Bill S1279-2011

Prohibits the transfer of liquor licenses from one owner to subsequent owners of the same establishment, bar or club

Prohibits the transfer of liquor licenses from one owner to subsequent owners of the same establishment, bar or club; grants new owners a forty-five day temporary license in which time such new owner shall apply for a new liquor license pursuant to section sixty-four of the alcoholic beverage control law.

Details

Actions

  • Jan 4, 2012: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • Jan 6, 2011: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Memo

BILL NUMBER:S1279

TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to prohibiting the transfer of liquor licenses to new owners

PURPOSE: The purpose of this bill is to stop the automatic transfer of a liquor license to a new owner of a bar or club that is sold to them.

SUMMARY OF PROVISIONS: Section One of the bill amends Section 64 of the alcoholic beverage control law by adding subdivision 4-a. Subdivision 4-a would require that no licensee shall transfer any interest in a license to any new owner of such licensee's establishment, bar or club. Such license shall terminate at the time ownership of the property is transferred to the new owner.

A new owner will be granted a 45 day temporary license in which time such person shall apply for a permanent license.

JUSTIFICATION: An owner of an establishment, bar or club goes through a lengthy application process before the State Liquor Authority (SLA) will grant a liquor license. The state Liquor Authority looks for community input and reviews the impact such an establishment will have on those who live in the immediate area. currently, if an owner sells an establishment to a new owner, the liquor license is also automatically transferred to the new owner. New ownership may dramatically change the impact a bar or club has on a community, and yet, no thorough review of the community impact the new bar or club will be reviewed by the State Liquor Authority.

This bill will insure that the new owners of a bar or club go through the State Liquor Authority's review process. Under this bill, a liquor license will not be transferred along with the sale of the establishment. Rather, a temporary 45 day license will be granted to the new owners. A 45 day temporary license will allow for continuous operation of an establishment after a sale, and allows time for the new ownership to apply for a new license. Application for a new license will allow the State Liquor Authority to review any changes the new ownership may have on a community, and will allow a community to speak out on concerns it may have regarding the granting of a new license.

LEGISLATIVE HISTORY: 2001-02: S.2052 Died in Senate Investigations, Taxation and Government Operations Committee. 2003-04: S.3244 Died in Commerce, Economic Development and Small Business Committee 2005-06: S.2584 Died in Commerce, Economic Development and Small Business Committee 2007: S.2948 (Duane), Died in Commerce, Economic Development, and Small Business

2008: S.2948 (Duane), Died in Commerce, Economic Development, and Small Business 2009: S.1439 (Duane), Died in Commerce, Economic Development, and Small Business; A.6176 (Kavanagh), Died in Economic Development 2010: S.1439 (Duane), Died in Commerce, Economic Development, and Small Business; A.6176 (Kavanagh), Died in Economic Development

FISCAL IMPLICATIONS: Minimal.

LOCAL FISCAL IMPLICATIONS: Minimal

EFFECTIVE DATE: This act shall take effect one hundred twentieth days after it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 1279 2011-2012 Regular Sessions IN SENATE January 6, 2011 ___________
Introduced by Sen. DUANE -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Devel- opment and Small Business AN ACT to amend the alcoholic beverage control law, in relation to prohibiting the transfer of liquor licenses to new owners THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 64 of the alcoholic beverage control law is amended by adding a new subdivision 4-a to read as follows: 4-A. NO LICENSEE SHALL TRANSFER ANY INTEREST IN A LICENSE TO ANY NEW OWNER OF SUCH LICENSEE'S ESTABLISHMENT, BAR OR CLUB. SUCH LICENSE SHALL TERMINATE AT THE TIME OWNERSHIP OF THE PROPERTY IS TRANSFERRED TO THE NEW OWNER. SUCH NEW OWNER SHALL RECEIVE A FORTY-FIVE DAY TEMPORARY LICENSE IN WHICH TIME SUCH PERSON SHALL APPLY FOR A PERMANENT LICENSE PURSUANT TO THE PROVISIONS OF THIS SECTION. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.

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