Establishes grocery store wine licenses permitting the licensee to sell from the licensed premises wine produced in New York state or produced from ingredients grown or produced in New York state, in sealed containers for consumption off such premises.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8205A
SPONSOR: Tague TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
establishing grocery store wine licenses
PURPOSE OR GENERAL IDEA OF BILL:
This bill will permit grocery stores to sell wine produced in New York
State or produced from ingredients grown in New York State.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Adds grocery store wine license.
Section 2: Adds a new section 79-e which states that 1. any person may
apply to the authority for a grocery store wine license to sell from the
licensed premises wine produced in New York state or produced from
ingredients grown or produced in New York state, in sealed containers
for consumption off such premises.
2. Under the grocery store wine license, licensees are only allowed to
sell wine produced in New York state or produced from ingredients grown
or produced in New York state.
3. No license shall be issued to any person for any premises other than
a grocery store, as defined in subdivision thirteen of section three of
this chapter.
4a. A grocery store wine license can be issued to a holder of a retail
beer license (for off-premises consumption) or a retail beer and wine
license (for off-premises consumption) at their request, unless there is
good cause not to. This license allows the holder to sell beer for
consumption at home. The license can be renewed or transferred.
4b. The premises covered by the grocery store wine license are the same
as those under the original beer or beer and wine license.
4c. The grocery store wine license will be active as long as the under-
lying beer or beer and wine license is valid and will expire when that
license expires.
4d. Any person licensed to sell wine may conduct wine tastings. If the
tasting is conducted by an official agent of a farm winery, winery,
wholesaler, or importer, and the agent is present throughout the event,
any liability from the tasting will fall on the farm winery, winery,
wholesaler, or importer, in accordance with specific legal provisions
(sections 11-100 and 11101 of the general obligations law).
5. The application must be in the required form, include the necessary
information as specified by the authority's rules, and be accompanied by
a check or draft for the required license fee.
6. 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. Any person receiving a license pursuant to this section shall not be
subject to the provisions of paragraph (a) of subdivision three and
subdivision fourteen of section one hundred five of this chapter.
8a. Franchise fee will be imposed at a rate of $10,000. The one-time fee
shall be paid for by each licensee to the state liquor• authority.
8b. No license shall be issued until the franchise fee or estimated
franchise fee has been paid in full.
8c. The fee shall be deposited and disposed of in the same manner as any
license fee.
9. Any person licensed to sell wine at retail consumption off the prem-
ises is authorized to sell wine to persons licensed to sell wine who
operate the premises of the grocery store Wine licensee.
10. The state liquor authority may make such rules as it deems necessary
to carry out the provisions of this section.
Section 3: New section 10 is added. The annual fee for a grocery store
wine license shall be at a rate of one-half (0.5) percent of sales of
wine sold.
Section 4: Subdivision 2a of section 100 of the alcoholic beverage
control law is amended and adds: No retailer shall employ individuals
under 18 years old in any capacity that involves selling, dispensing, or
handling alcoholic beverages on licensed premises except that any person
under the age of eighteen years and employed by any person holding a
grocery store wine license shall be permitted to handle and deliver wine
for such licensee, and any person under the age of eighteen employed as
a cashier by a person holding a grocery 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.
Section 5: Subdivision 3-a and 3-b of section 102 of the alcoholic
beverage control law is amended and adds section seventy-nine-e.
3-a. Licensees or permittees cannot purchase alcoholic beverages from
anyone within the state who is not properly licensed at the time of the
sale or agreement. They also cannot place orders for alcoholic beverages
with individuals who do not hold a solicitor's permit, except in certain
cases outlined in section eighty-five, ninety-nine-g, or seventy-nine-e
of this chapter
3-b. Retail licensees Can only purchase, agree to purchase, or receive
alcoholic beverages from a person who is duly licensed within the state
by the liquor authority at the time of the sale or agreement, with
specific exceptions noted in section eighty-five, ninety-nine-g, or
seventy-nine-e of this chapter
Section 6: Severability Clause. If any part of the act (such as a
clause, sentence, or section) is found to be invalid by a court, the
rest of the act remains unaffected. The invalid portion's impact is
limited to the specific part involved in the legal case, and it is
declared that the legislature intended the act to be passed even without
the invalid provisions.
Section 7: This act shall take effect immediately.
JUSTIFICATION:
This legislation is intended to support family farms and local vintners
by boosting New York's wine industry, which contributes nearly $15
billion in direct economic impact to New York State. It also addresses
concerns that a general law allowing wine sales in supermarkets would
result in major national and international producers and distributors
dominating grocery store shelf space and crowding out New York-produced
wines.
Smaller wineries, many of which rely on direct-to-consumer sales and
limited distribution, would likely find themselves shut out of the
grocery market entirely. This would defeat the most important part of
New York State government intervening in the market - to support New
York grape farmers, wineries and small businesses.
Under current law, wine is sold primarily through standalone liquor
stores and small specialty wine shops. While proposals to allow wine
sales in grocery stores have surfaced for years, they've been repeatedly
idled over the concern that it would bring irreparable harm to these
small independent retailers.
By limiting grocery store wine sales to New York-produced wines, this
legislation strikes a balance - supporting the state's wine industry and
New York grape growers, while addressing the concerns of independent
retailers. The targeted approach would ensure that grocery sales expand
in a way that uplifts local agriculture without undermining small,
community-based wine and liquor stores.
The only justifiable reason for this intervention by the state should be
to support New York State small businesses. This bill achieves this
while giving everyone concerned, including grocery stores, new markets
and new profit centers while providing convenience for consumers.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8205--A
2025-2026 Regular Sessions
IN ASSEMBLY
May 5, 2025
___________
Introduced by M. of A. TAGUE, DeSTEFANO, SMULLEN -- read once and
referred to the Committee on Economic Development -- 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
establishing grocery store wine licenses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 3 and 5 of section 75 of the alcoholic bever-
2 age control law, subdivision 3 as amended by section 4 of part K of
3 chapter 60 of the laws of 2004 and subdivision 5 as added by chapter 355
4 of the laws of 2013, are amended and a new subdivision 6 is added to
5 read as follows:
6 3. Seven day license to sell wine at retail for consumption off the
7 premises subject to paragraph (a) of subdivision fourteen of section one
8 hundred five of this chapter[.];
9 5. Roadside farm market license[.];
10 6. Grocery store wine license.
11 § 2. The alcoholic beverage control law is amended by adding a new
12 section 79-e to read as follows:
13 § 79-e. Grocery store wine license. 1. Any person may apply to the
14 authority for a grocery store wine license as provided for in this
15 section to sell from the licensed premises wine produced in New York
16 state or produced from ingredients grown or produced in New York state,
17 in sealed containers for consumption off such premises.
18 2. A grocery store wine license shall permit the licensee to sell only
19 wine produced in New York state or produced from ingredients grown or
20 produced in New York state.
21 3. No such license shall be issued, however, to any person for any
22 premises other than a grocery store, as defined in subdivision thirteen
23 of section three of this chapter.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11402-03-5
A. 8205--A 2
1 4. (a) Notwithstanding any other provision of this chapter, except for
2 good cause shown, the authority shall issue a grocery store wine license
3 to the holder of a license to sell beer at retail for consumption off
4 the premises pursuant to section fifty-four of this chapter, or beer and
5 wine products at retail for consumption off the premises pursuant to
6 section fifty-four-a of this chapter, or to the holder of a wholesalers
7 license issued pursuant to section fifty-three of this chapter, at the
8 request of such licensee and thereafter renewed or transferred, which
9 authorizes the holder thereof to sell beer at retail to a person for
10 consumption in their home.
11 (b) For the purposes of this section, the premises of the grocery
12 store wine licensee shall be the same as the premises licensed under
13 section fifty-four or fifty-four-a of this chapter.
14 (c) Notwithstanding any other provisions of this chapter, any license
15 issued pursuant to this section shall run concurrently with the underly-
16 ing license under section fifty-four or fifty-four-a of this chapter,
17 and shall be deemed expired at such time as the underlying license
18 expires.
19 (d) Any person licensed to sell wine pursuant to this article shall be
20 permitted to conduct wine tastings. Wine tastings which are conducted
21 under the auspices of an official agent of a farm winery, winery, whole-
22 saler, or importer and where such agent is physically present at all
23 times during the conduct of the tasting, then, in that event, any
24 liability stemming from a right of action resulting from a wine tasting
25 as authorized pursuant to this section, and in accordance with the
26 provisions of sections 11-100 and 11-101 of the general obligations law,
27 shall accrue to the farm winery, winery, wholesaler, or importer.
28 5. Such application shall be in such form and shall contain such
29 information as shall be required by the rules of the authority and shall
30 be accompanied by a check or draft in the amount required by this arti-
31 cle for such license.
32 6. Notwithstanding any other provisions of this chapter, any person
33 receiving a license pursuant to this section shall not be subject to the
34 provisions of subdivision two, three or four of section seventy-nine of
35 this article.
36 7. Notwithstanding any other provisions of this chapter, any person
37 receiving a license pursuant to this section shall not be subject to the
38 provisions of paragraph (a) of subdivision three and subdivision four-
39 teen of section one hundred five of this chapter.
40 8. (a) A one-time franchise fee shall be paid for by each licensee to
41 the state liquor authority. This franchise fee is hereby imposed at a
42 rate of ten thousand dollars.
43 (b) No license shall be issued pursuant to this section until the
44 franchise fee or estimated franchise fee required by paragraph (a) of
45 this subdivision has been paid in full.
46 (c) The franchise fee shall be deposited and disposed of in the same
47 manner as any license fee as provided in section one hundred twenty-five
48 of this chapter.
49 9. Any person licensed to sell wine at retail for consumption off the
50 premises under section seventy-nine of this article is authorized to
51 sell wine to persons licensed to sell wine under this article and this
52 section who operate the premises of the grocery store wine licensee.
53 10. The state liquor authority may make such rules as it deems neces-
54 sary to carry out the provisions of this section.
55 § 3. Section 83 of the alcoholic beverage control law is amended by
56 adding a new subdivision 10 to read as follows:
A. 8205--A 3
1 10. The annual fee for a grocery store wine license pursuant to
2 section seventy-nine-e of this article shall be at a rate of one-half
3 (0.5) percent of sales of wine sold.
4 § 4. Subdivision 2-a of section 100 of the alcoholic beverage control
5 law, as amended by chapter 249 of the laws of 2002, is amended to read
6 as follows:
7 2-a. No retailer shall employ, or permit to be employed, or shall
8 suffer to work, on any premises licensed for retail sale hereunder, any
9 person under the age of eighteen years[, as a hostess, waitress, waiter,
10 or] in any [other] capacity where the duties of such person require or
11 permit such person to sell, dispense or handle alcoholic beverages;
12 except that: (1) any person under the age of eighteen years and employed
13 by any person holding a grocery or drug store beer license shall be
14 permitted to handle and deliver beer and wine products for such licen-
15 see, (2) any person under the age of eighteen employed as a cashier by a
16 person holding a grocery or drug store beer license shall be permitted
17 to record and receive payment for beer and wine product sales when in
18 the presence of and under the direct supervision of a person eighteen
19 years of age or over, (2-a) any person under the age of eighteen years
20 and employed by a person holding a grocery store or drug store beer
21 license as either a cashier or in any other position to which handling
22 of containers which may have held alcoholic beverages is necessary,
23 shall be permitted to handle the containers if such have been presented
24 for redemption in accordance with the provisions of title ten of article
25 twenty-seven of the environmental conservation law, [and] (3) any person
26 under the age of eighteen years employed as a dishwasher, busboy, or
27 other such position as to which handling of containers which may have
28 held alcoholic beverages is necessary shall be permitted to do so under
29 the direct supervision of a person of legal age to purchase alcoholic
30 beverages in the state, (4) any person under the age of eighteen years
31 and employed by any person holding a grocery store wine license shall be
32 permitted to handle and deliver wine for such licensee, and (5) any
33 person under the age of eighteen employed as a cashier by a person hold-
34 ing a grocery store wine license shall be permitted to record and
35 receive payment for wine when in the presence of and under the direct
36 supervision of a person eighteen years of age or over.
37 § 5. Subdivisions 3-a and 3-b of section 102 of the alcoholic beverage
38 control law, as amended by chapter 458 of the laws of 1993, are amended
39 to read as follows:
40 3-a. No licensee or permittee shall purchase or agree to purchase any
41 alcoholic beverages from any person within the state who is not duly
42 licensed to sell such alcoholic beverage as the case may be, at the time
43 of such agreement and sale nor give any order for any alcoholic beverage
44 to any individual who is not the holder of a solicitor's permit, except
45 as provided for in section eighty-five [or], ninety-nine-g, or seventy-
46 nine-e of this chapter.
47 3-b. No retail licensee shall purchase, agree to purchase or receive
48 any alcoholic beverage except from a person duly licensed within the
49 state by the liquor authority to sell such alcoholic beverage at the
50 time of such agreement and sale to such retail licensee, except as
51 provided for in section eighty-five [or], ninety-nine-g, or seventy-
52 nine-e of this chapter.
53 § 6. Severability clause. If any clause, sentence, paragraph, subdivi-
54 sion, section or part of this act shall be adjudged by any court of
55 competent jurisdiction to be invalid, such judgment shall not affect,
56 impair, or invalidate the remainder thereof, but shall be confined in
A. 8205--A 4
1 its operation to the clause, sentence, paragraph, subdivision, section
2 or part thereof directly involved in the controversy in which such judg-
3 ment shall have been rendered. It is hereby declared to be the intent of
4 the legislature that this act would have been enacted even if such
5 invalid provisions had not been included herein.
6 § 7. This act shall take effect immediately.
