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Changes Proposed To State Liquor Laws

By John Whittaker 6 min read

A state commission has recommended allowing more hours for liquor sales statewide and additional hours for bars on New Year's Eve.

Sen. James Skoufis, D-Newburgh, has introduced S.6785, legislation he says makes major revisions to the state's alcoholic beverage control laws. Skoufis' bill comes after several months of meetings and a final report by the Commission To Study Reform of the Alcoholic Beverage Control Law, a group created when the state approved the 2022-23 state budget.

The legislation has been referred to the Senate Investigations and Government Operations and Commerce, Economic Development and Small Business committees. It doesn't have any co-sponsors or companion legislation in the state Assembly yet.

"This legislation embodies the recommendations of the Commission issued as part of its May 2023 final report and represents much-needed changes for a major and multi-pronged industry in New York to survive and thrive in the 21st century," Skoufis wrote in his legislative justification.

Among the bill's proposed changes are

¯ An expansion of the hours during which liquor and wine stores may be open on Sunday to 10 a.m. to 10 p.m.

¯ Permits beer to be sold for off-premise consumption between the hours of 3 and 8 a.m. on Sundays.

¯ Allows restaurants and bars to apply for a special permit to stay open on January 1 between 4 and 8 a.m.

¯ Allows on-premises retail licensees like bars and restaurants to buy and resell up to 12 bottles of wine and liquor per week from off-premises retailers.

¯ Expands off-premises retail sales to include promotional items, as well as any other items reasonably related to the storage, preparation, service, or consumption of alcoholic beverages. It also allows wholesalers to transport and sell those products.

¯ Allows a holder of an off-premises retail license to be granted one additional license to sell liquor/wine at retail for off-premises consumption.

¯ Limits the application of New York's tied-house provisions to New York licensees.

¯ Changes the "public convenience and advantage" standard with respect to issuing new retail licenses to sell liquor/wine for off-premises consumption to a new "good cause for disapproval" standard.

¯ Adjusts various fees for licensure for state manufacturers, wholesalers and retailers.

¯ Speeds up the state Liquor Authority municipal notification process to allow license applicants to notify a municipality that they are applying for a liquor license up to the same day they submit their application with the state Liquor Authority and prohibits the Liquor Authority from acting to approve an application within the first 30 days after it has been submitted. Currently, applicants for an SLA license must notify a municipality of their intent to apply no earlier than 270 days before and no later than 30 days before. This change would allow for notification no earlier than 270 days prior and removes the 30-day minimum prior language, and requires proof of notification to the municipality to be submitted with the license application.

¯ Expedites review of corporate changes to deem any changes in corporate structure for LLCs or clubs automatically approved if the SLA has not acted on them in 90 days, unless the changes would violate tied-house restrictions or restrictions on certain individuals having an interest in an SLA license or taking part in an SLA licensed business. LLCs and clubs with SLA licenses must apply for permission to the SLA to make changes in their corporate structure or administrative staff.

¯ Allows for the issuance of temporary retail permits, permanently extending the Liquor Authority's authority to issue temporary retail permits, allow businesses to apply for a permit for locations that have not had an active licensed retailer in the prior two years, give permit holders the ability to purchase alcohol for sale on credit, and allow permits to be extended for 90 days. This proposal removes the need for there to have been an active retailers within the previous two years and maintins the ban on issuing a permit if a location had a license previously suspended, canceled, or revoked in the two years prior. It also lengthens the 30-day extension period to 90 days with the payment of a fee.

¯ Allows for the issuance of temporary wholesaler permits, granting the SLA the authority to issue such permits to those applicants whose applications are under review by the SLA in order to allow them to start doing business faster. Such permit may be granted once an applicant shows the have a pending application for the same location and have paid all necessary fees, that they would be likely to receive the license, and they have obtained all necessary permits and licenses to operate a business at the location. Provides that any current SLA license at the location that is prohibited from operating concurrently with a wholesale business must have been surrendered, placed in safe-keeping, or has been deemed abandoned by the SLA. Application fee would be $125 and the SLA would have to process an application in 45 days. The permit would remain in effect until the application is approved or rejected.

¯ Modifies the 200 foot rule that prevents the issuance of a retail license for on-premises consumption when the premises is on the same street and within 200 feet of a school or place of worship. This proposal would eliminate from consideration any houses of worship that have occupied its premises for less than five years prior to the date an application for a retail license is made.

¯ Repeals the 500 foot rule that prevents the issuance of a retail license for on-premises consumption when the premises is within 500 feet of three or more licensed and existing premises.

"New York's nearly 100-year-old alcohol laws are amongst the strictest and most antiquated in the country," Skoufis wrote in his legislative justification. "Therefore, the 21-member Commission to Study Reform of the Alcoholic Beverage Control Law was established through the FY 2023 State Budget in order to make, recommendations leading to modernization and simplification of these laws. The commission addressed issues including but not limited to the alcohol industry's state economic impact, changes in laws and resources to speed up license application processing, and general reform proposals as voted on by stakeholders."

Starting at /week.