senate Bill S4161

Signed by Governor

Establishes local notification requirements for premises for on premises consumption; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 21 / Mar / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / Jun / 2011
    • 1ST REPORT CAL.940
  • 06 / Jun / 2011
    • 2ND REPORT CAL.
  • 07 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 13 / Jun / 2011
    • PASSED SENATE
  • 13 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2011
    • REFERRED TO CODES
  • 15 / Jun / 2011
    • SUBSTITUTED FOR A6732
  • 15 / Jun / 2011
    • ORDERED TO THIRD READING RULES CAL.224
  • 15 / Jun / 2011
    • PASSED ASSEMBLY
  • 15 / Jun / 2011
    • RETURNED TO SENATE
  • 12 / Sep / 2011
    • DELIVERED TO GOVERNOR
  • 23 / Sep / 2011
    • SIGNED CHAP.560

Summary

Establishes local notification requirements for premises for on premises consumption.

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Bill Details

See Assembly Version of this Bill:
A6732
Versions:
S4161
Legislative Cycle:
2011-2012
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §§17-a & 99-d, rpld §55 sub 2-a, §64 sub 2-a, §64-c sub 3, §64-d sub 3, §81 sub 1-a, §109 sub 2, ABC L

Sponsor Memo

BILL NUMBER:S4161

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4161

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             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  OF

 EXPLANATION--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; and

S. 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.

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