How the CA Alcoholic Beverage Control Can Influence Cut-Offs

Gregg Hanour

(Part of the “Drunk, Drunker, and High-Risk Drunkenness” series)



Prior Insight Recap


  • It is illegal to serve alcohol to someone who is obviously intoxicated.
  • Businesses can remain profitable by serving only customers who are not obviously intoxicated.
  • Hospitality staff members report that most obviously intoxicated customers are not cut off.
  • Studies show that only 3% to 17.5% of obviously intoxicated customers are cut off. 


Short on Time? Skip to the Recap Below!

 


Why Isn’t the Law Being Enforced? 


I’ve struggled to keep my emotions in check while writing this. Every day, my Google alerts bring news of yet another DUI tragedy in California.

Place-of-last-drink studies consistently show that about half of DUI tragedies involve drivers who had just left an ABC-licensed alcohol business.


Yet, it is rare—and that’s being generous—for the California Department of Alcoholic Beverage Control (ABC) to enforce the law against serving an obviously intoxicated customer. This law constitutes a criminal offense applicable to servers and sellers at both on-sale and off-sale establishments. Business operators face a separate administrative accusation against their ABC license.


  • While researching my book, A Business Approach to Reducing Drunk Driving, I found that in 2011, Orange County’s 6,000+ licensed businesses had received zero ABC accusations for this offense.


  • Has it improved? No.


  • According to ABC’s most recent annual report (year ending June 30, 2025), it filed only six accusations for this violation across more than 94,000 licensed businesses statewide.


  • Meanwhile, ABC says that excessive alcohol consumption costs the state's economy $35 billion annually.


A National Highway Traffic Safety Administration (NHTSA) study[1] on sales to intoxicated people (“SIP”) in Louisiana, California, and New Mexico found that "The single most notable finding from the qualitative enforcement research is that SIP enforcement is relatively rare."


The study's key findings for California's SIP enforcement included these statements:


"Weak enforcement of SIP laws results primarily from lack of sufficient resources to cover the costs of proactive investigations. Agency resources are geared primarily to the State's underage drinking laws."


"The [State and local law enforcement] authorities consulted for this case study were in agreement that SIP violations in California are a problem that merits greater attention from policymakers and enforcement administrators. . . . they recognized that the chief barrier to enforcement was lack of financial resources and, perhaps, lack of understanding about the relationship of sales to intoxicated people and crime."

 

In a recent email to me,[2] former California ABC official Lauren Tyson wrote:


“The NHTSA study findings for California ring true. ABC has always considered ‘service to obvious intox’ violations as one of its highest priorities. However, enforcement operations by ABC agents are, and always have been, complaint-driven. And most of the complaints to ABC tend to be about the service of alcohol to minors."


“A 1991 study by McKnight (1991) found that it took 1.5 hours of observation for officers to witness a request for alcohol service by an intoxicated person. However, in my experience at the ABC in the 1980s, we filed numerous accusations against bars based on investigations made by the LAPD, where officers made their observations of a drunk over only a 20- to 30-minute time frame.  During the ABC-conducted investigations, our observations did not take 1.5 hours. In any case, an officer or investigator must observe the patron's outward signs and symptoms of intoxication and note that the server saw, or had the opportunity to see, those manifestations before serving the drink. And the person doesn’t have to be falling-down drunk to be considered obviously intoxicated.”


"I'm certain that with greater awareness of hospitality practices on the lack of cut-offs, the benefits of SIP enforcement, and an earnest commitment, ABC leadership can overcome any obstacles to SIP enforcement."


Not enforcing the service-to-obviously-intoxicated persons law is costing lives, whereas enforcement benefits businesses. When management focuses on the unpleasant task of performing cut-offs, the business reaps financial rewards.



How Cut-Offs Financially Benefit Businesses


Cutting off obviously intoxicated customers isn’t just the right thing to do—it’s smart business. Cut-offs help establishments by:


  • Reducing fights and disruptions that drive away customers and harm revenue
  • These incidents often trigger negative social media posts and poor online ratings, which studies show can directly impact sales and lawsuits.
  • Preventing costly liability claims that can bankrupt a business
  • Reducing walkouts (customers leaving without paying)
  • Reducing chargebacks (customers reversing a charge on their credit card)
  • Limiting property damage caused by highly intoxicated patrons


Most importantly, cut-offs protect public safety by:

  • Reducing DUI-related fatalities and injuries
  • Reducing sexual assaults
  • Reducing violence inside alcohol businesses


They also save cities money by reducing calls for service related to:

  • Noise complaints from nearby residents
  • Fights and medical emergencies in or around alcohol establishments



The Most Effective Way to Increase Cut-Offs


The single most effective way to increase cut-offs is for the ABC to enforce the law against serving alcohol to obviously intoxicated customers.


There is no faster or more effective way to reduce alcohol-related harm than by preventing customers from reaching high-risk intoxication (.15% BAC or greater).


Innovative strategies exist that help reduce high-risk intoxication and increase cut-offs—and we’ll explore them in future posts—but the quickest and most powerful impact comes from enforcing existing law.



What the Studies and Experience Show


  • McKnight & Streff study: Enforcement increased cut-off rates from 17.5% to 54.3% (later stabilizing at 41%) and reduced the share of arrested drunk drivers coming from bars/restaurants from 31.7% to 23.3%.
  • McKnight study: On average, it took 1.5 hours of observation “to witness a request for alcohol service by an intoxicated patron.” Lauren Tyson, former ABC District Administrator, reports that in her experience, successful administrative accusations against licensees have occurred where police officer and ABC investigator observations of a patron's drunkenness occurred over only a 20- to 30-minute period before the drunk patron was served.
  • Sweden study: Combining RBS training with consistent law enforcement increased refusal rates from 5% to 70% and reduced violent crimes near bars by 29%.


Please! Enforce the law against serving obviously intoxicated customers.


Lives will be saved. Public safety will improve. Businesses will face fewer lawsuits. And city, county, and state public safety costs will go down.


Share this article at your next staff meeting.



More Feedback to the ABC 


Compliment: 

The California ABC sets the national standard for Responsible Beverage Service (RBS) training curriculum requirements. I’ve reviewed other states, and California is head and shoulders above the rest. I do have some recommended tweaks. You know how to reach me.



Question: 

When will the ABC start enforcing the law requiring alcohol servers and managers to be trained? In three years, I’ve found no posted violations, and none reported by people in the hospitality industry.

Based on the ABC’s own estimate of one million people needing certification (which I believe was low), its reported training numbers, and the hospitality industry’s high turnover, it’s likely at best that only 50% of industry staff members are compliant with the law.



Recommendation:
Require new licensees to provide current email addresses for owners and managers. Automatically email them press releases about enforcement actions. DUI checkpoints are publicized because research shows their greatest benefit is raising awareness—not the arrests themselves. The same principle applies here: if businesses know enforcement is happening, they’ll prioritize compliance.

Imagine if the law against serving obviously intoxicated customers were actually enforced—and businesses knew it.


Here's hoping that truth and compassion guide our efforts. 



Coming Up in This Series

 

  • How cities can influence cut-offs at new businesses
  • How cities can influence cut-offs at existing businesses
  • Why do businesses cut off so few customers?
  • How businesses can reduce intoxication and increase cut-offs




Recap


  • Enforcing the law against serving obviously intoxicated customers benefits businesses.
  • The ABC issued just six violations last year—for its more than 94,000 licensed businesses.
  • Studies show that enforcement significantly increases cut-offs and improves public safety.
  • Officer observation time of a drunk customer before being served, for a successful prosecution, has been as few as 20-30 minutes or longer.
  • Three years after California’s Responsible Beverage Service law took effect, the ABC has posted or publicized no enforcement actions for noncompliance.




[1] National Highway Traffic Safety Administration. “Laws Prohibiting Sales to Intoxicated Persons.” https://www.nhtsa.gov/sites/nhtsa.gov/files/811142.pdf

[2] Email from Lauren Tyson, former ABC district administrator, September 28, 2025

“Not a Public Hearing!”

By Gregg Hanour • October 21, 2026
That was the reaction from my brothers and me—both times our Conditional Use Permit for alcohol sales went before the planning commission. It’s the same reaction we've heard from clients we helped through the CUP process. For an applicant, few moments feel like higher stakes than standing before the planning commission. That's exactly what makes the public hearing such an opportunity. First, a Word of Respect I’ve always been impressed by the effort planning commissioners put into these decisions. Most are modestly compensated public servants who take the responsibility seriously and are clearly motivated by a genuine desire to serve their communities. Thank you. Why the Hearing Matters Most At the hearing, the applicant understands two things very clearly: The commissioners decide whether the business gets approved. If problems arise later, those same commissioners may decide its fate. That gives the commission the applicant’s full attention—a rare chance to set expectations before the business' doors ever open. What’s Usually Missing Commissioners already do what they do well: asking whether the business is a good fit for the community. What’s often missing—at the hearing and throughout the entire approval process—is a clear, consistent message about what actually drives outcomes once the establishment's doors open. That message should start with the application and carry through every touchpoint: The CUP application Meetings with planning staff The conditions of approval The public hearing Law enforcement operator meetings and bar checks Instead, applicants hear plenty about parking, noise, signage, trash enclosures, patios, and landscaping—legitimate concerns, but none of them reduce violence or calls for service. What does— how alcohol is served and managed inside the business —rarely comes up at all. Consistency Changes Outcomes Control freaks? Maybe. But we’ve learned this: When the message is consistent—and reinforced in every communication, every condition, and every enforcement contact—problems drop. Turning the Hearing into a Moment That Matters In our workshop, we provide documented talking points for every touchpoint with the applicant or operator—including clear, practical questions and comments that commissioners can use at the hearing. Together, they communicate in no uncertain terms: If approved, here’s what it will take to stay in good standing. The applicant leaves the hearing knowing exactly how to: Prevent problems before they start Avoid being called back before the commission Protect their business—and their approval WORKSHOP Conditional Use Permits, Entertainment Permits,  and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. – Noon PDT (2 hours) 📍 Location: Live via Zoom (link emailed upon registration) ✅ Certifications: POST certified | APA certified, 2.0 CM Cost $330 per attendee $990 flat rate per city (up to 10 attendees) REGISTER NOW LEARN MORE WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring alcohol licenses, including: City planning officials Law enforcement personnel Code enforcement officers Planning commissioners Everyone involved in approving, conditioning, or onboarding new ABC on-sale licensed businesses must deliver a consistent, informed message at every step of the process. This workshop ensures they can. We offer a significantly reduced group rate because the gains compound when every department is trained together. REGISTER NOW LEARN MORE

Enforcement Involvement is Critical

By Gregg Hanour • October 14, 2026
Good News: POST Certification Approval A few days ago, our law enforcement consultant at the Commission of Peace Officer Standards and Training (POST) advised that he is going to approve our upcoming course: "Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight" We've also sent the course to the California Association of Code Enforcement Officers (CACEO), and we're hopeful they approve it, too. All that makes this a good moment to explain why we strongly encourage law enforcement and code enforcement personnel to attend—and why their participation matters: 1. Different Cities, Different Approaches Every city handles approvals for new on-sale businesses a little differently. In most jurisdictions, law enforcement weighs in on whether a business should be approved and what conditions are imposed. Many cities rely heavily on law enforcement input. This workshop helps ground law enforcement recommendations in proven, outcome-based practices—not just precedent. 2. Conditions That Actually Work The workshop introduces new, practical conditions of approval drawn from research and real-world application. When officers understand why a condition matters, they're more likely to ensure it's followed. Most of the conditions we recommend in the workshop read as common sense the minute you see them. 3. Better Conversations with Operators The workshop recommends structured meetings between law enforcement and operators, and provides officers with clear talking points for the meetings. These meetings align messaging across planners, commissioners, and enforcement, so operators hear one consistent message from your city. 4. Direct Application to Entertainment Permits Officers often takes the lead on entertainment permits. The strategies and conditions covered in the workshop help prevent problems before they start. 5. Enhanced Bar Checks Workshop participants learn how to conduct Enhanced Bar Checks . Done right, they can reduce overconsumption in both new and established businesses. 6. Understanding the Business Operator Mindset During years of involvement with DUI task forces in Orange County, I heard the same frustration again and again: why do business operators make the decisions they do? As a former general manager of restaurants, I can tell you that the problem is a lack of clear, practical best practices—on both sides: Operators often don’t know what best operating practices look like, because: Responsible beverage service courses teach laws and serving techniques; not alcohol management practices. The research that underpins best practices for alcohol mana g ement has no pathway to the operators who would benefit from it. Schools that offer hospitality degree courses are largely unaware of the alcohol-management research that could inform their curriculum. A bar can meet all conditions in its conditional use permit and still be a disorderly house. The behaviors that make it a disorderly house also make it less profitable, all due to the lack of best operating practices. Cities often don’t impose conditions that require operators to develop best operating practices. That gap leads to poor outcomes—for the business and for the city. 7. Most Important: Officer Safety As you well know, every call for service carries risk, and many of those calls involve alcohol-related violence. When cities shape how alcohol is managed inside a business, they can reduce both the number and the severity of those calls. Fewer problems in the bar. Safer officers everywhere. UPCOMING WORKSHOP Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. – Noon PDT (2 hours) 📍 Location: Live via Zoom (link emailed upon registration) ✅ Certifications: Commission on Peace Officer Standards and Training (POST) American Planning Association (APA) 2.0 CM California Association of Code Enforcement Officers (CACEO) (application pending) Cost: - $330 per attendee - $990 flat rate per city (up to 10 attendees) REGISTER NOW LEARN MORE WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring on-sale alcohol licenses, including: • City planning officials • Law enforcement personnel • Code enforcement officers • Planning commissioners Everyone involved in approving, conditioning, or onboarding new on-sale licensed businesses must deliver a consistent, informed message at every step of the process. This workshop ensures they can. We offer a significantly reduced group rate because the gains compound when every department is trained together. REGISTER NOW LEARN MORE

To Influence . . . or Not To

By Gregg Hanour • October 6, 2026
That's the decision . . .

Know Your Enemy: The Overconsumption of Alcohol

By Gregg Hanour • September 28, 2026
In our last blog we discussed how the overconsumption of alcohol is the enemy, not the moderate consumption of alcohol. Moderate Drinkers are Safer Multiple research studies have shown that people who consume alcohol and keep their BAC to below .06% are safer. “There is agreement in the scientific community about what defines ‘moderate drinking.’ Also, moderate drinking means limiting how fast you drink and, as a result, keeping your blood alcohol concentration (BAC) below .055.” (Source: Hester) In general, those who drink excessively are more aggressive and also get injured more seriously than those who drink moderately or not at all. Moderate drinkers do not appear to be at significantly higher risk of injury than nondrinkers. (Source: Scott and Dedel) The Higher the BAC, the Greater the Risk of Harm Alcohol follows a dose-response curve— higher BAC leads to higher risk across all major harms, including crashes, injuries, and violence. Harm rises exponentially as demonstrated by this chart from National Highway Traffic Safety Administration on the risk of crashing at given BAC levels.

The Root Cause of Most Problems at Your Bars and Restaurants

By Gregg Hanour • September 22, 2026
The Root Cause: Overconsumption of Alcohol T he main purpose of CUP conditions for your on-sale alcohol businesses is to lessen any negative impacts and ensure the operation is in harmony with your community Most problems caused by your bars and restaurants are the direct result of the overconsumption of alcohol—including altercations, nuisance complaints from neighbors, and vehicle crashes. Cities that have calculated the net effect of alcohol businesses on their general fund have discovered a minimum net loss of $1 million dollars—caused mainly by calls for service due to violence and medical problems from overservice. The insurance industry says that 90% of insurance claims at bars and restaurants are the direct result of the overconsumption of alcohol. My experience as an operator and consultant to the hospitality industry suggest that 90% of the time, calls for service are due to one or more customers having consumed too much alcohol. Studies confirm the relationship between higher levels of intoxication and violence. Using Logic to Choose an Action to Solve the Problems Since the goal of writing conditions of approval is to lessen problem . . . And since most problems stem from the overconsumption of alcohol . . . Shouldn’t the conditions aim to lessen overconsumption? In fact, shouldn’t a major focus of your entire approval process—from approving, conditioning, and onboarding—be to message best practices to lessen overconsumption? In reducing the overconsumption of alcohol, all stakeholders benefit: Public safety is improved from less violence and fewer DUI tragedies. City public safety expenses are reduced. Business profits are protected from insurance claims and lawsuits. There are many ways planners and law enforcement can reduce overconsumption in newly-approved on-sale alcohol businesses. In reducing overconsumption, your city saves money—lots of money. This isn’t just our opinion. A Study to Bank On According to this study, for every $1 a city spends to reduce intoxication, it saves $260 (Levy & Miller)

Myth #2 Behind Your City's Million-Dollar Alcohol Footprint, and the Path Forward

By Gregg Hanour • September 15, 2026
Most city leaders assume their bars and restaurants pay for themselves. The numbers say otherwise—and closing the gap starts with rethinking two common assumptions.

Two Myths Behind Your City's Million-Dollar Alcohol Footprint

By Gregg Hanour • September 9, 2026
Most city leaders assume their bars and restaurants pay for themselves. The numbers say otherwise — and closing the gap starts with rethinking two common assumptions.

32 Conditions. Still a Public Nuisance.

By Gregg Hanour • September 2, 2026
I’ve been known to get a little obsessed with reaching goals — whether it’s catching a trophy brown trout over 10 pounds or hitting a Pick 6 for more than $50,000. Did I accomplish those goals? You’ll find out at the end. Another goal of mine is far more important and challenging: changing how California cities approve, condition, and onboard new on-sale alcohol businesses (restaurants, bars, clubs, and similar establishments). That's why I teamed with retired ABC District Administrator Lauren Tyson to design our upcoming workshop on best practices for conditional use permits (CUPs) and entertainment permits. The current process sucks. Yes, I sometimes use technical language. Who’s Behind This? I’ve spent years training hospitality operators, planners, and law enforcement on exactly this problem, and wrote a book on the topic, A Business Approach to Reducing DUI, along the way. Link to Gregg’s bio Lauren wrote the book on it — literally. As a former ABC District Administrator and author of Perils of Selling Alcohol: A Guide for Bar Owners Facing Legal Trouble, she’s seen exactly what puts ABC-licensed businesses at risk, and what actually protects them and the public. Link to Lauren’s bio How Do I Know the Current Process Isn’t Working? Let Me Count the Ways Personal experience. I went through the process twice — once in Costa Mesa and once in Irvine. In both cases, very smart, dedicated planners, working with law enforcement, created extensive conditions of approval. One business had 32 separate conditions. Both businesses followed every condition, yet both were still public nuisances for years. Working with applicants. Lauren and I have helped dozens of applicants successfully navigate their city’s CUP application process. Yet the operating conditions cities impose rarely (read never) have a meaningful impact on reducing violence or problems. Reviewing city policies statewide. We’ve collected CUP conditions and operating requirements from 35 cities across California, including several known for leading the way in responsible ordinance writing. The reality? A business can follow every specific condition of approval and still become a public nuisance. Training professionals. We’ve conducted in-person workshops for planners and law enforcement on this topic. Presenting at conferences. Together and separately, we’ve presented on these issues at professional conferences. Academic research. While writing my first book, A Business Approach to Reducing DUI, I researched the topic extensively, including contacting five of the leading urban planning universities to review their curriculum. Working directly with operators. I’ve trained over a thousand hospitality owners and managers. I understand their concerns, their daily realities, and why too many close. Revising how cities approve, condition, and onboard new businesses doesn’t just protect city resources and public safety — it also guides businesses toward practices that improve their profitability. The Bottom Line When cities use best practices to approve, condition, and onboard new on-sale alcohol businesses, the outcome looks very different. Applicants who complete the CUP process and open for business will hear consistent messaging — from planners, planning commissioners, code enforcement, and law enforcement — about the operational practices that significantly reduce violence and problems. Applicants will receive meaningful conditions of approval that, when followed, actually reduce risk for all stakeholders. Applicants will experience impactful communication with code enforcement and law enforcement that keeps the operator focused on practices that protect both the business and the community. That’s what effective onboarding looks like. We hope you’ll join us for our upcoming Zoom workshop. And if you twist my arm, I might even share a few brown trout fishing tips. Yes, I did catch that trophy brown — a 17-pound, 7-ounce beauty. I also hit that big Pick 6. If you ask how to hit a $50,000 Pick 6 at the racetrack, my advice is simple: Start with a $100,000 bankroll. WORKSHOP Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. – 12 Noon Pacific Time (2 Hours) 📍 Location: Live via Zoom ✅ POST Certification pending | APA Certified 2.0 CM COST -$330 per attendee; or -$990 flat rate per city (up to 10 attendees from your city) Learn more Register for the workshop WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring alcohol licenses, including: • City planning officials • Law enforcement personnel • Code enforcement officers • Planning commissioners Everyone involved in approving, conditioning, or onboarding new ABC on-sale licensed businesses must deliver a consistent, informed message at every step of the process — this workshop ensures they can. We offer a significantly reduced tuition for a group because the gains from this workshop grow exponentially when every department is trained together.

Workshop for City Planners and Enforcement

By Gregg Hanour • August 24, 2026
Alcohol Best Practices is pleased to announce a new Zoom workshop for public officials and law enforcement professionals involved in alcohol license oversight. Conditional Use Permits, Entertainment Permits, and On-Sale Alcohol Oversight 📅 Date: Wednesday, October 28, 2026 🕐 Time: 10:00 a.m. to 12:00 Noon,Pacific (2 Hours) 📍 Location: Live via Zoom (link emailed upon registration) ✅ POST Certification pending | APA Certified 2.0 CM COST -$330 per attendee -$990 flat rate per city (up to 10 attendees) Learn more Register for Workshop WHO SHOULD ATTEND This workshop is designed for professionals responsible for reviewing, approving, or monitoring alcohol licenses, including: • City planning officials • Law enforcement personnel • Code enforcement officers • Planning commissioners Everyone involved in approving, conditioning, or monitoring new ABC on-sale licensed businesses must deliver a consistent, informed message at every step of the process — this workshop ensures they can. WHY THIS WORKSHOP IS NEEDED After analyzing dozens of Conditional Use Permits (CUPs) from cities across California, we identified critical gaps in how cities handle new alcohol license approvals: Existing CUP processes lack essential messaging to applicants Legacy approval conditions miss the most impactful requirements Newly approved businesses receive little to no meaningful onboarding Until now, there has been no training resource for best practices in approving, conditioning, or monitoring new ABC on-sale licensed businesses. Contracting with us to revise your city's approval and onboarding process is a significant investment. This workshop offers a cost-effective alternative, equipping your team with proven strategies that: ✔ Reduce violence, DUIs and nuisance complaints ✔ Lower public safety expenses and calls for service ✔ Improve the profitability, performance, and professionalism of licensed businesses We look forward to seeing you there. Learn More Register for Workshop

Governor Newsom PRESS RELEASE (imagined)

By Gregg • January 6, 2026
(Insight in the “Drunk, Drunker, and High-Risk Drunkenness” series)