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The September 19, 2019 – New York State Liquor Authority (the “SLA”) has issued a proposed Advisory relating to many types of agreements that often exist between an entity having a liquor license (a “licensee”) and an entity which provides services to a licensee (a “third party”) in exchange for the third party receiving a percentage of the licensee’s sales or profits.

The SLA’s Advisory would apply to leases, management agreements, and any other type of agreement between a licensee and a third party. If adopted, this advisory would, among other things, place limits on the percentage of a licensee’s profits or sales that a third party may receive before requiring the third party to be considered a licensee.

The proposed advisory is available here and the SLA is accepting written comments submitted on or before Friday, September 27. Separately, the State Liquor Authority will be holding a special Full Board meeting on October 7 at 10:00 a.m. to discuss and hear from anybody that would like to speak on the matter.

If you have any questions or would like additional information, please contact Steve Malito at or call 212-557-7200.

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