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

Can Rosen Get the Liquor Flowing in New York?

By Gamal Hennessy

Late last week a new chairman was selected to head the New York State Liquor Authority. The new appointment comes at a time when the agency is facing scandals and being criticism both inside and outside of government. Can the new Chairman turn the agency around or should the SLA be abolished altogether?

The State Liquor Authority regulates who gets to sell liquor in within the state. Every legal operator needs to obtain a license from the SLA before they can sell liquor to the public. However, many of the laws regulating liquor haven’t been changed since the 1920’s when Prohibition was part of the fabric of American society. To make matters worse, there is a severe backlog of pending applications. Operators waiting for a liquor license can wait up to 11 months to have their application processed, which means that they can lose money for most of they year waiting for a response from this agency.

The problems surrounding the SLA evolved into a scandal. Several individuals working in the New York Office of the SLA were charged with taking bribes to expedite certain applications. The fallout from this investigation led to Governor Paterson naming Dennis Rosen, a former New York State District Attorney, to head the SLA.

Mr. Rosen’s new job will not have a long honeymoon period. During his confirmation hearing, several state senators complained that the licensing process takes too long and hurts the state’s economy. One senator suggested that the SLA can’t be fixed and might need to be abolished. At the same time, Governor Paterson has signed an executive order calling for several agencies to review and modify “antiquated and burdensome regulations on businesses”. The SLA was one of the agencies named in that executive order. It appears that Mr. Rosen will be called upon to modify the Prohibition Era laws that govern the SLA and clear the backlog of applications or the whole agency might go down with him.

It is unclear at this stage how much change Mr. Rosen can bring to the SLA. It is a step in the right direction to give the new chairman a mandate to assist operators instead of hindering them. It is a step in the right direction to recognize that the Beverage Control Law needs to be brought into the 21st century. But, Governor Paterson is facing political struggles of his own and anti-nightlife factions haven’t openly commented to Rosen on their position. As members of the nightlife community we have both the ability and the right to support change in the SLA that matches the interests and needs of our culture.

Have fun.
Gamal

The Liquor Authority Gets a Wake Up Call

By Gamal Hennessy

Last week the Inspector General raided the offices of the State Liquor Authority. Former SLA employees are being accused of bribing employees to manipulate the system. While the investigation focuses on the gift cards and other petty items offered in exchange for “preferred” treatment, officials need to focus on the underlying situation that created the fraud and clean up the liquor licensing system.

The New York State Alcohol Beverage Control Law (ABC) states that an application for a liquor license should get an initial review within 30 days. Nightlife operators have complained for years that the review often took 2-3 months because of a lack of inspectors among other issues. Recently, nightlife opponents in the outgoing administration managed to drag out that period to 6-8 months.

Operators became increasingly frustrated with the process, since the investment in a bar or club can’t start to make money until they can sell liquor and they can’t sell liquor without a license. That’s where the “handlers” would come in. For a fee, these former SLA employees would offer ‘expedited service’ for an application. The IG claims that the service they performed was calling up their friends who still worked in the SLA, and asking for the applications to get moved to the top of the pile. In return, the handlers would give their friends gift cards and, ironically, bottles of liquor. The IG alleges that some applicants got their forms processed in as little as 11 days instead of waiting half a year or more.

It is regrettable that people in positions of authority, however minor, are willing to manipulate the bureaucracy for their own personal advantage. But the larger issue revolves around the system itself. Robert Bookman, attorney for the New York Nightlife Association, sees this raid as the result of a dysfunctional system:

“It takes 8 months to get a liquor license when the law requires it be done in 30 days. Huge investments are sitting and waiting for a license that is long overdue. Is it any wonder that people will get desperate and will do whatever they have to just to get an honest review of their application? That is the real scandal here. Notice there are no allegations that anyone got a license that they were not entitled to. The crime is that the applications were reviewed quickly…the way they are supposed to be reviewed. I am not condoning illegal activity, but no one has been listening about this unlawful, unacceptable wait for liquor licenses before now.”

If the leaders of the SLA essentially broke the law and created a situation where potential operators have to wait 6-8 months for a license, and refused to hire more examiners, then they created the atmosphere for corrupt practices in the Harlem office. The responsibility for this corruption needs to go a lot higher than the clerks who took Applebee’s gift cards. It needs to lead to a revamping of the whole process. Governor Paterson said he supported “the actions of the I.G.’s office to uncover any wrongdoing that may have occurred within the S.L.A. and is working with the S.L.A. to rebuild the organization.” Hopefully this raid can be the beginning of an overhaul that helps bring jobs and revenue to the state while cleaning up a government agency at the same time.

Have fun.
Gamal