The Alcoholic Beverage Control (ABC) Law in NYS is being updated. 

A new law provides for payment receipts for applications, which is effective 2/20/2022. It also provides that the status of all licenses / permits should be posted on its website by 12/22/2022. This website will also provide the anticipated application process length of time as well as notifying applicants when estimates change.   

 

Another new law modifies penalties for violations. 1st time administrative / paperwork violators will now be given opportunities to fix errors (15 to 20 days) if the violation is considered minor instead of facing misdemeanor penalties. 

On July 16, 2020, Governor Cuomo signed Executive Order 202.52 which prohibits bars and restaurants from selling alcoholic beverages, unless it comes with the purchase of food. The Executive Order applies to on-premises consumption, take-out, and delivery and it is in effect until August 15, 2020.

A lot of mockery has been out there about this new EO. There have been arguments such as, “I can get Corona with a beer, but not with a beer and a chip.” Yet, that misses the point. The point is to make it impossible for jammed and standing bar parties. By adding a service of food requirement, the government is avoiding bar scenes that will quickly spread Coronavirus. Perhaps this is not the most effective line in the sand and there are likely better lines to draw, but whenever a law is passed, the line will create haters and fans. Better to know the line and keep your liquor license than to fight it until your bar closes, at least that is our perspective.

Restaurant and bar owners are also advised of the guidance set by the State Liquor Authority in light of the Executive Order 202.52:

- “Purchase of a food item which is consistent with the food availability requirement of the license under the Alcoholic Beverage Control Law” shall mean that for each patron in a seated party, an item of food must be purchased at the same time as the purchase of the initial alcoholic beverage(s). However, one or more shareable food item(s) may be purchased, so long as it/they would sufficiently serve the number of people in the party and each item would individually meet the food standard below.

- Food and/or beverages can only be consumed while seated at a table, bar, or counter.

- “A food item which is consistent with the food availability requirement of the license under the Alcoholic Beverage Control Law” shall mean:

• For manufacturers with on premises service privileges: sandwiches, soups or other such foods, whether fresh, processed, pre-cooked or frozen; and/or food items intended to compliment the tasting of alcoholic beverages, which shall mean a diversified selection of food that is ordinarily consumed without the use of tableware and can be conveniently consumed, including but not limited to: cheese, fruits, vegetables, chocolates, breads, mustards and crackers.

• For on premises retailers with a food availability requirement, including restaurants and taverns: sandwiches, soups or other foods, whether fresh, processed, precooked or frozen.

- “Other foods” are foods which are similar in quality and substance to sandwiches and soups; for example, salads, wings, or hotdogs would be of that quality and substance; however, a bag of chips bowl of nuts, or candy alone are not. (Updated July 23, 2020)

The SLA further reminds restaurant and bar owners of the purpose of the Executive Order which is to ensure that customers are enjoying a sit-down dining experience with drinks, rather than a drinking, bar-type experience that often involves or leads to socializing without proper social distancing and use of masks. Further, the SLA warns that any obvious efforts to circumvent the above rules will be deemed violations of the Executive Order. Additionally, in New York City, a “Three Strikes and You’re Closed” policy is put in effect and establishments receiving three violations will be closed for business.

However, regardless of three strikes, an immediate revocation of a liquor license or business closure may occur due to egregious violations. Restaurant and bar owners should be aware of these guidelines to avoid liability and ensure compliance.

Governor Cuomo signed Executive Order 202.48 which extended existing executive orders, including Executive Order 202.3. Effectively, Executive Order 202.48 allows off-premises consumption of alcohol, including take-out or delivery, until August 5, 2020.

Restaurant and bar owners should still contact counsel to ensure compliance with the Executive Orders and with the limitations set by the State Liquor Authority as violations can result in penalties of up to $10,000 for retail and $100,000 for manufacturers, and/or suspension, cancellation, or revocation of their liquor license.

On April 17, 2020, Governor Cuomo signed Senate Bill S7186, which relates to allowing restaurant-brewers to sell up to 250 barrels of product without a wholesaler, but what does the new law really mean for breweries?

Historically, breweries which sold beer on-premises were limited to making and selling only 250 barrels. To incentivize breweries to invest in their own product, the NYS Legislature increased the limit to 2,000 barrels through Senate Bill S5427. However, they inadvertently removed the language allowing a brewery to sell limited quantities without the use of a wholesaler or a person licensed to sell any beverage for purposes of resale.

Through Senate Bill S7186, Section 64-c of the ABC law was recently amended to clarify that breweries are allowed to sell 2000 barrels per year and up to 250 of those barrels may be sold on-premises without any additional licenses. Any number of barrels over 250, however, must be sold and distributed to other retailers through a wholesaler.

Thus, the new brewery law clarifies that breweries are allowed to sell limited quantities of their product in their own premises and they are also allowed to sell and distribute the rest of their product into other bars, restaurants, and retailers through a wholesaler, and thus allowing them to invest in and grow their businesses.