NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3356
SPONSOR: Fahy
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
establishing a small wholesaler liquor license
 
PURPOSE:
The purpose of this legislation is to establish the small wholesaler
liquor license.
 
SUMMARY OF PROVISIONS:*
Section 1. Establishes the small wholesaler liquor license for any
liquor wholesaler who grosses less than five hundred thousand dollars
yearly. All applications for a license shall be filed to the liquor
authority in writing and shall include all information deemed necessary
by the liquor authority. If the application is approved, the license
shall contain a description of all licensed premises.
2. Ensures the annual fee for a small liquor license to be two thousand
dollars.
3. This act shall take effect one hundred twentieth day after becoming
law.
 
JUSTIFICATION:
Currently in New York, the licensing fee for a wholesale liquor license
is nineteen thousand two hundred dollars. With the addition of the
filing fee and an ancillary fee, the total cost of obtaining this
license is twenty-seven thousand two hundred eighty dollars. For
purposes of comparison, the cost of a retailer license is significantly
less expensive for businesses of any size. In the City of Albany, the
cost of an off-premise site license fee (i.e. liquor stores) is one
thousand five hundred thirty-six dollars and two thousand four hundred
thirty-two dollars for an on-premise site (i.e. restaurant). This
expensive licensing fee disincentivizes small liquor wholesaler busi-
nesses in New York and has proved detrimental to several entrepreneurs
looking to start small businesses in the liquor wholesaler field.
 
PRIOR LEGISLATIVE HISTORY:
A8575 2021-22
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
EFFECTIVE DATE:.
This act shall take effect one hundred twentieth day after becoming law.
STATE OF NEW YORK
________________________________________________________________________
3356
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. FAHY, ZINERMAN, GALLAGHER, DICKENS, SANTABARBARA
-- read once and referred to the Committee on Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to
establishing a small wholesaler liquor license
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The alcoholic beverage control law is amended by adding a
2 new section 62-a to read as follows:
3 § 62-a. Small wholesaler liquor license. Any person who grosses less
4 than five hundred thousand dollars per annum may apply for a license
5 pursuant to this section. Such application shall be in writing and veri-
6 fied and shall contain such information as the liquor authority shall
7 require. Such application shall be accompanied by a check or draft for
8 the amount required by this article for such license. If the liquor
9 authority shall grant the application it shall issue a license in such
10 form as shall be determined by its rules. Such license shall contain a
11 description of the licensed premises and in form and in substance shall
12 be a license to the person therein specifically designated to sell
13 liquors at wholesale in the premises therein specifically licensed to
14 duly licensed wholesalers, retailers and permittees in this state, and
15 to sell liquor in bulk to a licensed rectifier or to a permittee engaged
16 in the manufacture of products which are unfit for beverage use, for use
17 in the manufacture of products produced and sold by such rectifier or
18 permittee, and to sell or deliver liquor to persons outside the state
19 pursuant to the laws of the place of such sale or delivery. Such a
20 license shall also include the privilege to sell wine at wholesale under
21 the same terms and conditions without the payment of any additional fee.
22 § 2. Section 66 of the alcoholic beverage control law is amended by
23 adding a new subdivision 3-b to read as follows:
24 3-b. The annual fee for a small wholesaler's license shall be two
25 thousand dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04487-01-3
A. 3356 2
1 § 3. This act shall take effect on the one hundred twentieth day after
2 it shall have become a law. Effective immediately, the addition, amend-
3 ment and/or repeal of any rule or regulation necessary for the implemen-
4 tation of this act on its effective date are authorized to be made and
5 completed on or before such effective date.