§ 25–113. On-premises retailer’s licenses.

*NOTE: This section contains provisions that will expire on December 31, 2023.*

*NOTE: This section includes amendments by emergency legislation that will expire on June 19, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

(a)(1) On-premises retailer’s licenses shall be classified by the type of establishment licensed, as follows: restaurant, tavern, nightclub, hotel, club, multipurpose facility, and common carrier.

(2) For each type of establishment listed in paragraph (1) of this section, there shall be 2 classes of on-premises retailer’s license:

(A)(i) Except as otherwise provided, an on-premises retailer’s license, class C, shall authorize the licensee to sell spirits, wine, and beer at the licensed establishment for consumption only at the licensed establishment.

(ii) It shall be a secondary tier violation for an on-premises retailer’s class C or D licensee, to knowingly allow a patron to exit the licensed establishment with an alcoholic beverage in an open container.

(B) Except as otherwise provided, an on-premises retailer’s license, class D, shall authorize the licensee to sell wine and beer at the licensed establishment for consumption only at the licensed establishment.

(3) The licensee of any kind of on-premises retailer’s licenses, class C or D, shall not sell or serve alcoholic beverages in any closed container; provided that:

(A) A hotel may sell and serve alcoholic beverages in closed containers in the private rooms of registered guests; and

(B) A club may sell and serve alcoholic beverages in closed containers in any room or area available only to members of the club or their guests.

(C)(i) An on-premises retailer licensee, class C/R, D/R, C/T, D/T, C/H, D/H, C/N, D/N, C/X, or D/X, including a multipurpose facility or private club, that registers with the Board and receives written authorization from ABCA may sell beer, wine, or spirits in closed containers to individuals for carry out, or deliver beer, wine, or spirits in closed containers to consumers in the District between the hours of 6:00 a.m. and 1:00 a.m., 7 days a week; provided, that each such carry out or delivery order is accompanied by one or more prepared food items.

(ii) Board approval shall not be required for a registration under this subparagraph that occurs prior to April 1, 2021. After March 31, 2021, an on-premises retailer that does not hold a valid registration under this subparagraph shall be required to obtain a carry out and delivery endorsement as set forth in § 25-113.01(f) in order to sell for carry out and deliver alcoholic beverages.

(D)(i) An on-premises retailer licensee, class C/R, D/R, C/T, D/T, C/H, D/H, C/N, D/N, C/X, or D/X, including a multipurpose facility or private club, that is registered with the Board under subparagraph (C) of this paragraph may also register with the Board to sell to a consumer beer, wine, or spirits in closed containers accompanied by one or more prepared food items for off-premises consumption from up to 2 additional locations other than the licensed premises. Board approval shall not be required for the additional registration under this paragraph; provided, that:

(I) The licensee separately registers with the Board, pays a fee of $100, and receives written authorization from ABCA prior to offering alcoholic beverages to consumers for carryout or delivery at an additional location;

(II) The licensee, the additional location's owner, or a prior tenant at the additional location possesses a valid certificate of occupancy for the building used as the additional location, unless the additional location is located on outdoor private space;

(III) The licensee has been legally authorized by the owner of the building or the property utilized as the additional location to utilize the space for carryout or delivery to a consumer;

(IV) The licensee agrees to follow all applicable Department of Consumer and Regulatory Affairs and Department of Health laws and regulations; and

(V) The additional location from which the licensee intends to offer alcoholic beverages to a consumer for carryout or delivery is located in a commercial or mixed-use zone as defined in the District's zoning regulations.

(ii) The on-premises retailer licensee shall not offer, beer, wine, or spirits to a consumer for carryout and delivery on public space; except, that an additional location permitted pursuant to this subparagraph may include a sidewalk café that has been issued a public space permit by the District Department of Transportation.

(iii) The on-premises retailer licensee who has registered to sell beer, wine, or spirits for carryout or delivery to a consumer in accordance with this subparagraph shall do so only at an additional location.

(iv) An on-premises retailer licensee who has registered to sell beer, wine, or spirits for carryout or delivery to a consumer pursuant to this subparagraph may do so for no more than 60 calendar days; except, that upon approval by the Board of a written request from an on-premises licensee to extend carryout or delivery alcohol sales to a consumer from the additional location pursuant to this subparagraph, the licensee may continue for one additional 30 calendar-day period. A licensee shall not sell beer, wine, or spirits for carryout or delivery to a consumer for off-premises consumption from the additional location for more than 90 calendar days unless a completed application to do so has been filed with the Board with notice provided to the public in accordance with § 25-421.

(v) The on-premises retailer licensee registered to sell alcoholic beverages for carryout or delivery to a consumer from an additional location in accordance with this subparagraph is authorized only between the hours of 6:00 a.m. and 1:00 a.m., 7 days a week.

(vi) The Board may fine, suspend, cancel, or revoke an on-premises retailer license and shall revoke its registration to sell beer, wine, or spirits for carryout and delivery to a consumer at the additional location if the licensee fails to comply with sub-subparagraphs (i) through (v) of this subparagraph.

(vii) This subparagraph shall expire on December 31, 2023.

(4)(A) Except as provided in subparagraph (B) of this paragraph, nothing in the license classifications in this section shall be construed as prohibiting or restricting a restaurant from offering entertainment or facilities for dancing, preventing or restricting a tavern from offering entertainment, or preventing or restricting a nightclub from offering food. A licensee who offers food, entertainment, or facilities for dancing may advertise the food, entertainment, or facilities for dancing that are offered, regardless of the kind of license held.

(B) No licensed establishment other than a nightclub or a legitimate theater may provide entertainment by nude performers.

(5)(A) Except as provided in subparagraph (B) of this paragraph, a licensee of an on-premises retailer's license, class C or D, shall not purchase alcoholic beverages from an off-premises retailer's license, class A or B.

(B) The licensee of an on-premises retailer's license, class C or D, may purchase alcoholic beverages from an off-premises retailer's license, class A, on Saturday, Sunday, or holiday during the hours when licensees under a wholesaler's license are closed.

(6)(A) An on-premises retailer licensee, class C/R, D/R, C/T, D/T, C/H, D/H, C/N, D/N, C/X, or D/X, including a multipurpose facility or private club, or a manufacturer licensee, class A, B, or C, with an on-site sales and consumption permit, or a Convention Center food and alcohol business may register with the Board in 2022, 2023, and 2024 to sell, serve, and permit the consumption of beer, wine, and spirits to consumers on new or expanded temporary ground floor or street level outdoor public or private space not listed on its existing license for the entire 12 months of 2022, 2023, and 2024. Board approval shall not be required to register; provided, that the licensee:

(i)(I) Registers with the Board in 2022, 2023, and 2024;

(II) Pays a $100 feeannually with the fee for 2024 due by April 1, 2024; except, that an on-premises retailer licensee, class C/T, D/T, C/N, or D/N, or a manufacturer licensee class B, shall pay the fee for 2024 by September 30, 2024;

(III) Notifies the Office of Advisory Neighborhood Commissions by electronic mail of the registration; and

(IV) Receives written authorization from ABCA prior to selling, serving, or permitting the consumption of alcoholic beverages on the proposed outdoor public or private space;

(ii) Registers with the District Department of Transportation ("DDOT") prior to operating on any proposed outdoor public space or receives written approval from the property owner prior to utilizing any proposed outdoor private space; and

(iii) Agrees to follow all applicable Mayor's Orders and Department of Consumer and Regulatory Affairs, Department of Health, DDOT, and ABCA regulations and administrative issuances.

(B) An on-premises retailer licensee, class C or D, or a manufacturer licensee, class A, B or C, with an on-site sales and consumption permit or a Convention Center food and alcohol business that has registered with the Board and receives written authorization from ABCA to sell, serve, and permit the consumption of beer, wine, and spirits to seated patrons on outdoor public or private space not listed on its license in accordance with subparagraph (A) of this paragraph shall:

(i) Ensure that the proposed outdoor public or private space is located in a commercial or mixed-use zone as defined in the District's zoning regulations;

(ii) Abide by the terms of its public space permit with regard to the allowable placement of alcohol advertising, if any, in outdoor public space; and

(iii) Have its own clearly delineated outdoor space and not share tables and chairs with another business.

(C) Registration under subparagraph (A) of this paragraph shall be valid for the entire 12 months of 2022, 2023, and 2024. The Board may fine, suspend, or revoke an on-premises retailer license, class C or D, or a manufacturer license, class A or B, with an on-site sales and consumption permit, and shall revoke the registration to sell, serve, or permit the consumption of beer, wine, or spirits on outdoor public or private space not listed on the license if the licensee fails to comply with subparagraph (A) or (B) of this paragraph.

(D)(i) Notwithstanding subparagraph (B) of this paragraph, the Board shall interpret settlement-agreement language that restricts sidewalk cafés or summer gardens as applying only to those outdoor spaces that are currently licensed by the Board as sidewalk cafés or summer gardens.

(ii) The Board shall not interpret settlement-agreement language that restricts or prohibits sidewalk cafés or summer gardens to apply to new or expanded outdoor space, the use of which is permitted under this paragraph.

(iii) The Board shall not interpret settlement-agreement language that restricts or prohibits the operation of permanent outdoor space to prohibit the temporary operation of sidewalk cafés or summer gardens.

(iv) The Board shall require all on-premises retailer licensees, class C or D, or manufacturer licensees, class A or B, with an on-site sales and consumption permit, to delineate or mark currently licensed outdoor space from new or extended outdoor space authorized by DDOT or the property owner.

(v) With regard to existing outdoor public or private space, parties to a settlement agreement shall be permitted to waive provisions of the settlement agreement that address currently licensed outdoor space for a period not to exceed 180 days.

(E) For purposes of this paragraph, ground floor or street level sidewalk cafés or summer gardens enclosed by awnings or tents having no more than 2 sides shall be considered outdoor space, and areas enclosed by retractable glass walls and other forms of operable walls shall not be considered outdoor space. Temporary unlicensed rooftops and summer gardens not located on the ground floor or street level are not eligible for registration under subparagraph (A) of this paragraph.

(b)(1) A restaurant license (R) shall be issued only for a restaurant. It shall be a secondary tier violation for a restaurant to not keep its kitchen facilities open until 2 hours before closing.

(2)(A) The licensee shall file with the Board quarterly statements, on the dates and in the manner prescribed by the Board, reporting for the preceding quarter: the gross receipts for the establishment; its gross receipts for sales of alcoholic beverages; its gross receipts for the sale of food; its total expenses for the purchase of food and alcoholic beverages; its expenses for the purchase of food; and its expenses for the purchase of alcoholic beverages.

(B) The Board shall make a licensee’s quarterly statements available for the purpose of allowing a protestant of a license to determine the gross annual receipts of a licensee.

(3)(A) There shall be 2 classes of restaurant licenses:

(i) Class C/R (spirits, wine, and beer); and

(ii) Class D/R (wine and beer).

(B)(i) A class C/R license may be issued to:

(I) An establishment which qualifies as a restaurant under § 25-101(43)(A) and has gross annual food sales of at least $2000 per occupant (as determined by the establishment’s Board-approved certificate of occupancy); or

(II) An establishment which qualifies as a restaurant under § 25-101(43)(B).

(ii) A class D/R license may be issued to:

(I) An establishment which qualifies as a restaurant under § 25-101(43)(A) and has gross annual food sales of at least $1500 per occupant (as determined by the establishment’s Board-approved certificate of occupancy); or

(II) An establishment which qualifies as a restaurant under § 25-101(43)(B).

(iii) The Board shall, by rule, adjust for inflation the gross annual food sales per occupant requirements established under subparagraphs (B)(i)(I) and (B)(ii)(I) of this paragraph once every 5 years. The first adjustment shall be effective January 1, 2010. In determining the appropriate inflation index to be applied, the Board may consider the inflation indices customarily employed by the federal and District governments for similar purposes.

(4) [Repealed].

(5)(A) Notwithstanding any other provision of this subchapter, the holder of a class CR retailer license shall be authorized to permit a patron to remove one partially consumed bottle or other container of wine or spirits for off-premises consumption. The holder of a class DR retailer license shall be authorized to permit a patron to remove one partially consumed bottle or other container of wine for off-premises consumption.

(B) A partially consumed bottle or other container of wine or spirits that is to be removed from the premises must be securely resealed by the licensee or the licensee's employee before removal from the premises.

(C) The partially consumed bottle or container shall be placed in a bag or other closed container that is secured in such a manner that it will be visibly apparent whether the closed container has been subsequently opened or tampered with, and a dated receipt for the bottle or container of wine or spirits shall be provided by the licensee and attached to the closed container.

(D) A licensee that registers with the Board under subparagraph (A) of this paragraph shall not be required to satisfy the notice or posting requirements set forth in §§ 25-421 and 25-422.

(c)(1) A tavern license (T) shall be issued only for a tavern.

(2) The size of the dance floor in a tavern that does not possess an entertainment endorsement shall not exceed 140 square feet; provided, that the licensee whose establishment on September 30, 1986 contained a regularly used dance floor in excess of 140 square feet and who is occupying the same establishment shall not be disqualified under this limitation.

(3) There shall be 2 classes of tavern licenses:

(A) Class C/T (spirits, wine, and beer); and

(B) Class D/T (beer and wine).

(4) [Repealed].

(d)(1) A nightclub license (N) shall be issued only to a nightclub with a security plan. The holder of a nightclub license shall comply with the terms of its security plan.

(2) There shall be two classes of nightclub licenses:

(A) Class C/N (spirits, wine, and beer); and

(B) Class D/N (beer and wine).

(e)(1) A hotel license (H) shall be issued only for a hotel license.

(2) The license shall authorize the sale and service of alcoholic beverages for consumption in the dining rooms, lounges, banquet halls, and other similar facilities on the licensed premises, and in the private rooms of registered guests.

(3) The license shall not authorize the sale and service of alcoholic beverages for consumption in a nightclub on the premises of the hotel. The licensee may also be issued a nightclub license on the premises of the hotel.

(4)(A) The licensee shall file with the Board quarterly statements, on the dates and in the manner prescribed by the Board, reporting for the preceding quarter: the gross receipts for the establishment; its gross receipts for sales of alcoholic beverages; its gross receipts for the sale of food; its total expenses for the purchase of food and alcoholic beverages; its expenses for the purchase of food; and its expenses for the purchase of alcoholic beverages.

(B) The Board shall make a licensee’s quarterly statements available for the purpose of allowing a protestant to determine the gross annual receipts of a licensee.

(5)(A) There shall be 2 classes of hotel licenses:

(i) Class C/H (spirits, beer, and wine); and

(ii) Class D/H (beer and wine).

(B)(i) A class C/H license may be issued to:

(I) An establishment that has annual gross food sales in a hotel dining room of at least $2000 per occupant (as determined by the establishment’s Board-approved certificate of occupancy); or

(II) An establishment that has sales of food in a hotel dining room which accounts for at least 45% of gross annual receipts from the operation of the dining room; provided, that in the case of a hotel that has 200 or fewer rooms and was built before January 1, 1940, sales of food shall account for at least 25% of gross annual receipts from the operation of the dining room.

(ii) A class D/H license may be issued to:

(I) An establishment that has annual gross food sales in a hotel dining room of at least $1500 per occupant (as determined by the establishment’s Board-approved certificate of occupancy); or

(6) A restaurant operating inside of a hotel shall be eligible to obtain a hotel license; provided, that the restaurant has a written agreement with the hotel to sell and serve alcoholic beverages in the hotel’s dining rooms, lounges, banquet halls, other similar facility, or in the private rooms of registered guests.

(7)(A) Notwithstanding any other provision of this subsection, a retailer class CH licensee under this section is authorized to permit a patron to remove one partially consumed bottle or container of wine or spirits for off-premises consumption. The holder of a class DH retailer license shall be authorized to permit a patron to remove one partially consumed bottle or other container of wine for off-premises consumption.

(B) A partially consumed bottle or other container of wine or spirits that is to be removed from the premises shall be securely resealed by the licensee or the licensee's employee before removal from the premises.

(C) The partially consumed bottle or other container shall be placed in a bag or other closed container that is secured in such a manner that it will be visibly apparent whether the closed container has been subsequently opened or that a person has tampered with the closed container.

(D) The licensee or the licensee's employee shall provide a dated receipt for the bottle or other container of wine or spirits, which shall be attached to the closed container.

(f)(1) A club license shall be issued only for a club.

(2) No license shall be issued to a club that has not been incorporated for at least 3 months immediately before the filing of an application for the license.

(3) The licensee may permit consumption of alcoholic beverages on the parts of the licensed premises as may be approved by the Board.

(4) There shall be 2 classes of club licenses:

(A) Class C (spirits, beer, and wine); and

(B) Class D (beer and wine).

(g)(1) A multipurpose facility license shall be issued to legitimate theaters, universities, museums, conference centers, art galleries, facilities for the performance of sports, cultural, or tourism-related activities, and to indoor parks, buildings, and facilities that primarily serve as recreational playgrounds or workspaces.

(2) The licensee may permit consumption of alcoholic beverages on the parts of the licensed premises as may be approved by the Board.

(3) There shall be 2 classes of multipurpose facility licenses:

(A) Class C (spirits, beer, and wine); and

(B) Class D (beer and wine).

(4) The Board, in its sound discretion, may require that a multipurpose facility licensee file a security plan with the Board. A multipurpose facility licensee so required shall comply with the terms of its security plan.

(h)(1) A common carrier license shall be issued only for a passenger-carrying marine vessel serving food or a railroad club or dining car.

(2) Any person operating a railroad in interstate commerce of 100 miles or more may be issued a single license covering all of the railroad’s dining and club cars. The license shall identify the railroad dining cars and club cars covered by the license and shall be kept on display at the licensee’s principal place of business in the District.

(3) Any person operating a passenger-carrying marine vessel line in the District may be issued a single license covering all of its passenger-carrying marine vessels serving food and its dockside waiting areas for its passengers. The license shall identify the passenger-carrying marine vessels and dockside waiting areas covered by the license and shall be kept on display at the licensee’s principal place of business in the District. The license issued shall not cover any permanently berthed vessel.

(4) There shall be 2 classes of common carrier licenses:

(A) Class C (spirits, beer, and wine); and

(B) Class D (beer and wine).

(i)(1)(A) A caterer’s license shall be issued only to a caterer.

(B) A caterer licensed under this subsection shall possess or have reasonable and on-going access to a kitchen licensed by the District of Columbia Department of Health or other applicable state agency in which to prepare the food for a catered event.

(2) Notwithstanding any provision of this title, a caterer’s license under this subsection shall authorize the licensee to sell, deliver and serve alcoholic beverages for consumption on the premises of a catered event at which the licensee is also serving prepared food.

(3) A caterer’s license shall be valid for 3 years.

(4) A caterer licensed under this subsection shall file records with, and maintain records for inspection by, the Board in such manner as the Board shall determine by regulation promulgated under § 25-211(b); provided, that commercial or financial information considered by the Board to be proprietary information or trade secrets, the disclosure of which would result in harm to the competitive position of the licensee, shall not be made available to the public.

(5) Wholesalers and off-premises retailer licensees, class A or AI, may sell alcoholic beverages to caterers licensed under this subsection regardless of the number of persons attending the catered event.

(6) A caterer shall be prohibited from holding a catered event under its license that takes place on a public street that has been closed by the District government.

(j)(1) Cover charges or the sale of items other than food or beverage shall not be included in determining an establishment’s gross annual food sales or whether the sale of food accounts for at least 45% of the establishment’s gross annual receipts; provided, that minimum charges that are readily identifiable as food or beverage shall be included in calculating whether the establishment is meeting the food sales requirements set forth in § 25-101(43) and this section.

(2) Off-site food sales by a licensee under a license, class C/R, D/R, C/H, or D/H, shall also not be included for purposes of calculating whether the establishment is meeting the food sales requirement set forth in either § 25-101(43) or this section.

(3)(A) Each licensee under a license, class C/R, D/R, C/H, or D/H, shall keep and maintain on the premises for a period of 3 years adequate books and records showing all sales, purchase invoices, and dispositions, including the following:

(i) Sales information that includes the date, the price of food sold, the price of alcoholic beverages sold, and the amount of total sales;

(ii) Purchase information that includes the date and quantity of the purchase, the name, address, and phone number of the wholesaler and or vendor with the original invoice; and

(iii) Register receipts or guest checks, which may be kept daily or weekly that include the food sold, the alcoholic beverages sold, and the amount of total sales.

(B) Any licensee may file a written request with the Board to have his books and records, except the day to day records or register receipts, kept at an accountant’s office or the licensee’s office; provided, that the records are made available within 3 days of request by ABCA staff. A licensee may also store its books and records on the premises electronically. The records stored on the premises electronically shall be made immediately available at the request of ABCA staff.

(C) The failure of a licensee under a license class C/R, D/R, C/H, or D/H to keep and maintain records as required by this section shall be subject to the penalties set forth in § 25-830(c).

(D) A violation of this section shall also be a primary tier violation under § 25-830(c).

(k)(1) A bed and breakfast license shall be issued to a bed and breakfast that serves food only to registered guests, and their guests.

(2) The license shall allow the service of alcoholic beverages to registered guests, and their guests, only for on-premises consumption in their private rooms or in the dining room, lounge, banquet hall, or other similar facility on the licensed premises.

(3) The cost of alcoholic beverages served to registered guests, and their guests, shall be included by the licensee in the registered guest's room fee or with the cost of a meal.

(4) There shall be 2 classes of bed and breakfast licenses:

(A) Class C/B (spirits, beer, and wine); and

(B) Class D/B (beer and wine).