On Oct. 9, New York Gov. Kathy Hochul signed two bills the Legislature passed in June that seek to benefit restaurant, bar, hotel, and event venues applying for New York liquor licenses, especially those located in New York City.
 
Background

In February 2022, the Legislature passed a law allowing applicants for new, full liquor licenses in New York City to apply for temporary retail permits. However, the law primarily benefited applicants not subject to the “500 Foot Law.” The 500 Foot Law – which applies to applications where there are three or more existing full liquor licenses within 500 feet of the applicant’s location – requires a New York State Liquor Authority (NYSLA) administrative law judge to determine if an application for a full liquor license is in the “public interest” before proceeding. Under this 2021 law and its 2022 amendment, only NYC applicants subject to the 500 Foot Law where there had been a previous licensee in good standing at the same location within the past two years could obtain a temporary retail permit.

This limitation prevented applicants seeking licenses at new, previously unlicensed locations from obtaining revenue while waiting nine months or more for NYSLA approval. During that waiting period, new restaurants and hospitality venues were paying significant rents and staff salaries without deriving the benefit of income from alcohol sales and increased patronage.

The Legislature and governor have eliminated this two-year lookback requirement for NYC full liquor license applicants. These applicants will now be able to obtain a temporary retail permit within two or three months of submitting their applications for a permanent liquor license. This change may allow many NYC hospitality venues to generate additional income and hire more staff more quickly, potentially bringing supplemental cash to the New York City and New York state economies.

The governor also signed another bill that extends the initial length of the temporary retail license period from three months to six months and keeps the application fee the same. Small businesses will no longer need to pay a renewal fee after just three months, and they may be less likely to miss the deadline for renewing. Temporary retail permit holders can still extend the permit beyond the initial six months if their permanent licenses applications remain pending.