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

                                  4579

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- 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
  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

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

S. 4579                             2

OR (II) PROVIDE TO THE AUTHORITY AN AFFIDAVIT SETTING FORTH THE NAMES OF
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

S. 4579                             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.