Changes in NYSLA Applications, Licenses, and Permits
The NYSLA has issued a series of advisories where it changed certain requirements for its applications as well as created and made changes to licenses and permits. This summary will focus on the changes that affect manufacturers and suppliers and does not address the advisories related to retailers.
Application forms have not been updated yet to reflect the new changes, so applicants may follow the instructions set out in the advisories in the meantime. It is important to remember that just because the NYSLA has eliminated the need to disclose certain information, it does not relieve applicants from fully complying with the Alcoholic Beverage Control and other relevant state and local laws.
Below we have summarized the most salient points of the advisories and the changes.
Applicants will no longer be required to provide proof of:
- US citizenship
- Workers’ Compensation
- Disability Insurance
- Certificate of Authority to Collect Sales Tax
- Bank statements and financial documents related to the Financial Disclosure form (the NYSLA, however, reserves the right to request these financial documents)
Disclosure of Principals on an Application
Any person or entity who owns 10% or more of the applicant entity must be disclosed and individuals submit a personal questionnaire.
Individuals owning less than 10% of an entity no longer need to be disclosed (no matter how many shareholders or members the entity has). In addition to the owners described above, please remember that the individuals listed below must still be disclosed and submit personal questionnaires and fingerprints.
- Corporations (Profit and Non-Profit): President, Treasurer, Secretary, and CEO (if any).
- LLCs: Managers and/or managing members.
- Partnerships: All partners.
- Trusts: All trustees.
Please note that if a non-profit is only applying for a club license, then the individual serving as the Alcoholic Beverage Officer must be disclosed and submit a personal questionnaire.
If one of the owners of the applicant is a partnership, a corporation, or an LLC, then the applicant will need to include a diagram showing the ownership structure.
For example, if an applicant is a corporation with two individual stockholders (Alison and Brian) and one LLC (Spirits LLC) as a stockholder, then the diagram would have to show that the percentage of ownership of the applicant corporation is:
- Alison owns 35%
- Brian owns 5%
- Spirits LLC owns 60%, which is owned entirely by Carrie.
Under this example, Alison must be listed on the application form and submit a personal questionnaire since she owns at least 10% of the applicant corporation. Carrie must also be listed on application and submit a personal questionnaire since she indirectly owns at least 10% of the applicant corporation via Spirits LLC. Brian does not need to be disclosed on the application since he owns only 5%.
Under the scenarios listed below, the entities/individuals will also be subject to disclosure requirements.
- Co-Licensee: Co-licensees may need to be included on a license if, for example, a third-party provider is entitled to more than 10% of the applicant’s revenues.
- Lender and Donor: Any individual who directly or indirectly (by gift or loan) provides 10% or more of the funds being invested in the proposed licensed business.
While the NYSLA still requires principals (the individuals outlined above) to also submit fingerprints, it may waive the requirement for a good cause, which includes (but is not limited to):
- Physical impairment that prevents the principal from providing fingerprints.
- The inability (despite reasonable efforts) for the principal to be fingerprinted within a reasonable time.
The NYSLA did not define “reasonable efforts” or “reasonable time,” so we will have to wait and see what the NYSLA may consider as reasonable. If the NYSLA grants the waiver, the principal must submit a signed affidavit that states that the principal has not been convicted of a felony in the US and is not currently charged with a criminal offense in the US.
Lease and Landlord
The lease will no longer be reviewed in detail. Instead, the NYSLA will rely on representations made in a revised Right-To-Premises form. Additionally, the applicant will no longer need to disclose the landlord’s licensing history and whether any of the landlord’s principals are police officers.
Who Can Sign an Application
Although not a change in the requirements, the NYSLA also gave the following guidance as to who can sign documents (renewals, change/endorsement applications, surrenders, etc.) on behalf of an entity:
- Partnerships: Any partner. If all partners are themselves partnerships, corporations, or LLCs, the licensee must name the individual(s) as an officer of the partnership (not an officer of one of the partners). This individual must be disclosed on the application.
- Corporations: Any officer disclosed on the application. Stockholders may not sign documents.
- LLCs: Managing members or a non-member manager/officer disclosed on the application. LLC members who are not managing members cannot sign documents.
Changes to Licenses and Permits
The NYSLA has also made the following additions and changes to the licenses and permits:
Temporary Permits for Manufacturers
All manufacturing applicants are now eligible for temporary permits that will allow them to operate while the NYSLA reviews the application. If the applicant is also applying for an on-premises license in (or next to) the manufacturing premises, eligible applicants may also obtain a temporary retail permit.
No temporary permit is available at this time to operate a manufacturer’s branch office (or a related on-premises license) while the branch office application is pending.
No Need for Warehouse Permit for Adjacent Storage Space
Applicants and licensees will no longer need to obtain a warehouse permit for any adjacent space being used for storage. This space can now be included in the licensed premises if the adjacent storage space is:
- used only for the storage of alcoholic beverages; and
- can be accessed from the rest of the licensed premises through public space or space controlled by the applicant/licensee.
Licensees who currently hold warehouse permits for adjacent storage spaces may apply to alter the licensed premises to include the adjacent space. Once the alteration is approved, the warehouse permit can be surrendered.
“One Day” Trucking Permits
The NYSLA will now issue a “one-day” permit so that a specific vehicle may transport alcoholic beverages in New York. The permit will be valid for a maximum of a 24-hour period and the cost for the permit will be $10 plus a $5 filing fee. The permit certificate must be kept in the cab of the vehicle at all times that alcoholic beverages are transported in the vehicle. No more than 12 permits may be issued in any consecutive twelve-month period to a person or for the same vehicle.
For more information on the NYSLA advisories listed above, please see below:
- Advisory #2022-6 – Submission of fingerprints
- Advisory #2022-12 – List of Expenses & Financial Disclosure
- Advisory #2022-13 – Personal Questionnaires and disclosure of principals in license applications
- Advisory #2022-17 – Landlord Identification Information form
- Advisory #2022-18 – Review of deeds/leases/other agreements and the Right-To-Premises form
- Advisory #2022-22 – Elimination of submission of certain documents/information in license applications
- Advisory #2022-23 – Individuals authorized to sign documents on behalf of licensees
- Advisory #2022-8 – Temporary permits for manufacturing license applicants
- Advisory #2022-20 – Need for warehouse permit for adjacent space
- Advisory #2022-25 – “One Day” trucking permits
To view all of the NYSA’s guidance documents, please visit: https://sla.ny.gov/guidance-documents