More businesses can now serve alcohol in New York

ALBANY, N.Y. (NEXSTAR) — Starting soon, more businesses in New York State will be serving alcohol. That’s because the State Liquor Authority changed their policies to allows a wide variety of adult-oriented recreational businesses apply for liquor licenses.

The policy change, announced on Wednesday, takes effect immediately. The types of business include:

Now, to be eligible for an on-premises liquor license, a business must meet three main conditions:

• The main business must be a lawful adult entertainment or recreational business that’s open to the public.
• The business must follow all state and local law, including for zoning, building codes, and public safety.
• The applicant must show that they can serve alcohol responsibly, following all SLA rules and policies.

The policy change kicks off a new era in New York’s hospitality industry, where venues increasingly combine traditional entertainment with alcohol sales. Many of these businesses have so far struggled to get licenses because state law separated restaurants, bars, and entertainment venues.

The change relies on a section of the 1933 Alcoholic Beverage Control Law letting the agency license “other lawful adult entertainment or recreational facilities.” Going forward, the SLA’s Deputy Commissioner of Licensing will consult with the Counsel’s Office to determine what qualifies as “adult entertainment” under this new guidance. The agency also has the option to apply specific conditions in some circumstances, depending on the nature and location of each business.

This ABCL overhaul marks its first major update since 2014. That year, the overall policy goals of the law were amended to include supporting economic development, job creation, tourism, and the growth of New York agriculture as primary policy goals.

The SLA made the decision to change the policy at a full board meeting on September 18, with Chair Lily Fan and Commissioner John Maya present. The change was approved by Fan that same day.

The new policy is supposed to modernize the way the state licenses venues, according to the SLA, and stems from a directive from Gov. Kathy Hochul that agencies update regulations to support economic growth. It formalizes the SLA’s ability to license these businesses without requiring new laws or rules.

In an SLA press release, industry leaders praised the change. New York State Restaurant Association President and CEO Melissa Fleischut said the move creates new opportunities for growth and innovation while Max Bookman of the New York City Hospitality Alliance commended the agency for “clarifying and modernizing licensing eligibility to reflect the evolving hospitality and entertainment landscape.”

Sandra Jaquez, president of the New York State Latino Restaurant Bar and Lounge Association, said the change will create new opportunities for entrepreneurs, contribute to a better economy, and create more vibrant spaces. And, “The new guidance … is great news for New York’s hospitality industry and our customers,” said Scott Wexler, executive director of the Empire State Restaurant and Tavern Association. “It will help these businesses grow.”

Meanwhile, Friends of Recovery New York, a nonprofit advocating for recovery from addiction—also supports the Governor’s modernization effort, but urged caution. we believe this modernization effort must be accompanied by an honest conversation about the increased accessibility of alcohol in New York—particularly in the wake of the COVID-19 pandemic,” said Christopher Assini, director of policy at FOR-NY.

“Alcohol remains the most prevalent substance use disorder, and according to the CDC, excessive alcohol use is responsible for over 178,000 deaths annually in the U.S.,” Assini said. He added that the state should balance economic growth with community well-being by investing in public health and recovery infrastructure.

In response to the expanded availability of alcohol, Assini said that FOR-NY supports legislation S4595, which would create a 5% excise tax on alcoholic beverages sold at retail. Tax revenue would fund the New York State Drug Treatment and Public Education Fund to support substance use prevention, treatment, recovery, and public education.

The bill was introduced by Democratic Senator Nathalia Fernandez on February 10. It did not advance in the legislature and lack an counterpart in the Assembly.