MUNICIPAL NOTIFICATION CHANGES ‐ Effective immediately there are major changes in the 30 day advance municipal notification requirements. Some changes affect the entire state, others affect licensees in New York City and still others affect licensees outside of the five boroughs of New York City. Here is a breakdown of the changes:

STATEWIDE: Municipal notification for original on‐premises applications remains in place statewide;
All licensees must now pay the same $128.00 corporate change fee. 

OUTSIDE OF NEW YORK CITY: All alteration and license renewal notification requirements for licensees are eliminated outside of the City of New York.

NEW YORK CITY:  Substantial corporate changes (80% ownership interest or more) will now require 30 days prior notification to Community Boards for New York City licensees.  Alteration and license renewal notification requirements remain in place for New York City licensees with the exception of off‐premises licensees who will no longer need to notify Community Boards of alterations.

In anticipation of their upcoming IPO, Groupon requested a declaratory judgment from the New York State Liquor Authority (NYSLA) regarding whether there was any violation involved with having Groupon offer 50% off of alcoholic beverages at various establishments in New York.

After much deliberation, the NYSLA ruled that the 50% off offer was perfectly legal. The NYSLA stated that since customers received no more than 50% off of the retailers’ drink prices, it did not constitute a violation of the “unlimited drinks offering” prohibition.

Formerly, a convicted felon could not be employed in a New York State Liquor Authority licensed premise with first obtaining a Certificate of Relief from Disabilities.  Obtaining that Certificate was often a difficult, expensive and time intensive task.  In 2010, the New York State Liquor Authority eased the restriction as follows:  
 

a. Anyone who is convicted of a felony or convicted of:
i. Illegally using, carrying or possessing a pistol or other dangerous weapon;
ii. Making or possessing burglar’s instruments;
iii. Buying or receiving or criminally possessing stolen property;
iv. Unlawful entry of a building;
v. Aiding escape from prison;
vi. Unlawfully possessing or distributing habit forming narcotic drugs;
vii. Jostling (Penal Law §165.25), fraudulent accosting (Penal Law §165.30) or
loitering (Penal Law §240.35);
viii. Vagrancy or prostitution; or
ix. Ownership, operation, possession, custody or control of a still.
b. May work in any of the following licensed premises:

i. Catering establishments (CT);
ii. Hotel (HL);
iii. Restaurant (see “restaurant” definition in §3 of the NY ABC Law);
iv. Club (CL); or
v. Recreational Facility (theatre; concert hall; opera house; bowling establishment;
excursion and sightseeing vessel; facilities for golf, tennis, swimming, skiing or
boating; or accommodation of athletic events, sporting events, expositions and
other similar events or occasions requiring the accommodation of large
gatherings of persons),

c. May not work in the following licensed premises, unless such individual has received and executive pardon removing any civil disabilities, a certificate of good conduct, other relief from disabilities or upon the written approval of the New York State Liquor Authority:
i. Nightclub (OP), if not a “Restaurant”;
ii. Tavern (TL, TW);
iii. Cabaret (CR); or
iv. Bar (OP), if not a “Restaurant”.

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 new 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.

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.