weight in the process.  However, Graham noted that the bill, as drafted, mischaracterized the process.  Protests by neighborhood associations would not be dismissed after a Voluntary Agreement with an ANC is signed, and any Cooperative Agreement signed prior to the Voluntary Agreement with the ANC would be incorporated into the final Board Order.

Enforcement of Noise Complaints:

Two solutions proposed by new regulations to help abate the noise issues between establishments and neighbors is to require ABRA to maintain a noise complaint line and track noise complaints and to require all mixed use buildings, constructed after January 1, 2013, to be built with a minimum sound transmission class rating.

Ernest D. Jarvis, President of the D.C. Building Industry Association testified against such a blanket provision for any new mixed use building, citing the economic burden placed on builders, and Nicholas Majett, Director of the Department of Consumer and Regulatory Affairs (DCRA), echoed Mr. Jarvis’ sentiment.  Chairman Graham agreed to work with Mr. Majett to include language that would be amenable to both builders and neighborhood residents.

Chairman Graham and the Committee will review all of the comments submitted by the witnesses.  A final version of this bill will likely not be presented to the full D.C. Council until Fall 2012, at the earliest.

If you have any questions about this pending legislation, please contact our offices.  To see the full video recording of the hearing, please click here.

Jul 2

Reform Hearing Set for July 12, 2012: Omnibus Alcoholic Beverage Regulation Amendment Act of 2012

The D.C. Council Committee on Human Services is hosting a hearing on July 12, 2012 at 11:00 AM for the Omnibus Alcoholic Beverage Regulation Amendment Act of 2012 (“Omnibus”).  The bill, introduced by Councilmember Jim Graham (Ward One) and cosponsored by Jack Evans (Ward Two) is set to amend Title 25 of the D.C. Code, which pertains to alcoholic beverages.  The hearing will take place at Room 412 of the John A. Wilson Building at 1350 Pennsylvania Ave. NW (photo ID required).

The following are among some of the 43 changes proposed by Omnibus:

  • To create a new Wine Pub permit that allows for the manufacturing and the sale of wine to consumers;
  • To increase the wine alcohol percentage that can be sold by retailer’s class B licensees from 14% to 15%;
  • To allow retailer’s class C and D licensees to purchase from retailer’s class A licensees when District wholesalers are closed;
  • To require notice of placarded license applications to citizen associations registered with ABRA;
  • To require a group of five or more residents or property owners to be within a 400 foot radius to qualify for standing;
  • To require citizens associations to give notice to applicants and offer applicants an opportunity to address their voting body at a duly scheduled meeting;
  • To require citizen associations to give notice to applicants and offer applicants an opportunity to address their voting body at a duly scheduled meeting;
  • To make it a primary tier violation for failure to comply with the statutory food requirements;
  • To require that windows and doors of an establishment remain closed for a noise violation under D.C. Code  § 25 -725 to occur;
  • To make it a secondary tier violation to knowingly allow a patron to exit an on-premises establishment with an open container of alcohol;
  • To establish an affirmative defense to a violation of D.C. Code § 25-783(a) that the person was 21 years of age or older;
  • To allow the Board to fine a licensee $30,000 and suspend a license for 30 consecutive days for a fourth primary tier violation within four years.

The full bill can be found here.  A full recap of the hearing will be provided in a subsequent blog posting.

It is important to note that to be given speaking time (5 minutes for businesses/representatives, 3 minutes for individuals), registration is required by contacting Council staffer Malcolm Cameron at mcameron@DCCouncil.US or 202-724-8191.  In addition, the D.C. Council is requesting that any speakers provide 15 copies of their statements.

Jun 29

Virginia, Maryland Breweries Now Allowed to Sell Pints to Customers

Thanks to recently passed Virginia Senate Bill 604 and Maryland Senate Bill 579, each state’s craft and microbreweries are now allowed to sell beer for on-site consumption.

The Virginia bill, signed by Governor Bob McDonnell, grants Virginia state breweries the ability to sell their beer for on-premises consumption.  A House amendment added language clarifying that breweries could only sell beers they own for consumption at the brewery.  Previously, breweries could only give away free one-ounce samples, sell beer “to-go”, or add a restaurant (brewpub) where the beer could be sold.

The bill’s success can be attributed to a concerted lobbying effort from the state’s breweries and beer enthusiasts who argued that the bill would have many positive effects including making Virginia a more attractive hospitality destination for a growing population of craft beer lovers, would make it easier for small breweries to start-up and expand, and, because there is little-to-no automation in smaller breweries and the brewing process is so labor intensive, would create jobs.  After the bill signing the governor helped unveil a new logo for craft beer from the Virginia Tourism Commission “Virginia is for craft beer Lovers.” Virginia currently has 44 licensed breweries.

Maryland’s new law will become effective on July 1st, 2012 and Maryland’s law establishes a “Class 8 Farm Brewing License” which bestows on the license-holder many of the privileges held by the state’s wineries (except, notably, self-distribution).  To qualify, despite the bill’s moniker, the brewery does not have to be on a farm.  The brewery does, however, have to have a maximum output of 15,000 barrels a year and use Maryland-grown grains, hops, or fruit in their beers.  The law does not specify a minimum percentage of Maryland-grown ingredients required.

The license-holder can then sell or give away beer—up to six-ounces per brand—for onsite consumption.  Furthermore, they can sell prepared foods to guests and beer “to-go.”  Like Virginia, the breweries may only sell their own beer.  But unlike Virginia, the Maryland breweries can apply for up to 12 special-event permits per year that will allow them to host festivals where they may feature beers from other breweries.

The Brewers Association reports that in 2012 the United States became home to over 2000 craft breweries, the highest number since the 1800s.  In fact, the New York Times reports that craft brewing is one of the fastest growing industries in the state of Colorado.

For more information please contact Michael B. Jones, at mjones@dbmlawgroup.com or (202) 589-1834.

Jun 6

D.C. Council Approves Bill Extending Alcohol Service Hours for Holidays, Extended Service During Inauguration

On June 5, the D.C. Council put the final stamp of approval on the bill permitting D.C. bars, restaurants and hotels to serve patrons until 4:00 a.m. the night before federal and D.C. holidays. This extension of hours is expected to bring in at least $3.2 million in revenues, preventing a deficit and a potential increase in taxes and fees.

As reported in our May 16th post, D.C. Council Bill 19-743, which can be viewed here starting on page 29, amends District of Columbia Official Code Title 25 Chapter 7 to allow licensed establishments to serve patrons one hour later on approved dates.  In addition to the night preceding District and federal holidays, the Saturdays and Sundays preceding Memorial Day and Labor Day will also see extended service hours.  Extended service will also be permitted on the Saturday and Sunday adjacent to New Year’s Day and Independence Day, as long as either holiday falls on a Friday through Monday.

Mayor Vincent C. Gray’s initially proposed extending alcohol service hours by one hour from 2:00 a.m. to 3:00 a.m. and 3:00 a.m. to 4:00 a.m. on weeknights and weekends, respectively.  However, the D.C. Human Services Committee voted 3-2 to strip this proposal from the 2013 budget, described in our May 3rd post.  This vote followed the standoff seen throughout the district between several neighborhood groups in opposition of the proposal and local entrepreneurs, as detailed in our April 18th post.

This measure also includes the extension of service hours during what the bill designates “Inaugural Week,” which occurs the week of January 15 through January 21 in 2013.  During this week, licensed bars, restaurants, and hotels can serve patrons until 4:00 a.m.  However, these establishments must provide the Alcoholic Beverage Control Board and the D.C. Metropolitan Police with written notice of their hours of operation and a public safety plan no later than January 7, 2013.  These businesses must also pay fee for each day they extend their hours ($250 for a CN license, $100 for a CR or CT license, $50 for any other license).

For more information please contact Michael J. Kozlowski Jr., at mkozlowski@dbmlawgroup.com or (202) 589-1834.

May 16

D.C. Council Approves Proposal to Extend Alcohol Service Hours on 19 Holiday Dates

The D.C. Council approved Council Bill 19-743, the “Fiscal Year 2013 Budget Support Act of 2012,” which includes a provision allowing for an one-hour extension in the maximum allowable alcohol service period at the city’s restaurants, bars and hotels.

The council  revised Mayor Vincent C. Gray’s proposed $9.4 billion budget for the next fiscal year on Tuesday, including changing the Mayor’s proposal to extend alcohol service  hours by one hour, to 3 a.m. on weekdays and 4 a.m. on weekends.  It did not eliminate the Mayor’s plan, as the D.C. Human Services Committee had voted earlier this month, but limited  extended hours  to apply only on nights before all District and federal holidays.  Alcohol sales would also be extended on the Friday, Saturday and Sunday nights of the Memorial Day and Labor Day holidays, as well as New Year’s Eve and July 4 if the holidays fall on weekends.

This extension of hours would likely not apply to restaurant and bars who have voluntary agreements limiting their hours of service.

The council is scheduled to give final approval of the amended budget on June 5th.  The legislation, if approved, would go into effect on October 1.

May 3

D.C. Council Committee Rejects Extended Bar Hours; Votes to Increase Alcohol Tax

The D.C. Human Services Committee voted 3-2 to strip from the 2013 fiscal budget the Mayor’s proposal to extend alcohol sales to 3 a.m. on weekdays and 4 a.m. on weekends.  Instead, the committee proposed increasing the sales tax on alcoholic beverages above the current level of 10 percent.  This alcohol excise tax, paid by wholesalers and increasing product costs for both on-premise venues and retailers alike, would result in a price increase for both businesses and consumer alike.

As reported in our April 18th post, many neighborhood groups organized against extending bar hours, citing the potential for increased late-night noise, crime, and parking issues.  Entrepreneurs endorsed the proposal as a way to boost the city’s reputation as a world-class hospitality destination..

Lynne Breaux, president of the Restaurant Association Metropolitan Washington (RAMW), issued a press release criticizing the council members for increasing the tax burden on local small businesses.

“Restaurants and bars are the first businesses to be tapped to help create a sense of community in areas of new development or to revitalize existing neighborhoods – and are the first businesses to be targeted for taxes, fees and excessive regulatory oversight,” said Breaux.

If the alcohol tax increase is defeated, several council members told the Washington Post that the proposed extension of bar hours could resurface as members try to balance the budget.

“Certainly, we could do it on a temporary basis and see what the ramifications are,” said council member David A. Catania (I-At Large). “If some of the negative consequences come to fruition, we could revisit.”

The committee did, however, unanimously approved two of Gray’s alcohol proposals, including allowing bars to serve until 4 a.m. during the week of the presidential inauguration. The committee also agreed to allow Class A and Class B carryout liquor stores to open at 7 a.m. instead of 9 a.m., except on Sundays.

The committee did not vote on a proposal that would allow liquor stores to open on Sundays.

Apr 20

ABRA Yearly Alcohol Compliance Training Sessions Scheduled for May 18-20, 2012

The District of Columbia’s Alcohol Beverage Regulation Administration (ABRA) is holding its annual Alcohol Compliance Training Sessions on Friday, May 18, 2012, Saturday, May 19, 2012, and Sunday, May 20, 2012.

It is important for licensees to attend ABRA sessions, not only to demonstrate an effort to follow rules and regulations governing your alcohol license, but also to keep up-to-date on changing regulations.  Therefore, we encourage all alcohol licensees to attend or send a representative to such training sessions if possible.

Training sessions will be held at the Reeves Municipal Center, 2000 14th Street, N.W., 4th Floor.  Please RSVP to Jackie Richardson at (202) 442-4446 or jackier.richardson@dc.gov.

To see session times, please click here.

Apr 18

Entrepreneurs, City Residents Face Off At Hearing On Extended Alcohol Sale Hours

On Tuesday night, Ward 1 Councilmember and Chairman of the Human Services Committee, Jim Graham, heard six-hours of testimony from District residents and the hospitality and business community members about D.C. Mayor Vincent Gray’s proposal to extend bar hours in order to raise $5 million in new revenue.

The witness list, available here, included 48 individuals as well as Fred Moosally, Director of the Alcohol Beverage Regulation Administration (ABRA).

Entrepreneurs endorsed Mayor Gray’s proposal and offered support to the idea that extended sales hours will increase revenue as well as boost the city’s reputation as a world-class hospitality destination.  Business owners pointed out that many establishments have Voluntary Agreements, which limit their operating hours.  Owners stated that this type of staggered closings, some bars closing earlier while other close later, would alleviate any concerns of excessive noise from patrons leaving the establishment at later hours.

In his testimony, Mr. Moosally confirmed that the extended hours would not apply to 267 bars, nightclubs and restaurants that have existing Voluntary Agreements with their neighbors.

Council member Graham appeared steadfast in his opposition to longer sale hours, particularly in light of the number of witnesses at the hearing from Adams Morgan and Kaloroma, neighborhoods located in the council member’s own ward, who opposed the extension of hours.  Neighborhood opponents argued that the longer hour would exacerbate existing noise and parking issues and create public safety concerns such as drunk driving.   Some opponents said they could support it if the extended hours were limited to downtown or in non-residential areas, however, Graham stated that would place some establishments at a competitive disadvantage against others who could close later.

Despite his disapproval of the Mayor’s proposal, if it does not pass, Graham would be forced to raise the $5 million in new revenue or make spending cuts to the city’s fiscal 2013 budget to replace the projected revenue expected from this proposal.

According to the Washington Post, Council Chairman Kwame R. Brown may have the final say on whether the fiscal year 2013 budget can remain balanced without Gray’s proposal. At a news conference Tuesday, Brown said he remains undecided on the proposal but understands community opposition.

To watch the entire six-hour hearing, click here.

Apr 17

ANC 1C Commissioner Voices Strong Opposition to Mayor’s Proposal to Extend the Hours of Alcohol Sales in the District

In an opinion piece in the Washington Post, Advisory Neighborhood Commissioner (“ANC”) Olivier Kamanda publically opposed Mayor Vincent Gray’s proposal for raising revenue by allowing bars and nightclubs to serve alcohol until 3 a.m. on weekdays and 4 a.m. on weekends.

Kamanda is a commissioner of ANC 1C, the Adams Morgan Advisory Neighborhood Commission, which covers the area between Harvard St. and Rock Creek to the north, Florida Ave. and U St. to the south, 16th St. to the east, and Connecticut Ave. to the west, where many popular bars and nightclubs are located.  Kamanda cites the District’s adult alcohol abuse rate and residents’ concern for late-night noise, harassment, trash and vandalism for his opposition of extended service hours.

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