California Regulators Shut Down a Distillery for Serving Alcohol.


via reason:

“While Type 74 license states that distilleries can only serve up to 1.5 oz. of alcohol per person per day, we are allowed to have private events, in which the drink restriction is waived,” Blinking Owl explains. “It is under this section of code which many small distilleries in the state have found a much-needed revenue source by hosting private events or functions. To that end, we segregated private events with wristbands, something we believed the public was accustomed to and well understood the meaning of, and we subsequently operated in a manner we understood to be in complete compliance.”

That seems eminently reasonable. But what seems eminently reasonable to a business often strikes regulators—who are interpreting the same, oftentimes poorly worded regulations that businesses are, but with an eye to punishing scofflaws—as something entirely different. Just how the temporary closure came about demonstrates this fact.

Before making his first undercover visit, according to his account, ABC trade enforcement officer Eric Gray did not speak with anyone at Blinking Owl about being part of a private party. When he arrived at the distillery, he was served one drink and was told Blinking Owl could not serve him another legally. He paid and left.

Before his next visit, Agent Gray called Blinking Owl. He was told this met the requirements for being considered a private party. After arriving at the distillery, Blinking Owl confirmed Gray had called ahead to be placed on a private party guest list and was served a second drink.

It was this second visit that caused Agent Gray to conclude Blinking Owl had violated ABC rules, allegedly “by exceeding the amount of 1.5 ounces of distilled spirits that is permitted to be served per person per day by selling two separate cocktails to Department Agents that contained 1.5 ounce in each drink.”

For this purported transgression, the state chose last week to punish Blinking Owl by forcing the distillery to close for 25 days.

But we can at least make clear that Eric Gray seems like kind of a jerk.

Plus: “These laws largely serve no purpose other than to ensnare small business owners and produce fines for agencies that struggle to justify their own existence.”


h/t GR


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