S T A T E O F N E W Y O R K
________________________________________________________________________
7800
2009-2010 Regular Sessions
I N A S S E M B L Y
April 24, 2009
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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
A. 7800 2
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
A. 7800 3
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.