BILL NUMBER: S2743

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to
authorizing the issuance of a temporary retail permit by the state
liquor authority to licensees located in a municipality having a popu-
lation of one million or more persons

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph (b) of subdivision 1 of section 97-a of the
alcoholic beverage control law, as added by chapter 396 of the laws of
2010, is amended by to read as follows: Paragraph (b) of subdivision 1
of section 97-a to the applicant for a new retail license where the
prospective licensed premises is located in a municipality with a popu-
lation of less than one million during the period that the application
is pending.

 
JUSTIFICATION:
              

Currently, New York State businesses located outside New York City may
sell alcoholic beverages with temporary licenses while the State Liquor
Authority (SLA) processes the business's permanent liquor license. Proc-
essing time for a final liquor license averages 6.5 months and often
takes longer for businesses located in New York City. A temporary
license takes on average 30 days to attain and allows businesses to
collect alcohol sales revenue prior to reception of a full license.

Unfortunately the SLA does not grant temporary licenses to businesses
located in New York City. This means, restaurants in New York City are
prohibited from selling alcohol during the months in which the liquor
license is processing, which harms the bottom line of restaurants in an
industry in which alcohol sales regularly account for 30% of revenue.

Given the current economic context, the hard-hit restaurant industry in
New York should be afforded the possibility of earning alcohol sales
revenue through temporary licenses, just like restaurants from every
other area in the state.

This legislation would give the State Liquor Authority (SLA) the author-
ity to permit a business to open with a Temporary License in New York
City while its application is going through the lengthy backlog at the
SLA, like they do for applicants elsewhere in the state. Once this
crisis is over, we will need to do whatever we can to help new busi-
nesses to open quickly and it is clear that they cannot afford to be
waiting months for a liquor license. That is the purpose of the Tempo-
rary license in the current law and this would simply create legal
consistency for New York City businesses with the rest of the state.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to paragraph (b) of subdivision 1 of section 97-a of the
alcoholic.