This bill has been amended

Bill S4014-2011

Expands the types of agreements that can be used to show control of premises for a license

Relates to expanding the types of agreements that will suffice to show ownership or control of a licensed premises.

Details

Actions

  • May 2, 2011: ADVANCED TO THIRD READING
  • Apr 13, 2011: 2ND REPORT CAL.
  • Apr 12, 2011: 1ST REPORT CAL.361
  • Mar 14, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 12, 2011
Ayes (4): Marcellino, Alesi, Golden, Nozzolio
Ayes W/R (2): Zeldin, Peralta
Excused (2): Squadron, Diaz

Memo

BILL NUMBER:S4014

TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to expanding the types of agreements that will suffice to show ownership or control of a licensed premises

PURPOSE:

This bill would expand the types of agreements that would suffice to show ownership or control of a licensed premises.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Alcoholic Beverage Control Law (ABCL) § 105(1) to add management agreements and franchise agreements to the list of writings that will suffice to show ownership or control of an off-premises licensed premises.

Section 2 of the bill would amend ABCL § 106(1) to add management agreements and franchise agreements to the list of writings that will suffice to show ownership or control of an on-premises licensed premises.

Section 3 of the bill would amend ABCL § 110(1)(f) to add managers of any management agreement or franchisors of any franchise agreement to the list of individuals for which statements of identity are required during the licensing process.

Section 4 of the bill would amend ABCL § 113(3) to add management agreements and franchise agreements to the list of items for which upon revocation of a license - a transfer of any interest must take place via an arm's length transaction.

Section 5 of the bill states that it would take effect on the one hundred eightieth day after it shall have become law, provided that the State Liquor Authority may promulgate rules necessary for the implementation of this act immediately.

EXISTING LAW:

The ABCL currently requires applicants and licensees to show ownership or control of any licensed premises via a deed or valid lease for at least the duration of the license period. There is currently no ability for an applicant or licensee to substitute a management agreement or franchise agreement for said requirement.

LEGISLATIVE HISTORY:

This is a new bill.

STATEMENT IN SUPPORT:

This initiative will help modernnize the ABEL and streamline the liquor licensing process by allowing franchisees and management agencies to apply for liquor licenses without the need to provide the SLA with a document that would qualify as a deed or lease.

In many situations, the applicant operates the business pursuant to an agreement with the owner or lease holder of a facility, such as a sports arena, that does not meet the legal definition of a lease. While these agreements give complete control over food and beverage services to the applicant, the current law requires either the property owner or lease holder to be included as one of the licensees. The deed/lease requirement is, under current law, waived for facilities owned by a government entity.

This proposal would not in any way undermine the requirement that the applicant establish that it is in control of the operation of the licensed activities. Persons could not assume control over a licensed establishment pursuant to such an agreement without obtaining the approval of the SLA, as is the case with applicants who have a deed or lease.

BUDGET IMPLICATIONS:

This bill would have no impact on state finances.

LOCAL IMPACT:

This bill would have no impact on local governments.

EFFECTIVE DATE: This act shall take effect on the one hundred and eightieth day after becoming a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 4014 2011-2012 Regular Sessions IN SENATE March 14, 2011 ___________
Introduced by Sen. MARCELLINO -- (at request of the State Liquor Author- ity) -- read twice and ordered printed, and when printed to be commit- ted to the Committee on Investigations and Government Operations AN ACT to amend the alcoholic beverage control law, in relation to expanding the types of agreements that will suffice to show ownership or control of a licensed premises THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 105 of the alcoholic beverage control law, as amended by chapter 48 of the laws of 1985, is amended to read as follows: 1. No retail license to sell liquors and/or wines for consumption off the premises shall be granted for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, MANAGEMENT AGREEMENT OR FRANCHISE AGREEMENT, in writing, for a term not less than the license period except, however, that such license may thereafter be renewed without the requirement of a lease, MANAGEMENT AGREEMENT OR FRANCHISE AGREEMENT, as herein provided. This subdivision shall not apply to premises leased from government agencies, as defined under subdivision [twelve-b] TWELVE-C of section three of this chapter; provided, however, that the appropriate administrator of such government agency provides some form of written documentation regarding the terms of occupancy under which the applicant is leasing said premises from the government agency for presentation to the state liquor authority at the time of the license application. Such documenta- tion shall include the terms of occupancy between the applicant and the government agency, including, but not limited to, any short-term leasing agreements or written occupancy agreements. S 2. Subdivision 1 of section 106 of the alcoholic beverage control law, as amended by chapter 48 of the laws of 1985, is amended to read as follows:
1. No retail license for on-premises consumption shall be granted for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, MANAGEMENT AGREEMENT OR FRANCHISE AGREEMENT, in writing, for a term not less than the license period except, however, that such license may thereafter be renewed without the requirement of a lease, MANAGEMENT AGREEMENT OR FRANCHISE AGREEMENT, as herein provided. This subdivision shall not apply to prem- ises leased from government agencies, as defined under subdivision [twelve-b] TWELVE-C of section three of this chapter; provided, however, that the appropriate administrator of such government agency provides some form of written documentation regarding the terms of occupancy under which the applicant is leasing said premises from the government agency for presentation to the state liquor authority at the time of the license application. Such documentation shall include the terms of occu- pancy between the applicant and the government agency, including, but not limited to, any short-term leasing agreements or written occupancy agreements. S 3. Paragraph f of subdivision 1 of section 110 of the alcoholic beverage control law, as amended by chapter 114 of the laws of 2000, is amended to read as follows: (f) A statement that the applicant has control of the premises to be licensed by ownership of a fee interest or VIA a leasehold, MANAGEMENT AGREEMENT, OR FRANCHISE AGREEMENT, with a term at least as long as the license for which the application is being made, or by a binding contract to acquire the same and a statement of identity under paragraph (a) of this subdivision for the lessor of any leasehold, MANAGER OF ANY MANAGEMENT AGREEMENT, OR FRANCHISE OF ANY FRANCHISE AGREEMENT, with a copy of the lease, contract, MANAGEMENT AGREEMENT, OR FRANCHISE AGREE- MENT, or deed evidencing fee ownership of the premises. S 4. Subdivision 3 of section 113 of the alcoholic beverage control law, as added by chapter 572 of the laws of 1996, is amended to read as follows: 3. For purposes of this section, "arm's length transaction" shall mean a sale of a fee [or] OF all undivided interests in real property, [or] lease [of], MANAGEMENT AGREEMENT, OR FRANCHISE AGREEMENT, OR any part thereof, in the open market, between an informed and willing buyer and seller where neither is under any compulsion to participate in the tran- saction, unaffected by any unusual conditions indicating a reasonable possibility that the sale was made for the purpose of permitting the original licensee to avoid the effect of the revocation. The following sales shall be presumed not to be arm's length transactions unless adequate documentation is provided demonstrating that the sale [or], lease, MANAGEMENT AGREEMENT, OR FRANCHISE AGREEMENT, was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of the revocation: (a) a sale between relatives; (b) a sale between related companies or partners in a business; or (c) a sale [or], lease, MANAGEMENT AGREEMENT, OR FRANCHISE AGREEMENT, affected by other facts or circumstances that would indicate that the sale [or], lease, MANAGEMENT AGREEMENT, OR FRANCHISE AGREEMENT, is [not] entered into for the primary purpose of permitting the original licensee to avoid the effect of the revocation. S 5. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided that the state liquor authority may promulgate rules necessary for the implementation of this act immediate- ly.

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