Expands the types of agreements that can be used to show control of premises for a license

Summary of provisions

Section 1 of the bill would amend Alcoholic Beverage Control Law (ABCL) § 105(1) to add management agreements and other agreements giving the applicant control over the food and beverage service at the premises to the list of writings that will suffice to show ownership or control of an off-premises licensed premises.

Section 2 of the bill would amend ABCL § 106(1) to add management agreements and other agreements giving the applicant control over the food and beverage service at the premises to the list of writings that will suffice to show ownership or control of an on-premises licensed premises.

Section 3 of the bill would amend ABCL § 110(1)(f) to add managers of any management agreement or of any other agreements giving the applicant control over the food and beverage service at the premises to the list of individuals for which statements of identity are required during the licensing process.

Section 4 of the bill would amend ABCL § 113(3) to add management agreements and other agreements that give the applicant control over the food and beverage service at the premises to the list of items for which - upon revocation of a license - a transfer of any interest must take place via an arm's length transaction.

Section 5 of the bill states that it would take effect on the one hundred eightieth day after it shall have become law, provided that the State Liquor Authority may promulgate rules necessary for the implementation of this act immediately.

Existing law

The ABCL currently requires applicants and licensees to show ownership or control of any licensed premises via a deed or valid lease for at least the duration of the license period. There is currently no ability for an applicant or licensee to substitute a management agreement or other agreement giving the applicant control over the food and beverage service at the premises for said requirement.

Legislative history

This is a new bill.

Statement in support

This initiative will help modernize the ABCL and streamline the liquor licensing process by allowing management agencies and other applicants that have control over the food and beverage services at the premises to apply for liquor licenses without the need to provide the SLA with a document that would qualify as a deed or lease.

In many situations, the applicant operates the business pursuant to an agreement with the owner or lease holder of a facility, such as a sports arena, that does not meet the legal definition of a lease. While these agreements give complete control over food and beverage services to the applicant, the current law requires either the property owner or lease holder to be included as one of the licensees. The deed/lease requirement is, under current law, waived for facilities owned by a government entity.

This proposal would not in any way undermine the requirement that the applicant establish that it is in control of the operation of the licensed activities. Persons could not assume control over a licensed establishment pursuant to such an agreement without obtaining the approval of the SLA, as is the case with applicants who have a deed or lease.

Budget implications

This bill would have no impact on state finances.

Local impact

This bill would have no impact on local governments.