S T A T E O F N E W Y O R K
________________________________________________________________________
8318
2011-2012 Regular Sessions
I N A S S E M B L Y
June 13, 2011
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Introduced by M. of A. SCHIMMINGER -- (at request of the New York State
Liquor Authority) -- read once and referred to the Committee on
Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to
expanding the types of agreements that will suffice to show ownership
or control of a licensed premises
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 105 of the alcoholic beverage
control law, as amended by chapter 48 of the laws of 1985, is amended to
read as follows:
1. No retail license to sell liquors and/or wines for consumption off
the premises shall be granted for any premises, unless the applicant
shall be the owner thereof, or shall be in possession of said premises
under a lease, MANAGEMENT AGREEMENT OR OTHER AGREEMENT GIVING THE APPLI-
CANT CONTROL OVER THE FOOD AND BEVERAGE SERVICE AT THE PREMISES, in
writing, for a term not less than the license period except, however,
that such license may thereafter be renewed without the requirement of a
lease, MANAGEMENT AGREEMENT OR OTHER AGREEMENT GIVING THE APPLICANT
CONTROL OVER THE FOOD AND BEVERAGE SERVICE AT THE PREMISES, as herein
provided. This subdivision shall not apply to premises leased from
government agencies, as defined under subdivision [twelve-b] TWELVE-C of
section three of this chapter; provided, however, that the appropriate
administrator of such government agency provides some form of written
documentation regarding the terms of occupancy under which the applicant
is leasing said premises from the government agency for presentation to
the state liquor authority at the time of the license application. Such
documentation shall include the terms of occupancy between the applicant
and the government agency, including, but not limited to, any short-term
leasing agreements or written occupancy agreements.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09432-03-1
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S 2. Subdivision 1 of section 106 of the alcoholic beverage control
law, as amended by chapter 48 of the laws of 1985, is amended to read as
follows:
1. No retail license for on-premises consumption shall be granted for
any premises, unless the applicant shall be the owner thereof, or shall
be in possession of said premises under a lease, MANAGEMENT AGREEMENT OR
OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE
AT THE PREMISES, in writing, for a term not less than the license period
except, however, that such license may thereafter be renewed without the
requirement of a lease, MANAGEMENT AGREEMENT OR OTHER AGREEMENT GIVING
THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES, as
herein provided. This subdivision shall not apply to premises leased
from government agencies, as defined under subdivision [twelve-b]
TWELVE-C of section three of this chapter; provided, however, that the
appropriate administrator of such government agency provides some form
of written documentation regarding the terms of occupancy under which
the applicant is leasing said premises from the government agency for
presentation to the state liquor authority at the time of the license
application. Such documentation shall include the terms of occupancy
between the applicant and the government agency, including, but not
limited to, any short-term leasing agreements or written occupancy
agreements.
S 3. Paragraph (f) of subdivision 1 of section 110 of the alcoholic
beverage control law, as amended by chapter 114 of the laws of 2000, is
amended to read as follows:
(f) A statement that the applicant has control of the premises to be
licensed by ownership of a fee interest or VIA a leasehold, MANAGEMENT
AGREEMENT, OR OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE FOOD
AND BEVERAGE AT THE PREMISES, with a term at least as long as the
license for which the application is being made, or by a binding
contract to acquire the same and a statement of identity under paragraph
(a) of this subdivision for the lessor of any leasehold, MANAGER OF ANY
MANAGEMENT AGREEMENT, OR OTHER AGREEMENT GIVING THE APPLICANT CONTROL
OVER THE FOOD AND BEVERAGE AT THE PREMISES, with a copy of the lease,
contract, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT GIVING THE APPLICANT
CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES, OR deed evidencing
fee ownership of the premises.
S 4. Subdivision 3 of section 113 of the alcoholic beverage control
law, as added by chapter 572 of the laws of 1996, is amended to read as
follows:
3. For purposes of this section, "arm's length transaction" shall mean
a sale of a fee [or] OF all undivided interests in real property, [or]
lease [of], MANAGEMENT AGREEMENT, OR OTHER AGREEMENT GIVING THE APPLI-
CANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES, OR any part
thereof, in the open market, between an informed and willing buyer and
seller where neither is under any compulsion to participate in the tran-
saction, unaffected by any unusual conditions indicating a reasonable
possibility that the sale was made for the purpose of permitting the
original licensee to avoid the effect of the revocation. The following
sales shall be presumed not to be arm's length transactions unless
adequate documentation is provided demonstrating that the sale [or],
lease, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT GIVING THE APPLICANT
CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES, was not conducted,
in whole or in part, for the purpose of permitting the original licensee
to avoid the effect of the revocation:
(a) a sale between relatives;
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(b) a sale between related companies or partners in a business; or
(c) a sale [or], lease, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
affected by other facts or circumstances that would indicate that the
sale [or], lease, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT GIVING THE
APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES, is [not]
entered into for the primary purpose of permitting the original licensee
to avoid the effect of the revocation.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided that the state liquor authority may
promulgate rules necessary for the implementation of this act immediate-
ly.