BILL NUMBER: S5962       Revised 11/30/17

SPONSOR: MURPHY
 
TITLE OF BILL:  An act to amend chapter 297 of the laws of 2016,
amending the alcoholic beverage control law and the executive law relat-
ing to a reorganization of the alcoholic beverage control law, in
relation to eliminating the expiration and repeal of certain provisions
authorizing seven day license holders to sell gift bags and authorizing
manufacturers to transport alcoholic beverages to an adjacent retail
premises

 
PURPOSE:

This bill would make permanent certain provisions of the alcoholic
beverage control law authorizing the sale of gift bags and wrapping, and
manufacturers to transport alcoholic beverages to their retail estab-
lishments.

 
SUMMARY OF PROVISIONS:

Section one would amend section 18 of chapter 297 of the laws of 2016 to
              

remove the sunset date on the provisions contained in sections six and
thirteen of such act.

Section two establishes the effective date.

 
JUSTIFICATION:

Chapter 297, laws of 2016 included a provision to allow liquor stores to
sell gift bags for profit and to authorize grocers to transport deliv-
eries of sealed alcoholic beverages across their supermarket to the
restaurant facilities.

The intent of these provisions was to allow liquor stores to make a
profit on items they were currently giving to customers and to allow
supermarkets more flexibility in where they locate their restaurants in
that an outside entrance would no longer be required. Both of these
provisions are set to sunset on November 6, 2019.

The sunset provisions are causing problems for both package stores and
food stores. The liquor stores, most of whom are small businesses, are
not willing to invest in inventory they may not be authorized to sell as
of November 6, 2019. Furthermore, food stores cannot afford to pay
construction costs to locate a restaurant or tavern within their store
of the sunset provisions will prevent delivers in two years. This uncer-
tainty is preventing both classes of licensees from taking full advan-
tage of the new law.

This piece of legislation merely removes the sunset provisions and
implements the changes that were unanimously recommended by the ABC
Working Group formed by Governor Cuomo in 2016 to modernize the ABC law.

 
LEGISLATIVE HISTORY:

2017: Passed Senate

 
FISCAL IMPLICATIONS:

None
 
EFFECTIVE DATE:
This act shall take effect immediately.