Alabama Alcohol Beverage Licensing and Compliance
This is the sixth post (Part VI) in a seven-part series on alcohol beverage licensing and compliance in Alabama. Part I provides a brief history of the ABC Board and an overview of the regulatory framework in Alabama. Part II outlines issues you should consider before applying for an Alabama Beverage Control Board License. Part III outlines the ABC licensure process. Part IV summarizes key regulatory provisions applicable to on-premises licensees. Part V summarizes key regulatory provisions applicable to off-premises licensees. Part VI discusses ABC enforcement actions and ABC administrative hearings. Part VII provides an overview of the ABC’s Responsible Vendor Training Program.
Part VI: Alabama Alcoholic Beverage Control Board Enforcement and Administrative Hearings
Dram Shop civil liability for the illegal sale/service of alcohol is beyond the scope of this brief article. However, look for a future article on Dram Shop civil liability in the future. This article focuses on the ABC Board’s enforcement of statutes and regulations through administrative proceedings before the Alabama Alcoholic Beverage Control Board’s Hearing Commission. If you retain legal counsel for regulatory advice when necessary, and say up-to-date on regulatory changes, you are much less likely to receive a citation from the ABC. But, the following is a brief overview of the ABC Board’s inspection, citation, enforcement, and hearing process:
- The ABC Board conducts unannounced routine inspections of licensees, and the ABC Board conducts inspections in response to specific complaints about alcohol practices of licensees. If the ABC Board pays you a visit you must cooperate with the inspection or you face additional fines for failing to cooperate.
- The Alabama Law Enforcement Agency (ALEA) is the primary agency that conducts “stings” on licensees for underage sale/service of alcohol. The ABC Board does not conduct the “sting”. Occasionally, municipal and county law enforcement agencies conduct “stings”. If a law enforcement agency conducts a “sting” and obtains evidence of an underage sale of alcohol, the agency will send a violation report to the ABC Board.
- If the ABC Board determines you are in violation of statutes or regulations governing the sale and service of alcohol (through its own inspection or a violation report from a law enforcement agency), the ABC Board may issue you a warning or an actual citation.
- If you receive a citation, you have two options: pay the fine and plead guilty, or request a hearing before the ABC Board Hearing Commission.
- If you request a hearing, you will be ordered to attend an administrative hearing before the ABC Board Hearing Commission. You are entitled to obtain evidence from the ABC and/or other law enforcement agencies prior to the hearing. The ABC will present evidence of the alleged violation. You have an opportunity to cross-examine the ABC Board’s witnesses and present evidence of your innocence to the Commission.
- Following the hearing, the Commission will make a ruling.
- You may appeal the Commission’s ruling to the full ABC Board.
- If you do not obtain a favorable ruling from the ABC Board, you may appeal to the Circuit Court of Montgomery County, Alabama.
- If you do not obtain a favorable ruling from the Circuit Court of Montgomery County, you may file an appeal with the Alabama appellate courts.
It is important to engage an attorney before you decide to pay the fine and plead guilty, or request a hearing. There are a number of factors that should be considered before making such a decision. And, of course, it is important to engage an attorney to assist you with the Commission hearing and any subsequent meritorious appeals.
Lastly, I’d like to dispel a common myth. I routinely meet with and represent ABC Board applicants and licensees throughout the State of Alabama. Many believe the ABC Board sends undercover operatives in to purchase alcohol with fake IDs. First, the ABC no longer conducts stings for underage service of alcohol. Typically, the Alabama Law Enforcement Agency (ALEA) conducts such stings. Second, if ALEA utilizes an underage operative with a fake ID, ALEA’s actions likely constitute entrapment under Jacobsen v. United States, 503 U.S. 540 (1992). Based on my experience in defending licensees cited for underage sales/service, ALEA uses persons who are actually underage (often the son, daughter, niece, or nephew of an ALEA officer). The underage person enters the licensed premises and 1) presents valid identification to the server or cashier, or 2) tells the server or cashier that he/she does not have an ID. Generally, the sting operation is videoed and/or audio recorded, and the money used to purchase the alcohol (if a sale is made) is marked in some manner for identification purposes. All of that information is provided to the Licensee prior to the Commission hearing.
Up next: Part VII: The Alabama Beverage Control Board’s Responsible Vendor Training Program
See the previous series:
Part I: History and Regulatory Framework
Part II: Initial Considerations Before Applying For An Alabama Alcoholic Beverage Control Board Licence
Part III: The Alabama Alcoholic Beverage Control Board Licensure Process
Part IV: Key Regulatory Provisions Applicable to On-Site Premises Licensees
Part V: Key Off-Premises Regulatory Provisions
Jansen Voss is a partner with Christian & Small law firm. With offices in Birmingham and the Alabama Gulf Coast, Jansen represents bars, restaurants, hotels, breweries, distilleries, grocery stores, gas stations, conveniences stores, and liquor stores throughout the state of Alabama. He assists businesses with the ABC licensure process and consults on alcohol regulatory matters. Jansen defends ABC licensees in administrative enforcement actions before the Alabama Alcoholic Beverage Control Board Hearing Commission. He is approved by the Alabama Beverage Control Board to provide Responsible Vendor training throughout the state of Alabama for both on-premises and off-premises licensees. Jansen also routinely defends alcohol licensees in Dram Shop civil lawsuits in state courts throughout the state of Alabama. Jansen’s clients include large chain restaurants, award-winning fine dining restaurants, large grocery store chains, and large gas station and convenience store chains. He also represents local breweries, distilleries, restaurants, grocery stores, gas stations, and convenience stores. Jansen can be reached at 205-250-6632 or at mjvoss@csattorneys.com
About Christian & Small
Christian & Small LLP represents a diverse clientele throughout Alabama, the Southeast, and the nation with clients ranging from individuals and closely-held businesses to Fortune 500 corporations. By matching highly experienced lawyers with specific client needs, Christian & Small develops innovative, effective, and efficient solutions for clients. With offices in Birmingham, metro-Jackson, Mississippi, and the Alabama Gulf Coast, Christian & Small focuses on the areas of litigation and business, is a member of the International Society of Primerus Law Firms, and is the only Alabama-based member firm in the Leadership Council on Legal Diversity. Our corporate social responsibility program is focused on education, and diversity is one of Christian & Small’s core values.
No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.