§401 (2) of the New York State Administrative Procedures Act (“SAPA) provides:  

When a licensee has made timely and sufficient application for the renewal of a license or a new license with reference to any activity of a continuing nature, the existing license does not expire until the application has been finally determined by the agency, and, in case the application is denied or the terms of the new license limited, until the last day for seeking review of the agency order or a later date fixed by order of the reviewing court, provided that this subdivision shall not affect any valid agency action then in effect summarily suspending such license.

Therefore, if a licensee makes a timely and sufficient application for renewal of its license, it is permitted to continue to operate even if the application for renewal is still under review by the SLA.  This is called “operating under SAPA.”  When a licensee is operating under SAPA, it will appear as “inactive” if a supplier or wholesaler checks the license.  In order to ensure continued access to product the licensee should request the SLA issue a SAPA letter and place the license on the SAPA list on its LAMP webpage.

The key to qualifying under SAPA is to make a timely and sufficient renewal request. An application for renewal will not be deemed timely if it is not submitted at least seven calendar days prior to the expiration of the license. Moreover, a request for renewal will not be considered sufficient if there are any deficiencies in the renewal application. While a licensee can cure a deficiency before the license expires and then operate under SAPA, once a license expires with an insufficient renewal application, the licensee will no longer be able to continue to operate until the renewal application is approved. A licensee with an on-premises beer, wine or liquor license in one of the five boroughs of New York City,  must notify its Community Board of its intent to renew its license at least 30 days before filing a renewal application. If the licensee fails to do so, its renewal application will be deemed insufficient and will not qualify for a SAPA letter. In addition, the applications must be complete and include: (1) a copy of the renewal advisory, (2) the completed renewal application form, (3) a check or money order payable to the New York State Liquor Authority for the total amount set forth in the Renewable Advisory and (4) Original surety bond in the appropriate amount, SIGNED BY THE LICENSEE and with the expiration of the bond being the same as the license expiration date on the Renewal Advisory. Make certain the bond has the premises name and address typed exactly as it appears on the license certificate.  On-premises licensees in the City of New York must also include proof the standardized notice was sent to the Community Board in a timely manner.  

A licensee (other than one seeking combined craft, multi-license and a master-file renewal) can access its Renewal Advisory Letter online at: https://sla.ny.gov/renewal-advisory-letters-0

The SLA no longer delays the issuance of a license renewal as a result of a pending disciplinary charge or pending criminal charges. Rather it will process the application and address the charges at the appropriate time. 

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