Chairman Rosen Improves the Liquor License Process

By

Gamal Hennessy

The New York State Liquor Authority (SLA) has faced considerable problems in recent years. A new chairman was brought in over the summer to improve the organization on several different levels. Less than 6 months into his term and operators have seen a noticeable improvement in the license application process. It is a rare piece of good news coming from Albany.

The SLA provides licenses to businesses across the state sell alcohol. It is one of the main offices of government that nightlife venues have to interact with in order to stay in business. In recent years, it has become increasingly difficult to obtain a license in a timely manner and operators have lost considerable amounts of money waiting for an SLA decision. The situation became so detrimental that some SLA employees were accused of taking bribes to process applications in a timely manner. The current backlog of outstanding applications is more than 1,200. This prevents businesses from opening, operators from working and patrons from enjoying venues that may never get to open.

Denis Rosen, a former NY State assistant attorney general, took over the SLA in August of this year with a mandate to root out corruption, eliminate waste and streamline the licensing process. A recent New York Times article found that Mr. Rosen is wasting no time making changes to the agency. By hiring more license examiners and creating a system where the attorneys for operators can verify key information in the license application, the SLA has been approving license applications in 2-4 weeks instead of 6-8 months. Attorney’s for nightlife operators confirm that while the new process puts more responsibility on the attorney filling out the application, it can literally shave months off a license application.

There are still many more steps that Mr. Rosen needs to take to improve the SLA. There is still a backlog of more than 1,000 applications that need to be reviewed with the new streamlined process. The Beverage Control Law itself hasn’t been overhauled since Prohibition and needs major revisions. Local community boards and anti-nightlife politicians have already begun their assault on the agency. But the new process is a positive step. Hopefully, Mr. Rosen can continue to take actions that will support a vital aspect of business and culture in New York City.

Have fun.
Gamal

Has Senator Squadron Started His Anti-Nightlife Campaign?

By Gamal Hennessy

When Daniel Squadron ran for the New York State Senate last year, nightlife control was a pillar of his campaign. Now that the State Liquor Authority has new leadership, Mr. Squadron has initiated a dialogue aimed at "improving" that agency. Left unchecked Mr. Squadron’s "solutions" will prove detrimental to the nightlife industry and harmful to the entire city.

According the Senator Squadron’s website, he hosted a meeting last week that included
State Liquor Authority (SLA) Chairman Dennis Rosen, SLA CEO Trina Mead, SLA Deputy Commissioner of Licensing Kerri O’Brien, SLA Deputy CEO for New York City Michael Jones, Councilmember Rosie Mendez, Margaret Chin, representatives from the offices of Assembly Members Silver, Kavanagh, and Glick, and leaders from district community boards. The agenda of the meeting was to discuss nightlife concerns and according to the press release "to start a dialogue to foster informed licensing decisions, intelligent enforcement actions, and safer communities."

While nightlife is certainly an issue that deserves discussion, a deeper look at the attendance of the meeting and the underlying agenda of the host is disconcerting. The major issue is who was not invited to the meeting. Based on the wording of the press release and inquiries that I have made, members of the nightlife community and members of the New York City Police Department were not invited to the participate. It is hard to imagine any discussion about nightlife concerns or safer communities being productive when the industry itself and the people charged with keeping the community safe aren’t involved in the discussion.

The situation becomes easier to understand when you look at the background of the players involved. Senator Squadron ran on an anti-nightlife platform in 2008. The former operator called for a stronger voice for community boards (CBs) when it comes to liquor licenses. He feels that the CBs role should shift from an advisory role in relation to the SLA to something more binding. Greater community participation in the democratic process is a lofty goal, but that does not mean that the CBs should have more control over New York liquor licenses. CBs don’t take needs of nightlife or economic impact of nightlife on the city into account when they make their determinations. A CB isn’t always representative of the actual community since a small minority of NIMBY (not in my backyard) elements often have stronger voice in the CBs than the silent majority that lives in the area. Giving a greater voice to the CBs while excluding operators from the discussion indicates the Senator might be taking an imbalanced approach to the issue.

The Senator’s path to a weaker nightlife industry goes directly through the SLA. Dennis Rosen was brought in to clean up an agency rife with problems including lack of staff, waste, and possible corruption. Based on the press release, Squadron made it clear that he would push for more community involvement in liquor licensing when he voted for Rosen’s appointment. To Mr. Rosen’s credit, he appears to be tackling problems quickly, adding staff to deal with the licensing backlog and corruption issues. But SLA Chairman is a political appointment. Mr. Rosen has to work within the framework of state politics and that means dealing with the politicians who can vote him in or out. The meeting could be the first step Squadron takes to make his nightlife agenda a reality.

Again, the problem is not that a meeting was held between politicians, CBs and the SLA about nightlife. The problem is that a constructive dialogue would have included more voices at the table. If the police and nightlife are not part of the discussion from the beginning, realistic solutions outcomes are unlikely. Operators are the ones who get the liquor licenses and have to work with the community boards. They can address concerns about their industry and offer solutions if they are invited to the meeting. The police are the only ones that can regulate noise, pollution and other quality of life issues on the streets. Operators have little or no legal control outside the four walls of their venue. If they are not part of the discussion, then the problem can’t be solved. It’s not as if nightlife doesn’t have representatives that could have attended the meeting. Operators have the New York Nightlife Association. Patrons have the Nightlife Preservation Community. There are also think tanks including the Responsible Hospitality Institute. Each one could have brought a unique perspective to a meeting about nightlife concerns if they were actually invited to the meeting.

If Senator Squadron plans to meet with operators and police separately, the question is why not have everyone meet at once, and on an ongoing basis, until a framework for understanding is developed? If Squadron simply plans to continue SLA policies and stifle nightlife growth in New York City, all he needs to do is give more power to the CBs and leave nightlife out of the discussion, which is what it appears he is doing.

If patrons and operators want to see the further decline of nightlife in New York, then they should ignore Squadron’s actions and see how far it goes. If they want to enhance and enjoy an important part of New York living, then we need to get more involved in the community board process to ensure that Squadron can’t use them as a weapon against clubs when he gives the CBs more power over the licensing process.

Have fun
Gamal

Changing of the Guard at the State Liquor Authority

By Gamal Hennessy

In recent months, the New York State Liquor Authority has gone through turmoil. Political pressure from the outside and illegal activity on the inside has left the agency vulnerable to criticism. While Governor Paterson tries to clean house by appointing a new Chairman, the question is can this new appointee reshape the agency into something more relevant and beneficial to New York nightlife.

The SLA has faced several problems under the leadership of its former Chairman, Daniel Boyle. Carl Andrews, an aide to Governor Paterson, was forced to resign after he allegedly tried to force Boyle to renew the liquor license for Cipriani when the iconic restaurateur’s license was in trouble last year. Just last month, the New York offices of the SLA were raided as part of a corruption investigation. Other SLA officials have recently resigned under a cloud. It was only a matter of time before Boyle had to pay a political price for all of this. His appointment was not renewed after the term expired in February.

Boyle’s successor is Dennis Rosen, a graduate of Harvard Law School who has been with the NYS District Attorney’s office since 1982. During his tenure, Rosen has prosecuted civil and legal cases against attorneys, stockbrokers, insurance agents, telemarketers and construction contractors. His most relevant investigation involved going after infractions regarding the SLA. After his nomination is confirmed, the agency he inspected will be the one he has to lead.

The agency that Mr. Rosen inherits has a number of problems that need to be addressed. It was the agency’s chronic lack of inspectors that created the circumstances for corruption to occur in the first place. The overall number of licenses granted is down, limiting the industry’s ability to be a viable economic force in the state. There is a backlog of about 2,400 outstanding license applications due to both the lack of inspectors and the conservative stance of Mr. Boyle. On top of all of that, the SLA is governed by a set of laws that haven’t been changed in any meaningful way since Prohibition.

It is an open question whether Mr. Rosen will be willing or able to bring in more inspectors, clear the backlog, and revise the laws to bring them in line with the economic and social realities of the 21st century while at the same time dealing with state politics, local government and community boards. The nightlife advocates I spoke to last week didn’t have any preconceived opinion of Mr. Rosen, but they are hoping for more balanced treatment than the previous administration.

Have fun.
Gamal