S515-2013 Actions

• Jan 9, 2013: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

S515-2013 Memo

BILL NUMBER:S515

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.

S515-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          515
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced by Sen. ESPAILLAT -- 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.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01951-01-3

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