Previously, the ABC Law required most license applicants and renewal applicants file notifications via certified mail with their local community boards a minimum of 30 days in advance of filings with the New York State Liquor Authority. Effective January 11, 2011, the types of notice that are considered legally sufficient to satisfy these notice requirements have expanded as follows: overnight delivery or personal service is added to the list of options available for new or renewal applicants for on-premises beer licenses, full on-premises liquor licenses, restaurant-brewer licenses, cabaret licenses, and on-premises wine licenses. In addition, overnight delivery is added to the list of options available for alteration applications [ABCL §99-d(1)].

On November 17, 2010, the Executive Committee of the New York State Liquor Authority authorized the issuance of a new permit to liquor license applicants. Specifically, the New York State Liquor Authority may now issue a 20 Day Temporary Letter allowing the applicant to serve for 20 days provided that they are only missing the following from their liquor license application:
1) Certificate of Authority;
2) Workers Compensation or Disability Insurance;
3) Newspaper Affidavit;
4) Photos showing that the applicant is ready to open; and/or
5) Surrender of the current license in effect for the premise, if any.

Presently, this new 20 Day permit policy will remain in effect until February 17, 2011 at which point it will be revisited by the Authority.

The following list, while not all inclusive, will help to familiarize you with the most common violations of the NY ABC Law:
1. Sale to Minor (under 21 years old) – Section 65.1. (It is important to note that the Members of the Authority have directed that any sale to a person under 16 can result in revocation of the license, even
for a first offense.)
2. Sale to Intoxicated Person – Section 65.2.
3. Prohibited Hours of Sale – Sections 105.(a), 105.14 and 106.5.
4. Prohibited Hours of Consumption – Section 106.5.
5. Employment of a Minor – Section 100.2(a) – Bartenders, waitresses, waiters, hostesses and/or any persons who handle and receive payment for alcoholic beverages must be at least 18 years old. Bus persons and dishwashers who handle containers which have held alcoholic beverages must be at least 16 years old and must be directly supervised by someone at least 21 years old. Clerks and cashiers in liquor and/or wine stores or drug stores must be at least 18 years old. Clerks and cashiers who handle and receive payment for alcoholic beverages in grocery stores and convenience stores must be at least 16 years old and must be supervised by someone at least 18 years old.
6. Disorderly Premises (includes Gambling at on premises establishments, Lewd and Indecent conduct, Excessive Noise, Assaults, Narcotics at on premises establishments, Prostitution) – Section 106.6.
7. Gambling at establishments.
8. Narcotics at establishments.
9. Operating outside of your approved method of operation (e.g., operating as a Bar even though your application stated your use was going to be a Restaurant or use of security guards despite stating otherwise on your application, etc.).
10. Alteration of a licensed premise without approval of the Liquor Authority.
11. Minors in Licensed Establishment (According to Section 260.21 of the Penal Law, persons under the age of 16 must be accompanied by a parent or guardian to enter an on premises establishment).

The law (S.6231C) which took effect in October 2010, creates a new program within the New York State Liquor Authority whereby an applicant for a liquor license can receive a temporary permit while waiting for their liquor license application to be processed. Prior to this law, an applicant could only receive a temporary permit if they are purchasing a business which already has a liquor license. The new temporary permit program will be a one year pilot program and should allow applicants to serve alcohol via the temporary permit within just weeks of applying.

The bad news . . .this new program currently applies only to applicants located OUTSIDE of New York City.

This article is written as a follow up to my article regarding the New York State Liquor Authority Self Certification Process: http://www.restaurantlawyerblog.com/2010/01/04/liquor-licenses-granted-in-under-one-month/

In short, the process works great.  We’ve gotten conditional letters of approval for our self-certified liquor license applications within just one week from the date that we filed the applications! This allowed my clients to serve booze within just a couple of weeks of the date that I filed their application. . . a process that used to take 5 months or more.  Kudos to the New York State Liquor Authority on this self certification program.

Generally, no more than three on-premise liquor licenses are permitted within 500 feet of each other. This is commonly known as the 500 Foot Rule. However, there is an exception to this Rule known as the Public Interest Exception.

If the location is subject to the 500 foot rule, and no grandfathering or other exception applies, the license cannot be issued unless the State Liquor Authority makes an affirmative finding that it is in the public interest to issue the license. This clearly creates a presumption that the license should not be issued. The 500 foot rule requires that the Authority consult with the municipality or community board and conduct a hearing to gather facts to determine whether the public interest would be served by issuing the license. This is commonly referred to as the 500 Foot Hearing.

GENERAL RULE: No more than three on premise liquor licenses will be granted within 500 feet of each other unless the public interest exception applies.

When considering whether it would be in the public interest to approve the application, the Authority may consider the following:
– the number, classes and character of other licensed premises not only in the area where the proposed establishment will be located but also in the particular municipality (or subdivision of the municipality);
– whether the applicant has obtained all other necessary governmental licenses and permits;
– the effect on vehicular traffic and parking in proximity to the location;
– the impact on the existing noise level;
– the history of ABC violations and reported criminal activity at the location; and
– any other factor specified by law or regulation that would be relevant to deciding whether public convenience and advantage, as well as the public interest, would be served by approving the application.

The hearing required by the 500 foot rule is conducted before designated staff in the Authority’s four offices. The Members of the Authority have delegated to specific licensing staff the ability to approve applications when, after the hearing is conducted, there is no community opposition and no other reason for disapproval. In cases where the application is opposed by the community, the matter is referred to the Members of the Authority for determination. However, the fact that the community opposes an application does not mean that the Authority must disapprove the application. Conversely, an application may be disapproved even if the community supports it.

It is a crime to sell, deliver or give away an alcoholic beverage to a person(s) less than 21 years of age in a licensed establishment. You should instruct your employees to check for proof of age before delivering an alcoholic beverage. In surveys, many underage purchasers say they were not asked for proof of age. Licensees are responsible for indirect deliveries of alcoholic beverages to underage person on or about the licensed establishment. Precautionary measures should be implemented to insure that underage persons are not obtaining alcoholic beverages through a third party. If you suspect that an alcoholic beverage is being purchased for an underage person, refuse the sale.

Acceptable forms of Identification include:

1) A valid driver’s license or non-driver identification card issued by the commissioner of motor vehicles, the federal government, any United States territory, commonwealth or possession, the District of Columbia, a state government within the United States or a provincial government of the dominion of Canada.
2) A valid passport issued by the United States government or any other country.
3) An identification card issued by the armed forces of the United States.

BE CAREFUL: Birth Certificates, college IDs or Sheriffs IDs are not acceptable proof of age.

Tips for checking valid ID documents:
Check for tampered or fake documents.
Check the date of birth on the ID.
Check information and photo on the document and compare data to the person presenting the ID.
Check the lamination for unclear edges.
Check for bumps or uneven surfaces on document.
Check for erased ink or alteration marks around the date of birth.
If NYS license, check security laminate for continuous state seal.
Ask for a second form of ID.

On September 14, 2009, the NY State Liquor Authority implemented a program where attorneys can Self-Certify applications that they file on behalf of their clients. The Self Certification Program has been implemented to allow for the quick review of applications that are certified by an attorney to be true and accurate and comply with all statutory requirements. Only applications filed by Attorneys qualify for this program and the NYSLA is stating that applications filed pursuant to this program can be turned around in one month or less!  In order to qualify for the program:
1) ALL questions must be answered and have the correct response. If a question is not applicable to a specific application, n/a must be checked and the reason it is not applicable must be given. Use additional sheets to explain if necessary;
2) The application must not require Full Board determination (i.e. 500 case with objections, new package store applications, percentage rent over 15%);
3) No one other than the applicant holds a security interest in the business;
4) Both the applicant and the attorney must sign the certification. If a partnership, all partners must sign.
This program will be in effect for a six (6) month period beginning September 14, 2009. Applications will be audited to determine if the program should remain in place.
Attorneys participating in the program must submit a monthly report (by the 10th of each month) listing the serial numbers of the applications they have filed under this program.

To access the Laws of New York please click on the following link and select ABC from the menu.

Consolidated Laws

Article 1 – Short Title; definitions. (Sections 1-3)

Article 2 – Liquor Authority. (Sections 10-19)

Article 4 – Special Provisions relating to Beer. (Sections 50-57-a)

Article 4-A – Special Provisions relating to cider. (Sections 58-59)

Article 5 – Special Provisions relating to liquor. (Sections 60-67)

Article 6 – Special Provisions relating to wine. (Sections 75-85)

Article 7 – Special permits. (Sections 90-99-g)

Article 8 – General provisions. (Sections 100-130)

Article 9 – Local option. (Sections. 140-147)

Article 10 – Special provisions. (Sections 150-155)

Article 11 – Miscellaneous provisions.  (Sections 160-164)