Authorizes holders of wholesalers' licenses to install and operate a single ATM at their facilities.
Ayes (61): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (1): Morahan
BILL NUMBER: S7737A
TITLE OF BILL : An act to amend the alcoholic beverage control law, in relation to permitting the holder of a wholesaler's license to install and operate a single automated teller machine
PURPOSE OF THE BILL : This legislation would authorize holders of wholesalers' licenses to install and operate ATMs at their facilities, as recommended by the New York State Law Revision Commission,
SUMMARY OF SPECIFIC PROVISIONS : § 1- Amends subdivision 1 of § 104 of the Alcoholic Beverage Control law by adding a new paragraph (a-1) to allow for the installation and operation of one automated teller machine.
§ 2- Effective date.
JUSTIFICATION : In its final report, the New York State Law Revision Commission (NYSLRC) recommended that C Licensees be allowed to offer ATMs. ABCL § 104 currently prohibits New York State Liquor Authority (SLA) C-Licensed beer wholesaler/retailers from conducting any other business on the licensed premises, with very few exceptions (the sale of soda, water, cigarettes, potato chips, pretzels, ice, promotional items).
There are approximately 350 C-Licensed beer wholesaler/retailers in New York State, from Montauk to Buffalo. They are typically multi-generational "morn and pop" high-volume beverage centers, that serve primarily retail consumers and some wholesale accounts (the latter mostly taverns, bodegas, social clubs, volunteer fire companies, fraternal organizations and other entities that are too small, or in neighborhoods regarded as undesirable or unprofitable, to be served by franchised wholesalers). In an old advisory opinion dating back to the 1990's, issued when ATMs were a novelty, the SLA concluded that § 104 prohibits C-Licensees from offering the convenience of ATMs to their customers because ATMs constituted the conducting of another business.
The SLA position no longer reflects the reality of either technology or business; ATMs are now a widespread service just like credit cards. The SLA ruling also puts C-licensees at a competitive disadvantage, as all other retail off-premises beer licensees (supermarkets, groceries, convenience stores, gas stations) can offer ATMs.
This amendment will allow C licensed beer wholesaler/retailers to offer ATMs, putting these stores on an equal footing with their competitors, and will allow the many customers of these community-based stores the convenience of ATMs.
PRIOR LEGISLATIVE HISTORY : New bill.
FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : This act shall take effect on the ninetieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 7737--A IN SENATE May 5, 2010 ___________Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the alcoholic beverage control law, in relation to permitting the holder of a wholesaler's license to install and operate a single automated teller machine THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 104 of the alcoholic beverage control law is amended by adding a new paragraph (a-1) to read as follows: (A-1) THE INSTALLATION AND OPERATION OF A SINGLE AUTOMATED TELLER MACHINE AT EACH LICENSED PREMISES SHALL NOT CONSTITUTE ENGAGING IN ANOTHER BUSINESS WITHIN THE MEANING OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS SUBDIVISION, "AUTOMATED TELLER MACHINE" MEANS A DEVICE WHICH IS LINKED TO THE ACCOUNTS AND RECORDS OF A BANKING INSTITUTION AND WHICH ENABLES CONSUMERS TO CARRY OUT BANKING TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, ACCOUNT TRANSFERS, DEPOSITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND LOAN PAYMENTS. S 2. This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately the addition, amendment, and/or repeal of any rule or regulation necessary for the timely implementation of this act on its effective date is hereby authorized to be made on or before such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16761-05-0