The California Department of Alcoholic Beverage Control (ABC) uses a formulaic approach to determine when and where to issue new liquor licenses in their annual lottery. This process involves analyzing population census tract data and applying specific criteria to identify areas that may be eligible for additional liquor licenses. Here’s a detailed explanation of the process:
Population Census Tract Data: The ABC collects population data from the United States Census Bureau. Census tracts are small, relatively permanent statistical subdivisions of a county that are used to analyze and present data. Each census tract contains a specific population count based on the most recent census.
Population Density: The ABC considers the population density of each census tract to assess the need for additional liquor licenses in a given area. Areas with higher population density are more likely to be considered for new licenses, as they may have a higher demand for alcohol establishments.
License Density: The ABC also evaluates the number of existing liquor licenses in each census tract to determine if there is a balance between the number of licenses and the population size. Areas with a low ratio of licenses to population may be more eligible for new licenses to meet the demands of the local community.
Proximity to Schools, Churches, and Other Sensitive Locations: The ABC takes into account the proximity of existing liquor establishments to sensitive locations, such as schools, churches, and hospitals. The aim is to avoid an oversaturation of liquor licenses in areas with vulnerable populations.
Community Input and Public Need: The ABC may seek community input to gauge the public’s need for additional liquor licenses in certain areas. Local residents, businesses, and community leaders may provide feedback on the demand for alcohol establishments and the potential impact on the neighborhood.
Demographic Data: The ABC may also consider demographic data, such as income levels, age distribution, and cultural factors, to better understand the specific needs of different communities.
License Quotas: Once the ABC completes its analysis, it sets quotas for each census tract based on the criteria mentioned above. Quotas determine the maximum number of licenses that can be issued in a specific area during the lottery process.
Annual Lottery: The annual lottery is held to allocate new licenses to eligible census tracts based on the established quotas. Applicants who wish to obtain a new liquor license in a specific area must participate in the lottery, and the winners are selected based on random drawings.
It’s important to note that the specific formula and criteria used by the ABC may vary slightly from year to year based on changing demographics and community needs. Additionally, each state may have its own unique approach to allocating liquor licenses based on population census data and other relevant factors.