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New York State Liquor Authority2006 ANNUAL REPORT

Eliot Spitzer Daniel B. BoyleGovernor Chairman

2006 Annual Report • 1

New York State Liquor Authority

2006 Annual Report

Eliot SpitzerGovernor

Daniel B. BoyleChairman

Lawrence J. GeddaNoreen Healey

Commissioners

State of New YorkExecutive Department

Division of Alcoholic Beverage Control


Table of Contents

INTRODUCTION.................................................................................................5Chairman’s LetterHistoric Overview / Authority ResponsibilitiesMission StatementAccomplishments Chairman and Commissioners BiographiesCEO BiographySenior Agency Staff

LICENSING ......................................................................................................15

DISCIPLINARY PROCESS ...............................................................................19

COMPLIANCE STATISTICS..............................................................................20

ENFORCEMENT ...............................................................................................21Rapid Enforcement Unit (R.E.U.)Alcohol Training and Awareness Program (ATAP)

OFFICE OF COUNSEL......................................................................................24Important LegislationKeg Registration and Deposit Forfeitures

HEARING BUREAU..........................................................................................27

OFFICE OF THE SECRETARY ..........................................................................28

OFFICE OF GOVERNMENT AFFAIRS .............................................................30

OFFICE OF COMMUNICATIONS.....................................................................31

OFFICE OF INFORMATION TECHNOLOGY....................................................33

TASKFORCE FOR THE REVIEW OF ON-PREMISES LICENSURE.................34

REFERENCE......................................................................................................39New York State by Zones Offices and CountiesLicense and Permit Code Classification


Letter from Chairman

STATE OF NEW YORKEXECUTIVE DEPARTMENT

DIVISION OF ALCOHOLIC BEVERAGE CONTROLSTATE LIQUOR AUTHORITY

80 S. Swan Street 317 Lenox Avenue 535 Washington Street

Albany, New York 12210 New York, New York 10027 Buffalo, New York 14203

www.abc.state.ny.us

Dear Governor Spitzer and Members of the Legislature:

On behalf of the Division of Alcoholic Beverage Control, the 2006 Annual report of the New York StateLiquor Authority is hereby submitted. This report presents comprehensive information andstatistical data on the agency’s activities over the past year.

The Authority is responsible for properly issuing licenses and ensuring those licensed comply with the Alcoholic Beverage Control law (ABC Law). In carrying out these functions, the Authority seeks to work cooperatively with local law enforcement, government officials, community groups and local leaders toensure public participation in the licensing and enforcement process.

The State Liquor Authority continues to move forward in meeting our objective to serve the citizens ofNew York State. I would like to thank the hardworking staff at the Authority who everyday remain vigilantin achieving our goals. As always, we welcome your comments and suggestions.

Sincerely,

Daniel B. BoyleChairman


Historic Overview / Authority Responsibilities

On December 5, 1933, PresidentFranklin Delano Roosevelt signedPresidential Proclamation number2,065, officially declaring that the 18thAmendment to the U.S. Constitutionwas replaced by the 21st Amendment.The 21st Amendment repealedProhibition and gave each state thepower to regulate the trafficking ofalcoholic beverages within its borders.Chapter 180 of the Laws of 1933 pro-vided for the manufacture of malt bev-erages and wine not exceeding 3.2 per-cent alcohol content under the guid-ance of an Alcoholic Beverage ControlBoard.

In 1934, New York State enactedChapter 478, known as the AlcoholicBeverage Control Law, creating theState Liquor Authority and theDivision of Alcoholic BeverageControl. The State Liquor Authority’sfirst Annual Report noted that Chapter478 was enacted by the Legislature for“the protection, health, welfare andsafety of the people of the State.”These concerns are as important todayas they were then.

The major responsibilities of theDivision of Alcoholic Beverage Controlinclude:

• Reviewing applications and inves-tigating applicants to determineeligibility;

• Issuing licenses and permits forthe manufacture, wholesale distri-bution and retail sale of all alco-holic beverages;

• Regulating trade and credit prac-tices related to the sale and distri-bution of alcoholic beverages atwholesale and retail;

• Limiting, in the Authority's dis-cretion, the number and type oflicenses issued as determined bypublic convenience and advan-tage;

• Working with local law enforce-ment agencies to ensure compli-ance with the ABC Law;

• Investigating licensees in connec-tion with violations of the ABCLaw;

• Inspecting premises where alco-holic beverages are manufacturedor sold; and

• Bringing disciplinary chargeswhen appropriate.

Review

License

Inspect

Regulate

8 • NYS LIQUOR AUTHORITY

Mission Statement

Chapter 478 of the Laws of 1934, known as the Alcoholic Beverage ControlLaw, created the State Liquor Authority and the Division of Alcoholic BeverageControl. The Legislature enacted this measure “for the protection, health, welfareand safety of the people of the State.”

The SLA has two main functions: issuing licenses and ensuring compliancewith the Alcoholic Beverage Control Law. The Authority’s Licensing Bureaus areresponsible for the timely processing of permits and licenses required by the ABCLaw. The Compliance Unit is responsible for the protection of the public byworking with local law enforcement agencies to uphold the law and bring admin-istrative action against licensees who violate the law.

The Authority seeks to:

• Respect applicants and licensees;

• Work cooperatively with community groups and local leaders to ensure pub-lic participation in the licensing and enforcement process;

• Increase productivity by utilizing available resources, education and trainingto successfully deliver quality service to our customers;

• Ensure that those who do not respect the privilege of holding a license arefairly and firmly disciplined; and

• To create a unified, comprehensive approach to all Agency functions toachieve maximum effectiveness and efficiency.

The Zone 3 Officesare in the

Iskalo Electric Tower,Buffalo


Accomplishments

• The State Liquor Authority con-ducted numerous outreach meetingswith interested parties from across thestate in 2006. The SLA Chairman,Commissioners, CEO and staff metwith police departments, elected offi-cials, Community Boards, communitygroups and licensees in an effort togain their input, insight and expertise.

• SLA Chairman Boyle convenedthe “Taskforce for the Review of On-Premises Licensure” to review the ABCLaw and procedures for on-premiseslicensing. Chaired by SLACommissioner Healey, the taskforceincluded legal experts, elected officials,community leaders, law enforcementofficials and representatives from theindustry. The taskforce issued a reportin 2006 with recommendations tomodernize and streamline the application process.

• The SLA established the RapidEnforcement Unit (REU) in April of2006 to conduct priority investigationsand institute prompt disciplinaryaction where evidence demonstrates alicensed premises poses a threat topublic. The REU immediately respondsto allegations of criminal activity andserious repeat violations of the ABCLaw. In less than nine months of oper-ation, investigations from the new unitresulted in the issuance of 9 emergencysummary suspensions, two revocationsas well as other penalties and fines.The REU coordinates SLA efforts withour law enforcement partners through-out the state in a continuing effort tomake our communities safer.

• The SLA joined the ongoing investigation with the NYS AttorneyGeneral’s Office into improper tradepractices in the liquor and wine industry, culminating in millions ofdollars in fines imposed against retailers, wholesalers and manu-facturers. As part of this investigation,court orders were issued that will serve to send a clear message to alllicensees that illegal conduct will not be tolerated.

• In conjunction with the Office ofAlcoholism and Substance Abuse(OASAS), the SLA published a bilingual version of the “Handbook forRetail Licensees,” as well as updatedversions of the “Manual for LawEnforcement,” and “Alcohol & YourChild” publications.

• Enforcement staff trained hun-dreds of police professionals, schoolofficials and licensees throughout thestate in the ABC Law. In addition,296 Enforcement staff-approvedAlcohol Awareness Training courseswere conducted, with 3,681 licenseesand their employees completing thecourse.

• The Full Board of the StateLiquor Authority held 25 regular meet-ings in 2006, 24 in the NYC office and1 in Albany. In addition, SLAChairman Boyle called five emergencyFull Board meetings where immediatesummary suspensions were issued.

• The Full Board reviewed 4,368cases and applications, terminated 479licenses for cause, suspended 246licenses for a total of 3,348 days and

Outreach

Technology

Education

Training

Enforcement

Regulation


issued civil penalties and bond claimstotaling over $6.5 million in 2006.

• The Hearing Bureau concluded462 disciplinary hearings and submit-ted 468 matters to the Full Board calendars, an increase of 32% and25% respectively over 2005.

• The Information Technology (IT)Department began implementation ofe-Wholesale Price Postings. The e-Wholesale Price Posting applicationwill enable the electronic submission ofall mandated wholesale price sched-ules. The online system will eliminatethe monthly mailing process for ourwholesalers and provide them with a

secure environment to upload, dataenter and modify their monthly priceschedules electronically, thereby pro-viding the data necessary for theAgency to better regulate theWholesale industry.

• The IT Department implementeda secure remote access solution forSLA Enforcement field staff. The solution enables investigators to estab-lish a secure connection to all internalAgency systems, anytime, anywhere asthey conduct field investigations.


Daniel B. BoyleChairman/Commissioner

Daniel B. Boyle was nominated on January 12, 2006 as Chairmanand Commissioner of the New York State Liquor Authority and con-firmed by the State Senate on February 15, 2006. A devoted law enforce-ment professional with over 31 years of service, Chairman Boyle hasearned a reputation as a leader with vision, courage and commitment.

Chairman Boyle was appointed as Police Officer with the SyracusePolice Department in 1974, serving as the Department’s first-ever evi-dence technician. He rose steadily through the ranks in the CriminalInvestigations Division, Personnel & Training Divisions and in theAdministration Bureau where he coordinated a newly formed D.A.R.E.program with local school and community representatives. ChairmanBoyle was appointed Deputy Chief of Police in 1994 and then First Deputy Chiefin 1999, where he directed his efforts towards addressing community goals andobjectives for the Department. In 2001, Chairman Boyle left the Syracuse PoliceDepartment to become Chief of Police of the East Syracuse Police Department. In2002, Chairman Boyle became the Commissioner of Public Safety for the City ofSchenectady, and most recently served as Chief of Police for the Town ofGlenville, NY.

His diverse background includes experience with budget making, audits, pub-lic safety, working directly with community leaders and strengthening staff out-put. Chairman Boyle has successfully launched training programs, developedstrong relationships with community leaders, governmental agencies and intro-duced effective strategies in dealing with day to day management of law enforce-ment agencies.

A native of Syracuse, Chairman Boyle earned an Associate’s Degree inCriminal Justice from Onondaga Community College, a Bachelor’s Degree as aDual Major in Psychology and Sociology from Syracuse University and is current-ly enrolled in the Maxwell School of Citizenship and Public Affairs at SyracuseUniversity working towards a Master’s Degree in public administration.Chairman Boyle is a member of the Central New York State Association of Chiefsof Police and a graduate of the FBI National Academy.

Chairman Boyle and his wife Patricia of 29 years are the happy parents of twodaughters and reside in Syracuse, NY.


Lawrence J. GeddaCommissioner

Mr. Gedda was first confirmed as Commissioner of the State Liquor Authorityin June, 1992. He was reappointed in June, 1995 and May, 1999.

Commissioner Gedda joined the Authority in 1963 as a member of the staff.He served in numerous capacities including Chief Executive Officer, DeputyCommissioner of Enforcement and Director of the Wholesale Bureau.

Commissioner Gedda was educated at Valley Stream Central High School,Penn State University, Hofstra and Columbia University. He taught AlcoholicBeverage Control Law at Touro Law School (Huntington, N.Y.).

Commissioner Gedda was a member of the United States ArmyCounterintelligence Corp. (CIC) and served as a special agent in Berlin, Germanyduring the Korean War.

His civic and professional associations include Rotary, Elks, the Society ofProfessional Investigators and the Association of Former Intelligence Officers.

He is a former football referee for the Eastern Collegiate Athletic Conference (ECAC).

Larry and his wife of 48 years, Marilyn, have two children and three grandchildren.

Noreen Healey Commissioner

Noreen Healey was nominated on June 14, 2006 as Commissioner of the StateLiquor Authority and confirmed by the State Senate on June 21, 2006.

Prior to her appointment, Commissioner Healey was a Principal CourtAttorney, serving as a confidential legal advisor to Judges in New York StateSupreme Court, Criminal Division in Kings and Bronx Counties. She also servedas an Assistant District Attorney in the prestigious Appeals Bureau of DistrictAttorney’s Offices in Kings, Nassau and Queens Counties for more than twelveyears. She has experience as a litigation attorney representing the New York CityDepartment of Social Services in child abuse and neglect proceedings in FamilyCourt, New York County.

Commissioner Healey is a member of the New York County LawyersAssociation, where she sits on the Law-Related Education Committee. In 2005,she received the Committee’s Pro Bono Award for her contributions in providinglaw-related education to students in New York City Schools. She is a member ofthe Brooklyn and New York City Bar Associations, and sits on the Social WelfareCommittee at the City Bar Association.

Commissioner Healey graduated from Saint John's University School of Lawin Jamaica, Queens. She earned her Bachelor of Arts Degree, Magna Cum Laude,from Pine Manor College in Massachusetts. She earned the Pine Manor"President's Cup for Outstanding Scholarship," an award given to the highestranking senior at graduation. Commissioner Healey is a New York City resident,living in Brooklyn Heights.


Joshua B. Toas Chief Executive Officer

Joshua B. Toas was appointed Chief Executive Officer of the New York StateLiquor Authority (SLA) in November of 2005. In this capacity, Mr. Toas isresponsible for running the daily operations of the Agency.

Prior to his arrival at the SLA, he served as Deputy Executive Director of theNY Office of Science, Technology and Academic Research (NYSTAR) where healso was in charge of daily operations and served on the Governor’s HomelandSecurity Task Force. Prior to his arrival at NYSTAR, Mr. Toas served as ExecutiveDeputy Commissioner of the New York State Office of Alcoholism and SubstanceAbuse Services (OASAS) where he was instrumental in restructuring the one thou-sand person state agency while running the agency’s daily operations. Mr. Toashas served in a variety of leadership positions in NYS government including:OASAS Acting Executive Deputy Commissioner and General Counsel, New YorkAssistant Secretary of State, Deputy Counsel to the Secretary of State, SpecialCounsel to the Governor for Appointments, and as an Associate Counsel in theNew York State Senate. While at the Department of State, Mr. Toas was instru-mental in the implementation of the low ignition propensity cigarette regulations,the first of its kind regulations in the world. Mr. Toas was also responsible for allAgency legislative initiatives and was involved in agency special projects. As anAssociate Counsel in the State Senate, Mr. Toas was the principal drafter of theProstate and Testicular Cancer Detection and Education Program and wasinvolved in other health and environmental legislative initiatives.

Mr. Toas currently serves as a captain in the US Army Reserves and is a veter-an of Operation Iraqi Freedom, where he served as the Chief of Administrativeand Operational Law for the United States Third Army, Army Central Command,Coalition Forces Land Component Command.

Mr. Toas also serves as the Vice Chairman of the Board of Directors of theInstitute for Building Technology and Safety, a Virginia based corporation. He ismember of the Veterans of Foreign Wars, the American Legion, and the ReserveOfficers Association.

Mr. Toas was born in Philadelphia, PA and received his Bachelor of ArtsDegree with honors in Political Science at Temple University in 1993. He attendedWidener University School of Law where he received his Juris Doctor in 1996 andwas awarded the Wapner, Newman, Wigrizer Award for Trial Advocacy andserved as an editor of the Law Review.

He currently resides in Niskayuna with his wife Megan.


Senior Agency Staff

Thomas Donohue, Counsel to the Authority

J. Mark Anderson, Senior Deputy Commissioner

Thomas O’Connor, Deputy Commissioner of Government Affairs

William Crowley, Director of Communications

Jacqueline Held, Acting Secretary to the Authority

Kimberly Ciccone, Secretary to the Chairman

Stephen Kalinsky, Chief Administrative Law Judge, Hearing Bureau

Daniel Malay, Director of Enforcement

Michael Drake, Director of Information Technology

Kerri O’Brien, Director of Licensing

Zone 1 – 317 Lenox Avenue, NY, NY 10027

Edward Reyer, Director of Operations

Frederick Gioffre, Deputy Commissioner of Licensing

Michael Sakovsky, Deputy Commissioner of Licensing

Marvin Levine, Supervising BCI, Enforcement

Robert Buckley, Associate Attorney, Legal

Kimberly Morella, Deputy Director of Communications

Zone 2 – 80 S. Swan Street—Suite 900, Albany, NY 12207

Thomas Pascucci, Supervising BCI, REU

Robert Benedetto, Supervising BCI, Training

Zone 3 – 535 Washington Street, Buffalo, NY 14203

Rose Blasio, Office Manager

Brandon Noyes, Executive Officer, Licensing

Kurt Herrmann, Supervising BCI, Enforcement


Licensing

The Agency maintains three zone offices in Albany, Buffalo, NewYork City and a satellite office inSyracuse. The Deputy Commissioner of Licensing coordinates statewidelicensing policies, standards and initia-tives and is responsible for systemsdevelopment to support the Agency.

LICENSE AND PERMIT TYPES

The ABC Law defines 173 differentlicenses and permits within the generalcategories of manufacturer, distributor,wholesaler and retailer. The holder ofa wholesale license is authorized tomanufacture and distribute alcoholicbeverages to licensed retailers. A retaillicense authorizes the holder to sellalcoholic beverages directly to consumers for on or off-premises consumption. The length of the licenseperiod varies depending on the class ortype of license issued. The fee structurefor each license/permit is set by statute.

LICENSING PROGRAM

It is the responsibility of theLicensing Bureau to ensure that allapplicants meet the statutory require-ments and qualify to obtain a licenseor permit. The Licensing Bureaureviews license and permit applicationscarefully, documents all findings andprepares detailed reports to ensure thateither the local Licensing Board or theMembers of the Authority are able tomake a reasonable determination onevery application.

LICENSING PRODUCTIVITY

The Agency regulates over70,000 licenses and permitsstatewide each year. TheLicensing Bureau issued 6,035licenses and 20,993 permits.

BRAND LABEL REGISTRATION

All labels for spirits or malt bever-ages must first be approved by theAuthority before they are allowed tobe sold in New York State. The brandowner/manufacturer may either applyfor a wholesale license or designate anexisting New York State licensedwholesaler as the exclusive agent forthe registration of its brand.

The Licensing/Wholesale Bureaureviews both original and renewalapplications, prepares all documenta-tion for the Members of the Authority,and issues licenses and permits whenappropriate.

PERMIT UNIT

This unit processes all permits,including Temporary Beer and WinePermits, Caterer’s Permits,Transportation Permits, Solicitor’sPermits and all other miscellaneouspermits. The Unit reviews all applica-tions for completeness and ensures thatall policies and procedures are fol-lowed in the review process. The Unitworks with the municipalities, includ-ing the local police precincts, to ensurethat permits are not issued to appli-cants who have held more than the

Mike SakovskyDeputy Commissioner Zone I Licensing

Fred GioffreDeputy Commissionerof Licensing


allowable number of permits at a specific location or at locations thathave been the focus of police attention.

INVESTIGATIVE/EXAMINER UNIT

The Investigative/Examiner Unitprocessed over 6,000 cases in 2006, anaverage of over 500 cases per month.

RENEWAL UNIT

The Renewal Unit is responsible forthe review and issuance of all applica-tions for renewal of licenses/permitsstatewide. Renewal applications areprinted and mailed to licensees eightweeks prior to the expiration of theircurrent license. When the renewalapplication is received in the office, theapplications are reviewed for complete-ness and all pertinent information isdata entered into the computer system.A review of any prior adverse historyor pending charges is also completedprior to making a determination on therenewal application. Licensees withadverse history or pending cases mayreceive a State AdministrativeProcedure Act (“SAPA”) letter, not arenewal. This allows the establishmentto continue to operate temporarily,pending the disposition of disciplinarymatters.

INTAKE UNITS

Intake Units in all three zonesreviewed and processed over 7,400applications statewide. The unit follows a strict adherence to documentation for all new applica-tions, corporate changes, and alter-ation applications. In New York City,the unit also checks for required documentation of all CommunityBoard notifications and the separationof the 500 Foot Hearing applications.

FEES AND REFUND UNIT

This unit receives and processes allfees from license and permit applica-tions. The unit prepares daily depositsand processes refunds where necessary.Documentation for the “surrender” oflicenses is performed by this unit. Thisdocumentation is then forwarded tothe New York State Office of Audit &Control.

DATA ENTRY/RECORD ROOM

All applications are sent to the“Record Room” where a file is creat-ed. The data-entry of all pertinent datais recorded in our computer system.The new application is assigned a serialnumber and sent on to an investigator.The files are utilized by theEnforcement Bureau, the Office ofCommunications, and Counsel’sOffice.

Mike Sakovsky checkingapplication information

against agency files


2006 Licensing Statistics

ZONE 1

ZONE 2

ZONE 3

ZONE 1

ZONE 2

ZONE 3

ZONE 1

ZONE 2

ZONE 3

On Off

Premises Premises Wholesale Sub-Totals

Received 2,474 2,363 52 4,889

Approved 1,764 1,905 40 3,709

Received 984 518 286 1,788

Approved 892 459 239 1,590

Received 513 241 22 776

Approved 486 232 18 736

Statewide Received 7,453

Total

Approved 6,035

Brand Label Other Sub-Totals

Received 1,004 763 1,767

Approved 1,065 898 1,963

Received 206 419 625

Approved 206 480 686

Received 131 415 546

Approved 131 526 657


Total

Approved 3,306

TPA’s Caterer’s Sub-Totals

Issued 4,268 3,049 7,317

Issued 3,588 2,838 6,426

Issued 2,089 1,855 3,944

Sub-Totals 9,945 7,742

Statewide

Total 17,687

ZONE 1 Received 3,248

ZONE 2 Received 1,360

ZONE 3 Received 464


Total

Licenses

Permits

One Time Permits

License Changes


Calendar Year 2006 Statewide Licensing Revenues

New RenewedClass Licenses Licenses Totals

On-Premises $8,973,031 $23,540,045 $32,513,076

Off-Premises $1,906,897 $4,524,398 $6,431,295

Liquor Stores $835,946 $188,306 $1,024,252

Wholesale $761,212 $1,935,922 $2,697,134

Subtotals $12,477,086 $30,188,671 $42,665,757

Misc. Permit Fees $302,221 $1,510,046 $1,812,267

One Time Permits $807,626 $807,626

Brand Label Permits $288,450 $690,550 $979,000

Total Licensing Revenues $46,264,650


Disciplinary Process

An investigation by the New YorkState Liquor Authority may includeon-site inspections of a licensed establishment; on-site undercoverinvestigations by SLA Investigators and other law enforcement agencies; areview of reports and investigations byother law enforcement and regulatoryagencies; and interviewing potentialwitnesses/complainants and collectingevidence of potential violations.

Information obtained is reviewed todetermine if there is sufficient evidenceto bring administrative charges againsta licensee. A disciplinary proceeding iscommenced by the issuance of a Noticeof Pleading by the Office of Counselsetting forth the alleged violations. Alicensee may enter a plea of not guilty,no contest, or conditional no contest.If the licensee fails to respond, the matter is treated as a no contest plea.

If a licensee pleads not guilty, ahearing date is scheduled with anAdministrative Law Judge (ALJ). Atthe hearing, the SLA and the licenseemay produce witnesses, cross-examine witnesses and submit evidence in sup-port of their case. Decisions are madeby the ALJ and presented to theMembers of the Authority. ALJ's findings are not final, only the

Members of the Authority may make afinal determination.

If the licensee pleads no contest, thecase is sent directly to the Members ofthe Authority for final determinationof the appropriate penalty. If thelicensee submits a conditional no contest plea, the licensee's offer is forwarded to the Members of theAuthority for final determination. Ifthe offer is rejected by the Members,the matter is returned to Counsel'sOffice to schedule an administrativehearing.

Each case brought to the Membersof the Authority is examined on itsindividual merits. If a disciplinarycharge is sustained, the Members ofthe Authority may impose one or more of the following:

• License suspension, cancellationor revocation [ABCL § 17(3)];

• A monetary penalty, [ABCL §17(3)];

• A bond forfeiture [ABCL § 112and 9 NYCRR 81(3)]; and/or

• A two-year ban against theissuance of a license to any partof the building containing therevoked licensed premises [ABCL § 113(1)].

Investigation

DisciplinaryProceeding

Hearing

Resolution


Compliance Statistics

Disciplinary Penalty Definitions

Revocation - terminates the license and bans the licensee from holding any liquorlicense for two years.

Cancellation - terminates the license, but does not ban the licensee from applyingfor a license for two years.

Suspension - prohibits the consumption or sale of alcoholic beverages for a designated period.

Civil penalty - monetary fine that may be levied against the licensee with or as analternative to a revocation, cancellation, or suspension.

Bond Claim - a claim made against the licensee’s surety bond.

Proscription - prohibits the issuance of a liquor license for any part of thelicensed premises for two years. Can only be issued when a license is revoked.

Summary Suspension - under the State Administrative Procedure Act, a Stateagency is authorized to summarily suspend a license when the agency finds thatpublic health, safety, or welfare imperatively requires emergency action.

REVO- CANCEL- SUSPENSIONS BOND CIVIL SUMMARY TWO YEARCATIONS LATIONS TOTAL # OF DAYS CLAIMS PENALTIES SUSPEN- PROSCRIP-

IMPOSED SIONS TIONS

2003 88 305 195 2879 $504,500 $4,864,150 1 8

2004 125 272 238 3303 $532,500 $5,132,750 4 28

2005 141 323 250 3818 $579,500 $5,928,050 4 54

2006 203 252 246 3348 $531,975 $6,040,650 24 78


Enforcement

The Authority’s EnforcementBureau is responsible for investigatingcomplaints alleging violations of theAlcoholic Beverage Control Law andthe rules of the State Liquor Authority.The Bureau also provides training topolice agencies as well as all levels of the beverage industry onprovisions of the ABC Law. TheBureau is entrusted to enforce all theprovisions of the ABC Law includingthe monitoring of manufacturing,wholesale, retail, transportation, storage, and other facets of the alcoholic beverage industry.

Many violations of the ABC Laware crimes in which violators may bearrested. Therefore, law enforcementagencies play an important role withthe Authority in enforcing the law.This shared responsibility occurs mostoften at the retail or consumer level.

Although the Authority has no general criminal jurisdiction, the police

refer thousands of violations to theAuthority for administrative prosecu-tion. Complaints of violations are notonly received by the Authority frompolice, but are also from numerousother sources, including governmentalagencies, citizens' representatives, community groups and individual complainants.

In 2006, the statewide EnforcementBureau implemented a computer basedCompliance Tracking System.Beverage Control Investigators (BCI’s)have been equipped with additionalelectronic personal devices enablingthem to submit reports from the fieldas well as capture accurate images ofinvestigation locations from storeddata. The Enforcement Bureau continues to expand the 2005 initiative of using decoy minors incompliance and complaint checks as well as increase “in-house” trainingof our BCI’s.

ENFORCEMENT STATISTICS - SUMMARY

2006COMPLIANCE INVESTIGATIONS INVESTIGATIONS REFERRALS TO

CASES OPENED COMPLETED COMPLETED OFFICE OFTO ENFORCEMENT (TOTAL) (FILED) COUNSEL

4149 4017 1216 1375

SUPERVISEDTOTAL # OF SUSPENSIONS/ OTHER

MISCELLANEOUS JOINT ACTIONS/ CANCELLATIONS/ (TRAININGS/ASSIGNMENTS TASK FORCE REVOCATIONS MEETINGS)

717 80 479 158

COMPLIANCESYSTEM

STATISTICS

MISCELLANEOUSSTATISTICS

NOT RELATEDTO COMPLIANCE


Rapid Enforcement Unit

In April of 2006, the New YorkState Liquor Authority established theRapid Enforcement Unit (REU). TheUnit conducts priority investigationsand responds to allegations of criminalactivity and serious repeat violations ofthe ABC Law. Legal staff assigned tothe unit issue pleadings within fivedays when there is substantial evidenceof a violation. The REU includes theSLA’s most experienced investigatorsand prosecutors and is led by the SLA’sCEO. The REU coordinates SLAefforts with our partners throughoutthe state in a continuing effort to makeour communities safer.

Framework of the SLA RapidEnforcement Unit (REU)

• The SLA CEO coordinates a team ofregional liaisons, investigators andlegal staff to ensure prompt actionon all cases.

• A liaison from each region coordi-nates with local officials and lawenforcement agencies.

• REU responds to allegations of serious criminal misconduct or repeatviolations of the ABC Law. The REUinstitutes prompt disciplinary actionwhen there is evidence a licensedpremises poses an imminent threat tothe public.

• Investigations of referrals by a lawenforcement agency, or the ChiefExecutive or governing board of aCity, Town, or Village to the REUbegin within 10 days of the allegedviolation(s).

• A pleading is issued to the licenseewithin five business days when aninvestigation finds substantial evi-dence of a violation. If a “not guilty”plea is entered, an expedited hearingis scheduled. Any alleged violationsthat constitute a continuing andimminent threat to the public aresent immediately to the Members of the Authority for a potential summary suspension.

REU Summaryof Activity

Total CasesOpened...............35

SummarySuspensions.........9

Revocations..........2

Other Penalties ....1

No Charges ..........3

Unlicensed/Licensing Cases ...2

Hearings Pending ..............13

Open Cases..........5


Alcohol Training and Awareness Program

In an effort to lower the incidenceof underage drinking, the Governorand the State Legislature created theAlcohol Training Awareness Program(ATAP). The program, designed by theState Liquor Authority, offers volun-tary instruction for licensed alcoholicbeverage retailers and their employees.

The program focuses on the legalresponsibilities of selling or deliveringalcohol and provides training in practi-cal skills to help licensees and theiremployees fulfill their legal responsibil-ities. Additionally, the ATAP programinforms participants on the potentialconsequences of improper sale or deliv-ery of alcohol. Licensees and individu-als completing the ATAP program havethe possibility of a limited affirmativedefense in the event of an illegal alco-hol sale to a minor.

Chapter 549 of the Laws of 2001amended the minimum curriculumstandards for the ATAP program. Thenew chapter directed the Authority toset minimum standards for two differ-ent types of Alcohol TrainingAwareness Program: one for off-prem-ises licensees and their employees, andone for on-premises licensees and theiremployees.

The Authority has issuedCertificates of Approval to nine train-ing programs, which regularly provideinstruction to retail alcoholic beveragelicensees and their employees. In 2006,296 classes were conducted with 3,681employees completing the program.ATAP assists the SLA in realizing thegoal of providing a safe environment atlicensed establishments to preserve thehealth, safety and welfare of citizens inour communities.


Office of Counsel

The Office of Counsel is responsi-ble for providing legal advice and serv-ice to the Chairman, Commissionersand other staff of the Authority.During 2006, the bureau consisted ofapproximately 25 employees, includingthe Counsel to the Authority and 11staff attorneys. Eight of the attorneysare assigned to the prosecution of dis-ciplinary cases against licensees. Thelegal bureau maintains offices inAlbany, New York City and Buffalo.

Among its duties, the Office ofCounsel:

• Prosecutes disciplinary proceed-ings against licensees who havebeen charged with violating theAlcoholic Beverage Control Lawand the Rules of the State Liquor Authority;

• Represents the Authority in litigation brought against theAuthority by licensees and otherparties;

• Advises the Chairman, Commis-sioners and staff on legal issues;

• Responds to requests for interpre-tation and application of the lawfrom other agencies, licensees andthe public;

• Develops rules, regulations andpolicy directives in cooperationwith the Chairman, Commis-sioners and other staff;

• Prepares proposed legislation, andcomments on legislation proposedby other agencies and members ofthe legislature;

• Assists other bureaus within theAuthority to ensure that allactions taken are in compliancewith the law; and

• Advises the Chairman andCommissioners on requests fordeclaratory rulings.

In 2006, the Office of Counselcommenced 3,861 disciplinary casesagainst licensees for violations of theAlcoholic Beverage Control Law andthe Rules of the State LiquorAuthority. With almost 4,000 casespending at any given time, each prosecutor carries an average a case-load of over 300 proceedings.

A joint investigation by theAuthority and the New York StateAttorney General’s Office into improper trade practices in the liquorand wine industry culminated in millions of dollars in fines beingimposed against retailers, wholesalersand manufacturers. As part of thisinvestigation, court orders were issuedthat will serve to send a clear messageto all licensees that illegal conduct will not be tolerated.


Important Legislation

Significant changes to the AlcoholicBeverage Control Law in 2006 include:

• Electronic filing of liquor andwine price schedules, replacingthe existing system of filing paperschedules with the Authority.This allows easier access to theinformation both by licensees andthe general public;

• Sale of beer on Sunday morningsin grocery stores. The new lawchanged the time that licenseescould sell beer for off-premisesconsumption on Sundays from 12 noon to 8 a.m.;

• Alcohol vaporizing devices.Licensees are now expressly prohibited from having thesedevices in their establishments,

which mix liquor or other alcoholic beverages with pureoxygen or other gas to produce avaporized product to be inhaledby a customer;

• Items that may be sold by wineries and farm wineries. The new law added to and clarified the kinds of food andgift items that can be sold at these establishments; and

• Beer tastings. Brewers and restaurant brewers are nowallowed to hold tastings of thebeer/malt beverages they produce.The tastings may only take placeat certain establishments, includ-ing, but not limited to, licensedgrocery stores.

General Counsel Thomas Donohue and Associate Counsel Lisa Bonacci


Keg Registration and Deposit Forfeitures

By virtue of Chapter 274 of theLaws of 2004, enacted and effective on August 3, 2004, the Legislature pro-vided for the forfeiture of a keg purchas-er’s $75.00 Keg Registration Deposit tothe retail seller of the keg upon the occurrence of four eventualities [ABCL § 105-c.(5)+(5-a)]:

• Keg was not returned;

• Keg was returned but after 90 days from purchase;

• Registration label was removed; and

• Registration label was damaged.

Where a retail keg seller declares aforfeiture of the purchaser’s KegRegistration Deposit, the retail keg selleris required to provide notice to the StateLiquor Authority of such forfeiture[ABCL § 105-c.(5-a)].

From January 1, 2006 to December 31,2006, the Authority received notification

from retail sellers of the following KegRegistration Forfeitures:

Reasons for forfeitures Number

Keg was not returned. .................45

Keg was returned but after 90 days from purchase............5

Registration label was removed. ...........................4

Registration label was damaged. ..........................0

TOTAL FORFEITURES........................54

During 2006, retailers purchased atotal of 133 packets (with each packetcontaining 50 forms) of the KegRegistration Deposit forms. The cost tothe retailer is $9.50 per packet. The total amount received for these purchases was $1,263.50.


Hearing Bureau

OVERVIEW OF FUNCTIONS

The Hearing Bureau is currentlylocated in the SLA Zone 1 office inNew York City, where most of thecases are calendared. Licensees chargedwith violations, such as sale of alcoholic beverages to underage purchasers, have the right to a fair and impartial hearing. The HearingBureau conducts all such disciplinaryproceedings, which are prosecuted bythe Authority’s Office of Counsel.Hearings are formal, “of record” adjudicatory proceedings of theAuthority. They are governed by theState Administrative Procedure Act(SAPA) and by Executive Order 131,which require they be conducted in amanner that is impartial, efficient,timely, expert and fair. The role of theALJ is to conduct the hearings inaccordance with these requirements.

Upon completion of hearings, ALJ'ssort out the facts and render writtendeterminations. They include reasonedfindings of fact, an opinion including areview of the applicable law, and aconclusion as to whether charges havebeen sustained. Determinations mustbe based upon the record of hearing.The record of hearing constitutes thebasis for all succeeding reviews, including review by the Members of the Authority and the civil courts of the state. The ALJ's findings are not final, only the Members of theAuthority may make a final determination.

In addition, the Bureau conductshearings on license applications whensuch hearings are mandated by statute.Primarily, the Bureau conducts twotypes of licensing hearings: hearings onapplications for licenses when theapplication has been disapproved bythe Authority’s License Bureau and theapplicant appeals; and “500 Foot RuleHearings”, i.e. hearings mandatedwhen the Authority is presented withan application for an “on-premises”liquor license in a municipality oftwenty thousand (20,000) or morepeople and there are already three ormore “on-premises” liquor licenseeswithin 500 feet of the applied forpremises.

In 2006 the Hearing Bureau heard 462 disciplinary hearings tocompletion and submitted 468 mattersto the Full Board calendars. By comparison, in 2005 the Bureau heard to completion 350 disciplinaryhearings and submitted 374 matters tothe Full Board. The Bureau conducted112 more disciplinary hearings in 2006than in 2005 (an increase of 32%) and submitted 94 more matters to the Full Board in 2006 than in 2005 (anincrease of 25%). The Bureau alsoheard to completion 359 “500 FootRule Hearings” in 2006.

HearingBureauSummary

Disciplinary Hearings Completed ........462

Matters Presented to Full Board ..........468

Statutory Hearings ................0

“500 Foot RuleHearings”..........359

Total Hearings.................1,289

Stephen KalinskyChief Administrative LawJudge


Office of the Secretary

The Office of the Secretary overseesthe preparations of the agenda for each“Full Board” meeting of the Membersof the Authority. The Office receivesmatters to be placed before theMembers from the Office of Counsel,the Licensing Bureau, and the HearingBureau, as well as miscellaneous mat-ters presented by other bureaus/officesof the Authority.

The Office of the Secretary sched-uled 25 regular meetings in 2006.Twenty-four were held in the NewYork City Office at 317 Lenox Avenue,and one was held in the Albany Officeat 80 South Swan Street. Additionally,five emergency Full Board meetingswere called on these dates: June 30,2006, July 12, 2006, July 25, 2006,August 2, 2006 and October 20, 2006.

Meeting of the Full Board—NYC office Fred Gioffre, Mike Sakovsky,Commissioner Noreen Healey,Chairman Daniel Boyle

In the calendar year 2006, the Office of the Secretary presented a total of4,368 new items to the “Full Board”. The sources of the items were:

Office of Counsel...........3,429

Licensing Bureau..............442

Hearing Bureau ................435

Miscellaneous.....................52

Jacqueline HeldActing Secretary to the Authority


Office of the Secretary

After the “Full Board” meetings,the Office of the Secretary implementsthe determinations of the Membersand imposes any penalty where appropriate. The following penaltyorders were imposed in 2006:

Emergency Summary Orders of Suspensions......................24

Revocations .............................203

Cancellation ............................252

Suspensions .............................246

Deferred Suspensions...................3

TOTAL ...................................................728

In addition, the Office of theSecretary collected $6,318,625.00 incivil penalties and bond claims.

2006 PENALTY ORDERS IMPOSED

300 —

250 —

200 —

150 —

100 —

50 —

0 —EMERGENCYSUMMARYORDERS OF

SUSPENSIONS

REVOCATIONS CANCELLATIONS SUSPENSIONS DEFERREDSUSPENSIONS


Office of Government Affairs

The Office of Government Affairs(OGA) is responsible for fostering pos-itive working relationships with feder-al, state and local legislators, commu-nity boards and their staffs in order toencourage dialogue and cooperationon matters affecting alcoholic beveragecontrol policy. OGA is charged topresent, discuss and gain passage of theAgency’s annual legislative programand, where appropriate, Governor’sProgram Bills bearing on alcoholic bev-erage control policy, thereby support-ing the Agency’s overall mission.

Key Services

• Liaison Services: act as liaisonsbetween the Legislature and theAgency on its annual legislativeprogram, as well as on matters ofmutual interest (i.e., resolving con-stituent cases). Through contactswith the Senate, the Assembly, theExecutive Chamber, federal andlocal government representatives,and interest groups, relays Agencypolicy to external stakeholders andprovides input from those stake-holders into the process of moldingor changing alcoholic beverage control policy; and

• Legislative Services: provides leg-islative advisory services to theAgency. This is accomplishedthrough computer tracking andresearch, and through contact withmember offices.

Major Functions

• Legislative Formulation: solicitsfrom Agency program managersideas for inclusion in the annuallegislative program. OGA staffreview ideas submitted, confer withprogram managers and ExecutiveStaff to determine which are appropriate for inclusion in theannual program, assist in the drafting of proposals, and coordinate the presentation of these proposals to the Governor’sCounsel;

• Legislative Review: circulates billsfor review presented by members ofthe Legislature, Congress and otherstate agencies which solicit theAgency’s opinion or support.Provides the Agency’s positionwhere appropriate;

• Legislative Status Reports: report-ing the progress of the Agency’s legislative program and legislationof interest, thereby keeping theExecutive Staff and program managers current on legislativeactivity that may affect policy andadministration; and

• Constituent Cases: resolves a highvolume of inquiries from legislatorson constituent matters involving the Agency. These cases are routinely handled by staff viaphone or by referring cases to theappropriate program for resolution.

Liaison Services

Legislative Services

Constituent Services


Office of Communications

The Office of Communications isresponsible for working with the media,distributing press releases, coordinatingpress conferences and providing information to the public. TheCommunications Office serves as aninformation resource center for the public and employees by developing andimplementing public information strate-gies as well as coordinating internalcommunications. The office manages thecontent of the Agency’s website,enabling members of the news media, aswell as individuals, to obtain the latestannouncements, bulletins, press releasesand media advisories. The Office’s goalis to keep the media, licensees and thepublic up to date on news, policies andcurrent events concerning the StateLiquor Authority.

Additionally, the Office ofCommunications responds to thousandsof requests for Agency records as provided for in the State’s Freedom ofInformation Law (FOIL). Documentsand reports requested by the public andmedia include:

• Annual Reports and News Letters;• License Applications;• Industry Bulletins;• Board Determinations of the

Members of the Authority;• Declaratory Rulings;• Divisional Orders Issued by the

Members of the Authority;• Lists of Licenses;• Statewide lists;• Brand Label Registrations;• Manufacturers

(Breweries/Distillers);• Wholesalers;

• Notices of Appearances Pursuantto Executive Law 166; and

• Notices of Pleading on DisciplinaryMatters Against Licensees

Freedom of Information Law

The Agency receives and responds to hundreds of written and oral communications annually from interested parties requesting access toAgency records pursuant to the State’sFreedom of Information Law.Responding to these requests requiresextensive review, research and retrievalof Agency records, making careful determination regarding what informa-tion is releasable, redacting fromrequested documents information notreleasable and preparing a response providing the requested information orreasons why the request was denied.

2006 FOIL Request DataFOIL LETTERSREQUEST-2006 ZONE 1 ZONE 2 ZONE 3 TOTALSJanuary 25 22 3 50February 30 30 1 61March 33 63 2 98April 20 30 5 55May 34 48 1 83June 38 33 4 75July 26 28 1 55August 36 26 2 64September 10 25 9 44October 12 26 5 43November 15 21 0 36December 11 15 2 28

TOTALS 290 367 35 692


Office of Communications

This year, the Office of Communica-tions began work towards processing allFOIL requests through our AlbanyOffice, with Zone 3 requests currentlyprocessed almost entirely through theZone 2 office.

An increased use of the StateLiquor Authority's website and our efforts toward more modern “e-communication” yielded 2,884requests to the Zone 1 office, whichfields many of the e-mail and telephonerequests for information from theagency. There were 3,576 requestsmade statewide in 2006, of which 664 were received by e-mail.

In 2006 the Office ofCommunications worked to streamlineand standardize the procedures of providing information to the public.Staff members attended state sponsored continuing education courses on records management andresponsibilities of the FOIL process.This effort included implementing a

reference log of all Zone FOILrequests. In the last quarter of the year,the office further advanced our recordkeeping of our FOIL requests so it isnow accessible from any of our fouroffices throughout the state. This hasenabled the staff to assist the publicwith greater accuracy and expediencyfor their requests and helped to virtually eliminate duplication ofefforts between FOIL officers anddepartments.

The Office of Communications alsohad involvement during 2006 in thecomplete overhaul of the agency’s website. This work, coordinatedthrough the agency’s IT Department,included researching new layouts andformats, developing a more ‘user-friendly’ website, implementing a platform for analysis of features thatare most useful to users and developinga launch program for the new websiteupon completion


Information Technology

In 2006 the InformationTechnology (IT) Unit performed relo-cations in the Albany and Buffalo zoneoffices, while developing and imple-menting a variety of new technologyinitiatives.

A major initiative implemented in2006 was upgrading the Agency’sOffice productivity software, and tran-sitioning its e-mail systems statewide tothe Enterprise e-mail system(NYSeMail) hosted by the Office forTechnology. The transition to thehosted environment provides a level ofservice and redundancy not previouslypossible in a system managed withinthe Agency.

In May of 2006 the Agency relocat-ed our Albany Office to the newly ren-ovated Alfred E. Smith building indowntown Albany. The relocation wasespecially challenging for the IT Unitas it involved transferring mission criti-cal systems and servers to our newoffice space while maintaining servicesfor our staff and customers statewide.Although challenging, the move alsoprovided the IT Unit with the perfectopportunity to upgrade our existingcommunications infrastructure inpreparation for other important initia-tives planned for 2006. The 4th quar-ter of 2006 was very busy as the ITUnit prepared circuits and equipmentfor the new office in the Electric TowerBuilding at 535 Washington Street.The Buffalo Office relocation wascompleted on January 5th, 2007.

One exciting initiative that becamepossible as result ofour infrastructureupgrades was theimplementation of asecure remote accesssolution for our investigative fieldstaff. The solution enables the investigative staff to establish a secureconnection to all internal Agency systems, anytime, anywhere as theyconduct field investigations. The solution also provides a convenientremote interface for our Executive staff as they are required to travel.

The last major initiative, e-Wholesale Price Postings, started in2006. The e-Wholesale Price Postingapplication will enable the electronicsubmission of all mandated wholesaleprice schedules. Currently, the priceposting process is completely manual;schedules are received by mail andorganized by the Agency WholesaleBureau for viewing by the public. The online system will eliminate themonthly mailing process for ourwholesaler licensees and provide themwith a secure environment to upload,data enter and modify their monthlyprice schedules electronically, while providing the data necessary for the Agency to better regulate thewholesale industry.

Mike Drake Director of Information Technology


Taskforce for the Review of On-Premises Licensure

In 2006 the Members of theAuthority imposed a moratorium onnew liquor licenses subject to the 500foot rule in New York County, with anexception for new restaurant applica-tions. The moratorium was in effectfrom September 7, 2006 throughDecember 31, 2006. During the moratorium, SLA Chairman Boyle designated Commissioner NoreenHealey, Esq., to chair the Taskforce forthe Review of On-Premises Licensure.Commissioner Healey convened agroup of legal experts, elected officials,community leaders, law enforcementofficials, and representatives from theindustry to undertake this effort. Thetaskforce reviewed the ABC Law inrelation to on-premises licenses, ana-lyzed SLA polices and procedures, andreviewed the application process. Thegoal was to make recommendations tomodernize and streamline the applica-tion process, modify policies regardingthe issuance or denial of licenses, andto define the classifications for the various types of on-premises licenses.

Taskforce members and SLA staffworked collectively to review of theAlcoholic Beverage Control law andSLA policies regarding on-premiseslicensure. During taskforce meetings,SLA staff outlined the various types ofon-premises licenses, examined newlicense applications and discussedpotential amendments to and renewalsof existing licenses. Information wasprovided regarding the 200 foot rule,the 500 foot rule, as well as the exceptions to the 500 foot rule and the

community board’s input in theprocess. Senator Frank Padavan, whoauthored the 500 foot rule in 1993,explained the legislative intent andgave the members insight into thebackground of the rules.

The taskforce presented a forumfor interested parties to meet and openly discuss the law, SLA polices,and other mutual concerns. Moreover,the taskforce provided an avenue ofopen communication between disparate groups. The ten recommen-dations developed were the result ofextensive discussion and debate.Implementation of these recommenda-tions will result in a more orderlylicensing process fair to legitimate businesses and the communities wherethey operate.

RECOMMENDATIONS AND TASKFORCE DISCUSSIONS

1. Require specific sections of allnew on-premises license applicationsfiled with the SLA also be presented tothe community board or the localequivalent. Under existing law, anapplicant must give notice to the com-munity board 30 days before filing thelicense application. However, as busi-ness plans develop during that period,the information regarding the proposedpremises often changes. Consequently,information in the application filedwith the SLA differs from the informa-tion that the community board hasbeen given. This creates administrativeproblems for the SLA and fails to provide the community board withadequate information to render an



informed recommendation. Section 64(2-a) of the Alcoholic Beverage Control Law must be reviewed and the current required statutory noticeshould be revised to implement thisrecommendation;

2. Standardize the questionnaireand format for letters of support andopposition to applications for utiliza-tion by community boards throughoutNew York City. The questionnaireform must be sufficiently general asdifferent communities have differentconcerns. The SLA and communityboards should work together to devisethe form and identify the relevantinformation for opposition and support letters;

3. Change the notice requirementon renewal applications requiringlicensees to post notice of renewal nextto the license certificate in the estab-lishments for 30 days prior to comple-tion of the renewal process. Currentlylicensees are only required to givenotice by publication in the local press.This issue raised serious discussionswith some taskforce members desiringlicensees post renewal notices outsidethe establishment, and others expressingconcern this may invite challenges evenagainst establishments with no signifi-cant adverse disciplinary history. A change to the notice requirementwould require amendments to existinglaws;

4. Clarify the statutes governing the SLA’s authority to deny renewalapplications with serious adverse

history. Currently, licensees withadverse history or pending casesreceive a State AdministrativeProcedure Act (“SAPA”) letter, not arenewal. This allows the establishmentto continue to operate temporarily,pending the disposition of disciplinarymatters. Although this policy stoppedthe practice of renewing licenses forproblematic premises, it may still allowbad actors to continue to operate,potentially at great public risk.Clarification of the statute will allowthe SLA to disapprove a renewal application in cases where there is significant adverse history of violationsrelated to public health and safety proposal, opposed by a minority of thetaskforce, requires amendments to theABC Law and SAPA;

5. Grant renewal applications on aprobationary basis in cases where thelicensee has an adverse compliance history. While many licensees withadverse history are quick to addresstheir improper practices, others fail todo so. Creating a probationary periodfor licensees with adverse history provides violators with the opportunityto demonstrate to the SLA they havemodified their practices. Alternatively,those licensees that fail to change and continue to violate the law canimmediately lose their licensing privilege. This recommendation wouldrequire amendments to the ABC Lawand SAPA;

6. Conduct more detailed financialbackground checks on the licensees.This recommendation would requirethe hiring of forensic accountants;



7. Obtain access to criminalrecords and criminal history databasesto check the backgrounds of applicantsand licensees. Current law generallyprohibits felons from working inlicensed establishments and provides acharacter and fitness requirement forapplicants. Even though a felony con-viction prohibits employment, there isno law allowing the SLA to requestcriminal histories of employees. Therewas general consensus among the task-force members regarding the SLA’sability to conduct criminal historychecks for applicants, licensees, man-agers and security staff. This recom-mendation would require amendmentsto several statutes and would requireinformation technology upgrades at theSLA;

8. Identify the type of licenseapproved to the specified sections ofthe ABC Law.Currently, on-premiseslicense certificates state only that thelicense is “on-premises.” The recom-mendation is to change the license cer-tificate to identify the specific type oflicense such as “restaurant,” “tavern,”or “wine-bar.” Licensees must be held

to the terms and conditions of theapproved licenses, and the operationmust be consistent with the methodapproved in the application. In addi-tion, a new license should be devel-oped to address mixed use issues. Forexample, a restaurant that operates asa nightclub after dinner hours wouldidentify both. SLA staff is currentlyworking on modifications to the exist-ing application, including requirementsfor a more detailed method of opera-tion to identify items such as the secu-rity plan, number of bars, type ofentertainment, etc.;

9. Provide the SLA with additionalresources for enforcement, licensing,and technology. Additional staff wouldpermit the SLA to more efficientlycarry out the mission of the Agencyand provide more information to thepublic; and

10. Continue this taskforce orform another taskforce to explorewhether changes are needed in twoareas: (1) licensing restrictions, includ-ing further examination of the 200 and500 foot rules and (2) enforcementissues.

Shari Hyman, NYC Mayors Office,Senator Duane, SLA General CounselDonohue

Taskforce for the Reviewof On-Premises Licensure

Deputy Commissioner O’Connor, CEO Toas,Deputy Bureau Chief Caferri, Queens CountyDA Office, Assembly Member Glick



Taskforce Members

Elected OfficialsSenator Martin ConnorSenator Thomas K. Duane

Senator Serphin Maltese

Senator Frank Padavan

Senator Nick Spano

Speaker of the Assembly Sheldon SilverRepresented by Paul Goldstein

Assembly Member Deborah J. Glick

New York City Mayor Michael BloombergRepresented by:John FeinblattNYC Criminal Justice CoordinatorShari Hyman, Esq.Director Mayor’s Office of Special Enforcement

New York City Council Speaker Christine QuinnRepresented by Lauren Axelrod, Jim Carasand David Pristin

Manhattan Borough President Scott M. StringerRepresented by Felicia Feinerman

Community Boards/Groups/Leaders

Susan StetzerManhattan Community Board No. 3

J. Lee ComptonManhattan Community Board No. 4

Giovanna ReidQueens Community Board No. 3

Law Enforcement

New York City Police DepartmentSusan PetitoAssistant CommissionerIntergovernmental Affairs

Deputy Police Chief Brian J. ConroyCommanding Officer, Vice Enforcement DivisionNew York City Police Department

Albany Police Chief James Tuffey

Deputy Bureau Chief Nicoletta J. Caferri, Esq.Appeals BureauQueens County District Attorney’s Office

New York State Division of Criminal Justice ServiceChauncey Parker, Esq.Director, Criminal Justice & Commissioner

Represented by Gina Bianchi, Esq., General Counsel

Industry Representatives

Scott WexlerEmpire State Restaurant & Tavern Association

Robert Bookman, Esq.NYC Nightlife Association

Steven W. Harris, Esq.New York State Beer Wholesalers Association

State Liquor Authority

Kerri O’BrienDirector of Licensing Operations

Jacqueline HeldActing Secretary to the Authority

Commissioner Noreen Healey, Esq. ChairNew York State Liquor Authority


New York State Liquor Authority

Zone Office Map

1


Zone Offices and Representative Counties

Zone Zone Syracuse Zone1 2 District 3

317 Lenox Ave. 80 S. Swan St 333 E. Washington St. 535 Washington St.New York, NY Albany, NY Syracuse, NY Buffalo, NY

10027 12210-8002 13202 14203

Bronx Albany Broome Allegany

Kings Clinton Cayuga Cattaraugus

Nassau Columbia Chenango Chautauqua

New York Dutchess Cortland Chemung

Queens Essex Delaware Erie

Richmond Franklin Herkimer Genesee

Suffolk Fulton Jefferson Livingston

Westchester Greene Lewis Monroe

Hamilton Madison Niagara

Montgomery Oneida Ontario

Orange Onondaga Orleans

Putnam Oswego Schuyler

Rensselaer Otsego Seneca

Rockland St. Lawrence Steuben

Saratoga Tioga

Schenectad Tompkins

Schoharie Wayne

Sullivan Wyoming

Ulster Yates

Washington

Warren


How to Contact the Liquor Authority

Zone 1 Zone 2 Syracuse District Zone 3317 Lenox Ave. 80 S. Swan St 333 E. Washington St. 535 Washington St.New York, NY Albany, NY Syracuse, NY Buffalo, NY

10027 12210-8002 13202 14203

Licensing Licensing Licensing Licensing(212) 961-8385 (518) 474-3114 (315) 428-4198 (716) 847-3035

Enforcement Enforcement Enforcement Enforcement(212) 961-8378 (518) 474-0385 (518) 474-0385 (716) 847-3039

Wholesale Wholesale Wholesale Wholesale(518) 474-6820 (518) 474-6820 (518) 474-6820 (518) 474-6820

Press Office Press Office Press Office Press Office(518) 486-4767 (518) 486-4767 (518) 486-4767 (518) 486-4767

[email protected] [email protected] [email protected] [email protected]

FOIL FOIL FOIL FOIL(518) 486-4767 (518) 486-4767 (518) 486-4767 (518) [email protected] [email protected] [email protected] [email protected]

Legal Legal Legal Legal(212) 961-8317 (518) 474-6750 (518) 474-6750 (716) 847-3056

albanycounsel@ albanycounsel@ albanycounsel@ [email protected] abc.state.ny.us abc.state.ny.us abc.state.ny.us

Hearing Bureau Hearing Bureau Hearing Bureau Hearing Bureau(212) 961-8337 (212) 961-8337 (212) 961-8337 (212) 961-8337

Information Information Information InformationTechnology Technology Technology Technology

(518) 402-4070 (518) 402-4070 (518) 402-4070 (518) [email protected] [email protected] [email protected] [email protected]

Administration Administration Administration Administration(212) 961-8347 (518) 486-4767 (518) 486-4767 (716) 847-3001

Secretary's Office Secretary's Office Secretary's Office Secretary's Office(518) 402-4394 (518) 402-4394 (518) 402-4394 (518) 402-4394

secretarys_office@ secretarys_office@ secretarys_office@ [email protected] abc.state.ny.us abc.state.ny.us abc.state.ny.us

Lobby of Alfred E. Smith Building