Relates to branch offices of licensed manufacturers

Section 2 of the bill would amend ABCL § 11 to make technical corrections to reflect that the two Commissioners of the Authority are compensated on a per diem basis.

Section 3 of the bill would amend ABCL § 14 to allow the Governor, in the event of the death, resignation, removal or disability of the Chairman of the Authority, to appoint from among the Commissioners in office an acting Chairman to serve until the appointment and qualification of a new Chairman. The amendment would also clarify that a majority of the Members in office constitute a quorum for doing business.

Section 4 of the bill would amend Executive Law § 270 by distinguishing between the Chairman of the Authority and the two Commissioners, all of whom collectively make up the State Liquor Authority.

Section 5 of the bill would amend Executive Law § 271 to make technical corrections to reflect that the two Commissioners of the Authority are compensated on a per diem basis.

Section 6 of the bill would amend Executive Law § 273 to allow the Governor, in the event of the death, resignation, removal or disability of the Chairman of the Authority, to appoint from among the Commissioners in office an acting Chairman to serve until the appointment and qualification of a new Chairman. The amendment would also clarify that a majority of the Members in office constitute a quorum for doing business.

Section 7 of the bill would provide that it shall take effect immediately after it shall have become law.

Justification

Currently the ABCL provides no means for the appointment of an acting Chairman of the Authority in the event of the death, resignation, removal or disability of the current Chairman. The ABCL is also not clear as to whether a majority of the Members of the Authority actually in office, or a majority of the statutorily provided number of Members constitutes a quorum for doing business.

Chapter 118 of the Laws of 2012 amended various provisions of the ABCL to vest sole administrative power over the State Liquor Authority with the Chairman of the Authority. Those changes were effective until 2015 but were further extended until 2018 via Chapter 78 of the Laws of 2015. Prior to these changes, administrative power (including the ability to hire and fire staff) was vested with the Members of the Authority (also known as "the Full Board") acting collectively. Any action by the Full Board can only take place at a public meeting with a majority of the Members present. In 2011, the two Commissioners of the Authority, who had been serving on a full time basis, became per diem appointments.

Since the Chairman now has sole administrative power, a vacancy in that position can result in no person having administrative control over the Authority. An example of such a situation took place this year, upon the resignation of the then-Chairman. This bill would allow the Governor to appoint, from among the Commissioners who have already been confirmed by the Senate, an acting Chairman to serve until the appointment and qualification of a replacement.

This bill would also clarify that a quorum of the Members actually in office, rather than a majority of the members provided for by statute, constitutes a quorum for the purposes of the Full Board doing business (acting on applications, ruling on disciplinary matters, etc.). For example, even if there is only one Member of the Authority in office, he/she could still conduct the Full Board's business. Currently, there are only two Members in office. This amendment would confirm that, in the event of the death, resignation, removal or disability of one of the Members, the remaining Member was vested with the power to continue the business of the Full Board.

Prior legislative history

None.

Fiscal implications

None.

Effective date

Immediately after it becomes law.