2005 California Business and Professions Code Sections 24200-24211 CHAPTER 7. SUSPENSION AND REVOCATION OF LICENSES

BUSINESS AND PROFESSIONS CODE
SECTION 24200-24211

24200.  The following are the grounds that constitute a basis for
the suspension or revocation of licenses:
   (a) When the continuance of a license would be contrary to public
welfare or morals.  However, proceedings under this subdivision are
not a limitation upon the department's authority to proceed under
Section 22 of Article XX of the California Constitution.
   (b) Except as limited by Chapter 12 (commencing with Section
25000), the violation or the causing or permitting of a violation by
a licensee of this division, any rules of the board adopted pursuant
to Part 14 (commencing with Section 32001) of Division 2 of the
Revenue and Taxation Code, any rules of the department adopted
pursuant to the provisions of this division, or any other penal
provisions of law of this state prohibiting or regulating the sale,
exposing for sale, use, possession, giving away, adulteration,
dilution, misbranding, or mislabeling of alcoholic beverages or
intoxicating liquors.
   (c) The misrepresentation of a material fact by an applicant in
obtaining a license.
   (d) The plea, verdict, or judgment of guilty, or the plea of nolo
contendere to any public offense involving moral turpitude or under
any federal law prohibiting or regulating the sale, exposing for
sale, use, possession, or giving away of alcoholic beverages or
intoxicating liquors or prohibiting the refilling or reuse of
distilled spirits containers charged against the licensee.
   (e) Failure to take reasonable steps to correct objectionable
conditions on the licensed premises, including the immediately
adjacent area that is owned, leased, or rented by the licensee, that
constitute a nuisance, within a reasonable time after receipt of
notice to make those corrections from a district attorney, city
attorney, county counsel, or the department, under Section 373a of
the Penal Code.  For the purpose of this subdivision only, "property
or premises" as used in Section 373a of the Penal Code includes the
area immediately adjacent to the licensed premises that is owned,
leased, or rented by the licensee.
   (f) Failure to take reasonable steps to correct objectionable
conditions that occur during business hours on any public sidewalk
abutting a licensed premises and constitute a nuisance, within a
reasonable time after receipt of notice to correct those conditions
from the department.  This subdivision shall apply to a licensee only
upon written notice to the licensee from the department.  The
department shall issue this written notice upon its own
determination, or upon a request from the local law enforcement
agency in whose jurisdiction the premises are located, that is
supported by substantial evidence that persistent objectionable
conditions are occurring on the public sidewalk abutting the licensed
premises.  For purposes of this subdivision:
   (1) "Any public sidewalk abutting a licensed premises" means the
publicly owned, pedestrian-traveled way, not more than 20 feet from
the premises, that is located between a licensed premises, including
any immediately adjacent area that is owned, leased, or rented by the
licensee, and a public street.
   (2) "Objectionable conditions that constitute a nuisance" means
disturbance of the peace, public drunkenness, drinking in public,
harassment of passersby, gambling, prostitution, loitering, public
urination, lewd conduct, drug trafficking, or excessive loud noise.
   (3) "Reasonable steps" means all of the following:
   (A) Calling the local law enforcement agency.  Timely calls to the
local law enforcement agency that are placed by the licensee, or his
or her agents or employees, shall not be construed by the department
as evidence of objectionable conditions that constitute a nuisance.
   (B) Requesting those persons engaging in activities causing
objectionable conditions to cease those activities, unless the
licensee, or his or her agents or employees, feel that their personal
safety would be threatened in making that request.
   (C) Making good faith efforts to remove items that facilitate
loitering, such as furniture, except those structures approved or
permitted by the local jurisdiction.  The licensee shall not be
liable for the removal of those items that facilitate loitering.
   (4) When determining what constitutes "reasonable steps," the
department shall consider site configuration constraints related to
the unique circumstances of the nature of the business.
   (g) Subdivision (f) does not apply to a bona fide public eating
place, as defined in Section 23038, 23038.1, or 23038.2, that is so
operated by a retail on-sale licensee or on-sale beer and wine
licensee; a hotel, motel, or similar lodging establishment, as
defined in subdivision (b) of Section 25503.16; a winegrowers
license; a licensed beer manufacturer, as defined in Section 23357;
those same or contiguous premises for which a retail licensee
concurrently holds an off-sale retail beer and wine license and a
beer manufacturer's license; or those same or contiguous premises at
which a retail on-sale licensee or on-sale beer and wine licensee who
is licensed as a bona fide public eating place as defined in Section
23038, 23038.1, or 23038.2, a hotel, motel, or similar lodging
establishment as defined in subdivision (b) of Section 25503.16, a
licensed beer manufacturer, as defined in Section 23357, or a
winegrowers license, sells off-sale beer and wine under the licensee'
s on-sale license.
24200.5.  Notwithstanding the provisions of Section 24200, the
department shall revoke a license upon any of the following grounds:
   (a) If a retail licensee has knowingly permitted the illegal sale,
or negotiations for such sales, of controlled substances or
dangerous drugs upon his licensed premises.  Successive sales, or
negotiations for such sales, over any continuous period of time shall
be deemed evidence of such permission.  As used in this section,
"controlled substances" shall have the same meaning as is given that
term in Article 1 (commencing with Section 11000) of Chapter 1 of
Division 10 of the Health and Safety Code, and "dangerous drugs"
shall have the same meaning as is given that term in Article 8
(commencing with Section 4210) of Chapter 9 of Division 2 of this
code.
   (b) If the licensee has employed or permitted any persons to
solicit or encourage others, directly or indirectly, to buy them
drinks in the licensed premises under any commission, percentage,
salary, or other profit-sharing plan, scheme, or conspiracy.
24200.6.  The department may revoke or suspend any license if the
licensee or the agent or employee of the licensee violates any
provision of Section 11364.7 of the Health and Safety Code.  For
purposes of this provision, a licensee, or the agent or employee of
the licensee, is deemed to have knowledge that the item or items
delivered, furnished, transferred, or possessed will be used to
plant, propagate, cultivate, grow, harvest, compound, convert,
produce, process, prepare, test, analyze, pack, repack, store,
contain, conceal, inject, ingest, inhale, or otherwise introduce into
the human body a controlled substance, if the department or any
other state or local law enforcement agency notifies the licensee in
writing that the items, individually or in combination, are commonly
sold or marketed for that purpose.
24201.  Accusations may be made to the department by any person
against any licensee.  Accusations shall be in writing and shall
state one or more grounds which would authorize the department to
suspend or revoke the license or licenses of the licensee against
whom the accusation is made.
24202.  (a) All state and local law enforcement agencies shall
immediately notify the department of any arrests made by them for
violations over which the department has jurisdiction which involve a
licensee or licensed premises.  Notice shall be given within 10 days
of the arrest.  The department shall promptly cause an investigation
to be made as to whether grounds exist for suspension or revocation
of the license or licenses of the licensee.
   (b) The department may not open or add an entry to a file or
initiate an investigation of a licensee or suspend or revoke a
license (1) solely because the licensee or an agent acting on behalf
of the licensee has reported to a state or local law enforcement
agency that suspected controlled substance violations have taken
place on the licensed premises or (2) solely based on activities
constituting violations described in such a report, unless the
violations reported occurred with the actual knowledge and willful
consent of the licensee.
24203.  Accusations against any on-sale or off-sale licensee may be
filed with the department by the legislative body, or chief of
police, of any city in which the premises in question are located, or
if the premises are in unincorporated territory, then by the board
of supervisors, or the sheriff, of the county, requesting the
suspension or revocation of any retail license.  Upon the filing of
the accusation, the department shall provide for a public hearing
thereon within the county in which the premises are located and
determine whether or not the license should be revoked or suspended.
Whenever the local legislative body, the chief of police, or the
sheriff, certifies that the public safety, health, or welfare
requires an immediate hearing of the accusation, the public hearing
shall be held within 60 days after the filing of the accusation with
the department.
24204.  The Chief of the Bureau of Food and Drug Inspection shall
immediately notify the department of the conviction of any licensee
of any violation of the California Pure Foods Act in connection with
alcoholic beverages.  The department shall promptly cause an
investigation to be made as to whether grounds exist for suspension
or revocation of the license of such licensee.
24205.  The license of any taxpayer shall be automatically suspended
upon cancellation of his or her bond, or if the bond becomes void or
unenforceable for any reason, or if the taxpayer fails to pay any
taxes or penalties due under the Sales and Use Tax Law (Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code), the Bradley-Burns Uniform Local Sales and Use Tax Law
(Part 1.5 (commencing with Section 7200) of Division 2 of the
Revenue and Taxation Code), or the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code), when that tax liability arises in whole or in part
from the exercise of the privilege of an alcoholic beverage license,
or under the Alcoholic Beverage Tax Law (Part 14 (commencing with
Section 32001) of Division 2 of the Revenue and Taxation Code).  The
license shall be automatically reinstated if the taxpayer files a
valid bond, or pays his or her delinquent taxes, as the case may be.
A suspension under this section for a tax delinquency may only be
imposed if the taxpayer is at least three months delinquent.
   Upon the petition of any taxpayer whose license has been suspended
under this section, a hearing shall be afforded him or her after
five days' notice of the time and place of hearing.
24206.  All accusations against licensees for violating or
permitting the violation of Sections 24750 to 24757, inclusive, 24850
to 24881, inclusive, 25000 to 25010, inclusive, 25170 to 25238,
inclusive, 25600, 25602, 25607, 25609, 25610, 25611, 25612, 25615,
25630, 25631, 25632, 25633, 25656, 25658, 25663, 25664, or 25665,
shall be filed within one year.
24207.  All accusations against licensees for violating or
permitting the violation of Sections 23300, 23355, 23431, 23453,
24200.5, 25500 to 25508, inclusive, 25601, 25616, or 25657, shall be
filed within three years.
24208.  The periods of one year and three years referred to in
Sections 24206 and 24207 shall commence to run as follows:
   (a) If the act or omission alleged as the basis for the suspension
or revocation of the license constituted a single transaction, then
from the date of the transaction.
   (b) If the act or omission alleged as the basis for the suspension
or revocation of the license is of a continuing nature, relating to
a condition, or if the occurrence of several acts or omissions is
necessary for the institution of disciplinary proceedings, then from
the date of the last act or omission.
   (c) If the act or omission alleged as the basis for the suspension
or revocation of the license involved fraud, misrepresentation, or
concealment, then from the date of the discovery thereof.
   (d) If the basis for the suspension or revocation of the license
is a criminal conviction, then from the date such criminal conviction
becomes final.
24209.  When an arrest is made of any person, for a violation of
this division, the arresting officer may release such person without
taking such person before a magistrate upon such person's signing an
agreement to appear in court or before a magistrate at a place and
time designated by the arresting officer; provided, that when an
arrest is made of a licensee or employee of a licensee the arresting
officer shall release such licensee or employee without taking such
licensee or employee before a magistrate upon such licensee or
employee signing an agreement to appear in court or before a
magistrate at a place and time designated by an arresting officer.
24210.  (a) The department may delegate the power to hear and decide
to an administrative law judge appointed by the director.  Any
hearing before an administrative law judge shall be pursuant to the
procedures, rules, and limitations prescribed in Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
   (b) The amendments to this section made by the act adding this
subdivision shall become operative on July 1, 1995.
24211.  The department may on its own motion at any time before a
penalty assessment is placed into effect and without any further
proceedings, review the penalty, but such review shall be limited to
its reduction.


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