IE Business Daily Business news for the Inland Empire.
On this week of Professionals of the Inland Empire, host John Tulac talks with Marco Costales, who is a business and corporate attorney at Nossaman with a specialized focus on Alcoholic Beverage Control (ABC) matters.
California recently enacted laws that requires bars to offer drink-spiking test kits and to provide drink covers for patrons in an effort to protect consumers and deter harm, including sexual assault. Costales says establishments should consider keeping records of requests for testing or covers, especially in high-traffic settings, though the primary aim is prevention and accountability rather than to micromanage.
A new bill, effective January 2026, will require electronic transfers (EBT, i.e., electronic bank transfer) for wholesale-to-retailer payments to streamline transactions and reduce shenanigans. While some parts of the ABC system modernize, others (like liquor license transfers) remain largely paper-driven.
License transfers involve money and inventory being placed into escrow, with claims against that escrow possible. The process resembles bulk sales mechanics, and a statutory waterfall governs payments: first federal and state taxes, then secured creditors, then unsecured creditors. Debts owed to suppliers can delay transfers, underscoring the need for clear, timely payables and proper escrow arrangements.
Alcohol licenses also require Responsible Beverage Services (RBS) training for all staff who sell or serve alcohol and for their managers. ABC uses a system of third-party providers offering online training, followed by an ABC exam to obtain a digital certification. Noncompliance can lead to penalties or license suspension.
Despite ample access in the state, alcohol remains highly regulated to balance consumer demand with public safety and minors’ protection. California’s ABC framework is complex and dynamic, with technology driving some updates and traditional paper processes persisting in others. Avoid Do-It-Yourself licensing steps; engage experienced professionals to navigate transfers, escrow, and compliance, thereby reducing the risk of license delays or suspensions.
The PIE podcast aims to showcase Inland Empire professional talent, foster local economic development, and highlight the Provisors networking community. Catch the full show on YouTube @ProfessionalsofInlandEmpire.
