Bill S5300-2013

Establishes the New York craft beverage council within the department of economic development

Establishes the New York craft beverage council within the department of economic development to develop a marketing strategy to promote the state's fine wines, spirits and craft brews.

Details

Actions

  • Jan 8, 2014: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • Jun 4, 2013: REPORTED AND COMMITTED TO FINANCE
  • May 16, 2013: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Votes

VOTE: COMMITTEE VOTE: - Commerce, Economic Development and Small Business - Jun 4, 2013
Ayes (9): Valesky, Boyle, Gallivan, Felder, Fuschillo, Robach, Hassell-Thompson, Sanders, O'Brien
Ayes W/R (2): Griffo, Kennedy

Memo

BILL NUMBER:S5300

TITLE OF BILL: An act to amend the economic development law, in relation to establishing the New York craft beverage council

PURPOSE:

To create and implement a New York Beverage Council within the Department of Economic Development to promote New York as a premiere producer of high quality wines, spirits and craft brews and to enhance brand recognition for New York craft beverages within and outside of NY State fox the purpose of increasing sales and production of NY wines, spirits and craft brews and increased tax revenue for the people of New York State.

SUMMARY OF PROVISIONS:

Section 1: Section 181-f of the Economic Development Law will create a NY Craft Beverage Council Program.181-g sets the definitions for this section. § 181-h of the Economic Development Law will create a NY Craft Beverage Council consisting of a 9-member board of directors, including five members to be appointed by the governor, two members to be appointed by the temporary president of the senate and two members to be appointed by the speaker of the assembly. The board shall consist of representatives from a winery, a distillery, a microbrewery, a liquor store, a beer distributor, a farm distillery, a brew pub, a restaurant licensed to sell New York craft beverages, and a promoter of commercial products. The Commissioner of Urban Development will serve as Chair of the Council, with an executive director to be appointed by the board of directors. The board of directors will elect their successors following the completion of their term. The board will meet four times annually and crate brand recognition for New York craft beverages.

Regional advisory boards will be established for the purposes of collaborating with the New York craft beverage council and regional stakeholders. There will be five regional advisory board members for each of the ten regions of the state.

Section 2 sets the effective date.

JUSTIFICATION:

New York State is one of the largest producers of craft beverages in the United States but falls far short of other states in supporting this important industry. The industry today is strong in the tourism areas, but is in need of stronger consumer awareness and demand for the high quality products being produced across the state. In an effort to create an opportunity for the State to generate sales tax revenue along with increasing the number of new jobs within the craft beverage industry, and to promote the sale and enjoyment of New York craft beverages, this bill would create the New York Craft Beverage Council. The Council would promote New York craft beverages in concert with the tourism industry, wineries, distilleries, breweries, retailers and restaurants within and outside of NY State. A marketing campaign to be undertaken will educate New Yorkers and other consumers as to the quality and benefits of New York's craft beverages. Specific

plans will be developed by the Council and progress reported to the State on an annual basis with key performance indicators and metrics to measure the success of the efforts.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5300 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Devel- opment and Small Business AN ACT to amend the economic development law, in relation to establish- ing the New York craft beverage council THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The economic development law is amended by adding a new article 5-F to read as follows: ARTICLE 5-F NEW YORK CRAFT BEVERAGE COUNCIL PROGRAM SECTION 181-F. SHORT TITLE. 181-G. DEFINITIONS. 181-H. GENERAL POWERS AND DUTIES OF THE COMMISSIONER. 181-I. NEW YORK CRAFT BEVERAGE COUNCIL. S 181-F. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "NEW YORK CRAFT BEVERAGE COUNCIL PROGRAM". S 181-G. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS FOR THE PURPOSES OF THIS SECTION: 1. "WINERY" SHALL MEAN A BUSINESS THAT PRODUCES WINE. 2. "DISTILLERY" SHALL MEAN A BUSINESS THAT PRODUCES SPIRITS. 3. "MICROBREWERY" SHALL MEAN A BUSINESS THAT PRODUCES CRAFT BREWS. 4. "BEER DISTRIBUTOR" SHALL MEAN A BUSINESS THAT SELLS CRAFT BREWS TO THE PUBLIC AND DELIVERS CRAFT BREWS TO RETAILERS. 5. "BREW PUB" SHALL MEAN A PUB OR RESTAURANT THAT BREWS BEER ON THE PREMISES. 6. "FARM DISTILLERY" SHALL MEAN A DISTILLERY WITH A CLASS D LICENSE. S 181-H. GENERAL POWERS AND DUTIES OF THE COMMISSIONER. THE COMMIS- SIONER SHALL DEVELOP AND IMPLEMENT A NEW YORK CRAFT BEVERAGE PROGRAM. THE NEW YORK CRAFT BEVERAGE COUNCIL SHALL DEVELOP A MARKETING STRATEGY
PURSUANT TO THIS PROGRAM THAT SHALL PROMOTE NEW YORK AS A PREMIERE PRODUCER OF HIGH QUALITY WINES, SPIRITS AND CRAFT BREWS. S 181-I. NEW YORK CRAFT BEVERAGE COUNCIL. 1. (A) THE COMMISSIONER, IN ACCORDANCE WITH THIS PROGRAM, SHALL CAUSE TO BE DEVELOPED A NEW YORK CRAFT BEVERAGE COUNCIL TO BE TASKED WITH BRANDING, MARKETING AND PROMOT- ING FINE NEW YORK STATE WINES, SPIRITS AND CRAFT BEVERAGES. THE NEW YORK CRAFT BEVERAGE COUNCIL SHALL BE MANAGED BY AND ITS POWERS, FUNC- TIONS AND DUTIES SHALL BE EXERCISED THROUGH A BOARD OF DIRECTORS. (B) THE INITIAL BOARD OF DIRECTORS SHALL CONSIST OF NINE MEMBERS: FIVE OF WHICH SHALL BE APPOINTED BY THE GOVERNOR; TWO OF WHICH SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE; AND TWO OF WHICH SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY. OF THE NINE MEMBERS, ONE SHALL BE AN OFFICER OR OWNER OF A WINERY, ONE SHALL BE AN OFFICER OR OWNER OF A DISTILLERY, ONE SHALL BE AN OFFICER OR OWNER OF A MICROBREW- ERY, ONE SHALL BE AN OFFICER OR OWNER OF A LIQUOR STORE, ONE SHALL BE AN OFFICER OR OWNER OF A BEER DISTRIBUTOR, ONE SHALL BE AN OFFICER OR OWNER OF A FARM DISTILLERY, ONE SHALL BE AN OFFICER OR OWNER OF A BREW PUB, ONE SHALL BE THE OWNER OR OFFICER OF A RESTAURANT LICENSED TO SELL FINE NEW YORK WINES, SPIRITS AND CRAFT BREWS, AND ONE SHALL BE A PERSON FAMILIAR WITH THE ADVERTISING, PROMOTION AND MARKETING OF COMMERCIAL PRODUCTS. THE DIRECTORS SO APPOINTED SHALL SERVE A TERM OF THREE YEARS, EXCEPT THAT, OF THE DIRECTORS SO APPOINTED BY THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, THE OWNER OR OFFI- CER OF A DISTILLERY, THE OWNER OR OFFICER OF A BEER DISTRIBUTOR AND THE OWNER OR OFFICER OF A RESTAURANT SHALL SERVE FOR ONE YEAR, THE OWNER OR OFFICER OF A BREWERY, THE OWNER OR OFFICER OF A LIQUOR STORE AND THE OWNER OR OFFICER OF A BREW PUB SHALL SERVE FOR TWO YEARS, AND THE OWNER OR OFFICER OF A WINERY, THE OWNER OR OFFICER OF A FARM DISTILLERY AND THE PERSON FAMILIAR WITH ADVERTISING, PROMOTION AND MARKETING OF COMMER- CIAL PRODUCTS SHALL SERVE FOR THREE YEARS. (C) THE CHAIR OF THE URBAN DEVELOPMENT CORPORATION SHALL SERVE AS CHAIR OF THE COUNCIL. (D) MEMBERSHIP WILL BE DEFINED AS MEMBERS IN GOOD STANDING PER THE BYLAWS OF THE NEW YORK CRAFT BEVERAGE COUNCIL. EACH MEMBER WILL CONTRIB- UTE ANNUAL DUES TO THE COUNCIL TO BE DETERMINED BY THE BOARD OF DIREC- TORS. (E) THE EXECUTIVE DIRECTOR OF THE NEW YORK CRAFT BEVERAGE COUNCIL SHALL HAVE PREVIOUS EXPERIENCE IN MARKETING CRAFT BEVERAGES, EVENT PLAN- NING AND BRAND MANAGEMENT AND WILL BE APPOINTED BY THE BOARD OF DIREC- TORS, DECIDED BY A MAJORITY VOTE. THE EXECUTIVE DIRECTOR WILL SERVE AS AN "AT WILL" EMPLOYEE AT THE DISCRETION OF THE BOARD OF DIRECTORS. (F) IF ANY VACANCY OTHER THAN BY EXPIRATION OF TERM OCCURS ON THE BOARD AMONGST THOSE FIRST APPOINTED SUCH VACANCY SHALL BE FILLED BY APPOINTMENT FOR THE UNEXPIRED TERM BY THE APPOINTING AUTHORITY INITIALLY APPOINTING SUCH MEMBER. UPON EXPIRATION OF THE INITIAL TERMS, SUCCESSORS SHALL BE ELECTED BY THE REMAINING MEMBERS OF THE BOARD FOR A THREE YEAR TERM; SUCH DIRECTORS SHALL HAVE THE QUALIFICATIONS REQUIRED OF THE ORIGINAL DIRECTORS. MEMBERS SHALL CONTINUE AS SUCH UNTIL THEIR SUCCESSORS HAVE BEEN DULY ELECTED. (G) MEMBERS OF THE BOARD OF DIRECTORS SHALL SERVE WITHOUT COMPEN- SATION, BUT SHALL BE REIMBURSED FOR ACTUAL EXPENSES REASONABLY INCURRED IN THE PERFORMANCE OF THEIR DUTIES. (H) THE BOARD SHALL MEET FOUR TIMES ANNUALLY AT THE CALL OF THE CHAIR- MAN OR IN HIS ABSENCE THE VICE CHAIRMAN OR ON PETITION OF ANY THREE MEMBERS. A MAJORITY OF THE MEMBERS OF THE BOARD THEN IN OFFICE SHALL
CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY BUSINESS. THE BOARD IS ENCOURAGED TO CONDUCT ITS MEETINGS IN A MANNER WHICH WILL ENSURE THE ACTIVE PARTICIPATION OF ANY PERSON HAVING AN INTEREST IN THE CRAFT BEVERAGE INDUSTRY. (I) THE NEW YORK CRAFT BEVERAGE COUNCIL IS CHARGED WITH CREATING BRAND RECOGNITION FOR FINE NEW YORK WINES, SPIRITS AND CRAFT BREWS. IN DOING SO THEY SHALL WORK TO MARKET NEW YORK STATE LABELED CRAFT BEVERAGES BOTH WITHIN AND OUTSIDE OF NEW YORK STATE WITH THE GOAL OF PROMOTING NEW YORK CRAFT BEVERAGES. (J) THE NEW YORK CRAFT BEVERAGE COUNCIL SHALL, BY ONE YEAR FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE, SUBMIT A PRELIMINARY REPORT TO THE GOVERNOR AND THE LEGISLATURE WITH AN ASSESSMENT OF MARKETING AND PROMOTION STRATEGIES TO IMPLEMENT THIS ARTICLE. 2. (A) (I) REGIONAL ADVISORY BOARDS SHALL BE ESTABLISHED, WHOSE MEMBERS SHALL WORK WITH THE NEW YORK CRAFT BEVERAGE COUNCIL. THERE SHALL BE FIVE REGIONAL MEMBERS OF THE ADVISORY BOARD FOR EACH REGION ESTAB- LISHED PURSUANT TO THIS SECTION. FOR EACH REGION, ONE REGIONAL MEMBER SHALL BE APPOINTED BY THE GOVERNOR, TWO REGIONAL MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, AND TWO REGIONAL MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY. REGIONAL ADVISORY BOARD MEMBERS SHALL HAVE THE QUALIFICATIONS REQUIRED OF THE BOARD OF DIRECTORS. (II) REGIONAL MEMBERS SHALL NOT BE CONSIDERED TO BE MEMBERS OF THE COUNCIL FOR PURPOSES OF PARTICIPATION IN COUNCIL MEETINGS, EXCEPT WHERE ITEMS RELATING SPECIFICALLY TO THAT MEMBER'S REGION ARE ON THE AGENDA OF A COUNCIL MEETING. (B) FOR THE PURPOSES OF THIS ARTICLE, THERE SHALL BE TEN REGIONS: (I) WESTERN NEW YORK, CONSISTING OF ALLEGANY, CATTARAUGUS, CHAUTAUQUA, ERIE AND NIAGARA COUNTIES; (II) FINGER LAKES, CONSISTING OF GENESEE, LIVINGSTON, MONROE, ONTARIO, ORLEANS, SENECA, WAYNE, WYOMING AND YATES COUNTIES; (III) SOUTHERN TIER, CONSISTING OF BROOME, CHEMUNG, CHENANGO, DELA- WARE, SCHUYLER, STEUBEN , TIOGA AND TOMPKINS COUNTIES; (IV) CENTRAL NEW YORK, CONSISTING OF CAYUGA, CORTLAND, MADISON, ONON- DAGA AND OSWEGO COUNTIES; (V) MOHAWK VALLEY, CONSISTING OF FULTON, HERKIMER, MONTGOMERY, ONEIDA, OTSEGO AND SCHOHARIE COUNTIES; (VI) NORTH COUNTRY, CONSISTING OF CLINTON, ESSEX, FRANKLIN, HAMILTON, JEFFERSON, LEWIS AND ST. LAWRENCE COUNTIES; (VII) CAPITAL REGION, CONSISTING OF ALBANY, COLUMBIA, GREENE, SARATO- GA, SCHENECTADY, RENSSELAER, WARREN AND WASHINGTON COUNTIES; (VIII) MID-HUDSON, CONSISTING OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, SULLIVAN, ULSTER AND WESTCHESTER COUNTIES; (IX) NEW YORK CITY, CONSISTING OF BRONX, KINGS, NEW YORK, RICHMOND AND QUEENS COUNTIES; (X) LONG ISLAND, CONSISTING OF NASSAU AND SUFFOLK COUNTIES. (C) REGIONAL ADVISORY BOARD MEMBERS SHALL SERVE WITHOUT COMPENSATION, AND SHALL HAVE THEIR PRINCIPAL RESIDENCE WITHIN THE REGION FOR WHICH THEY ARE APPOINTED. SUCH REGIONAL ADVISORY BOARD MEMBERS MAY SOLICIT INPUT FROM STAKEHOLDER INTERESTS WITHIN THEIR REGION, INCLUDING BUT NOT LIMITED TO LOCAL GOVERNMENTS, COMMUNITY ORGANIZATIONS, CHAMBERS OF COMMERCE, BEVERAGE DISTRIBUTORS, WINERIES, DISTILLERIES, MICROBREWERIES, RESTAURANTS, AND CONSUMERS AND SHALL TRANSMIT TO THE COUNCIL A REPORT CONTAINING ANY RECOMMENDATIONS SPECIFIC TO THEIR REGION ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION. S 2. This act shall take effect immediately.

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