Enacts the wine industry and liquor store revitalization act; authorizes grocery and drug stores to sell wine on their premises for consumption off the premises.
Sponsor: KRUEGER
Committee: COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
Law Section: Alcoholic Beverage Control Law
Law: Rpld S105 subs 2 & 7, amd ABC L, generally
Law Section: Alcoholic Beverage Control Law
Law: Rpld S105 subs 2 & 7, amd ABC L, generally
S897A-2011 Actions
- Jan 4, 2012: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
- Dec 23, 2011: PRINT NUMBER 897A
- Dec 23, 2011: AMEND AND RECOMMIT TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
- Jan 5, 2011: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
S897A-2011 Memo
BILL NUMBER:S897A TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to enacting the wine industry and liquor store revitalization act; and to repeal certain provisions of such law relating thereto PURPOSE OR GENERAL IDEA OF BILL: This bill expands authorizations under the alcoholic beverage control law to provide opportunities for vendors to expand their business SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill provides that this act shall be known as the "wine industry and liquor store revitalization act". Section two of the bill provides the expanded opportunity for liquor stores to sell items complimentary to their business, allows such stores to install ATM machines on the premises, provides for multiple licenses, authorizes liquor stores to sell to retail establishments licensed for consumption on the premises and provides for a limitation on the number of licenses issued under section 63 of the alcoholic beverage control law. Furthermore, section two creates a "medallion" system, through which existing store owners will be able to auction of their existing licenses to the highest bidder, and sell the one additional license this section allows them to obtain from the State Liquor Authority (SLA). Additionally, the SLA is authorized to auction IS licenses every two years to generate revenue for increased enforcement/licensure demands. Section three of the bill provides that no additional licenses to sell wine for consumption off the premises shall be made available complementary to the process that is authorized in section two. Section four of the bill provides for an annual fee for the licensure of grocery or drug stores to sell wine. Section five of the bill provides that any person under eighteen years of age may handle and deliver the wine and that any person under eighteen years of age may record and receive payment for wine under the supervision of a person who is eighteen years of age of older. Section six of the bill provides that proof of age must be provided at every sale for alcoholic beverages and provides the valid proof. Section seven of the bill provides for expanded hours for the operation of a liquor store. Section eight of the bill provides for cooperative agreements so that smaller liquor stores may agree to jointly purchase larger, more cost effective, quantities than would be possible without cooperative agreements. Section nine of the bill authorizes licensed alcohol beverage venders to purchase alcoholic beverages from those authorized by this chapter. Section ten of the bill authorizes the authority to issue multiple licenses. Sections eleven, twelve and fourteen of the bill remove advertising restrictions within the licensed premises. Section thirteen of the bill provides for licensure of grocery stores and drug stores to sell wine for consumption off the premises, provides further opportunities for wine tastings, and institutes a fee structure for such licensure, and authorizes grocery stores and drug stores under 1,000 square feet to purchase wine from stores licensed to sell such products. Section fifteen of the bill provides for temporary permits to sell as licensed in order for those premises awaiting licensure and renewals may continue to do business uninterrupted by the extended licensure process. Section sixteen of the bill provides for, in the annual report from the authority to the Legislature and the Governor, information related to the length of time required for licensure and renewals applied to pursuant to subdivision two-c of section sixty-one of this chapter and sections sixty-four, seventy-six, seventy-six-a, seventy-six-c, seventy-six-d and seventy-six-f of this chapter. Section seventeen of the bill provides for the sale of mixed cases of wine for resale. section eighteen of this bill provides that the effective date shall be 180 days after its enactment. JUSTIFICATION: The Wine Industry and Liquor store Revitalization Act is comprehensive legislation that provides stimulus to industries that are at the heart of the New York economy and New York culture. A bill that provides fairness and opportunity for a once nationally-recognized New York wine and grape industry to recover from its fall from the top, this bill also allows the small mom and pop liquor and wine stores to compete and thrive in a new economy. The New York wine and grape industry, once the second highest producer of wine in the country, has fallen from its prominence and will continue to do so without increased opportunities. The New York wine and grape industry stretches across the entire state and provides opportunity in several sectors of the economy including agriculture, economic development and tourism. The diverse economic reach of the industry, coupled with its broad geographic reach, as well as its proven capacity for national success, primes the New York wine and grape industry to generate economic benefit when provided with opportunity for expansion. Similarly, the liquor store industry has had to operate under stringent, prohibition-era rules created in the 1930s, handicapping the industry, not only preventing growth; but also, facilitating the drastic reduction in the number of liquor stores. This bill provides significant opportunity for liquor stores by repealing antiquated statues that presently prevent them from expanding their businesses. Furthermore, this bill institutes staunch identification requirements, the most aggressive in the nation, mandating proof of the age of every purchaser of alcohol in New York State. This provision will help prevent underage drinking and curb drunk driving. For many small businesses across the State, opportunities to expand and policies that provide fairness are essential. This legislation revives failing industries and will return the New York wine and grape industry to its rightful place among the most respected and prominent in the nation. PRIOR LEGISLATIVE HISTORY: New bill. FISCAL IMPLICATIONS: Enactment of this bill would provide $105 million in 2009-10 through various franchise fees, excise taxes, sales taxes and license fees. In 2010-11 it is expected will generate $54 million and $3 million each year thereafter. EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become law.
S897A-2011 Text
S T A T E O F N E W Y O R K
________________________________________________________________________
897--A
2011-2012 Regular Sessions
I N SENATE
(PREFILED)
January 5, 2011
___________
Introduced by Sens. KRUEGER, DILAN, DUANE, HUNTLEY, PARKER, PERKINS,
SAMPSON -- read twice and ordered printed, and when printed to be
committed to the Committee on Commerce, Economic Development and Small
Business -- 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
enacting the wine industry and liquor store revitalization act; and to
repeal certain provisions of such law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "wine
industry and liquor store revitalization act".
S 2. Subdivisions 4 and 5 of section 63 of the alcoholic beverage
control law, subdivision 4 as amended by chapter 603 of the laws of
1992, are amended and five new subdivisions 7, 8, 9, 10, and 11 are
added to read as follows:
4. (A) No licensee under this section shall be engaged in any other
business on the licensed premises. The SALE OF PRODUCTS COMPLEMENTARY TO
THE BUSINESS OF THE LICENSED PREMISES SHALL NOT CONSTITUTE ENGAGING IN
ANOTHER BUSINESS WITHIN THE MEANING OF THIS SUBDIVISION. SUCH PRODUCTS
SHALL INCLUDE BUT NOT BE LIMITED TO THE sale of lottery tickets, when
duly authorized and lawfully conducted, the sale of corkscrews or the
sale of ice or the sale of publications, including prerecorded video
and/or audio cassette tapes, designed to help educate consumers in their
knowledge and appreciation of wine and wine products, as defined in
section three of this chapter, or the sale of [non-carbonated, non-fla-
vored mineral waters, spring waters and drinking waters] NON-ALCOHOLIC
BEVERAGES FOR CONSUMPTION ON OR OFF PREMISES, INCLUDING BUT NOT LIMITED
TO BOTTLED WATER, JUICE AND SODA BEVERAGES, OR THE SALE OF TOBACCO
PRODUCTS OR HERBAL CIGARETTES, PROVIDED THE LICENSEE COMPLIES WITH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04079-02-1
S. 897--A 2
SECTION THIRTEEN HUNDRED NINETY-NINE-CC OF THE PUBLIC HEALTH LAW, OR THE
SALE AT RETAIL OF CIGARS WHICH HAVE BEEN PREPACKAGED BY THE MANUFACTURER
IN BOXES OF TEN OR MORE, OR THE SALE OF PUBLICATIONS DESIGNED TO HELP
EDUCATE CONSUMERS IN THEIR KNOWLEDGE AND APPRECIATION OF CIGAR PRODUCTS,
OR FOOD ITEMS, WHICH SHALL INCLUDE LOCALLY PRODUCED FARM PRODUCTS AND
ANY FOOD OR FOOD PRODUCT NOT SPECIFICALLY PREPARED FOR IMMEDIATE
CONSUMPTION UPON THE PREMISES, OR THE SALE OF GIFT BAGS AND GIFT BASKETS
INCLUDING, BUT NOT LIMITED TO, SHOT GLASSES, SINGLE MALT SCOTCH GLASSES,
GRAPPA GLASSES, DECANTERS, OTHER GLASSWARE, FOOD OR FARM PRODUCTS NOT
SPECIFICALLY PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES, ALL
OF WHICH IS RELATED TO THE CONSUMPTION AND ENJOYMENT OF WINE AND SPIRITS
or the sale of glasses designed for the consumption of wine, racks
designed for the storage of wine, and devices designed to minimize
oxidation in bottles of wine which have been uncorked[, shall not
constitute engaging in another business within the meaning of this
subdivision].
(B) THE INSTALLATION AND OPERATION OF AUTOMATED TELLER MACHINES SHALL
NOT CONSTITUTE ENGAGING IN ANOTHER BUSINESS WITHIN THE MEANING OF THIS
SUBDIVISION. FOR 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, DEPOS-
ITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND LOAN PAYMENTS.
5. [Not more than one license shall be] NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT MULTIPLE LICENSES FROM BEING granted to any
person under this section.
7. ANY LICENSE OBTAINED UNDER THIS SECTION INCLUDES AUTHORIZATION TO
SELL ALCOHOLIC BEVERAGES FOR RESALE TO LICENSED PREMISES FOR ON-PREMISES
CONSUMPTION AS LICENSED BY SECTIONS FIFTY-FIVE, SIXTY-FOUR,
SIXTY-FOUR-A, SEVENTY-NINE-B, AND EIGHTY-ONE OF THIS CHAPTER AS PROVIDED
IN SUBDIVISIONS THREE-A AND THREE-B OF SECTION ONE HUNDRED TWO OF THIS
CHAPTER.
8. COMMENCING ON THE EFFECTIVE DATE OF THIS SUBDIVISION, NO ADDITIONAL
LICENSES SHALL BE ISSUED PURSUANT TO THIS SECTION EXCEPT AS OUTLINED IN
SUBDIVISION NINE OF THIS SECTION. THE PROVISIONS OF THIS SUBDIVISION
SHALL NOT APPLY TO (A) THE RENEWAL, TRANSFER OR CONTINUANCE OF A LICENSE
PURSUANT TO THIS CHAPTER, (B) AN APPLICATION FOR A LICENSE FILED BEFORE
THE EFFECTIVE DATE OF THIS SUBDIVISION, (C) THE ISSUANCE OF A LICENSE IN
ACCORDANCE WITH THE PROVISIONS OF THIS CHAPTER, TO A PERSON WHO
PURCHASED THE BUSINESS OPERATIONS OF A LICENSEE, PROVIDED, HOWEVER, THAT
ANY PERSON LICENSED UNDER THIS SECTION SHALL MAKE AN APPLICATION TO THE
LIQUOR AUTHORITY PRIOR TO SELLING ITS LICENSE TO ANOTHER PERSON.
9. ANY EXISTING LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR
REVOKED BY THE LIQUOR AUTHORITY MAY BE AUCTIONED OFF TO THE HIGHEST
BIDDER, PROVIDED THAT THE PERSON MEETS ALL THE APPLICABLE REQUIREMENTS.
THE AMOUNT OF THE SALE OF THE EXISTING LICENSE AS AUTHORIZED IN THIS
SUBDIVISION SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS
IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW.
10. EACH EXISTING LICENSEE SHALL BE AUTHORIZED TO APPLY FOR ONE ADDI-
TIONAL LICENSE FOR RETAIL SALE OF LIQUOR FOR CONSUMPTION OFF THE PREM-
ISES FOR USE IN THE ESTABLISHMENT OF ANOTHER LICENSED PREMISES, PROVIDED
HOWEVER, THE ADDITIONAL PREMISES COMPLIES WITH ALL APPLICABLE
RESTRICTIONS AND REQUIREMENTS. THE ADDITIONAL LICENSE ISSUED BY THE
AUTHORITY UNDER THIS SUBDIVISION MAY BE SOLD PROVIDED THE PURCHASER
MEETS ALL APPLICABLE REQUIREMENTS, WHICH SALE SHALL BE SUBJECT TO SALES
AND COMPENSATING USE TAX AS IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF
S. 897--A 3
THE TAX LAW. THE AUTHORIZATION FOR THE ESTABLISHMENT OF A NEW PREMISES
OR SALE OF THE ADDITIONAL LICENSE UNDER THIS SUBDIVISION SHALL EXPIRE
THREE YEARS FROM THE EFFECTIVE DATE OF THIS SUBDIVISION.
11. THE AUTHORITY IS AUTHORIZED TO AUCTION OFF TO THE HIGHEST BIDDER,
PROVIDED THAT THE PERSON MEETS ALL THE APPLICABLE REQUIREMENTS, ADDI-
TIONAL LICENSES FOR THE SALE OF LIQUOR OR WINE OR BOTH AT RETAIL FOR
CONSUMPTION OFF THE PREMISES. THE REVENUE FROM THIS SALE SHALL BE ALLO-
CATED FOR THE INCREASED LICENSURE AND ENFORCEMENT EFFORTS OF THE AUTHOR-
ITY. THE AUTHORITY SHALL BE AUTHORIZED TO SELL NO MORE THAN FIFTEEN
ADDITIONAL LICENSES EVERY TWO YEARS, BEGINNING ON APRIL FIRST, TWO THOU-
SAND FOURTEEN.
S 3. Subdivision 2 of section 79 of the alcoholic beverage control law
is amended and four new subdivisions 5, 6, 7, and 8 are added to read as
follows:
2. [Not more than one license shall be] NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT MULTIPLE LICENSES FROM BEING granted to any
person under this section.
5. ANY LICENSE OBTAINED UNDER THIS SECTION INCLUDES AUTHORIZATION TO
SELL ALCOHOLIC BEVERAGES FOR RESALE TO LICENSED PREMISES FOR ON-PREMISES
CONSUMPTION AS LICENSED BY SECTIONS FIFTY-FIVE, SIXTY-FOUR,
SIXTY-FOUR-A, SEVENTY-NINE-B, AND EIGHTY-ONE OF THIS CHAPTER AS PROVIDED
IN SUBDIVISIONS THREE-A AND THREE-B OF SECTION ONE HUNDRED TWO OF THIS
CHAPTER.
6. COMMENCING ON THE EFFECTIVE DATE OF THIS SUBDIVISION, NO ADDITIONAL
LICENSES SHALL BE ISSUED PURSUANT TO THIS SECTION EXCEPT AS OUTLINED IN
SUBDIVISION SEVEN OF THIS SECTION. THE PROVISIONS OF THIS SUBDIVISION
SHALL NOT APPLY TO (A) THE RENEWAL, TRANSFER OR CONTINUANCE OF A LICENSE
PURSUANT TO THIS CHAPTER, (B) AN APPLICATION FOR A LICENSE FILED BEFORE
THE EFFECTIVE DATE OF THIS SUBDIVISION, (C) THE ISSUANCE OF A LICENSE IN
ACCORDANCE WITH THE PROVISIONS OF THIS CHAPTER, TO A PERSON WHO
PURCHASED THE BUSINESS OPERATIONS OF A LICENSEE, PROVIDED, HOWEVER, THAT
ANY PERSON LICENSED UNDER THIS SECTION SHALL MAKE AN APPLICATION TO THE
LIQUOR AUTHORITY PRIOR TO SELLING ITS LICENSE TO ANOTHER PERSON.
7. ANY EXISTING LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR
REVOKED BY THE LIQUOR AUTHORITY MAY BE AUCTIONED OFF TO THE HIGHEST
BIDDER, PROVIDED THAT THE PERSON MEETS ALL THE APPLICABLE REQUIREMENTS.
THE AMOUNT OF THE SALE OF THE EXISTING LICENSE AS AUTHORIZED IN THIS
SUBDIVISION SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS
IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW.
8. EACH EXISTING LICENSEE SHALL BE AUTHORIZED TO APPLY FOR ONE ADDI-
TIONAL LICENSE FOR RETAIL SALE OF LIQUOR FOR CONSUMPTION OFF THE PREM-
ISES FOR USE IN THE ESTABLISHMENT OF ANOTHER LICENSED PREMISES, PROVIDED
HOWEVER, THE ADDITIONAL PREMISES COMPLIES WITH ALL APPLICABLE
RESTRICTIONS AND REQUIREMENTS. THE ADDITIONAL LICENSE ISSUED BY THE
AUTHORITY UNDER THIS SUBDIVISION AS WELL AS ANY EXISTING LICENSE ISSUED
UNDER THIS SECTION MAY BE SOLD PROVIDED THE PURCHASER MEETS ALL APPLICA-
BLE REQUIREMENTS, WHICH SALE SHALL BE SUBJECT TO SALES AND COMPENSATING
USE TAX AS IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW. THE
AUTHORIZATION FOR THE ESTABLISHMENT OF A NEW PREMISES OR SALE OF THE
ADDITIONAL LICENSE UNDER THIS SUBDIVISION SHALL EXPIRE THREE YEARS FROM
THE EFFECTIVE DATE OF THIS SUBDIVISION.
S 4. Section 83 of the alcoholic beverage control law is amended by
adding a new subdivision 8 to read as follows:
8. THE ANNUAL FEE FOR A GROCERY OR DRUG STORE WINE LICENSE PURSUANT TO
SECTION SEVENTY-NINE-E OF THIS ARTICLE SHALL BE ONE HUNDRED TEN DOLLARS.
WHERE, HOWEVER, THE APPLICANT IS THE HOLDER OF TWO OR MORE SUCH
S. 897--A 4
LICENSES, THE ANNUAL FEE FOR EACH ADDITIONAL LICENSE SHALL BE DOUBLE THE
AMOUNT HEREINABOVE SET FORTH.
S 5. Subdivision 2-a of section 100 of the alcoholic beverage control
law, as amended by chapter 249 of the laws of 2002, is amended to read
as follows:
2-a. No retailer shall employ, or permit to be employed, or shall
suffer to work, on any premises licensed for retail sale hereunder, any
person under the age of eighteen years, as a hostess, waitress, waiter,
or in any other capacity where the duties of such person require or
permit such person to sell, dispense or handle alcoholic beverages;
except that: (1) any person under the age of eighteen years and employed
by any person holding a grocery or drug store beer license shall be
permitted to handle and deliver beer and wine products for such licen-
see, (2) any person under the age of eighteen employed as a cashier by a
person holding a grocery or drug store beer license shall be permitted
to record and receive payment for beer and wine product sales when in
the presence of and under the direct supervision of a person eighteen
years of age or over, (2-a) any person under the age of eighteen years
and employed by a person holding a grocery store or drug store beer
license as either a cashier or in any other position to which handling
of containers which may have held alcoholic beverages is necessary,
shall be permitted to handle the containers if such have been presented
for redemption in accordance with the provisions of title ten of article
twenty-seven of the environmental conservation law, [and] (3) any person
under the age of eighteen years employed as a dishwasher, busboy, or
other such position as to which handling of containers which may have
held alcoholic beverages is necessary shall be permitted to do so under
the direct supervision of a person of legal age to purchase alcoholic
beverages in the state, (4) ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS
AND EMPLOYED BY ANY PERSON HOLDING A GROCERY OR DRUG STORE WINE LICENSE
SHALL BE PERMITTED TO HANDLE AND DELIVER WINE FOR SUCH LICENSEE, AND (5)
ANY PERSON UNDER THE AGE OF EIGHTEEN EMPLOYED AS A CASHIER BY A PERSON
HOLDING A GROCERY OR DRUG STORE WINE LICENSE SHALL BE PERMITTED TO
RECORD AND RECEIVE PAYMENT FOR WINE WHEN IN THE PRESENCE OF AND UNDER
THE DIRECT SUPERVISION OF A PERSON EIGHTEEN YEARS OF AGE OR OVER.
S 6. Section 100 of the alcoholic beverage control law is amended by
adding a new subdivision 2-c to read as follows:
2-C. NO PERSON SHALL SELL, DELIVER OR GIVE AWAY OR CAUSE OR PERMIT OR
PROCURE TO BE SOLD, DELIVERED OR GIVEN AWAY ANY ALCOHOLIC BEVERAGES TO
ANY PERSON, ACTUALLY OR APPARENTLY, UNDER THE AGE OF TWENTY-ONE YEARS.
AS A PRECONDITION TO THE SALE OF ANY ALCOHOLIC BEVERAGE, THE PURCHASER
OF ANY ALCOHOLIC BEVERAGE MUST PROVIDE WRITTEN EVIDENCE OF AGE. NO
LICENSEE, OR AGENT OR EMPLOYEE OF A LICENSEE UNDER THIS CHAPTER, SHALL
ACCEPT AS WRITTEN EVIDENCE OF AGE BY ANY SUCH PERSON FOR THE PURCHASE OF
ANY ALCOHOLIC BEVERAGE, ANY DOCUMENTATION OTHER THAN: (A) A VALID DRIV-
ER'S LICENSE OR NON-DRIVER IDENTIFICATION CARD ISSUED BY THE COMMISSION-
ER OF MOTOR VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES TERRITO-
RY, COMMONWEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE
GOVERNMENT WITHIN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE
DOMINION OF CANADA, OR (B) A VALID PASSPORT ISSUED BY THE UNITED STATES
GOVERNMENT OR ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY
THE ARMED FORCES OF THE UNITED STATES.
S 7. Paragraph (a) of subdivision 14 of section 105 of the alcoholic
beverage control law, as amended by section 1 of part U of chapter 63 of
the laws of 2003, is amended to read as follows:
S. 897--A 5
(a) No premises licensed to sell liquor and/or wine for off-premises
consumption shall be permitted to remain open:
(i) On Sunday before [twelve o'clock post meridian] EIGHT O'CLOCK
ANTEMERIDIAN and after nine o'clock post meridian.
(ii) On any day between [midnight and] THREE O'CLOCK ANTEMERIDIAN AND
eight o'clock antemeridian.
[(iii) On the twenty-fifth day of December, known as Christmas day.]
In any community where daylight saving time is in effect, such time
shall be deemed the standard time for the purpose of this subdivision.
S 8. Section 105 of the alcoholic beverage control law is amended by
adding a new subdivision 24 to read as follows:
24. COOPERATIVE AGREEMENTS BY LICENSEES TO SELL AT RETAIL FOR CONSUMP-
TION ON THE PREMISES. ANY TWO OR MORE RETAIL LICENSEES FOR OFF-PREMISES
CONSUMPTION MAY JOIN IN A COOPERATIVE AGREEMENT TO MAKE JOINT PURCHASES
OF ALCOHOLIC BEVERAGES IN LARGER QUANTITIES THAN MIGHT OTHERWISE BE
PURCHASED; PROVIDED, HOWEVER, THAT ALL ALCOHOLIC BEVERAGES PURCHASED
PURSUANT TO ANY SUCH AGREEMENT SHALL BE DISTRIBUTED TO NONE OTHER THAN A
LICENSEE WHO IS A PARTY TO SUCH AGREEMENT.
S 9. Subdivisions 3-a and 3-b of section 102 of the alcoholic beverage
control law, as amended by chapter 458 of the laws of 1993, are amended
to read as follows:
3-a. No licensee or permittee shall purchase or agree to purchase any
alcoholic beverages from any person within the state who is not duly
licensed to sell such alcoholic beverage as the case may be, at the time
of such agreement and sale nor give any order for any alcoholic beverage
to any individual who is not the holder of a solicitor's permit, except
as provided for in section eighty-five [or], ninety-nine-g, OR SEVENTY-
NINE-E, OR SUBDIVISION TEN OF SECTION SIXTY-THREE of this chapter.
3-b. No retail licensee shall purchase, agree to purchase or receive
any alcoholic beverage except from a person duly licensed within the
state by the liquor authority to sell such alcoholic beverage at the
time of such agreement and sale to such retail licensee, except as
provided for in section eighty-five [or], ninety-nine-g, OR
SEVENTY-NINE-E, OR SUBDIVISION TEN OF SECTION SIXTY-THREE of this chap-
ter.
S 10. Subdivision 2 of section 79 of the alcoholic beverage control
law is amended to read as follows:
2. [Not more than one license shall be] NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT MULTIPLE LICENSES FROM BEING granted to any
person under this section.
S 11. Subdivision 2 of section 105 of the alcoholic beverage control
law is REPEALED.
S 12. Subdivision 7 of section 105 of the alcoholic beverage control
law is REPEALED.
S 13. The alcoholic beverage control law is amended by adding a new
section 79-e to read as follows:
S 79-E. GROCERY OR DRUG STORE WINE LICENSE. 1. ANY PERSON MAY APPLY TO
THE AUTHORITY FOR A LICENSE TO SELL FROM THE LICENSED PREMISES WINE IN
SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES.
2. NO SUCH LICENSE SHALL BE ISSUED, HOWEVER, TO ANY PERSON FOR ANY
PREMISES OTHER THAN A GROCERY STORE, AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION THREE OF THIS CHAPTER, OR A DRUG STORE, AS DEFINED IN SUBDI-
VISION TWELVE OF SECTION THREE OF THIS CHAPTER.
3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A GROCERY OR DRUG STORE WINE
LICENSE TO THE HOLDER OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMP-
S. 897--A 6
TION OFF THE PREMISES PURSUANT TO SECTION FIFTY-FOUR OF THIS CHAPTER, OR
BEER AND WINE PRODUCTS AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSU-
ANT TO SECTION FIFTY-FOUR-A OF THIS CHAPTER, AT THE REQUEST OF SUCH
LICENSEE.
(B) FOR THE PURPOSES OF THIS SUBDIVISION, THE PREMISES OF THE GROCERY
OR DRUG STORE WINE LICENSEE SHALL BE THE SAME AS THE PREMISES LICENSED
UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.
(C) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY LICENSE
ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
ING LICENSE UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER,
AND SHALL BE DEEMED EXPIRED AT SUCH TIME AS THE UNDERLYING LICENSE
EXPIRES.
(D) WINE TASTING. ANY PERSON LICENSED TO SELL WINE PURSUANT TO THIS
ARTICLE SHALL BE PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS WHICH
ARE CONDUCTED UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM WINERY,
WINERY, WHOLESALER, OR IMPORTER AND WHERE SUCH AGENT IS PHYSICALLY PRES-
ENT AT ALL TIMES DURING THE CONDUCT OF THE TASTING, THEN, IN THAT EVENT,
ANY LIABILITY STEMMING FROM A RIGHT OF ACTION RESULTING FROM A WINE
TASTING AS AUTHORIZED PURSUANT TO THIS SECTION, AND IN ACCORDANCE WITH
THE PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS
LAW, SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
4. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE AUTHORITY
MAY ISSUE A LICENSE UNDER THIS SECTION TO THE HOLDER OF A LICENSE TO
SELL WINE AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSUANT TO SECTION
SEVENTY-NINE OF THIS ARTICLE, PROVIDED THAT: (A) THE LICENSEE MEETS THE
REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION; AND (B) UPON ISSUANCE
OF A LICENSE, THE LICENSEE UNDER THIS SECTION SURRENDERS THE LICENSE
CERTIFICATE ISSUED PURSUANT TO SUCH SECTION SEVENTY-NINE.
5. SUCH APPLICATION SHALL BE IN SUCH FORM AND SHALL CONTAIN SUCH
INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
BE ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS ARTI-
CLE FOR SUCH LICENSE.
6. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE OF
THIS ARTICLE.
7. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION ONE HUNDRED
FIVE OF THIS CHAPTER.
8. (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID FOR BY EACH RETAIL
OUTLET TO THE STATE LIQUOR AUTHORITY. THIS FRANCHISE FEE IS HEREBY
IMPOSED AT A RATE OF 0.46 OF ONE PERCENT OF THE TOTAL GROSS SALES AT THE
INDIVIDUAL LICENSED PREMISES OF THE LICENSEE IN THE PREVIOUS YEAR.
(B) IN THE EVENT AN APPLICANT HAS BEEN IN BUSINESS FOR LESS THAN
TWELVE MONTHS PRIOR TO THE FILING OF THE APPLICATION FOR THIS LICENSE,
SUCH APPLICANT SHALL, IN ACCORDANCE WITH THE RULES OF THE AUTHORITY,
REMIT AN ESTIMATE OF ITS FRANCHISE FEE BASED ON SQUARE FOOTAGE AT A
LICENSEE'S LOCATION PURSUANT TO THE FOLLOWING SCHEDULE:
SQUARE FOOTAGE AT FRANCHISE FEE
LICENSEE'S LOCATION PER LOCATION
0-999 $825
1,000-1,999 $1,650
2,000-3,999 $3,300
4,000-9,999 $8,250
10,000-19,999 $16,500
S. 897--A 7
20,000-24,999 $33,000
25,000-29,999 $82,500
30,000-39,999 $132,000
40,000 AND GREATER $495,000
WITHIN SIXTY DAYS AFTER SUCH LICENSEE SHALL HAVE BEEN IN BUSINESS FOR
TWELVE MONTHS, SUCH LICENSEE SHALL SUBMIT TO THE AUTHORITY, IN ACCORD-
ANCE WITH THE RULES OF THE AUTHORITY, A STATEMENT SHOWING ITS ACTUAL
TOTAL GROSS SALES FOR THE FIRST TWELVE MONTHS OF OPERATION AND THE FRAN-
CHISE FEE DUE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION. IN THE
EVENT THE FRANCHISE FEE DETERMINED PURSUANT TO SUCH PARAGRAPH EXCEEDS
THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, THE LICENSEE SHALL REMIT
PAYMENT FOR THE BALANCE OF THE REQUIRED FRANCHISE FEE WITHIN SUCH
SIXTY-DAY PERIOD. FAILURE TO REMIT PAYMENT WITHIN SUCH SIXTY-DAY PERIOD
SHALL BE GROUNDS FOR CANCELLATION OR REVOCATION OF SUCH LICENSE. IN THE
EVENT THAT THE FRANCHISE FEE DUE PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION IS LESS THAN THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, THE
LICENSEE SHALL BE ENTITLED TO A REFUND EQUAL TO THE DIFFERENCE BETWEEN
THE FRANCHISE FEE PAID PURSUANT TO THIS PARAGRAPH AND THE AMOUNT DUE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
(C) NO LICENSE SHALL BE ISSUED PURSUANT TO THIS SECTION UNTIL THE
FRANCHISE FEE OR ESTIMATED FRANCHISE FEE UNDER THIS SUBDIVISION REQUIRED
BY EITHER PARAGRAPH (A) OR (B) OF THIS SUBDIVISION HAS BEEN PAID IN
FULL.
(D) THE FRANCHISE FEE SHALL BE DEPOSITED AND DISPOSED OF IN THE SAME
MANNER AS ANY LICENSE FEE AS PROVIDED IN SECTION ONE HUNDRED TWENTY-FIVE
OF THIS CHAPTER.
9. (A) ANY PERSON LICENSED TO SELL WINE PURSUANT TO THIS ARTICLE THAT
OPERATES THE PREMISES OF THE GROCERY OR DRUG STORE WINE LICENSEE THAT
OCCUPIES LESS THAN ONE THOUSAND SQUARE FEET MAY PURCHASE, AGREE TO
PURCHASE OR RECEIVE ANY ALCOHOLIC BEVERAGE FROM A PERSON LICENSED UNDER
SECTION SIXTY-THREE OF THIS CHAPTER TO SELL LIQUOR AT RETAIL FOR
CONSUMPTION OFF THE PREMISES.
(B) ANY PERSON LICENSED TO SELL WINE AT RETAIL FOR CONSUMPTION OFF THE
PREMISES UNDER SECTION SEVENTY-NINE OF THIS ARTICLE IS AUTHORIZED TO
SELL WINE TO PERSONS LICENSED TO SELL WINE UNDER THIS ARTICLE AND THIS
SECTION WHO OPERATE THE PREMISES OF THE GROCERY OR DRUG STORE WINE
LICENSEE THAT OCCUPIES LESS THAN ONE THOUSAND SQUARE FEET.
10. THE STATE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION, HOWEVER, SUCH RULES
SHALL NOT BE CONSTRUED TO PLACE ADDITIONAL LIMITATIONS UPON THE HOLDERS
OF LICENSES ISSUED PURSUANT TO SECTION SEVENTY-NINE OF THIS ARTICLE
UNRELATED TO THE SALE OF WINE.
S 14. Subdivision 10 of section 105 of the alcoholic beverage control
law, paragraph (a) as amended by chapter 679 of the laws of 1950, is
amended to read as follows:
10. [(a)] Each retail licensee of liquor and/or wine for off-premises
consumption shall have conspicuously displayed within the interior of
the licensed premises where sales are made and where it can be readily
inspected by consumers a printed price list of the liquors and/or wines
offered for sale therein; and no liquor and/or wine shall be sold except
at the price set forth in such list[;
(b) No screen, blind, curtain, partition, article or thing shall be
permitted in the windows or upon the doors of such licensed premises,
which shall prevent a clear view into the interior of such licensed
premises from the sidewalk, at all times; and
S. 897--A 8
(c) No booth, screen, partition or other obstruction shall be permit-
ted in the interior of said licensed premises].
S 15. The alcoholic beverage control law is amended by adding a new
section 97-b to read as follows:
S 97-B. TEMPORARY RETAIL PERMIT FOR NEW APPLICANTS. 1. THE AUTHORITY
IS HEREBY AUTHORIZED TO ISSUE A TEMPORARY RETAIL PERMIT TO AN APPLICANT
OF A PREMISES THAT IS NOT LICENSED WHEN THE APPLICANT HAS FILED WITH THE
AUTHORITY AN APPLICATION FOR A RETAIL LICENSE AT SUCH PREMISES OR HAS
FILED RENEWAL OF SUCH LICENSE. SUCH APPLICATION SHALL BE IN WRITING AND
VERIFIED AND SHALL CONTAIN INFORMATION AS THE AUTHORITY SHALL REQUIRE.
SUCH APPLICATION SHALL BE ACCOMPANIED BY A FILING FEE OF SEVENTY-FIVE
DOLLARS.
2. UPON APPLICATION, THE AUTHORITY SHALL ISSUE A TEMPORARY RETAIL
PERMIT WHEN THE APPLICANT HAS FILED WITH THE AUTHORITY AN APPLICATION
FOR A RETAIL LICENSE AT SUCH PREMISES OR A RENEWAL THEREOF, TOGETHER
WITH ALL REQUIRED FILING AND LICENSE FEES. A TEMPORARY PERMIT ISSUED BY
THE AUTHORITY PURSUANT TO THIS SECTION SHALL BE FOR A PERIOD NOT TO
EXCEED NINETY DAYS. A TEMPORARY PERMIT MAY BE EXTENDED AT THE DISCRETION
OF THE AUTHORITY, FOR AN ADDITIONAL THIRTY DAYS.
3. PURSUANT TO THIS SECTION A TEMPORARY RETAIL PERMIT MAY NOT BE
ISSUED FOR ANY PREMISES THAT IS IN VIOLATION OF THE PROVISIONS OF SUBDI-
VISION SEVEN OF SECTION SIXTY-FOUR, SUBDIVISION SEVEN OF SECTION SIXTY-
FOUR-A, SUBDIVISION FIVE OF SECTION SIXTY-FOUR-B, SUBDIVISION ELEVEN OF
SECTION SIXTY-FOUR-C, SUBDIVISION EIGHT OF SECTION SIXTY-FOUR-D OR
SUBDIVISION THREE OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
4. A TEMPORARY RETAIL PERMIT IS A CONDITIONAL PERMIT AND SHALL AUTHOR-
IZE THE HOLDER THEREOF TO, IN THE CASE OF ALL OTHER RETAIL APPLICATIONS,
PURCHASE AND SELL SUCH ALCOHOLIC BEVERAGES AS WOULD BE PERMITTED TO BE
PURCHASED AND SOLD UNDER THE PRIVILEGES OF THE LICENSE APPLIED FOR; TO
SELL ALCOHOLIC BEVERAGES TO CONSUMERS ONLY AND NOT FOR RESALE; AND TO
PURCHASE ALCOHOLIC BEVERAGES ONLY BY PAYMENT IN CURRENCY OR CHECK FOR
SUCH ALCOHOLIC BEVERAGES ON OR BEFORE THEY ARE DELIVERED TO SUCH PREM-
ISES.
5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A TEMPORARY PERMIT MAY
BE SUMMARILY CANCELLED OR SUSPENDED AT ANY TIME IF THE AUTHORITY DETER-
MINES THAT GOOD CAUSE FOR SUCH CANCELLATION OR SUSPENSION EXISTS. THE
AUTHORITY SHALL PROMPTLY NOTIFY THE HOLDER OF A TEMPORARY PERMIT IN
WRITING OF SUCH CANCELLATION OR SUSPENSION AND SHALL SET FORTH THE
REASONS FOR SUCH ACTION.
6. APPROVAL OF, OR EXTENSION OF, A TEMPORARY RETAIL LICENSE SHALL NOT
BE DEEMED AS AN APPROVAL OF THE RETAIL APPLICATION.
7. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
S 16. Paragraph (b) of subdivision 3 of section 101-b of the alcoholic
beverage control law, as amended by section 1 of part E of chapter 56 of
the laws of 2006, is amended to read as follows:
(b) No brand of liquor or wine shall be sold to or purchased by a
retailer unless a schedule, as provided by this section, is transmitted
to and received by the liquor authority, and is then in effect. Such
schedule shall be transmitted to the authority in such form, manner,
medium and format as the authority may direct; shall be deemed duly
verified by the person submitting such schedule upon its transmission to
the authority; and shall contain, with respect to each item, the exact
brand or trade name, capacity of package, nature of contents, age and
proof where stated on the label, the number of bottles contained in each
S. 897--A 9
case, the bottle and case price to retailers, the net bottle and case
price paid by the seller, which prices, in each instance, shall be indi-
vidual for each item and not in "combination" with any other item, the
discounts for quantity, if any, and the discounts for time of payment,
if any. FOR PURPOSES OF THIS PARAGRAPH, IN REGARDS TO PREMISES LICENSED
UNDER SECTION SIXTY-THREE OF THIS CHAPTER, "COMBINATION" SHALL NOT
INCLUDE WINES PROVIDED BY THE SAME VINEYARD OR DISTRIBUTOR TO A RETAILER
AND WHERE SUCH WINES MAY BE DIFFERENT. Such brand of liquor or wine
shall not be sold to retailers except at the price and discounts then in
effect unless prior written permission of the authority is granted for
good cause shown and for reasons not inconsistent with the purpose of
this chapter. Such schedule shall be transmitted by each manufacturer
selling such brand to retailers and by each wholesaler selling such
brand to retailers.
S 17. This act shall take effect on the one hundred eightieth day
after it shall have become a law.
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Permissions beyond the scope of this license are available at http://www.nysenate.gov/copyright-policy.
Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that links to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.
*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.
Discuss!
blog comments powered by Disqus