Liquor Licensing

Can I allow customers to “BYOB” while my liquor license application is pending?

NO! Restaurants and bars may not allow customers to “BYOB” (Bring Your Own Bottle) while a license is pending. Although we have all seen establishments advertise that they are “BYOB,” doing so without a license is not legal in New York State and puts you at risk of getting your pending (or future) license application denied by the State Liquor Authority. Establishments that want to allow customers to BYOB must apply to the State Liquor Authority for a “bottle club license.”

Can my establishment host an open bar? Can we serve “bottomless brunches”?

NO! The Alcoholic Beverage and Control Law prohibits open bars. Specifically, the law does not allow patrons to pay a fixed price for an unlimited number of drinks during a set time. For this same reason, “bottomless brunches” where patrons can pay for a brunch meal with unlimited mimosa, bloody marys, etc. is illegal.  The State Liquor Authority does allow, however, “2 for 1” drinks and other similar drink specials as long as the price of a drink is not lower than ½ of the premise’s regular drink price.

I am buying a restaurant that already has a liquor license. Can the seller transfer the liquor license to me?

The owner of a popular Greenpoint hotspot is suing the NYPD following its July 10, 2011 investigation and raid of Coco66 which is owned and operated by David Kelleran. In the lawsuit, Kelleran claims that the NYPD wrongfully poured out the club's entire inventory of wine, beer and liquor, because Kelleran's adjacent restaurant "68", had inadvertently bounced a check to the SLA — meaning that their liquor license was in jeopardy of being revoked. The SLA gave “68” 10 days to correct the mistake, but antsy police officers from Brooklyn's 94th Precinct rushed into Coco66 on the 5th day and dumped all the booze. Realizing their mistake (that they were in the wrong place not that they were 5 days too early), they proceeded to "68" where they dumped out all the booze. Kelleran estimates that the dumping cost his businesses "thousands and thousands" of dollars. If you find yourself having to deal with the State Liquor Authority or local police concerning a liquor issue, consult an experienced attorney knowledgeable of the Alcohol and Beverage Control Law. Doing so might save you "thousands and thousands" of dollars.


 

Liquor license violations in New York City can put a restaurant, bar or nightclub out of business. There are also frequently challenges with Obtaining a Liquor License or Transferring a Liquor License.

A New York City liquor license lawyer can self-certify an application, which can dramatically speed up the process. Frequently, an attorney can obtain a decision on your liquor license within three weeks. Without attorney certification, the process may take several months or longer.

Consulting a Manhattan restaurant lawyer is critical whenever a pub or restaurant is facing a violation. Failure to properly contest a violation can lead to serious problems, including the forced closure of your business.

The State Liquor Authority has granted an extension of credit for retail licensees in order to ensure that restaurants and bars have the ability to maintain and replenish their inventories throughout the holiday season.  Restaurant and Bars will be able to place orders for alcohol up until December 30, 2011 and will be charged posted December prices as long as delivery of the alcohol is made on or before January 4, 2012.  Wholesales are not permitted to accept new orders for December’s prices after December 30, 2011. 

As New Year’s Day (January 1, 2012) falls on a Sunday, All Night Permits allowing establishments to stay open until 8:00 a.m. are not being issued by the State Liquor Authority. Section 106(5)(a) prohibits alcoholic beverages to be sold, offered for sale or given away upon any premises licensed to sell alcoholic beverages at retail for on premises consumption on Sunday between 4:00 a.m. and 12:00 noon on Sunday.  The State Liquor Authority has clearly stated that restaurants and bars will be required to adhere to the approved closing hour in the County in which they are located, unless such establishments submitted an application for a New Year’s Eve Permit on or before November 15, 2011 and been notified by the SLA that their permit was approved. 

James DiPasquale

DiPasquale Law Group

Just before Christmas, Community Board 10 in Harlem, considered and then ultimately tabled for further discussion, a proposal by their Economic Development Committee which recommended that new restaurants and bars be required to stop serving alcohol by 2:00 a.m. 

Notably, Community Boards cannot change the hours of operation for existing businesses nor can they require new restaurants and bars to close earlier than 4:00 a.m.  Those decisions aare left to the legislature and the New York State Liquor Authority. 

The New York State Liquor Authority would prohibits a licensed establishment from transferring the financial interest in its business to an unlicensed third-party.  This is done to prevent those who otherwise would not qualify for a license from benefiting financially under someone else's liquor license. At the request of Groupon, the New York State Liquor Authority issued a declaratory ruling as to whether Groupon’s proposed coupons would be in violation of the Alcohol Beverage Control Law.

The SLA described the proposal as a third-party provider desiring to sell coupons on its website to be redeemed for discounted food and alcohol at bars and restaurants.  The questions before the SLA were: (1) whether the agreement between Groupon and a licensed retailer would be deemed an illegal availing of the license, and (2) whether the promotion constitutes a prohibited unlimited drinks offering.

We all know that the ABC Law prohibits gambling in all restaurants and bars.  Recently, however, the question of whether poker should be banned as illegal gambling came before the SLA.  The long and short answer is no, but yes.  Confused?  So is everyone else.  For that reason the SLA issued a declaratory ruling outlining when poker gaming is authorized.  Here are the rules:

Effective immediately, anyone holding a liquor license in NYC whose corporate structure substantially changes (80% change , must now, in addition to seeking approval from the SLA, notify their local community board 30 days prior to such change.  Additionally, a fee of $128 must accompany applications for corporate change. 

On May 25, 2011 members of the State Liquor Authority suspended the liquor license belonging to the Player’s Club, a bar located at 360 West Rout 59 in Nanuet.  The suspension was issued following the discovery of illegal drug sales and prostitution, in addition to a recent history of several violent assaults.  By law, the State Liquor Authority can temporarily suspend a liquor license if it finds that the public health, safety, or welfare is in immediate jeopardy.  The Player Club bar owners have been charged with sixteen separate violations of the ABC Law including: permitting the trafficking of controlled substances, paying employees off the books, employing unregistered bouncers, total lack of supervision, and employing dancers to induce patrons to purchase alcohol at inflated prices.  These new charges come in addition to twelve prior charges that were brought against the club’s owners for lewd and indecent performance, permitting drug trafficking and lack of supervision.  Most Common Liquor License Violations

The Empire State Restaurant and Tavern Association in conjunction with the New York State liquor Authority, is hosting a free alcohol beverage control seminar for restaurants, bars, nightclubs and Tavern owners on Monday, May 16, 2011 at Cove Restaurant in Peekskill, New York.