BILL NUMBER:S2321A         REVISED MEMO 05/27/2014

TITLE OF BILL:  An act to amend the alcoholic beverage control law, in
relation to the state policy with regard to alcoholic beverages

PURPOSE:

This bill updates the overall articulated state public policy and
purpose of the Alcoholic Beverage Control Law. This policy was firstI
articulated by the New York State Legislature when it adopted the
first Alcoholic Beverage Control Law after the repeal of the 18th
Amendment (Prohibition) to the United States Constitution in 1933.
This bill idea comes from the recommendations of the NYS Law Revision
Commission which issued a report on modernizing the Alcoholic Beverage
Control Law and its Administration, dated December 15, 2009. The
purpose of this bill being that since 1934, there has been a movement
to encourage the local manufacture of spirits, wine, beer and ciders
to help promote the State's local agricultural and manufacturing
economies. However, the current policy statement is devoid of any
mention of such emerging locally based manufacturing industries.

While this provision of law has not been amended since 1934, the
nature, kinds and environment on the manufacture and use patterns of
alcoholic beverages has changed significantly since 1934. After
prohibition, there was a concern that organized crime, which had
controlled the production of alcoholic beverages during prohibition,
              

should not control such manufacture upon the repeal of Prohibition.
Those concerns mob control have abated somewhat, but it is still the
primary goal of the ABC Law to promote temperance and obedience to the
State's criminal and nuisance laws in the retail sale of alcoholic
beverages.

SUMMARY OF PROVISIONS:

Section 1: Amends Alcoholic Beverage Control Law section 2 "Policy of
state and purpose of chapter". This amendment adds to the policy of
the State Liquor Authority to also consider supporting, where
possible, the economic development and job opportunities of this State
when making decisions related to regulating the industries that
manufacture alcoholic beverages. This new policy consideration of
supporting economic growth and job development, would be in addition
to, but clearly subservient to the already articulated public policy
to control the manufacture, sale, and distribution of alcoholic
beverages in this State to foster and promote temperance in the
consumption of alcoholic beverages and respect for and obedience to
the law.

The kinds of economic development that could be supported, or at least
not discouraged, as a secondary consideration after promoting
temperance, obedience to the State's criminal and nuisance laws, and
harmonious & quiet residential communities relate only to alcoholic
beverage manufacture as it relates to tourism & recreation activities,
and actions which could promote the conservation & enhancement of the
state's agricultural lands. This is because encouraging the local
manufacture of alcoholic beverages should increase the demand for
locally grown agricultural products. The amendments to this bill are


technical in nature relating to sentence structure and do not affect
the purpose of this bill.

EXISTING LAW:

Under current law, the State Liquor Authority, in its activities, is
to consider the control of the manufacture, sale and distribution of
alcoholic beverages without any consideration at all as to the
economic benefits and job creation possibilities that are derived from
promoting activities that relate to the alcoholic beverage
manufacturing industries as embodied by micro distilleries, farm
wineries, breweries and craft cider production facilities.

JUSTIFICATION:

The overall environment in which the regulation of the manufacture,
distribution, sale and consumption of alcoholic beverages has changed
greatly since the public policy statement contained in section 2 of
the Alcoholic Beverage control Law was first adopted in 1933. Since,
1933, the Great Depression is over, the Allied Forces won the Second
World War, and the Cold War is now over.  Further, consumer
preferences and consumption patterns for alcoholic beverages have
changed significantly since the policy statement contained in Section
2 was adopted 80 years ago.

It is now time to modernize the over arching stated policy with regard
to regulating the manufacture of alcoholic beverages so that it better
reflects the economic benefits that can be derived to the State of New
York by encouraging the production of locally manufactured quality
beer, wine, and spirits. Further, the appropriate regulation of such
beverages can help to promote economic development and job creation.
Expanding production facilities that manufacture beer, wine, and
liquors in this State can help to increase manufacturing employment
and the demand for state produced agricultural crops, preserve working
farms & open spaces, and minimize future real property tax increases.
In addition, such a shift in policy could help to support prudent
avenues to increase economic opportunities related to the State's
tourism and recreation industries.

This bill will give regulators the tools that they need to consider,
as a secondary consideration after promoting temperance and respect
for law and order, the economic development and job opportunities that
can be created by promoting the prudent expansion of the manufacture
of beer, wines, and liquors, and other ancillary activities that can
help to promote tourism and recreational activities, especially in the
Up-state areas of New York.

LEGISLATIVE HISTORY:

Similar to 2008: A.10314 Referred to Economic Development
2010: A.6184 Referred to Investigations & Government Operations
2012: S. 1515-A - Senate Calendar Number 973;
Passed Senate in 2013 and the Assembly in 2014.

FISCAL IMPLICATIONS:

None.


LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

180 days after it shall have become law.