N.Y. Alcoholic Beverage Control Law § 113: Premises for which no license shall be granted

§ 113. Premises for which no license shall be granted. 1. Where a

license for any premises licensed has been revoked, the liquor authority

in its discretion may refuse to issue a license under this chapter, for

a period of two years after such revocation, for such licensed premises

or for any part of the building containing such licensed premises and

connected therewith.

2. In determining whether to issue such a license for such two year

period, in addition to any other factors deemed relevant, the liquor

authority shall, in the case of a license revoked due to the illegal

sale of alcohol to a minor, determine whether the proposed subsequent

licensee has obtained such premises through an arm's length transaction,

and, if such transaction is not found to be an arm's length transaction,

the liquor authority shall deny the issuance of such license.

3. For purposes of this section, "arm's length transaction" shall mean

a sale of a fee of all undivided interests in real property, lease,

management agreement, or other agreement giving the applicant control

over the food and beverage at the premises, or any part thereof, in the

open market, between an informed and willing buyer and seller where

neither is under any compulsion to participate in the transaction,

unaffected by any unusual conditions indicating a reasonable possibility

that the sale was made for the purpose of permitting the original

licensee to avoid the effect of the revocation. The following sales

shall be presumed not to be arm's length transactions unless adequate

documentation is provided demonstrating that the sale, lease, management

agreement, or other agreement giving the applicant control over the food

and beverage at the premises, was not conducted, in whole or in part,

for the purpose of permitting the original licensee to avoid the effect

of the revocation:

(a) a sale between relatives;

(b) a sale between related companies or partners in a business; or

(c) a sale, lease, management agreement, or other agreement giving the

applicant control over the food and beverage at the premises, affected

by other facts or circumstances that would indicate that the sale,

lease, management agreement, or other agreement giving the applicant

control over the food and beverage at the premises, is entered into for

the primary purpose of permitting the original licensee to avoid the

effect of the revocation.