ARTICLE 5. Transfer of Licenses [24070. - 24082.]

Cal. Business and Professions Code - BPC 5.
in effect

Cal. Business and Professions Code - BPC § 24070. Section 24070.

Each license is separate and distinct and is transferable upon approval by the department from the licensee to another person and from one premises to another premises. (a) All off-sale general licenses may be transferred from one county to another county, subject to the following provisions: (1) The number of off-sale general licenses in existence in any county on June 1 of any year shall not be increased by more than 25 new original off-sale general licenses during the following 12-month period, provided further that the number of new original off-sale general licenses that may be issued in any county during any 12-month period shall not increase by more than 10 percent the number of off-sale general licenses in existence in that county on the June 1 with which that 12-month period began. (2) After the department computes the number of new original off-sale licenses that may be issued in any county during any 12-month period as provided by the foregoing paragraph, if the department determines that the ratio established by Section 23817 will permit, during that 12-month period, additional off-sale general licenses in any county, off-sale general licenses may be transferred into that county in a number not to exceed by more than 10 percent the number of off-sale general licenses in existence in that county on the June 1 with which that 12-month period began, but in no event to exceed 25 such transfers during that 12-month period. (3) Under no circumstances shall the combined total number of new original off-sale general licenses that may be issued in any county during any 12-month period and the number of off-sale general licenses that may be transferred into such county during that 12-month period, exceed the limitation set forth in Section 23817. (b) All on-sale general licenses may be transferred from one county to another county, subject to the following provisions: (1) The number of on-sale general licenses in existence in any county on June 1 of any year shall not be increased by more than 10 percent by the issuance of new original on-sale general licenses, but in no event to exceed 25 such licenses, during any 12-month period. The number of on-sale general licenses shall be limited by the provisions of Section 23816. (2) After the department computes the number of new original on-sale licenses that may be issued in any county during any 12-month period as provided by the foregoing paragraph, if the department determines that the ratio established by Section 23816 will permit, during that 12-month period, additional on-sale general licenses in any county, on-sale general licenses may be transferred into that county in a number not to exceed by more than 10 percent the number of on-sale general licenses in existence in that county on June 1 with which that 12-month period began, but in no event to exceed 25 such transfers during that 12-month period. (3) Under no circumstances shall the combined total number of new original on-sale general licenses that may be issued in any county during any 12-month period and the number of on-sale general licenses that may be transferred into that county during that 12-month period, exceed the limitation set forth in Section 23816. (c) No retail license subject to the provisions of Section 23816 or 23817 issued as a new original license on or after June 1, 1961, and no off-sale general license or on-sale general license transferred from one county to another county on or after August 17, 1967, shall be transferable from the licensee to another person, or if the licensee is a corporation a controlling interest in the stock ownership of the licensee shall not be, directly or indirectly, sold, transferred, or hypothecated unless the licensee be a corporation the stock of which is listed on a stock exchange in this state or in the City of New York, State of New York, or which is required by law to file periodic reports with the United States Securities and Exchange Commission, for a period of two years from date of issuance of the license, except as provided in Section 24071, and except when the department determines that the transfer is necessary to prevent undue hardship. (d) (1) An on-sale general license or off-sale general license that has been transferred from one county to another county shall not be transferred for a purchase price or consideration in excess of the original fee paid for that license pursuant to paragraph (2) of subdivision(a) of Section 23320 for a period of five years following the previous transfer of that license. (2) An on-sale general license or off-sale general license that has been transferred from one county to another county may be transferred with no restrictions as to the purchase price or consideration to the transferor or from the transferee after a period of five years from the date of the previous intercounty transfer of the license.

Cal. Business and Professions Code - BPC § 24070.1. Section 24070.1.

An on-sale license issued for a bona fide public eating place may be transferred from the licensee to another person, as provided in Section 24070, for a bona fide public eating place or for public premises, as defined in Section 23039. An on-sale license issued for public premises may be transferred from the licensee to another person, as provided in Section 24070, for public premises or for a bona fide public eating place.

Cal. Business and Professions Code - BPC § 24070.2. Section 24070.2.

Notwithstanding subdivision (a) of Section 24070, any off-sale general license issued prior to April 29, 1992, and located within the boundaries of the United States Bureau of the Census census tracts 234000, 234200, 234300, 234500, 234600, 234700, 234800, 234900, 235100, 235201, 235202, 236100, 236201, 236202, 236400, 231100, 231500, 231600, 231700, 231800, 231900, 232100, 232200, 232300, 232400, 232500, 232600, 232700, 232800, 237100, 237200, 237300, 237400, 237500, 237600, 237700, 237800, 237900, 238000, 238100, 238200, 238300, 238400, 240300, 240400, 241200, 241300, 600100, 600201, 600202, 600301, 600302, 600400, 602700, 602800, 602900, 603002, 228100, 228200, 228300, 228400, 228500, 228600, 228700, 228800, 228900, 229100, 229200, 229300, 229400, 239200, 239300, 239500, 239600, 239700, 239800, 242000, 242100, 242200, 242300, 242600, 242700, 243000, 243100, 535400, 240000, 240200, 240500, 240600, 240700, 240800, 240900, 241000, 241100, 241400, 532700, 532800, 532900, 533000, 534900, 535000, 535101, 535102, 535200, 535300, 535400, 541100, 541200, 541300, 541400, 541601, 541602, 541800, 542000, 542101, 542102, 542200, 542401, 542402, 542500, 542600, 542700, 542800, 542900, 543000, 543100, 543200, 543301, 543321, and 570400 located within Los Angeles County may be transferred from that county to another county without regard to the limitations imposed by Section 24070. Notwithstanding the fee provisions of Section 24072, the fee for a transfer of a license pursuant to this section shall be one hundred dollars ($100).

Cal. Business and Professions Code - BPC § 24070.5. Section 24070.5.

When a winegrower has failed to carry on business actively, pursuant to a winegrower’s license, for a period of one year, such winegrower’s license, without regard to when it was originally issued, may be transferred only to a person who qualifies as a winegrower, as defined in Sections 23013 and 23358 of this code.

Cal. Business and Professions Code - BPC § 24071. Section 24071.

(a) The license of one spouse may be transferred to the other spouse when the application for transfer is made prior to the entry of a final decree of divorce, and the license of a decedent, minor ward, incompetent person, conservatee, debtor in a bankruptcy case, person for whose estate a receiver is appointed, or assignor for the benefit of creditors may be transferred by or to the surviving partners of a deceased licensee, the executor, administrator, conservator or guardian of an estate of a licensee, the surviving spouse of a deceased licensee in the event that the deceased licensee leaves no estate to be administered, the trustee of a bankrupt estate of a licensee, a receiver of the estate of a licensee, or an assignee for the benefit of creditors of a licensee with the consent of the assignor, or a license may be transferred by or to a receiver appointed for a judgment debtor as provided by Section 708.630 of the Code of Civil Procedure, or a license may be transferred to a revocable living trust when the licensee is also the trustee, and the fee for the transfer of each license shall be one hundred dollars ($100). A license may be transferred between partners where no new partner is being licensed, or a license may be transferred between corporations whose outstanding shares of stock are owned by the same natural persons, or a licensee may transfer upon compliance with Section 24073 any license to a corporation whose entire stock is owned by the licensee, or their spouse, or a licensee may transfer upon compliance with Section 24073 any license to a limited liability company whose entire membership consists of the licensee, or their spouse, or a license may be transferred from a corporation to a person who owns, or whose spouse owns, the entire stock of the corporation, and the fee for transfer of each license is one hundred fifteen dollars ($115). The regular transfer fee provided in Section 24072 shall be due and payable upon the subsequent transfer of 25 percent of the stock in a corporation to which a license has been transferred by a licensee or their spouse pursuant to this section, except if the transfer of stock is from a parent to their child or grandchild, in which case the fee shall be one-half of the regular transfer fee. In no case shall a fee be charged for the transfer of an importer’s license. All money collected from the fees provided for in this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761. (b) The fees may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. (c) Nothing in this section shall be deemed to authorize the formation of a limited liability company composed of only one member in violation of subdivision (b) of Section 17050 of the Corporations Code.

Cal. Business and Professions Code - BPC § 24071.1. Section 24071.1.

(a) (1) When the ownership of 50 percent or more of the shares of stock of a corporation, which is required to report the issuance or transfer of those shares of stock under Section 23405, is acquired by or transferred to a person or persons who did not hold the ownership of 50 percent of those shares of stock on the date the license was issued to the corporation, the license of the corporation shall be transferred to the corporation as newly constituted. When there is a new general partner or when the ownership of 50 percent or more of the capital or profits of a limited partnership, which is required to maintain a register under Section 23405.1, is acquired by or transferred to a person or persons as general or limited partners and who did not hold ownership of 50 percent or more of the capital or profits of the limited partnership on the date the license was issued to the limited partnership, the license of the limited partnership shall be transferred to the limited partnership as newly constituted. The application fee for the transfer of an on-sale general license or an off-sale general license shall be eight hundred dollars ($800). For all other licenses, the fee shall be three hundred thirty-five dollars ($335). In situations involving the multiple and simultaneous transfer of licenses under this section, the regular transfer fee shall only be required for one of the licenses being transferred and the remainder of the licenses shall be transferred for a fee of one hundred dollars ($100) each. All of the transfer fees collected pursuant to this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761. Before the license is transferred, the department shall conduct an investigation pursuant to the provisions of Section 23958. Any person or persons who own 50 percent or more of the shares of stock of the corporation or who own as limited partners 50 percent or more of the capital or profits of the limited partnership, as the case may be, shall have all the qualifications required of a person holding the same type of license. (2) The fees may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. (b) A retail license shall not be transferred by a corporation or a limited partnership under this section unless, before the filing of the transfer application with the department, the corporation or limited partnership initiating the transfer records in the office of the county recorder of the county or counties in which the premises to which the license has been issued are situated a notice of the intended transfer, stating all of the following: (1) The name and address of the corporation or limited partnership. (2) The name and address of the person or persons acquiring ownership of 50 percent or more of the stock of the corporation or capital or profits of the limited partnership. (3) The amount of the consideration paid for the stock or limited partnership interests. (4) The kind of license or licenses intended to be transferred. (5) The address or addresses of the premises to which the license or licenses have been issued. (c) A copy of the notice of the intended transfer, certified by the county recorder, shall be filed with the department together with the transfer application. (d) Notwithstanding any other provision of this division, a corporation or limited partnership as newly constituted by transfer under this section, is not eligible for any new credit from any person named in Section 25509 until all delinquent payments owed by the entity as formerly constituted, are made, nor shall any entity retail licensee, by transferring its license under this section, avoid the provisions of Section 25509 with regard to 42-day or 30-day periods, percentage charges for unpaid balances, or cash-on-delivery basis.

Cal. Business and Professions Code - BPC § 24071.2. Section 24071.2.

(a) (1) When the ownership of 50 percent or more of the membership interests in a limited liability company required to report the issuance or transfer of memberships under Section 23405.2 is acquired by or transferred to a person or persons who did not hold the ownership of 50 percent of the membership interests on the date the license was issued to the limited liability company, the license of the limited liability company shall be transferred to the limited liability company as newly constituted. The application fee for the transfer of an on-sale general license or an off-sale general license shall be eight hundred dollars ($800). For all other licenses, the fee shall be three hundred thirty-five dollars ($335). In situations involving the multiple and simultaneous transfer of licenses under this section, the regular transfer fee shall be required for only one of the licenses being transferred and the remainder of the licenses shall be transferred for a fee of one hundred dollars ($100) each. All of the transfer fees collected pursuant to this section shall be deposited in the Alcohol Beverage Control Fund, as provided in Section 25761. Before the license is transferred, the department shall conduct an investigation pursuant to Section 23958. Any person or persons who own 50 percent or more of the membership interests of the limited liability company shall have all the qualifications required of a person holding the same type of license. (2) The fees may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. (b) A retail license shall not be transferred by a limited liability company under this section unless, before the filing of the transfer application with the department, the company initiating the transfer records, in the office of the county recorder of the county or counties in which the premises to which the license has been issued are situated, a notice of the intended transfer, stating all of the following: (1) The name and address of the limited liability company. (2) The name and address of the person or persons acquiring ownership of 50 percent or more of the membership interests of the limited liability company. (3) The amount of the consideration paid for the membership interests. (4) The kind of license or licenses intended to be transferred. (5) The address or addresses of the premises to which the license or licenses have been issued. (c) A copy of the notice of the intended transfer, certified by the county recorder, shall be filed with the department together with the transfer application. (d) Notwithstanding any other provision of this division, a limited liability company as newly constituted by transfer under this section shall not be eligible for any new credit from any person named in Section 25509 until all delinquent payments owed by the limited liability company as formerly constituted are made, nor shall any retail licensee, by transferring its license under this section, avoid the provisions of Section 25509 with regard to 42-day or 30-day periods, percentage charges for unpaid balances, or cash-on-delivery basis. (e) Nothing in this section shall be deemed to authorize the formation of a limited liability company composed of only one member in violation of subdivision (b) of Section 17050 of the Corporations Code.

Cal. Business and Professions Code - BPC § 24072. Section 24072.

(a) Except as provided in Section 24071, the following transfer fees shall be charged by the department: (1) The application fee for a transfer of an on-sale general license or an off-sale general license from a licensee to another person or from a licensee to another person and premises is one thousand two hundred fifty dollars ($1,250). (2) The application fee for a transfer of all other licenses from a licensee to another person is three hundred thirty-five dollars ($335). The application fee for a transfer from a licensee to another person and premises is equal to the application fee specified in paragraph (1) of subdivision (a) of Section 23320. (3) Except as provided in Section 24082, the application fee for a transfer of a license, and any additional license held at specific premises, from one premises to another premises is seven hundred eighty dollars ($780). (4) Notwithstanding the other fee provisions of this section, the application fee for a transfer of an on-sale or an off-sale general license from one county to another county shall be six thousand dollars ($6,000). (5) The application fee for a transfer of an on-sale or off-sale retail license to include the parent or child of a licensee, when no consideration is given for the transfer, shall be one-half the regular fee for a transfer of a license from a licensee to another person, as provided by this section. (b) If the application for a transfer made pursuant to subdivision (a) includes multiple licenses issued at the same premises, the application fee shall be required for only one of the licenses being transferred and the remainder of the licenses shall be transferred at no cost. In situations involving different license types, the application fee to be paid shall be the highest fee as specified in subdivision (a). If the application for a transfer made pursuant to subdivision (a) is combined with an application for a new permanent license pursuant to Section 23320 at the same premises, only the transfer application fee or the new permanent license application fee shall be required, whichever is highest. Notwithstanding this provision, the annual fee shall be payable for each license transferred pursuant to subdivision (c) and for each new permanent license issued pursuant to subdivision (c) of Section 23320. (c) In addition to the application fee, an applicant shall pay an annual fee for each of the licenses included in a transfer application made pursuant to this section. (d) The department may charge a fee for the reactivation of any license following its surrender or abandonment for cases pursuant to regulations of the department. (e) (1) The fee for the application to make material or substantial physical changes to the licensed premises or to the character of the licensed premises shall be three hundred forty-five dollars ($345), except when the application involves an expansion of the licensed premises, in which case the fee shall be three hundred eighty dollars ($380). (2) If the department approves the application, with or without conditions, notwithstanding that a written objection to the change to the premises has been submitted to the department in the course of its investigation, the department shall treat that written objection in the same manner as a verified protest pursuant to Section 24015, and the person objecting to the change to the premises shall have the same right to request a hearing as specified for verified protests in that section. (3) In its discretion, the department may require that the licensee proceed by way of a transfer of the license from one premises to another premises. In such circumstances, if the licensee has paid the application fee pursuant to this subdivision, the payment shall be credited to the fee required to be paid pursuant to subdivision (a). (f) The fee for the submission of the report required by Section 23405, 23405.1, 23405.2, or 23405.3 is three hundred dollars ($300). If the department determines that a transfer of the license pursuant to Section 24071.1 or 24071.2 is necessary based upon the submitted report, the fee paid pursuant to this subdivision shall be credited toward the license transfer fee. The report fee of three hundred dollars ($300) shall not be required for duplicate licenses issued to branch office locations pursuant to Section 23389 or Section 23390 or for club licenses or veterans’ club licenses issued to nonprofit or fraternal organizations pursuant to Article 4 (commencing with Section 23425) or Article 5 (commencing with Section 23450) of Chapter 3. (g) Any applicant whose application under this section is denied or withdrawn is entitled to a refund, if any, in the same manner as may be applicable to a license application denial or withdrawal as specified in Section 23320. (h) The fees may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. All money collected from the fees provided for this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761.

Cal. Business and Professions Code - BPC § 24072.1. Section 24072.1.

An on-sale license issued for a bona fide public eating place may be transferred from the premises for which issued to other premises, as provided in Section 24072, for a bona fide public eating place or for public premises, as defined in Section 23039. An on-sale license issued for public premises may be transferred from the premises for which issued to other premises, as provided in Section 24072, for public premises or for a bona fide public eating place.

Cal. Business and Professions Code - BPC § 24072.2. Section 24072.2.

Any person who has an on-sale license issued for a bona fide public eating place may exchange their license for a similar license for public premises, as defined in Section 23039, and any person who has such a license issued for public premises may exchange their license for a similar license for a bona fide public eating place. The exchange may be made at the time of renewal of the license sought to be exchanged, and not more than once between renewal periods, upon the approval of the department, the payment of an exchange fee of one hundred dollars ($100), and compliance with the provisions of this division relating to the issuance of an original license. The fee may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. All money collected from the fee provided for in this section shall be deposited directly in the Alcohol Beverage Control Fund as provided in Section 25761.

Cal. Business and Professions Code - BPC § 24072.3. Section 24072.3.

(a) (1) Any person that has a brewpub-restaurant license may exchange that license for a bona fide public eating place license, as defined in Section 23038. The exchange may be made at any time upon the approval of the department, the payment of an exchange fee of one hundred dollars ($100), and compliance with the provisions of this division relating to the issuance of an original license. (2) This section shall only apply to a brewpub-restaurant license that was first issued on or before December 31, 2019. For purposes of this paragraph, “first issued” means the date that the original brewpub-restaurant license was issued by the department, regardless of subsequent transfers thereof. (b) (1) The fee established in subdivision (a) may be adjusted by the department pursuant to subdivisions (d) and (e) of Section 23320. (2) A person that exchanges a license pursuant to this section shall be required to pay the fee required for a new permanent license as set forth in Section 23320 for an on-sale general eating place. (3) All money collected from the fee provided for in this section shall be deposited directly in the Alcohol Beverage Control Fund as provided in Section 25761. (c) (1) The department may designate a license issued pursuant to this section as an on-sale general license for special use. A designation pursuant to this subdivision shall not alter any license privileges or restrictions otherwise established by this section. (2) An on-sale general license for special use issued pursuant this section shall be excluded from the number of on-sale general licenses available under Sections 23816 and 23821. (d) A license issued pursuant to this section shall not be sold or transferred for a price greater than the fee paid by the seller or transferor under paragraph (2) of subdivision (b). (e) For purposes of this section, “brewpub-restaurant license” means a license described in Section 23396.3.

Cal. Business and Professions Code - BPC § 24072.5. Section 24072.5.

Any person who has any on-sale general license may exchange his or her license for a special on-sale general license and any person who has a special on-sale general license may exchange his or her license for an on-sale general license. The exchange may be made at any time upon the approval of the department, the payment of an exchange fee of one hundred dollars ($100), and compliance with the provisions of this division relating to the issuance of an original license. However, Sections 23985, 23985.5, and 23986 shall not apply to the exchange of an on-sale general license for a special on-sale general license. All money collected from the fee provided for in this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761.

Cal. Business and Professions Code - BPC § 24073. Section 24073.

No retail license limited in numbers, off-sale beer and wine license, on-sale beer and wine license, on-sale beer and wine public premises license, on-sale beer license, on-sale beer public premises license, or on-sale general license for seasonal business, shall be transferred unless before the filing of the transfer application with the department the licensee or the intended transferee records in the office of the county recorder of the county or counties in which the premises to which the license has been issued are situated a notice of the intended transfer, stating all of the following: (a) The name and address of the licensee. (b) The name and address of the intended transferee. (c) The kind of license or licenses intended to be transferred. (d) The address or addresses of the premises to which the license or licenses have been issued. (e) An agreement between the parties to the transfer that the consideration for the transfer of the business and license or licenses, if any there be, is to be paid only after the transfer is approved by the department. (f) The place where the purchase price or consideration for the transfer of the business and license or licenses is to be paid, the amount of such purchase price or consideration, and a description of the entire consideration, including a designation of cash, checks, promissory notes, and tangible and intangible property, and the amount of each thereof. (g) The name and address of the escrow holder referred to in Section 24074, or of the guarantor referred to in Section 24074.4, as the case may be. A copy of the notice of intended transfer, certified by the county recorder, shall be filed with the department together with a transfer application.

Cal. Business and Professions Code - BPC § 24074. Section 24074.

Before the filing of such a transfer application with the department, if the intended transfer of the business or license involves a purchase price or consideration, the licensee and the intended transferee shall establish an escrow with some person, corporation, or association not a party to the transfer acting as escrow holder, and the intended transferee shall deposit with the escrow holder the full amount of the purchase price or consideration. The transfer application shall be accompanied by a description of the entire consideration. The description shall include a designation of cash, checks, promissory notes, and tangible and intangible property, and the amount of each thereof. The licensee and intended transferee shall also enter into an agreement, which agreement shall be deposited with the escrow holder, directing the escrow holder, after the requirements for transfer as provided in Section 24049 are satisfied, to pay out of the purchase price or consideration, whether the consideration takes the form of cash, checks, promissory notes, or tangible or intangible property, the claims of the bona fide creditors of the licensee who file their claims with the escrow holder before the escrow holder is notified by the department of its approval of the transfer of the license or if the purchase price or consideration is not sufficient to pay the claims in full, to distribute the consideration as follows: First, to the United States for claims based on income or withholding taxes; and thereafter for claims based on any tax other than specified in Section 24049. Second, to the payment of claims for wages, salaries, or fringe benefits of employees of the seller or transferor earned or accruing prior to the sale, transfer, or opening of an escrow for the sale thereof. Third, to the payment of claims of secured creditors to the extent of the proceeds which arise from the sale of the security. Fourth, to the payment of claims on mechanics’ liens. Fifth, to the payment of escrow fees and the payment of claims for prevailing brokerage fees for services rendered and claims for reasonable attorney’s fees for services rendered. Sixth, to the payment of claims for goods sold and delivered to the transferor for resale at his licensed premises and the payment of claims for services rendered, performed, or supplied in connection with the operation of the licensed business, and to the payment of claims of a landlord, to the extent of proceeds on past due rent. Seventh, to the payment of other claims which have been reduced to court-ordered judgments, including claims for court-ordered support of a minor child. Eighth, to the payment of all other claims. The payment of these claims if sufficient assets are not available for the payment of the claim in full shall be paid pro rata. If the transferor licensee disputes any claim, the escrow holder shall notify the claimant, and the amount or pro rata amount thereof shall be retained by the escrow holder for a period of 25 days, and if not attached shall be paid to the transferor licensee. The agreement shall also provide that the escrow holder shall make the payment or distribution within a reasonable time after the completion of the transfer of the license.

Cal. Business and Professions Code - BPC § 24074.1. Section 24074.1.

Any person desiring to act as an escrow holder under Section 24074 shall: 1. Comply with all the applicable provisions of Chapter 1 (commencing with Section 17000) of Division 6 of the Financial Code. 2. Not more than 10 days after receiving a claim from a creditor, said escrow holder shall acknowledge receipt of each claim; and 3. Not more than 10 days after the license has been transferred and prior to the distribution of the assets held by said escrow holder he shall advise each creditor who filed a claim against the escrow whether or not there are sufficient assets in the escrow to pay all creditors in full. If the assets in the escrow are sufficient to pay all creditors in full, said escrow holder shall also advise each creditor of the date on or before which payment will be made. If there are not sufficient assets to pay all creditors in full, he shall then advise each creditor who filed a claim of the following: (a) the total assets placed in escrow with him and the nature of each asset; (b) the name of each creditor who filed a claim against the escrow and the amount of said claim; (c) the amount he proposes to pay each creditor; and (d) the date on or before which said amount will be paid to the creditors.

Cal. Business and Professions Code - BPC § 24074.2. Section 24074.2.

Any person desiring to act as an escrow holder under Section 24074 shall not release any funds in the escrow in exchange for a promissory note or in exchange for any other consideration of less value to the creditors than the funds exchanged.

Cal. Business and Professions Code - BPC § 24074.3. Section 24074.3.

(a) Within 30 days after the filing of an application for transfer of a license referred to in Section 24073, the intended transferee shall file with the department a statement executed under penalty of perjury that the purchase price or consideration as set forth in the escrow agreement required by Section 24074 has been deposited with the escrowholder. At the time such statement is filed with the department copies thereof shall be submitted by the intended transferee to the transferor and the escrowholder concerned. The 30-day period specified by this section may be extended by the department for good cause; however, the license shall not be transferred until the statement required by this section is received by the department. (b) This section shall not apply in the case of transfers for which a guaranty of payment has been filed pursuant to Section 24074.4.

Cal. Business and Professions Code - BPC § 24074.4. Section 24074.4.

(a) Notwithstanding the provisions of Section 24074, no escrow shall be required to be established in connection with the transfer of a business or license if a corporate person files with the department a guaranty of full, prompt, and faithful payment of all claims of bona fide creditors of the licensee, and such guaranty is acceptable to the creditors. The department shall not transfer the license until the guarantor has paid all the creditors’ claims in full and the guarantor has filed with the department a statement executed under penalty of perjury that all conditions of the transfer have been satisfied. Payment of such claims by the guarantor shall be made in United States currency or by certified check in a manner acceptable to the creditors. (b) This section shall apply only in the case of a transfer involving an off-sale beer and wine license, and in which the guarantor corporation has a net worth on a consolidated basis, according to its most recent audited financial statement, of not less than five million dollars ($5,000,000).

Cal. Business and Professions Code - BPC § 24075. Section 24075.

The provisions of Sections 24073 and 24074 do not apply to any transfer of a license made by an executor, administrator, guardian, conservator, trustee, receiver, except a receiver appointed under the provisions of Section 708.630 of the Code of Civil Procedure, or other person acting in the legal or proper discharge of official duty, or in the discharge of any trust imposed upon the person by law, nor to any transfer or assignment made for the benefit of creditors, nor to a surviving spouse or fiduciary or other person within the meaning of Section 24071.

Cal. Business and Professions Code - BPC § 24076. Section 24076.

No licensee shall enter into any agreement wherein he pledges the transfer of his license as security for a loan or as security for the fulfillment of any agreement. No license shall be transferred if the transfer is to satisfy a loan or to fulfill an agreement entered into more than 90 days preceding the date on which the transfer application is filed, or to gain or establish a preference to or for any creditor of the transferor, except as provided by Section 24074, or to defraud or injure any creditor of the transferor.

Cal. Business and Professions Code - BPC § 24078. Section 24078.

A special onsale general license may be transferred from person to person or from premises to premises, as provided in this article, but only for the operation of the licensed premises as required by Section 23399.2.

Cal. Business and Professions Code - BPC § 24079. Section 24079.

(a) An on-sale general license or off-sale general license shall not be transferred for a purchase price or consideration in excess of the original fee paid for that license pursuant to subparagraph (A) or (B) of paragraph (2) of subdivision (a) of Section 23320 for a period of two years following the original issuance of that license. (b) On and after the two-year period following the original issuance of an on-sale general license or off-sale general license, there shall not be a restriction as to the purchase price or consideration paid by a transferee or received by a transferor for an on-sale general license or off-sale general license.

Cal. Business and Professions Code - BPC § 24080. Section 24080.

Every application filed by the intended transferee with the department for the transfer of an onsale or offsale general license shall indicate whether the consideration, if any, to be paid to the transferor includes payment for any or all of the following: (a) Inventory. (b) Fixtures. (c) Transfer of the license. The actual amount of the consideration, if any, to be paid for items (a), (b) and (c) is to be indicated in the application.

Cal. Business and Professions Code - BPC § 24081. Section 24081.

(a) Notwithstanding any other provision of law in this division including, but not limited to, requirements relating to the issuance or transfer of a license, any licensee whose premises, for which a license, other than an off-sale license, has been issued, have been destroyed as a result of fire or any act of God or other force beyond the control of the licensee may carry on the business for a period of not more than 180 days at a location within 1,000 feet of the premises for which the license was issued and while the premises are being repaired or rebuilt and the licensee shall be entitled to carry on the licensee’s business under the existing license upon the former premises when they have been repaired or rebuilt. (b) Notwithstanding any other provision of law in this division, including, but not limited to, requirements relating to the issuance or transfer of a license, any licensee whose premises, for which an off-sale license has been issued, have been destroyed as a result of fire or any act of God or other force beyond the control of the licensee, may carry on the business for a period of not more than 180 days at a location within 1,000 feet of the premises for which the license was issued and while the premises are being repaired or rebuilt and the licensee shall be entitled to carry on the licensee’s business under the existing license upon the former premises when they have been repaired or rebuilt. (c) The director, in the director’s discretion, may extend the 180-day period described in subdivisions (a) and (b) by 60 days.

Cal. Business and Professions Code - BPC § 24082. Section 24082.

The license of a licensee whose licensed premises have been destroyed as a result of fire or act of God or have been taken under the power of eminent domain, may be transferred to another location within the same county without payment of the fee for transfer of a license from one premises to another premises. Within 18 months of the fire or act of God, if the destroyed premises have been reconstructed and the license has not been transferred to another person, the license may be transferred back to the location of the destroyed premises without payment of the fee for transfer of a license from one premises to another premises.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

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