This is my inaugural Web Blast for all of my clients, colleagues and friends who frequently ask me legal questions in the areas of law which I practice. This month’s edition is dedicated to New York State’s Alcoholic Beverage Control Law, often referred as the ABCL. The ABCL regulates and controls the manufacture, sale and distribution within the state of alcoholic beverages. I will be addressing the most frequently asked questions to me related to a New York State’s Liquor License. In the next newsletter I will be addressing simple asset protection in reference to New York’s Medicaid Program in anticipation of entering a nursing home, the do’s and don’ts and what you should know.

NYS Alcoholic Beverage Control Law:

Question:  Can I bring my own bottle of booze to a restaurant?

Answer:  Bring your own bottle, is often referred to as B.Y.O.B.  In order for an establishment owner to allow their customers to B.Y.O.B for consumption, they must have a valid New York State Liquor License.  New York’s ABCL Art. 5, Sec. 64B is clear that in order to serve or sell any alcohol a license or permit is absolutely necessary otherwise it is unlawful to do so. 


Question:  Is there any exception to the B.Y.O.B. Law?

Answer:  Yes, an establishment with fewer than 20 seats. 


Question: Can you B.Y.O.B to an establishment which has a valid New York State Liquor License?

Answer:  An establishment with a NY State Liquor License may allow its patrons to B.Y.O.B. 


Question: If I bring my own bottle of wine to a restaurant, can owner charge a corkage fee?

Answer: Nothing in the ABCL would prohibit such a fee.


Question: Can an owner of an establishment “give” away alcohol?

Answer: Giving away alcohol is a violation of New York’s ABCL. 


Question: Can an establishment offer unlimited drink or 2 for 1 drink specials?

Answer:  Under New York’s ABCL 117-a, establishments are prohibited from selling, serving, delivering, or offering patrons unlimited drink specials during any set period for a fixed price.  The statute even covers those establishments that get creative and attempt to circumvent the law.  This includes, but is not limited to free drinks, multiple drinks for the same price, etc.

Answer: 2 for 1 drinks or “basket” or “gift baskets” specials, etc, are permitted under the ABCL, as long as the price is not less than ½ of the regular price.  For example, if the regular price of draft beer is $2.50, and the establishment sells draft beer during a sports event for a $1.00, then this would be a violation of New York’s ABCL.  However, if the draft special was $1.25, then under this scenario there would be no violation.


Question: Can I advertise food and drink specials on sites, such as Groupon?

Answer:  Maybe, on October 5, 2011, a Declaratory Ruling, 2011-03001, was issued by the NY SLA, which under the specific facts and limited circumstances, an establishment may participate with on-line coupon service. http://www.sla.ny.gov/system/files/dec-rule-201103001-102111.pdf


Question: Can an establishment allow gambling on their premise?

Answer: No. NY ABCL 106 prohibits gambling in establishments licensed for the retail sale of alcoholic beverages for on-premise consumption.


Question: What constitutes gambling under NY ABCL 106?

Answer:  The Authority looks at several factors, such as it is a contest of chance, whether the contestants are giving something of value to participate and whether something of value being offered as a prize.

Question:  Does the NY ABCL cover returns of alcoholic beverages?

Answer:  Yes, retailers licensed to sell liquor for off premise consumption may, at their discretion, exchange or refund unopened alcohol from only their customers.


Question:  I am hosting a function and for convenience I would like to serve my customers from a service cart and setup a second bar for serving and paying the alcohol, is this permissible?

Answer: No, unless you have the requisite permits and have paid the additional fees.  Every stand-up bar must be duly licensed by the State Liquor Authority (SLA).  A stand-up bar is any bar, counter or contrivance whether there is seating or not over which a member of the public can order, pay for and receive an alcoholic beverage.  Therefore, if you are serving alcohol from a service cart or a second stand-up bar, you will need to be licensed by the SLA.  If you have two additional bars and/or carts, then you will need another license and so-forth.

Question:  I recently added an outside cooler to store alcohol; do I need to notify the SLA?

Answer: Yes, any change must be approved by the SLA and until it is approved you may not store any alcohol in your new cooler. 


Question:  I purchased a corporation who holds an on-premise liquor license; do I need to notify the SLA?

Answer:  Yes, any change in method of operation must be approved by the SLA, prior to initiating the change.  Also remember that you cannot transfer or sell your right to a NY liquor license.  In this scenario, you may not have to go through the entire license process, but may be able to file for a corporate change with the SLA.  You will still be required to provide proof of the transfer, verification of the funds as well as obtain approval from the SLA.  

Question:  Can I close my kitchen at 10:00 and send my kitchen staff home, even though my bar is open until 2:00 am?

Answer:  No, as long as you are open you must have the kitchen open and serving the usual assortment of meals that you regularly serve during the day.   The service of sandwiches, salads or having food delivered to your facility is not sufficient or permissible.


Question:  What does the color of a liquor license mean?

Answer:  Licenses are color coded depending on what establishment is and what it is licensed to serve.  In 2008 the SLA instituted a color coding system of On Premises licenses: Olive for a Restaurant Wine Establishment, Red for a Nightclub or Cabaret, Purple for Mixed Use and Blue for all others.  The purpose behind color coding the licenses was to provide an easily identifiable way to for everyone to know how the establishment is licensed.


Question: What other type of information is contained on the liquor license?

Answer:  In addition to the basic information the license also lists the “Method of Operation” for the premise, which includes days and hours of operation, if you are permitting dancing and live music and if your patio or outside area is licensed. 

For more information and links for the following topics, please visit my website:
1.  New Enforcement Changes for Sales to Minors,
        http://www.sla.ny.gov/system/files/changes-sale-minor-011312.pdf

2.  February 21, 2012, SLA launches a new Geographic Information System (GIS).
        http://lamp.sla.ny.gov/nysla/index.htm

3.  Municipal Notification Changes – effective September 27, 2011.
        http://www.sla.ny.gov/municipal-notification-changes-effective-immediately-09272011

4.  New Temporary Retail Permits for locations without a current license.
        http://www.sla.ny.gov/temporary-retail-permits

5.  ADVISORY OPINION 2012-1, issued February 1, 2012, regarding the 180 day Beer Manufacture, Wholesalers and retailers pricing law.
        http://www.sla.ny.gov/system/files/2012-180-Day-Law.pdf

For more information, to schedule an appointment or to submit an inquiry, please visit my website at www.attorneypecoraro.com

Anthony S Pecoraro
5500 Main Street, Suite 100
Williamsville, New York 14221
716-923-7490


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The content of this weblast is intended for informational purposes only and does not, in any fashion, create a professional relationship or constitute legal advice. This weblast and the contents are time sensitive and may not reflect current developments in the law.  Please seek the proper legal advice prior to taking any action regarding your own case.  If you have received this email in error and to opt out of future Weblast’s please click here?