2013 New York Consolidated Laws
ABC - Alcoholic Beverage Control
Article 8 - (100 - 131) GENERAL PROVISIONS
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  license for any premises licensed has been revoked, the liquor authority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.