2005 California Business and Professions Code Sections 23800-23805 Article 1.5. Conditional Licenses

23800.  The department may place reasonable conditions upon retail
licensees or upon any licensee in the exercise of retail privileges
in the following situations:
   (a) If grounds exist for the denial of an application for a
license or where a protest against the issuance of a license is filed
and if the department finds that those grounds may be removed by the
imposition of those conditions.
   (b) Where findings are made by the department which would justify
a suspension or revocation of a license, and where the imposition of
a condition is reasonably related to those findings.  In the case of
a suspension, the conditions may be in lieu of or in addition to the
suspension.
   (c) Where the department issues an order suspending or revoking
only a portion of the privileges to be exercised under the license.
   (d) Where findings are made by the department that the licensee
has failed to correct objectionable conditions within a reasonable
time after receipt of notice to make corrections given pursuant to
subdivision (e) of Section 24200.
   (e) (1) At the time of transfer of a license pursuant to Section
24071.1, 24071.2, or 24072 and upon written notice to the licensee,
the department may adopt conditions requested by the local governing
body, or its designated subordinate officer or agency, in whose
jurisdiction the license is located.  The request for conditions
shall be supported by substantial evidence that the problems either
on the premises or in the immediate vicinity identified by the local
governing body or its designated subordinate officer or agency will
be mitigated by the conditions.  Upon receipt of the request for
conditions, the department shall either adopt the conditions
requested or notify the local governing body, or its designated
subordinate officer or agency, in writing of its determination that
there is not substantial evidence that the problem exists or that the
conditions would not mitigate the problems identified.  The
department may adopt conditions requested pursuant to this paragraph
only when the request is filed within the time authorized for a local
law enforcement agency to file a protest or proposed conditions
pursuant to Section 23987.
   (2) If the license to be transferred subject to paragraph (1) is
located in an area of undue concentration as defined in Section
23958.4, the period within which the local governing body or its
designated subordinate officer or agency may submit a written request
for conditions shall be 40 days after the mailing of the notices
required by Section 23987.  For purposes of this provision only,
undue concentration shall be established when the requirements of
both paragraph (1) of subdivision (a) and either paragraph (2) or
paragraph (3) of subdivision (a) of Section 23958.4 exist.  Pursuant
to Section 23987, the department may extend the 40-day period for a
period not to exceed an additional 20 days upon the written request
of any local law enforcement agency or local government entity with
jurisdiction.  Nothing in this paragraph is intended to reduce the
burden of the local governing body or its designated subordinate
officer or agency to support any request for conditions as required
by paragraph (1).  Notwithstanding Section 23987, the department may
not transfer any license subject to this paragraph until after the
time period permitted to request conditions as specified in this
paragraph.
23801.  The conditions authorized by Section 23800 may cover any
matter relating to the privileges to be exercised under the license,
the personal qualifications of the licensee, the conduct of the
business or the condition of the premises, which will protect the
public welfare and morals, including, but not limited to, the
following:
   (a) Restrictions as to hours of sale.
   (b) Display of signs.
   (c) Employment of designated persons.
   (d) Types and strengths of alcoholic beverages to be served where
such types or strengths are otherwise limited by law.
   (e) In cases under Section 23800(c), the portion of the privileges
to be exercised under the license.
   (f) The personal conduct of the licensee.
23802.  Such conditions shall be endorsed upon the license and any
renewal thereof and shall be binding upon all persons to whom the
license is transferred.
23803.  The department, upon its own motion or upon the petition of
a licensee or a transferee who has filed an application for the
transfer of the license, if it is satisfied that the grounds which
caused the imposition of the conditions no longer exist, shall order
their removal or modification, provided written notice is given to
the local governing body of the area in which the premises are
located.  The local governing body has 30 days to file written
objections to the removal or modification of any condition.  The
department may not remove or modify any condition to which an
objection has been filed without holding a hearing as provided in
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code.
   Any petition for the removal or modification of a condition
pursuant to this section shall be accompanied by a fee of one hundred
dollars ($100).
23804.  A violation of a condition placed upon a license pursuant to
this article shall constitute the exercising of a privilege or the
performing of an act for which a license is required without the
authority thereof and shall be grounds for the suspension or
revocation of such license.
23805.  The proceedings specified in Section 23800(a), (b), (c),
(d), and (e) shall be conducted in the same manner as is required for
other proceedings involving petitions, protests or accusations, and
the right of a respondent in the proceedings to appeal shall include
the right to appeal from an order imposing conditions upon the
licenses involved in the proceedings.  If the department gives notice
of conditions pursuant to subdivision (e) of Section 23800 or denies
a petition filed under Section 23803, the licensee or transferee
may, within 10 days after the mailing of the denial, make a written
request for a hearing.  The proceedings at the hearing shall be
conducted as provided in Section 24300, and the respondent shall have
the same rights of appeal therefrom as in disciplinary actions.