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New Laws Come With The New Budget

New York Bar

Several new alcoholic beverage control laws were included in the new Budget.  These changes are intended to speed up the application process and to give the State Liquor Authority more flexibility to grant licenses and permits. 

By removing the four words, “less than thirty nor” from Alcoholic Beverage Control Law (“ABCL”) §110-b, Chair Fan, the legislature and Governor Hochul shortened the process for applying for an on-premises license by thirty days.  For applications filed after the budget became law, it is no longer necessary to wait thirty days after notifying the local municipality or community board before filing a license application.  Now, an applicant can provide that notice at the same time the application is filed.  “And just like that” the process will move faster.

Additionally, a new section 97-D has been added so that an applicant for a wholesale license, including an application for an importer’s license, may obtain a temporary permit.  This permit will authorize the applicant to operate a wholesale facility for the purchase, warehousing, and sale of the type of alcoholic beverages sought in the wholesale application.  

Although approval is still required before any change can be made in the members of a limited liability company or there is a transfer or assignment of an interest in a limited liability company or a change in the stockholders, stockholdings, officers or directors of a corporate licensee, such application shall be deemed approved an in effect if not disapproved by the Authority prior to the expiration of ninety days after the application was received by the Authority. 

Also, a new subdivision 4 has been added to §104 of the ABCL which allows the holder of a wholesale license to apply for and obtain a cider producer or wholesaler’s license, beer wholesaler’s license, wine wholesaler’s license or liquor wholesaler’s license at an existing wholesale licensed premise.  Before this section was added to the law, a wine and liquor wholesaler was required to set up a separate office before it could obtain a license to sell beer. 

§98 of the ABCL has been amended and now the Liquor Authority is permitted to issue temporary permits to on-premises establishments and off-premises caterers for outside events.  Heretofore such a permit was only available if the event was to be held indoors.  Also, one day event permits, which were previously limited to beer and wine, are now available for liquor as well. 

The laws allowing on-premises licensees to sell to-go have been extended for five years. The provision of the ABCL which required a package store to be located on street level has been removed.  Movie theaters now qualify for a license to sell spirits, wine and beer without a requirement that the theater have a full kitchen with meals served to guests seated at tables. 

§111-A allows the use of contiguous and non-contiguous municipal public space for on-premises alcoholic beverage sales by qualified licensees but requires permission from the municipality. It also requires the licensee to obtain approval from the Liquor Authority after filing an alteration application under §99-D 1 with proof of notification to the municipality or in the City of New York, the community board.  

Clearly, the legislature, Governor Hochul and Chair Fan are working hard to improve the application process and ease the burden on the hospitality industry.  

Keven Danow is an attorney representing members of all three tiers of the Beverage Alcohol Industry and member of The Danow Group, 275 Madison Ave, NY, NY. 10022. (212 3703744). Website: thedanowgroup.com; email: kd@thedanowgroup.com. This article is not intended to give specific legal advice. Before taking any action, the reader should consult with an attorney familiar with the relevant facts and circumstances.

This article is not intended to give specific legal advice.  Before taking any action, the reader should consult with an attorney familiar with the relevant facts and circumstances.

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Keven Danow

Keven Danow

Founding and Senior Partner
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