ABC-523 Instructions

Introduction

These instructions apply exclusively to Special Legislation priority licenses, which are authorized by statute based on specific legislative provisions rather than population increases. For population-based priority licensing procedures, see the ABC‑521 Instructions.

Eligible Counties

This year, the following counties will be eligible for additional original special legislation on-sale general licenses, as follows:

 

For El Dorado and Placer Counties

Business and Professions Code (BPC) § 23826.20 authorizes the department to issue up to nine (9) new original special legislation on‑sale general licenses in the County of El Dorado and up to seven (7) new original special legislation on‑sale general licenses in the County of Placer this year. Pursuant to the statute, the department must utilize its established procedures for issuing original general licenses, as set forth in BPC § 23961.

These licenses must be operated as a bona fide eating place in compliance with BPC § 23038 and must be located within a retail center. Additionally, such licenses cannot be transferred to any premises that do not meet the qualifications specified in paragraphs (a) through (b), nor may they be transferred to any location outside the county identified in paragraph (b)(1) of BPC § 23826.20.

For San Francisco City and County

Business and Professions Code (BPC) § 23826.22 authorizes the department to issue up to ten (10) original special legislation on‑sale general bona fide public eating place licenses in the City and County of San Francisco during this year. In issuing these licenses, the department must follow its established procedures for original general licenses, as set forth in BPC § 23961.

These licenses must operate as bona fide eating place in compliance with BPC § 23038 and must be located in a retail center situated within a designated hospitality zone established by local ordinance. These licenses are non‑transferable to any premises not meeting the qualifications in paragraph (a)(1), nor may they be transferred to any location outside the county specified in paragraph (g)(1) of BPC § 23826.22.

Application Filing Period

During the period of September 14, 2026, through September 25, 2026, ABC offices will accept applications for new original special legislation on-sale general licenses in San Francisco, El Dorado and Placer Counties.

Application Fees: $19,840

The priority application fee must be paid by certified check, cashier’s check, or money order only. Additional fees (i.e., fingerprint, annual fees, etc.) are to be collected at the time of filing the formal application.

Unsuccessful drawing participants or those who withdraw their interest in a priority license prior to the drawing or prior to filing a formal application, may request a full refund, minus a $100 service charge.

Refunds will be made payable to the applicant(s) listed on the priority application form submitted to the department.

Successful participants who withdraw their interest after filing a formal application for a priority license will be entitled to a refund in accordance with Business and Professions Code (BPC) § 23320 and 23959. If an applicant owes money to California taxing agencies, a claim against the priority application fee may be made by the taxing agency. If such a claim is made, the amount owed will be deducted from the priority application fee at the time of refund and remitted to the taxing agency.

Name(s) on Application

The application for a priority license must include the names of all persons or entities who have an ownership interest in the priority application or in the business to be licensed per § 69.2., of Chapter 1, Title 4, of the California Code of Regulations. Failure to list all persons/entities is grounds for disqualification and loss of priority status.

Any priority license application received by ABC that is incomplete or untimely shall be disqualified.

Residency

To be eligible to participate in a drawing for original special legislation on-sale general license, an applicant must have been a resident of California for at least 90 days prior to the date of the drawing. If a drawing is necessary, an applicant for a priority license will be required to prove residency via submission of the below described documents:

• Individuals — Proof of residency can be established via documents such as a California Driver License, utility bills, voter registration, etc.
• Partnerships — Each partner must provide proof of residency in accordance with the requirements for the partner’s applicable entity type. Refer to the corresponding entity type for the specific proof of residency requirements.
• Corporations — The 90-day residence begins with the date its Articles of Incorporation are filed with the Secretary of State. For out-of-state corporations, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
• Limited Partnerships — The 90-day residency begins with the date the form LP-1 is filed with the Secretary of State. For out-of-state limited partnerships, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
• Limited Liability Companies — The 90-day residency begins with the date the form LLC-1 is filed with the Secretary of State. For out-of-state limited liability companies, the 90-day residency begins with the date registered with the Secretary of State to do business in California.
• Trusts — Proof of residency can be established via documents such as a California Driver License, utility bills, voter registration, etc. of the trustee. If the trustee of the trust is a general partnership, limited partnership, corporation, non-profit, or limited liability company, proof of 90-day residency begins with the date registered with the Secretary of State.

Failure to provide proof of residency as described above will result in being disqualified from the priority licensing process.

Filing the Priority Application

Applications may be filed in person or by mail, please see complete list of ABC district offices and their mailing addresses on page 9. During the drawing period, ABC offices will be open Monday through Friday from 8:00 a.m. until 5:00 p.m. We encourage all applicants to submit their application early.

Deadline

• In person – On Friday, September 25, 2026, only those applicants within the doors of an ABC office by 5:00 p.m. may file priority applications.
• By mail – Your envelope containing Items (1) through (2) below must be postmarked on or before Friday, September 25, 2026.

The following items are required:

1. Fee – certified check, cashier’s check, or money order, payable to: Alcoholic Beverage Control.
2. Original Special Legislation On-sale General License Application – To be completed in full by all applicants, including previously qualified ‘P-12’ licensees. For example, simply noting “P12 licensee” under the officer/shareholder area will not be accepted. P-12 licensees and current/active licensees are not exempt from thoroughly completing the application. An incomplete application will result in disqualification from participating in the priority drawing. The application requires a single signature from the applicant entity. In signing, the applicant agrees to comply with conditions and requirements unique to the original special legislation on-sale general license application process. Failure to comply with the conditions and requirements may result in automatic withdrawal of the application and cancellation of an applicant’s drawing position.

The ABC-523 form must be completed for every priority license application. If the applicant entity is not a sole owner, then you must also complete the appropriate attachment for your entity type in addition to your ABC-523 form.

• ABC-523-Att-B (General Partnership) – For multiple individuals, multiple corporate entities, or a combination of the two, such as an individual partnering with a corporate entity, applying for a license.
• ABC-523-Att-C (Limited Partnership) – For a limited partnership with general partners and limited partners applying for a license.
• ABC-523-Att-D (Corporations and Non-Profits) – For a corporation with officers/directors and stockholders, and non-profit organizations applying for a license.
• ABC-523-Att-E (Limited Liability Company) – For a limited liability company with managers and/or members applying for a license.
• ABC-523-Att-F (Trusts) – For a trust with all trustees and beneficiaries applying for a license.

Conditions and Restrictions

Applicant:

For El Dorado and Placer Counties

To qualify for a license under BPC § 23826.20, the premises must be located in a retail center. For purposes of this section, a “retail center” is a multitenant shopping center containing at least 300,000 square feet of retail shopping space open to the public.

Of the licenses authorized per county, at least three (3) must be issued for premises located in a retail center containing a minimum of 1,000,000 square feet of retail shopping space open to the public.

A licensee holding an on‑sale general license for a bona fide public eating place located in a retail center is not eligible to apply for a license under this section for the same premises.

Applicants may not hold any interest in another special legislation priority application authorized under BPC § 23826.20 for the same county.

For San Francisco City and County

To qualify for a license under section BPC 23826.22, the premises upon which an original special legislation on-sale general bona fide public eating place is operated shall be located in a retail center within a designated hospitality zone. For purposes of this section, a “hospitality zone” is defined to mean a single contiguous area designated by ordinance in the City and County of San Francisco that contains at least one million square feet of retail shopping space open to the public.

The City and County of San Francisco has designated the Downtown Hospitality Zone as the area bounded by 5th Street, from Folsom Street to Market Street; Cyril Magnin Street from Market Street to Eddy Street; Eddy Street from Cyril Magnin Street to Mason Street; Mason Street from Eddy Street to Ellis Street; Ellis Street from Mason Street to Taylor Street; Taylor Street from Ellis Street to Post Street; Post Street from Taylor Street to Mason Street; Mason Street from Post Street to Bush Street; Bush Street from Mason Street to Kearny Street; Kearny Street from Bush Street to Market Street; Market Street from 3rd Street to 2nd Street; 2nd Street from Market Street to Folsom Street; and Folsom Street from 2nd Street to 5th Street, including both sides of the streets at the boundaries of this area.  (Pursuant to the San Francisco Administrative Code of Chapter 94C, Section 94C.1 and 94C. 2,)

A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail center shall not be eligible to apply for a license under this section for the same licensed premises.

Applicants can have no interest in any other special legislation priority application authorized under BPC 23826.22 for the same county.

• Applicants may not pool funds to file more than one priority application for the same type of license and transaction.
• A married couple may file only one original special legislation on-sale general license application.
• No corporation, limited partnership or limited liability company may file an original special legislation on-sale general license application if it holds the interest in another entity that has filed for the same type of license.
• If more than one corporation, limited partnership or limited liability company is a subsidiary of the same parent, only one may file an original special legislation on-sale general license application.
• A person or entity who holds ownership interest in an original special legislation on-sale general license applicant entity, or who is a principal (officer, director, LLC manager, general partner, etc.) of an applicant entity, may not hold interest in or be a principal of another applicant entity for the same type of license.

Each original special legislation on-sale general license application must show the names of all persons having an interest in the license application and related business, including all:

• Partners
• General and limited partners of a Limited Partnership
• Corporate officers and directors
• Stockholders or prospective stockholders
• Limited liability company officers, managers, and members
• Trustees and beneficiaries of a Trust

Priority of Applicants

If the number of applicants is equal to or less than the number of original special legislation on-sale general licenses available, all applicants will be notified that they have 90 days to complete a formal application for their specific premises in the identified, authorized census tracts.

If there are more applicants than an original special legislation on-sale general licenses available, a public drawing will be held; the time, date, and place of any drawing will be posted on the department’s website (www.abc.ca.gov). After the drawing is held, the department will notify each applicant by mail of their position in the drawing.

Successful Drawing Participants

• A successful drawing participant is one whose priority position (number) is lower than the number of licenses available. These applicants will be notified that they have 90 days to complete a formal application for their specific premises in an identified, authorized census tract. Completion of all standard application forms for an original retail license is required.
• A successful applicant who holds an on-sale general license may not make formal application for an original special legislation on-sale general license at the premises where that on-sale general license is held. Any existing on-sale license held at an applicant premises must be canceled upon issuance of an original special legislation on-sale general license.
• Successful drawing participants who do not wish to proceed with filing a formal application may withdraw their interest and request a full refund, minus a $100 service charge. Once a formal application has been filed, the applicant will only be entitled to a refund in accordance with BPC § 23320 & 23959. (Also, see Application Fees [page 1] regarding claims by California taxing agencies).

Unsuccessful Drawing Participants

• An unsuccessful drawing participant is one whose priority position (number) is higher than the number of licenses available.
• The original special legislation on-sale general license application fee, minus a $100 service charge, will be refunded to each unsuccessful drawing participant. Refund checks will be mailed within 90-120 days of the priority drawing (See Application Fees [page 1] regarding claims by California taxing agencies).
• Unsuccessful drawing participants will maintain the priority position assigned to them at the priority drawing. In the event a successful applicant is disqualified or withdraws, the next drawing participant, in order of priority, will be contacted and will have 90 days to file their formal application and repay the previously refunded priority application fee by cashier’s check or money order along with any other additional fees.
• In order to maintain priority position, unsuccessful drawing participants are encouraged to notify ABC of any change in mailing address that occurs while the drawing list is active.

Expiration of Priority

The numeric list of original special legislation on-sale general license applicants who are not winners in the randomized ordering shall be retained by the department until the following year pursuant to Chapter 1, Title 4 of the California Code of Regulations (CCR) § 69.3 (c).

Formal Application For Priority License

A priority applicant must file a formal application for a specific location within 90 days of the department’s notification and authorization to do so. Failure to file a formal application within the 90-day period will result in loss of priority position and the opportunity to apply will be extended to the next applicant on the list. In addition to the below, all statutory requirements and departmental procedures set forth for issuing other original retail licenses apply to formal applications for priority licenses.

A priority winner can only submit a formal application with the same individuals and entities listed in its priority application unless it is under the exceptions listed in subdivision (e)(1) and (e)(2) of § 69.4 of Chapter 1, Title 4, of the California Code of Regulations. Any changes in ownership or management that occur within an applicant entity between the time of filing a priority application and actual issuance of a priority license which results in the entity, via its principals or owners, having more than one opportunity in a single priority drawing, will be cause for disqualification.

Proof of Tenancy

Prior to license issuance, a priority applicant must present proof of a two-year right of tenancy (rental agreement, lease, grant deed, etc.) at the applied-for premises. As the required two-year tenancy

requirement starts when the license issues and there is no guarantee that a license will be granted, it is suggested that any financial agreements be contingent upon actual issuance of the priority license.

Premises:

For El Dorado and Placer Counties

At the time of filing formal application, a new original special legislation on-sale general license priority applicant must be:

1. A bona fide public eating place as defined by BPC § 23038; and
2. A retail center as defined by BPC § 23826.20

For San Francisco City and County

At the time of filing formal application, a new original special legislation on-sale general license priority applicant must be:

1. A bona fide public eating place as defined by BPC § 23038; and
2. A retail center in a hospitality zone as defined by BPC § 23826.22

Once formal application for a priority license has been made, no change in the location of the applied-for license will be permitted after the expiration of the 90-day period in which the priority application must be filed, except for causes beyond the control of the applicant and with approval of the ABC Director.

In any case involving the denial of a priority license application, the applicant’s priority position will be canceled, and the fee refunded.   

For a Period of Two (2) Years After Issuance of the Special Legislation On-Sale General License

• The license shall not be transferable from the licensee to any other person except as provided in BPC § 24071, and only when the department determines that the transfer is necessary to prevent undue hardship.
• The licensee shall not, directly or indirectly, enter into any negotiations or agreements respecting the sale or transfer of the license, unless the department has determined that undue hardship exists.
• If an undue hardship transfer is authorized by the department, an original priority license may not be sold for more than the original fee paid for the license.
• Certain changes in ownership and interest within an entity holding a priority license are allowed before the above-described time periods elapses. For instance, a corporation holding an original priority license may appoint new directors, elect new officers and transfer less than 50% of its outstanding stock within two years of license issuance. However, a change in ownership/interest in such a licensed entity may not result in a person who had ownership/interest in another priority application for the same type of license and transaction, within the same county and year, obtaining ownership/interest in the licensed entity. If this occurs, the license will be subject to administrative action which could result in its revocation.
• The license shall not be exchanged for a public premises license.

After Issuance of Original Special Legislation On-Sale General Licenses

• Original special legislation on-sale general licenses are restricted from being transferred to any other premises not qualified under paragraphs (a) and (b) of BPC § 23826.20 for El Dorado and Placer counties, and under paragraph (a)(1) of BPC § 23826.22 for San Francisco City and County. There is an exception when the licensed premises have been destroyed by fire or any act of God or other force beyond the control of the licensee (see BPC § 24081). Additionally, original special legislation on-sale general licenses are restricted from being transferred to any other county, shall not be sold for a price greater than the original fee paid by the seller or transferor and are restricted from being exchanged for a public premises license.
• If an original special legislation on-sale general license is canceled, the department is authorized to issue an additional original special legislation on-sale general license pursuant to the above-described drawing and application procedures.

List of ABC Offices and their Applicable Counties

---

Footnotes

[1] Article XX. Section 22 of the State Constitution and Sections 23793, 23816, 23817, 23821, 23826.20, 23826.22, 23954.5, 23961, 23962, 24070, 24071, 24072, and 24079 of the ABC Act, and Rule 60.2 of Division 1, Title 4 of the California Code of Regulations

 

 

 

 

 

 

 

Contact

For additional information,
contact your local district office.