The New York State Liquor Authority revoked five alcoholic beverage licenses and cancelled 10 more for liquor law violations at a March 16 meeting. The board made a $1,000 claim on the surety bonds of 12 offending businesses.
The New York State Liquor Authority requires all businesses with a retail liquor license to maintain Bond Form L-9 in the amount of $1,000. The authority makes claims on these bonds when a business violates the provisions of the Alcoholic Beverage Control Law.
According to the law, business owners who have had their liquor licenses revoked must wait two years to reapply for a license. Those with cancelled licenses are allowed to reapply immediately, but they will likely face obstacles in getting approved for a new license.
When a claim has been made on a principal’s bond in the past, the business owner often has trouble finding a surety provider that’s willing to issue a new bond. Furthermore, purchasing a bond after a claim has been made on a previous one usually means the business owner will pay a higher premium as the surety takes a greater risk in backing the principal.