8
Beverage Media
October 2012
know
the
law
I
n my last article, I reported that
Governor Cuomo had begun to re-
view and sign the bills passed during
the latest New York State legisla-
tive session. Since then, the Governor
signed some additional bills.
Auctions
Retail off-premise licensees, who have
held their license for more than ten
years, may apply for and receive an auc-
tion permit. The number of auctions
which the holder of such a permit may
conduct in one year has now been in-
creased from 12 to 24.
It is important to remember that
there are local laws, not related to
the sale of beverage alcohol, which
also must be observed. For instance,
the New York City Department of
Consumer Affairs regulates auctions
within the city limits. Consequent-
ly, in addition to an auction permit
from the New York Liquor Author-
ity, a retailer wishing to conduct an
auction in New York City must ob-
tain an auctioneer’s license for both
the company and its auctioneer
from the Department of Consumer
Affairs (DCA).
Cabaret
The DCA also issues licenses to caba-
rets. Any room, place, or space in New
York City in which patron dancing is
permitted in connection with the res-
taurant business or a business that sells
food and/or beverages to the public
requires a Cabaret license. The DCA
forwards copies of all Cabaret license
applications to the applicable commu-
nity board for review and input.
Wine Licenses
Effective January 1, 2013, the Liquor
Authority will extend the term of wine
licenses. Consequently, as the licenses
come up for renewal, the term of each li-
cense will be adjusted. Licenses issued to
wineries, farm wineries, special wineries,
special farm wineries, wine wholesalers,
wine stores, satellite stores and direct in-
terstate shippers will be issued for three
years at three times the annual license
fee. Licenses authorizing the sale of wine
for on premise consumption will be issued
for two years at two times the annual fee.
New licenses issued after January 1, 2013,
will be issued under the longer license
schedule. In addition, the Members of
the Authority voted to extend suppliers’
permits to three years with a commensu-
rate increase in annual fees.
Expiration Dates
Regardless of the type of license you
hold, you should be mindful of its expi-
ration date. The New York Liquor Au-
thority sends license renewal notices.
Too often they seem to go awry. Every
year I receive a number of frantic calls
from retailers whose license will expire
within days or hours. The licensee has
put his or her livelihood at risk. For on-
premise licensees the problem is even
worse. The law requires an on-premise
licensee to notify the community board
or local municipality at least 30 days be-
fore the application for renewal is filed.
Not only will the failure to give such a
notice delay the renewal, it may lead the
Authority to bring charges against the
applicant. Moreover, the State Admin-
istrative Procedure Act (SAPA) allows
a licensee whose license application is
declined to continue to operate during
an appeals process; but only if the appli-
cation for renewal was filed in a timely
manner. You should never go to the li-
quor authority with a request for relief
that you could have had as of right.
Know when your license will expire.
If appropriate, notify the community
board or municipal government more
than 30 days in advance. File your ap-
plication for renewal on time.
■
Keven Danow is an attorney representing members of all
three tiers of the Beverage Alcohol Industry and a mem-
ber of the firm of Danow, McMullan & Panoff, P.C. 275
Madison Ave, NY, NY. 10022 (212-370-3744) kdanow@
dmppc.com. This article is not intended to give specific
legal advice. Before taking any action, the reader should
consult with an attorney familiar with the relevant facts
and circumstances
Legislative Update, Round Two
Auction Permits, Cabaret Licenses, Wine Licenses
By Keven Danow
Effective January 1, 2013, the Liquor
Authority will extend the term of wine
licenses. Most wine-related licenses
will be issued for three years at three
times the annual license fee.
