For clients of ours applying for liquor licenses in the District of Columbia, especially for the first time, one of the more confusing things is the role of the District’s Advisory Neighborhood Commissions, or ANCs as they are commonly known. ANCs are quasi-governmental bodies, made up of residents of the District’s neighborhoods, who are tasked with representing the interests of those neighborhoods on various matters of concern – prominent among them the issuance of new liquor licenses. Here are a few things to know about how ANCs play a role in your liquor license application:
- ANCs Hold Tremendous Power. While the District’s Alcoholic Beverage Control Board will ultimately decide whether you get a liquor license or not, your local ANC will have a significant say in the matter. If the ANC decides to protest your application, for example, the strong likelihood is that the ABC Board will defer to the ANC and deny the application unless you work through whatever issues and concerns the ANC has with your application or proposed method of doing business. This “working through” of issues usually takes the form of a binding settlement (or cooperative) agreement, whereby you agree to engage in certain actions, and refrain from others, in exchange for the ANC’s support. These agreements used to be called “voluntary agreements,” but there was never really anything voluntary about them. Because if you do not get the ANC on board, do not expect the ABC Board to side with you over them.
- ANCs Do Not All Act the Same. There are currently 40 ANCs in the District of Columbia, and no two act in the same way as related to liquor license applications. Some ANCs require every applicant to appear before them, some multiple times, before they decide whether to protest the application or not. Some assert their authority by requiring all applicants to enter into a cooperative or settlement agreement before they will agree not to protest the application. Still some others only require applicants to appear before them, or enter into a settlement agreement, if there is a specific concern, but otherwise will take little or no action or interest. Because each ANC is different, and acts differently, it is important to identify (early in the application process) the ANC in which your bar or restaurant is located, and assess the likelihood that they will interject themselves into the process.
- ANCs are Gatekeepers for Certain Privileges.While you may be able to sidestep certain ANCs for certain types of applications, there are other license privileges for which the support of the ANC is essential and mandatory. Most notably, this is the case for what the District of Columbia calls stipulated licenses. Normally, a license application is subject to a 45-day protest period where any group of citizens, or the ANC itself, can protest the issuance of the license for which you have applied. The license cannot issue until this 45-day period has completed, and no protests have been lodged. If the applicant can obtain the support of the ANC for the application, however, a “stipulated” or temporary license can be issued before the 45-day period has elapsed, and allows the applicant to begin serving alcoholic beverages immediately upon approval and issuance. Without a letter of support from the ANC, however, a stipulated license application will not even be considered.
This is just a brief overview of how ANCs are involved in your liquor licensing process. The key takeaway should be to reach out to your local ANC early in the process, and do all that is necessary to ensure they are supportive of, and comfortable with your plans.