Establishes local notification requirements for premises for on premises consumption.
Ayes (61): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (1): Diaz
TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to notification requirements for applicants for licenses and licensees; and to repeal certain provisions of such law relating to local notification requirements for licensed premises
PURPOSE: This bill would amend the provisions of the Alcoholic Beverage Control Law with respect to municipal notification requirements for licensees seeking to renew most on-premises retail licenses or to make alterations to their licensed premises outside the City of New York, as well as impose a notification requirement with respect to certain corporate changes in the City of New York. The proposed amendments would: remove the notification requirements for on-premises locations outside the City of New York; require on-premises licensees located in the City of New York to notify the appropriate community board of their intent to obtain the Authority's approval of substantial corporate changes; consolidate the remaining municipal notification requirements into one section of the Alcoholic Beverage Control Law and move that section so that it can be found with other related sections of the law.
The bill would also abolish a distinction in the fee paid by licensees for corporate change applications.
SUMMARY OF PROVISIONS: Section 1 of the bill would renumber (as section 110-b) and amend section 17-a of the Alcoholic Beverage Control Law. The amendments to this subdivision would: a) Consolidate the municipal notification requirements that are now found in various sections of the Alcoholic Beverage Control Law; b) Limit to locations in the City of New York, the municipal notification requirements pertaining to licensees seeking to renew on-premises retail licenses, or make alterations to such licensed premises; c) Expand on the information that is required to be included in the notice for application sent to the municipality; d) Add certain on-premises license classes that were inadvertently excluded, to those license class subject to the municipal notification requirement; e) require on-premises licensees in the City of New York to provide community board notification prior to filing an application seeking approval of a "substantial corporate change," which is defined as the transfer or accumulation of ownership interest of 80% or more.
Section 2 of the bill would repeal the municipal notification requirement now found in section 55 of the Alcoholic Beverage Control Law.
Section 3 of the bill would repeal the municipal notification requirement now found in section 64 of the Alcoholic Beverage Control Law.
Section 4 of the bill would repeal the municipal notification requirement now found in section 64-c of the Alcoholic Beverage Control Law.
Section 5 of the bill would repeal the municipal notification requirement now found in section 64-d of the Alcoholic Beverage Control Law.
Section 6 of the bill would repeal the municipal notification requirement now found in section 81 of the Alcoholic Beverage Control Law.
Section 7 of the bill would amend subdivision 2 of section 99-d of the Alcoholic Beverage Control Law to eliminate a difference in the filing fee for a corporate change application based on the license fee and also clarify that, notwithstanding a corporate change, the licensed corporation is still bound by the representations made in the original application.
Section 8 of the bill would repeal the municipal notification requirement now found in section 109 of the Alcoholic Beverage Control Law.
Section 9 of the bill would renumber subdivision 1-a of section 109 of the Alcoholic Beverage Control Law as subdivision 2 in response to the repeal to the current subdivision 2, as provided in section 7 of this bill.
Section 10 of this bill would make the amendments effective immediately.
EXISTING LAW: Current provisions of the Alcoholic Beverage Control Law require applicants for most on-premises licenses to notify the municipality where the premises are located of the applicant's intent to file an application with the Authority. Persons holding such on-premises licenses are required to provide similar notice prior to filing an application to renew the license or make alterations to the license premises.
Corporations holding such licenses may obtain approval to make changes to their corporate structure without notifying the municipality. These changes sometimes consist of an entire turnover of officers, directors and/or shareholders.
JUSTIFICATION: The changes proposed in this bill will accomplish five goals. First, the bill would eliminate a burden on licensees located outside the City of New York. The amendments would eliminate paperwork and the thirty-day waiting period now required before renewal applications or alteration applications can be submitted to the Authority. (Notice requirements pertaining to initial license applications would be unaffected.) Since municipalities other than the City of New York rarely submit objections to renewals, the notification requirements serve little, if any purpose for them.
Second, the bill would eliminate a burden on municipalities. Under current law, renewal and alteration applications cannot be filed with
the Authority unless the municipality has been notified thirty days in advance. Many applicants seek to have the municipality waive the time period. As a result, municipalities that would otherwise not object, or take no position with respect to an application, are asked nonetheless to allocate resources to respond to such waiver requests.
Third, this bill would correct drafting errors that have omitted certain on-premises license classes from the notification requirement. Given the various provisions of the Alcoholic Beverage Control Law, it appears that these omissions were inadvertent and the Authority has been requiring those license classes to comply with the notification requirement.
Fourth, this bill would prevent previously unlicensed parties from obtaining a license in the City of New York, without any notification to community boards, by making changes to the existing corporate structure.
Fifth, this bill would remove any doubt that a licensed corporation, regardless of any change in ownership, is bound by the representations made by the corporation when it applied for its license. New ownership cannot use the approval of a corporate change as a means to modified conditions placed on the operation of a licensed premises.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: None. However, decreased paperwork submitted by applicants will decrease the resources required by the Authority to process applications
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4161 2011-2012 Regular Sessions IN SENATE March 21, 2011 ___________Introduced by Sens. LITTLE, KRUEGER, LARKIN, MAZIARZ, NOZZOLIO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the alcoholic beverage control law, in relation to notification requirements for applicants for licenses and licensees; and to repeal certain provisions of such law relating to local notifi- cation requirements for licensed premises THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 17-a of the alcoholic beverage control law, as added by chapter 101 of the laws of 2008, is amended to read as follows: S
[17-a]110-B. Notification TO MUNICIPALITIES. [The notification required upon receipt of]1. NOT LESS THAN THIRTY DAYS BEFORE FILING ANY OF THE FOLLOWING APPLICATIONS, AN APPLICANT SHALL NOTIFY THE MUNICI- PALITY IN WHICH THE PREMISES IS LOCATED OF SUCH APPLICANT'S INTENT TO FILE SUCH an application: (A) for a license ISSUED pursuant to [sections fifty-four, fifty-four-a,]SECTION fifty-five, [sixty-three]FIFTY-FIVE-A, sixty- four, sixty-four-a, sixty-four-b, sixty-four-c, SIXTY-FOUR-D, eighty-one [and]OR eighty-one-a [or]OF THIS CHAPTER; (B) for a renewal under section one hundred nine of this chapter OF A LICENSE ISSUED PURSUANT TO SECTION FIFTY-FIVE, FIFTY-FIVE-A, SIXTY-FOUR, SIXTY-FOUR-A, SIXTY-FOUR-C, SIXTY-FOUR-D, EIGHTY-ONE OR EIGHTY-ONE-A OF THIS CHAPTER IF THE PREMISES IS LOCATED WITHIN THE CITY OF NEW YORK; (C) FOR APPROVAL OF AN ALTERATION UNDER SECTION NINETY-NINE-D OF THIS CHAPTER IF THE PREMISES IS LOCATED WITHIN THE CITY OF NEW YORK AND LICENSED PURSUANT TO SECTION FIFTY-FIVE, FIFTY-FIVE-A, SIXTY-FOUR, SIXTY-FOUR-A, SIXTY-FOUR-C, SIXTY-FOUR-D, EIGHTY-ONE OR EIGHTY-ONE-A OF THIS CHAPTER; OR (D) FOR APPROVAL OF A SUBSTANTIAL CORPORATE CHANGE UNDER SECTION NINE- TY-NINE-D OF THIS CHAPTER IF THE PREMISES IS LOCATED WITHIN THE CITY OFEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08865-03-1 S. 4161 2
NEW YORK AND LICENSED PURSUANT TO SECTION FIFTY-FIVE, FIFTY-FIVE-A, SIXTY-FOUR, SIXTY-FOUR-A, SIXTY-FOUR-C, SIXTY-FOUR-D, EIGHTY-ONE OR EIGHTY-ONE-A OF THIS CHAPTER. 2. SUCH NOTIFICATION SHALL BE MADE TO THE CLERK OF THE VILLAGE, TOWN OR CITY, AS THE CASE MAY BE, WHEREIN THE PREMISES IS LOCATED. FOR PURPOSES OF THIS SECTION: (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE PREMISES IS LOCATED WITHIN THE BOUNDARIES OF THE VILLAGE; AND (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED PURSUANT TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS- DICTION OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID- ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN. 3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE" SHALL MEAN: (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI- CERS AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT OR MORE OF THE STOCK OF SUCH CORPORATION; AND (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE OF EIGHTY PERCENT OR MORE OF THE MANAGING MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY, OR AN EXISTING MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP INTEREST IN SAID COMPANY. 4. SUCH NOTIFICATION shall be made in such form as shall be prescribed by the rules of the liquor authority. 5. A MUNICIPALITY MAY EXPRESS AN OPINION FOR OR AGAINST THE GRANTING OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED PART OF THE RECORD UPON WHICH THE LIQUOR AUTHORITY MAKES ITS DETERMINATION TO GRANT OR DENY THE APPLICATION. 6. SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD. 7. The liquor authority shall require such notification to be on a standardized form that can be obtained on the internet or from the liquor authority and such notification to include:
[1.](A) the [full]TRADE name OR "DOING BUSINESS AS" NAME, IF ANY, of the establishment; [2.](B) the full name of the [owner and/or]applicant; [3.](C) the STREET address of the establishment, including the floor location or room number, if applicable; [4.](D) THE MAILING ADDRESS OF THE ESTABLISHMENT, IF DIFFERENT THAN THE STREET ADDRESS; (e) the name, address and telephone number of the attorney OR REPRE- SENTATIVE of the applicant, IF ANY; [5.](F) a [line]STATEMENT indicating whether [it]THE APPLICATION is FOR: (I) a new establishment [or]; (II) a transfer OF AN EXISTING LICENSED BUSINESS; [6.](III) A RENEWAL OF AN EXISTING LICENSE; OR (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES; (G) if the establishment is a transfer OR PREVIOUSLY LICENSED PREMISES, the name of the old establishment and such establishment's [previous]license SERIAL number; [7. if the establishment is a licensed facility](H) IN THE CASE OF A RENEWAL OR ALTERATION APPLICATION, the license SERIAL number of [such establishment]THE APPLICANT; andS. 4161 3
[8.](I) the type of license. S 2. Subdivision 2-a of section 55 of the alcoholic beverage control law is REPEALED. S 3. Subdivision 2-a of section 64 of the alcoholic beverage control law is REPEALED. S 4. Subdivision 3 of section 64-c of the alcoholic beverage control law is REPEALED. S 5. Subdivision 3 of section 64-d of the alcoholic beverage control law is REPEALED. S 6. Subdivision 1-a of section 81 of the alcoholic beverage control law is REPEALED. S 7. Subdivision 2 of section 99-d of the alcoholic beverage control law, as amended by chapter 259 of the laws of 1997, the opening para- graph as amended by section 24 of part Z of chapter 85 of the laws of 2002, is amended to read as follows: 2. Before any change in the members of a limited liability company or the transfer or assignment of a membership interest in a limited liabil- ity company or any corporate change in stockholders, stockholdings, alcoholic beverage officers, officers or directors, except officers and directors of a premises licensed as a club or a luncheon club under this chapter can be effectuated for the purposes of this chapter, there shall be filed with the liquor authority an application for permission to make such change and there shall be paid to the liquor authority in advance upon filing of the application a fee of one hundred twenty-eight dollars [where the license fee is five hundred dollars or more and thirteen dollars in all other instances including changes relating solely to officers and directors of corporations and the alcoholic beverage offi- cer of a club or luncheon club]. (A) The [foregoing]provisions of this section shall not be applicable where there are ten or more stockholders and such change involves less than ten per centum of the stock of the corporation and the stock hold- ings of any stockholder are not increased thereby to ten per centum or more of the stock. (B) Where the same corporation operates two or more premises separate- ly licensed under this chapter a separate corporate change shall be filed for each such licensed premises, except as otherwise provided for by rule of the liquor authority. The corporate change fee provided for herein shall not be applicable to more than one license held by the same corporation. (C) NOTWITHSTANDING ANY CORPORATE CHANGE APPROVED BY THE AUTHORITY, A LICENSED CORPORATION OR LIMITED LIABILITY COMPANY SHALL BE BOUND BY THE REPRESENTATIONS SET FORTH IN THE ORIGINAL APPLICATION AND ANY AMENDMENTS THERETO APPROVED BY THE AUTHORITY. S 8. Subdivision 2 of section 109 of the alcoholic beverage control law is REPEALED and subdivision 1-a is renumbered subdivision 2. S 9. This act shall take effect immediately.