All licensees should understand and avoid the most common violations for which the Liquor Authority brings charges.

Sales to Minors.

One of the most common violations and the one the SLA takes most seriously is sales to minors. It is illegal to sell or give alcoholic beverages to a person under the age of twenty- one years. It does not matter if the person served claimed to be older and looked it. The licensee has the obligation to check the person’s age. The only acceptable proof is a valid driver’s license from one of the states of the United States, the District of Columbia or Canada, a department of motor vehicle non-driver ID card, a United States military identification card or a valid passport or visa. (New York now allows a licensee to accept as proof of age a New York State Mobile Identification. See Advisory 2024-2). It is up to the licensee to examine the identification and look to see if it is tampered with or fake and that the person presenting the identification is the person it identifies.

Disorderly Premises

A licensee must not allow its premises to become disorderly. This means that the licensee must take steps to make certain that there are no fights or disturbances on the licensed premises. In addition, the licensee has the obligation to make certain that illegal activities do not take place there. Charges based on failure to maintain an orderly premise can be brought if the licensee tolerates the sale of controlled substances, prostitution, indecent conduct or excessive noise. Often a disorderly premises violation will begin with a complaint filed with the police, which is then referred to the Liquor Authority. If the licensee pleads guilty to the violation in court because the fine is low, the violation is deemed admitted before the Authority. Additionally, note that the law requires security guards to be licensed.

SALE TO AN INTOXICATED PERSON

A licensee is not permitted to sell, deliver or give alcoholic beverages to a person who is visibly intoxicated.

UNLIMITED DRINKS

A licensee is forbidden from offering to or serving an unlimited number of drinks during a set period of time for a fixed price. It is also forbidden to create a method of serving that in the opinion of the Liquor Authority has a similar effect. The Liquor Authority has stated that it will consider as a violation any offer to serve drinks for less than half price. The unlimited drink rule does not apply to private functions not open to the general public, where the service of alcohol is incidental to the purpose of the event.

AVAILING

Licenses are issued to specified people at a specified location. A licensed person may not make its license available to any other person without permission from the Liquor Authority. The violation related to allowing an unlicensed person to benefit from the license is called availing. If the Liquor Authority determines that a person not on the license is receiving a portion of the income derived from the sale of alcoholic beverages it may bring charges of availing. Similarly, the violation may be charged if a person who is not on the license has control over the premises. However, the introduction of a manager who
oversees the business for a licensee is not availing. However, a corporate change, without prior approval from the Authority, is such a violation. So the unauthorized transfer of corporate stock or the addition of a new member to a limited liability company can give rise to a charge for an availing violation.

UNAUTHORIZED EXTENSION OR ALTERATION OF THE PREMISES OR CHANGES IN METHOD OF OPERATION

The sale of alcoholic beverages is limited to the approved premises described on the license application. The licensee is not permitted to expand or alter the premise without permission from the Liquor Authority. In addition, the licensee must operate in accordance with the representations made in its application and the conditions imposed by the Members of the Authority at the time the license was issued as well as all state and local laws. Charges can be brought against a licensee for violations of the building, fire or health codes as well as for permitting illegal gambling to occur on the premises. Under New York law, with limited exceptions, illegal gambling occurs when there is a contest of chance, for which the participant puts up something of value, and there is a prize.

Keven Danow is an attorney representing members of all three tiers of the Beverage Alcohol Industry and member of The Danow Group, 605 Third Avenue, New York, NY 10158.  (212 3703744). Website: thedanowgroup.com; email:kd@thedanowgroup.com