Gov. Hochul Signs Legislative Package Supporting State’s Hospitality Industry

ALBANY—New York Gov. Kathy Hochul signed a legislative package on Oct. 9 that is designed to help small businesses open quickly and stay open longer with reduced costs and fewer paperwork requirements.

Legislation S.8203/A.8427-A extends temporary permits to more New York City businesses. Legislation S.9685/A.7116 doubles the duration of temporary permits at the same cost.

“No longer will New York City bars and restaurants have to wait for months to start serving alcoholic beverages that quickly become a vital lifeline when starting a new business,” Governor Hochul said. “Now businesses can apply immediately with their full liquor license application and be up and operating soon after applying, making owning a business in New York more affordable than ever before.”

Legislation S.8203/A.8427-A removes the previously-set, two-year restriction, allowing businesses to open months earlier with a temporary permit while their full application is pending.

Currently, New York City locations that have not been licensed within the last two years are ineligible to obtain a temporary permit when their application is subject to the 500-Foot Law. This important new provision will help small businesses open faster, put people to work sooner, bring life to vacant restaurant spaces around the city, and stimulate the economy by allowing bars and restaurants to start bringing in revenue and creating jobs right away, state officials noted. These updates go into effect immediately and will qualify many businesses that weren’t able to obtain a temporary retail permit before.

State Senator Jessica Ramos said, “On behalf of the small businesses in my district, I sincerely thank Governor Hochul for throwing this lifeline to the hospitality industry. When the Governor signed my first expansion of temporary liquor licenses, it opened a door for many small business owners across New York City. Now, we are closing the gap that left newer businesses behind. This legislation will be a much-needed shot in the arm for our commercial corridors. I urge new restaurateurs to reach out to the SLA and begin the process of getting your temporary permit as soon as possible.”

Legislation S.9685/A.7116 extends the duration of temporary retail permits from 90 to 180 days. The legislation will reduce paperwork for applicants, while also reducing fees by doubling the length of the original permit and keeping the fees the same. The legislation will also decrease the number of applications that need to be processed by SLA examiners, enabling the agency to redirect resources to processing applications and getting businesses operating with full licenses faster. Temporary retail permit extensions are still available for businesses that need to extend the timeframe further. This expands upon legislation signed by Gov. Hochul in December 2021 that allowed bars, restaurants and grocery stores in New York City to be eligible to obtain temporary retail permits for the first time ever. This also builds upon Governor Hochul’s efforts to streamline and create a more efficient State Liquor Authority.

State Liquor Authority Chair Lily Fan said, “Over the past few years, Governor Kathy Hochul and the Legislature have largely expanded the availability of temporary permits to new hospitality businesses around the state so they can quickly begin alcohol service and entertain our residents and visitors alike. Today, we celebrate the signing of two new pieces of legislation that will add to the efficiency and effectiveness of temporary permits. Increasing the duration of a temporary permit from 90 to 180 days will largely reduce the need for laborsome renewals and lower the cost of doing business statewide. Removing the barrier of prior licensing history in New York City will bring fairness and reasonableness to our agency’s licensing process.”

New York State Restaurant Association President and CEO Melissa Fleischut said, “These reforms will have an immediate, positive impact on the hospitality industry across New York State, streamlining operations for restaurants and contributing to the economic vitality of our communities. Restaurants will face less administrative burden and have more flexibility to run their business and pursue new opportunities. The New York State Restaurant Association thanks Governor Kathy Hochul and the legislative sponsors for recognizing the benefits of these reforms and delivering for our members.”

NYC Hospitality Alliance Executive Director Andrew Riggie said, “Expanding access to temporary liquor permits in NYC is a very important policy that will fill vacant storefronts and let new restaurants open faster, employ people sooner, and start generating tax revenue earlier without compromising on community engagement, while the State Liquor Authority processes the official licenses.”

Empire State Restaurant and Tavern Association Executive Director Scott Wexler said, “Small businesses will benefit immensely from these changes to the temporary permit law. They will spur job growth and economic development and will alleviate unnecessary paperwork allowing these new business owners to focus on making their business successful. New businesses will have a greater chance for success and will be able to contribute to the economy sooner thanks to the efforts of the State Legislature and Governor Hochul.”