On August 31, 2022, the New York State Liquor Authority adopted a number of advisories that change licensing requirements. The intent of these changes is to remove requirements that are deemed unnecessary, and to help streamline the application process.  The advisories are all posted on the SLA website.  Some of the more significant changes are as follows:

1.  An applicant is no longer required to provide the SLA with a certificate of occupancy, temporary certificate of occupancy, letter of no objection, or place of assembly permit for the premises to be licensed. This change, however, does not affect the requirements of the municipality with respect to the need for certificates of occupancy or place of assembly permits.

2.  An applicant that is a corporation or limited liability company need only disclose those direct or indirect owners with an interest of 10% or more. Any owners, members, or investors with less than 10% do not have to be disclosed. This is a significant change. The prior rules required all owners and investors to be disclosed and complete personal questionnaire forms, regardless of their percentage ownership, if there were 10 or fewer owners. The 10% threshold only applied if there were more than 10 direct or indirect owners. Directors of a corporation do not have to be disclosed, and the only officers required to be included in the application are president, secretary, treasurer, and CEO if there is one.

3.  Applicants will no longer be required to provide copies of bank statements showing the source of funds.  The SLA does, however, reserve the right to request such documentation during the review process.

4.  The SLA will no longer scrutinize deeds or leases, other than confirming the name of the applicant, the premises, and whether there is a percentage rent provision.

5.  Outdoor space on private property must be a part of the application if it is to be licensed and must be contiguous to the indoor space. Municipal space is not to be included in the application as part of the licensed space. The applicant must, however, have a permit from the municipality to use that space. It does not have to be contiguous to the indoor space. Any licensee that has a condition on its license prohibiting the use of outdoor space may no add that space unless it has an application for a change in method of operation filed and approved.

6.  Importer Licensees are now permitted to use Marketing Permits.  Additional restrictions have been placed on the use of Marketing Permits in unlicensed spaces – upper tier entities may use Marketing Permits in unlicensed spaces (i) a maximum of times at a given unlicensed location per year, (ii) on no more than two consecutive days at any unlicensed location, and (iii) on no more than two consecutive weekends at any unlicensed location.

Please contact us if you have any questions regarding these important changes.

The New York City Bar Association is hosting a program, “Opening a Restaurant in New York City: Legal Issue Bootcamp,” on Thursday, June 1, 2022 from 9:00 am until 1:00 pm. Donald Bernstein of Bernstein Redo & Savitsky, P.C. will be one of four presenters/panelists, and will be speaking on the subject of New York liquor licenses. Other topics will include corporate formation, restaurant leases, and labor and employment issues affecting restaurants. The program is sponsored by the Hospitality Committee of the Bar Association.

Last week, New York State amended the Alcoholic Beverage Control Law to allow for cocktails to go. Under the new law, any retail licensee may sell any product it sells at retail for take-out or delivery. Liquor or wine to go must be accompanied by a “substantial food item.” The alcoholic beverage must be packaged in a container with a secure lid or cap sealed in a manner designed to prevent consumption without removal of the lid or cap by breaking the seal. Take out and delivery may only occur during the licensee’ permitted hours of operation. The price for the to go drink must be the same as if it was consumed on the premises. No bottles of wine or liquor may be sold to go. Delivery must be to a residential address and to a person 21 years of age or older as shown by legally acceptable ID. In furtherance of this new law, the New York State Liquor Authority issued a new Advisory effective today, “Guidance on Sale of Wine and Liquor to Go by On Premises Retail Licensees.” That Advisory defines what the new law means by “substantial food item,” which is “sandwiches, soups or other foods, whether fresh, processed, precooked or frozen.” Wings, salads and hot dogs are also sufficient. The Advisory states, however, that a bag of chips, bowl of nuts, or candy alone are not sufficient. The Advisory also warns that an “unreasonably small portion of soup, a serving of canned beans, a handful of lettuce, or charging a small extra fee for an alcoholic beverage in lieu of a food item not actually ordered or delivered will be treated as a violation of the law.” The Advisory also reiterated that bottles of liquor or wine remain prohibited. Obvious efforts to circumvent that law, such as transferring the contents of a bottle to the same or equivalent bottle will be treated as a violation of the law. The new statute also states that open carry laws are not changed. The SLA Advisory can be viewed here:

https://sla.ny.gov/system/files/documents/2022/04/advisory_2022-2_-_sale_of_wine_and_liquor_to-go_by_on_premises_retail_licensees.pdf

The New York State Liquor Authority adopted a proposed Advisory today that dispenses with the requirement to have a Certificate of Occupancy, or Temporary Certificate of Occupancy, in order for a new on premises liquor license to be issued. Previously, having a C of O or TCO, or in some cases, a Letter of No Objection issued by the Department of Buildings, was an absolute requirement to obtain a license. However, due to delays at the Buildings Department, the SLA adopted this new policy on a temporary basis. If a license is issued without the proper C of O, the SLA will require that the C of O be obtained prior to the first renewal of the license. This is an important development for new hotels and restaurants that are ready to open but delayed due to backlogs at the Department of Buildings.