S T A T E   O F   N E W   Y O R K
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                                  7800

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 24, 2009
                               ___________

Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
  Committee on Economic Development, Job Creation, Commerce and Industry

AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
  temporary transfer retail permits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 97-a of the  alcoholic  beverage  control  law,  as
added by chapter 366 of the laws of 1991, paragraph (d) of subdivision 1
and  subdivision  2  as amended by section 20 of part Z of chapter 85 of
the laws of 2002, is amended to read as follows:
  S 97-a. Temporary TRANSFER retail permit. 1. The liquor  authority  is
hereby  authorized  to  issue  a temporary TRANSFER retail permit to the
transferee of a retail license to continue the  operation  of  a  retail
premises  during  the period a transfer application for the license from
person to person at the same  premises  is  pending  and  when  all  the
following conditions exist:
  (a) The premises shall have been operated under a retail license with-
in  thirty  days  of  the date of filing the application for a temporary
permit;
  (b) The retail license for said premises shall have  been  surrendered
into safekeeping pursuant to rules of the authority;
  (c)  The  applicant for the temporary TRANSFER permit shall have filed
with the authority an application for transfer of the retail license  at
such premises; [and]
  (d)  THE  HOLDER  OF THE RETAIL LICENSE SHALL HAVE EITHER (I) PAID ANY
OUTSTANDING DEBT FOR THE PURCHASE AND DELIVERY OF ALCOHOLIC BEVERAGES TO
WHOLESALERS SIMULTANEOUSLY WITH THE SURRENDER OF OR THE PLACEMENT OF THE
LICENSE IN SAFEKEEPING WITH THE AUTHORITY, WHICHEVER OCCURS  FIRST,  AND
MUST  PROVIDE  PROOF  OF SUCH PAYMENT TO THE AUTHORITY IN THE FORM OF AN
AFFIDAVIT SETTING FORTH THE NAMES OF THE WHOLESALERS AND THE  SUMS  PAID
OR (II) PROVIDE TO THE AUTHORITY AN AFFIDAVIT SETTING FORTH THE NAMES OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10150-02-9
              

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EACH  UNPAID WHOLESALER AND THE AMOUNTS OWED AND CERTIFYING THAT THE SUM
TOTAL OF THE AMOUNTS SO OWED SHALL BE PLACED IN ESCROW FOR PAYMENT  WITH
THE  TEMPORARY  PERMITEE'S  COUNSEL  OR  AGENT,  PENDING ISSUANCE OF THE
TEMPORARY  PERMIT,  WITH PAYMENT TO BE MADE WITHIN FIVE DAYS OF ISSUANCE
OF SUCH PERMIT; AND
  (E) The application for the temporary TRANSFER permit shall be  accom-
panied  by  a  nonrefundable  temporary permit filing fee of one hundred
twenty-eight dollars for all retail beer licenses; all  other  temporary
permit  applications shall be accompanied by a filing fee of six hundred
forty dollars.
  2. A temporary TRANSFER permit issued by  the  authority  pursuant  to
this  section  shall be for a period not to exceed ninety days. A tempo-
rary TRANSFER permit may be extended at the discretion of the authority,
for an additional thirty day period upon payment of an additional fee of
sixty-four dollars for all retail beer licenses and  ninety-six  dollars
for  all other temporary permits and upon compliance with all conditions
required herein. A temporary TRANSFER permit is a conditional permit and
authorizes the holder thereof to purchase and sell such alcoholic bever-
ages as would be permitted to be purchased and sold under the privileges
of the retail license for which transfer application has been filed;  to
sell  such alcoholic beverages to consumers only and not for resale; and
to purchase such alcoholic beverages only  by  payment  in  currency  or
check  for  such  alcoholic beverages on or before they are delivered to
the premises.
  3. Provided, however, that the holder of a temporary  TRANSFER  permit
who  also  holds one or more retail licenses and is operating under such
retail license or licenses in addition to the temporary permit, and  who
is  not  delinquent  under the provisions of section one hundred [one-a]
ONE-AA of this chapter as to any retail license under which he operates,
may purchase alcoholic beverages on credit under the temporary permit.
  4. Notwithstanding any other provision of law,  a  temporary  TRANSFER
permit  may  be  summarily  cancelled  or  suspended  at any time if the
authority determines that good cause for such cancellation or suspension
exists. The authority shall promptly notify the holder  of  a  temporary
TRANSFER  permit in writing of such cancellation or suspension and shall
set forth the reasons for such action. IF THE OUTSTANDING DEBTS ARE  NOT
PROPERLY  PAID  OR  PLACED IN ESCROW PURSUANT TO THE PROVISIONS OF PARA-
GRAPH (D) OF SUBDIVISION ONE OF THIS SECTION  THE  AUTHORITY  SHALL  NOT
ISSUE OR MAY SUMMARILY CANCEL OR SUSPEND A TEMPORARY TRANSFER PERMIT. IF
AFTER  ISSUANCE OF A TEMPORARY TRANSFER PERMIT IT IS DETERMINED THAT THE
FORMER LICENSE HOLDER HAS PROVIDED AN INCORRECT AFFIDAVIT, THE TEMPORARY
PERMITTEE SHALL SUPPLY TO THE AUTHORITY AN AFFIDAVIT SETTING  FORTH  THE
CORRECTED  LIST  OF WHOLESALERS WITH SUMS OWED AND SHALL REMIT SUCH SUMS
OR RECEIVE ANY OVERAGE PRIOR TO THE ISSUANCE OF  ANY  ADDITIONAL  EXTEN-
SIONS  TO  THE  TRANSFER  PERMIT  AND/OR  THE  ISSUANCE OF THE PERMANENT
LICENSE TO THE TEMPORARY LICENSEE.
  5. IN ANY INSTANCE IN WHICH  RETAIL  LICENSEE  UNDERGOES  A  CORPORATE
CHANGE  OR  THE  FILING  OF  AN ENDORSEMENT APPLICATION, WHICH CHANGE OR
ENDORSEMENT REFLECTS A CHANGE IN CONTROLLING INTEREST IN THE LICENSEE AS
EVIDENCED BY A CHANGE OF STOCK OWNERSHIP OR OTHERWISE, OR IN THE CASE OF
A TRANSFER APPLICATION WHERE THE PARTIES DO NOT  FILE  FOR  A  TEMPORARY
PERMIT  BUT  AWAIT THE ISSUANCE OF A PERMANENT LICENSE TO THE APPLICANT,
THE AUTHORITY SHALL NOT APPROVE SUCH APPLICATION OR ISSUE A  LICENSE  TO
THE  APPLICANT  UNLESS ALL OUTSTANDING DEBT TO WHOLESALERS HAS BEEN PAID
AS EVIDENCED BY AN  AFFIDAVIT  SETTING  FORTH  THE  CREDITOR  LIST  WITH

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AMOUNTS  PAID FROM THE LICENSEE, A COPY OF WHICH MUST BE PROVIDED AND TO
THE AUTHORITY AND THE AFFECTED WHOLESALERS WITH PROOF OF RECEIPT.
  6.  Application  for a temporary TRANSFER permit shall be on such form
as the authority shall prescribe.
  [6.] 7. Notwithstanding any  inconsistent  provision  of  law  to  the
contrary, the authority may promulgate such rules and regulations as may
be necessary to carry out the provisions of this section.
  S 2.  This act shall take effect immediately.