In a move to support small businesses, on October 9, 2024, New York State Governor Kathy Hochul signed into law Bill S.8203/A.8427-A as part of a legislative package aimed at cutting regulatory red tape for liquor licensure. The change is intended to better facilitate liquor license applicants to begin serving customers while the State Liquor Authority (SLA) processes the paperwork—without additional fees and hurdles.
In recent years, the average waiting time for a business to receive a permanent liquor license has been approximately six months. Applicants can apply for a temporary retail permit under Section 97-a of the Alcohol Beverage Control (ABC) Law, which if approved allows for the sale of alcoholic beverages while the liquor license application is pending. However, previously the law only allowed for a maximum permit duration of 90 days; applicants could re-apply, but this required an additional fee and, on the SLA’s end, additional permit processing, which consequently distracted from the liquor license review process.
Bill S.8203/A.8427-A amends ABC Law Section 97-a(4) to double the maximum permit duration from 90 days to 180 days. This aligns the temporary retail permit duration with the approximate wait time for a liquor license application to be approved and a permanent license issued. Furthermore, this change obviates the need for a second permit fee to be paid (where previously, two separate 90-day approvals were necessary), slashing application costs in half. In the event a liquor license application remains pending beyond 180 days, applicants are still able to submit for additional extensions under existing law in 30-day increments.
Separately, Governor Hochul also approved Bill S.8203/A.8427-A on October 9, 2024. This bill was more specifically catered to applicants within New York City, as it relates to the 500 Foot Law, which prohibits the issuance of liquor licenses within 500 feet of three establishments already licensed in municipalities with populations of 20,000 or more. Previously, applications subject to the 500 Foot Law were eligible only for temporary retail permits if the premises had been licensed within the last two years; now that restriction is removed, except for in cities with a population of one million or more (e.g., New York City), locations where a license was previously canceled, suspended, or revoked by the SLA for two consecutive licensees remain ineligible.
If you have any questions regarding the content of this alert, please contact Corey Auerbach, partner, at cauerbach@barclaydamon.com; David Solimeno, associate, at dsolimeno@barclaydamon.com; or another member of the firm’s Hotels, Hospitality & Food Service Team.