Relates to revocation of a liquor license for cause

BILL NUMBER:S7378A

Title of bill

An act to amend the alcoholic beverage control law, in relation to the conditions precedent to revocation of a license for cause

Purpose

This bill would establish a clear legal standard for determining when a licensed premise has become a focal point for police attention and thereby subject to possible revocation of the license.

Summary of provisions

Section 1 of the bill would add a new subdivision 4 to Alcoholic Beverage Control (ABC) Law § 118 to create a rebuttable presumption that a licensed premises has become a focal point for police attention upon the occurrence of the sixth incident reported to the State Liquor Authority (SLA) of noise or disturbance on or about the licensed premises or relating to the conduct of its patrons in any 60 day period.

Section 2 of the bill would provide for an immediate effective date.

Existing law

ABC Law § 118(3) currently establishes that a "sustained and continuing pattern of noise, disturbance, misconduct, or disorder on or about the licensed premises, related to the operation of the premises or the conduct of its patrons" is sufficient cause for revocation of a liquor license. However, since there is no cognizable or measureable standard set forth in current law to calculate the existence of a focal point for police attention, numerous State Liquor Authority (SLA) determinations revoking licenses that clearly operate as focal points for police attention have been successfully attacked via Article 78 proceedings.

Legislative history

Similar departmental legislation was introduced in 2008 as S.7372/A.11163.

Statement in support

ABC Law § 118 provides that the SLA may revoke, cancel or suspend a liquor license due to a "sustained and continuing pattern of noise, disturbance, misconduct or disorder" - i.e., the premises have become a "focal point" of police attention. However, courts have held that a determination that a licensed premise has become a "focal point" for police attention can be upheld only by an affirmative showing by the SLA that either the licensee or an employee vested with "managerial authority" was actually aware of the individual events and conditions that make up the basis for the focal point charge.

This is known as the "managerial exception" to the general rule that licensees are responsible for operating safe and healthy establishments free of any pattern of noise, disturbance, misconduct or disorder that would threaten public well being. Therefore, a bar that has been the site of multiple misconduct by patrons cannot be found to be a focal point unless it can be shown that the licensee suffered or permitted the conduct. By establishing a rebuttable presumption that a licensed premise is operating as a focal point for police attention after six incidents reported by police within any 60 day period, this initiative will eliminate the frequently misused managerial exception rule - which forces the SLA to prove that someone with managerial capacity had knowledge of each and every instance of police involvement before it can be held against the licensee in administrative disciplinary proceedings.

Enactment of this legislation will establish a reasonable threshold and legal presumption that liquor licensees and their managers have a duty to be aware of police units repeatedly responding to their businesses regarding violence, narcotics trafficking, prostitution, gambling, or other public nuisances and will enable the SLA to resume the fight against the proliferation of licensed establishments in the State acting outside of the law while regularly putting public health and safety at risk.

Budget implications

None.

Effective date

This bill would be effective immediately.