§ 127. Surrender and cancellation of licenses; payment of refunds;
notice to police officials. 1. If a person holding a license to traffic
in alcoholic beverages under the provisions of this chapter, against
whom no complaint, prosecution or action is pending on account of any
violation thereof, shall voluntarily, and before arrest or indictment
for a violation of this chapter, cease to traffic in alcoholic beverages
during the term for which the license fee is paid, such person may
surrender such license to the liquor authority for cancellation and
refund, provided that such license shall have at least one month to run
at the time of such surrender. Such refund shall be computed for full
months less thirty dollars, commencing with the first day of the month
succeeding the one in which such license is surrendered, unless such
surrender be on the first day of the month; and at the same time such
person shall present to the liquor authority a verified petition setting
forth all facts required to be shown by the liquor authority upon such
surrender. The liquor authority shall thereupon compute the amount of
refund then due on said license for the unexpired term thereof, and
shall execute a receipt therefor showing the name of the person to whom
such license was issued, the number thereof, date when issued, amount of
license fee paid therefor, and the date when surrendered for
cancellation, together with the amount of refund due thereon at such
date as computed by it, and the name of the person entitled to receive
the refund. Such receipt shall be delivered by the liquor authority to
the person entitled thereto. If within thirty days from the date of such
surrender and application, the person surrendering such certificate
shall be arrested or indicted for a violation of this chapter, or
proceedings shall be instituted for the cancellation of such
certificate, or an action shall be commenced against him for penalties,
such petition shall not be granted until the final determination of such
proceedings or actions; and if the said petitioner be convicted, or said
action or proceedings be determined against him, the authority may
direct that any refund due thereunder be forfeited or may impose such
other penalty or conditions it may deem appropriate in the circumstances
but if such petitioner be acquitted, or such proceedings or action
against him be dismissed on the merits or, if within such time, no such
action or proceeding shall be brought against such person, then the
liquor authority shall prepare an order for the payment of such refund,
directed to the comptroller, to be paid him, on his audit, upon the
surrender of the receipt theretofore given such person; provided,
however, that if any taxes or penalties imposed by article eighteen of
the tax law or if any civil penalties imposed under this chapter are
unpaid by such person, the amount of such taxes, penalties or civil
penalties shall be deducted from the amount of such refund. Any refunds
due on the surrender and cancellation of licenses pursuant to this
section shall be paid by the comptroller from moneys in his custody,
derived from license fees received pursuant to this chapter.

2. It shall be the duty of the liquor authority, upon the receipt of a
license surrendered for cancellation and refund pursuant to this
section, to immediately serve a written or printed notice upon the
commissioner of police, chief of police, or chief police officer of the
city, borough or village in which the place for which the surrendered
license was issued is situated, or upon the sheriff of the county and a
constable of the town, in case the license was issued for a place
situated in a town and not within any city, borough or village, which
notice shall include a statement of the number of the surrendered
license, the name and place of residence of the holder of the license at
the time of surrender, the location of the place for which the license
was issued and was held at the time of surrender by street and number,
if any, otherwise such apt description as will definitely locate the
premises; the fact that such license has been surrendered; that the
traffic in alcoholic beverages at said premises by any one is not
authorized until a new license has been obtained therefor; and the date
when such license was surrendered for cancellation. Such notice may be
served by registered or certified mail, by inclosing the same in a
post-paid sealed envelope, duly addressed to such officer.