Permits the sale or promotional gifting of certain complementary products for wine and spirits by certain persons or businesses licensed to sell wine and spirits.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6050A
SPONSOR: Bronson TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
permitting the sale or promotional gifting of certain complementary
products for wine and spirits
PURPOSE:
To allow retail licenses to sell complimentary gift and promotional
items related to wine and spirit sales. SUMMARY OF PROVISIONS:
Sections one, two and three of the bill amends Section sixty-three, one
hundred and four and one hundred and one of the alcoholic and beverage
law to allow the glasses designed for the sale of spirits in addition to
wine and for the sale of merchandise in the promotion and gifting of the
service of liquor, wine or wine products.
JUSTIFICATION:
The gifting market in the United,States is estimated at over $170
billion last year and is expected to exceed $220 billion in 2020.
Consumers are increasingly looking for new and innovative gifts, partic-
ularly adult relatives and friends. According to a recent. Gallup poll
the average person spends $920 on gifts. Holiday spending for relatives,
friends and colleagues alone amounted to about $660 for holiday budgets
according to a recent media reports, see here Holiday Gifts.
The legislation proposed here provides consumers with additional options
in the market. Under the new law retail package or liquor stores could
sell spirits or wine which would include complementary items such as
specialty anniversary marking pens, salsa bowls, branded glassware,
insulated cups or mugs, recipe books and other items. These items are
currently prohibited to be sold under current laws and regulations.
LEGISLATIVE HISTORY:
A9685 (2022) referred to Economic Development
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
It is estimated the addition of complementary promotional or gift items
will increase sales and excise tax collection on wine and spirits.
EFFECTIVE DATE:
Ninety days after it shall become law.
STATE OF NEW YORK
________________________________________________________________________
6050--A
2023-2024 Regular Sessions
IN ASSEMBLY
March 31, 2023
___________
Introduced by M. of A. BRONSON -- read once and referred to the Commit-
tee 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
permitting the sale or promotional gifting of certain complementary
products for wine and spirits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 1 of section 104 of the alco-
2 holic beverage control law, as amended by chapter 2 of the laws of 2013,
3 is amended to read as follows:
4 (a) No wholesaler shall be engaged in any other business on the prem-
5 ises to be licensed; except that nothing contained in this chapter
6 shall: (1) prohibit a beer wholesaler from (i) acquiring, storing or
7 selling non-alcoholic snack foods, as defined in paragraph (b) of this
8 subdivision, (ii) manufacturing, bottling, storing, or selling non-alco-
9 holic carbonated beverages, (iii) manufacturing, storing or selling
10 non-alcoholic non-carbonated soft drinks, mineral waters, spring waters,
11 drinking water, non-taxable malt or cereal beverages, juice drinks,
12 fruit or vegetable juices, ice, liquid beverage mixes and dry or frozen
13 beverage mixes, (iv) acquiring, storing or selling wine products, (v)
14 the sale of promotional items on such premises, or (vi) the sale of
15 tobacco products at retail by wholesalers who are licensed to sell beer
16 and other products at retail; (2) prohibit a wholesaler authorized to
17 sell wine from manufacturing, acquiring or selling wine merchandise, as
18 defined in paragraph (d) of this subdivision; (3) prohibit a licensed
19 winery or licensed farm winery from engaging in the business of a wine
20 wholesaler for New York state labeled wines produced by any licensed
21 winery or licensed farm winery or prohibit such wine wholesaler from
22 exercising any of its rights pursuant to sections seventy-six and seven-
23 ty-six-a of this chapter provided that the operation of such beer and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06925-04-3
A. 6050--A 2
1 wine wholesalers business shall be subject to such rules and regulations
2 as the liquor authority may prescribe; (4) prohibit a beer wholesaler
3 who is authorized to sell beer at retail from selling at retail: (i)
4 candy, chewing gum and cough drops; (ii) non-refrigerated salsa; (iii)
5 cigarette lighters, lighter fluid, matches and ashtrays; (iv) barbecue
6 and picnic-related products and supplies, which shall include, but not
7 be limited to, charcoal, grills, propane gas, plastic and paper cups,
8 paper or plastic tablecloths and coolers; (v) beer making and brewing
9 supplies and publications, which shall include, but not be limited to,
10 books, magazines, equipment and ingredients; (vi) steins, mugs and other
11 glassware appropriate for the consumption of beer, malt beverages and
12 wine products; (vii) items typically used to serve beer and malt bever-
13 ages including, but not limited to, taps, kegerators, koozies and beer
14 socks; (viii) lemons, limes and oranges, provided that no more than two
15 dozen of each shall be displayed at any one time; (ix) rock salt, ice
16 and snow melting compounds, snow shovels; windshield washer solvent;
17 firewood; beach umbrellas; sunglasses and sun block; and (x) prepaid
18 telephone cards; [or] (5) prohibit the installation and operation of a
19 single automated teller machine in the premises of a beer wholesaler who
20 is authorized to sell beer at retail; or (6) prohibit a liquor whole-
21 saler from transporting or selling gifts or promotional items associated
22 with wine or spirit products as provided for in subdivision four of
23 section sixty-three of this chapter. For the purposes of this subdivi-
24 sion, "automated teller machine" means a device which is linked to the
25 accounts and records of a banking institution and which enables consum-
26 ers to carry out banking transactions, including but not limited to,
27 account transfers, deposits, cash withdrawals, balance inquiries and
28 loan payments.
29 § 2. Paragraph (a) of subdivision 3 of section 101-b of the alcoholic
30 beverage control law, as amended by section 1 of part E of chapter 56 of
31 the laws of 2006, is amended to read as follows:
32 (a) No brand of liquor or wine shall be sold to or purchased by a
33 wholesaler, irrespective of the place of sale or delivery, unless a
34 schedule, as provided by this section, is transmitted to and received by
35 the liquor authority, and is then in effect. Such schedule shall be
36 transmitted to the authority in such form, manner, medium and format as
37 the authority may direct; shall be deemed duly verified by the person
38 submitting such schedule upon its transmission to the authority; and
39 shall contain, with respect to each item, the exact brand or trade name,
40 capacity of package, nature of contents, age and proof where stated on
41 the label, the number of bottles contained in each case, the bottle and
42 case price to wholesalers, the net bottle and case price paid by the
43 seller, which prices, in each instance, shall be individual for each
44 item and not in "combination" with any other item, the discounts for
45 quantity, if any, and the discounts for time of payment, if any. Such
46 brand of liquor or wine shall not be sold to wholesalers except at the
47 price and discounts then in effect unless prior written permission of
48 the authority is granted for good cause shown and for reasons not incon-
49 sistent with the purpose of this chapter. Such schedule shall be trans-
50 mitted by (1) the owner of such brand, or (2) a wholesaler selling such
51 brand and who is designated as agent for the purpose of filing such
52 schedule if the owner of the brand is not licensed by the authority, or
53 (3) with the approval of the authority, by a wholesaler, in the event
54 that the owner of the brand is unable to transmit a schedule or desig-
55 nate an agent for such purpose. As used in this subdivision the term
56 "item" shall be deemed to include a sealed, pre-wrapped package consist-
A. 6050--A 3
1 ing of a sealed container or containers of liquor, wine or wine product
2 and other merchandise reasonably used in connection with the prepara-
3 tion, storage, promotion, gifting, or service of liquor, wine or wine
4 products provided that such other merchandise shall not be potable or
5 edible. For the purposes of this section, gift and promotional items
6 shall only include those items that are complimentary and directly asso-
7 ciated with the sale of wine or distilled spirits they are gifting or
8 promoting and shall mean: (i) items that are de minimis in value, but in
9 no instance shall merchandise be valued at more than fifteen dollars in
10 total; (ii) items that are imprinted with the wine or spirits brand logo
11 on the gift or promotional item; and (iii) items that are included as
12 part of a manufactured pre-sealed package with the wine or distilled
13 spirit that is being gifted or promoted. Further, for the purposes of
14 this section, gift or promotional items shall not include any food,
15 non-alcoholic beverage, or other drink or food mix, nor shall these
16 items be offered for sale to the general public as individual items.
17 § 3. Subdivision 4 of section 63 of the alcoholic beverage control
18 law, as amended by section 3 of part H of chapter 58 of the laws of
19 2019, is amended to read as follows:
20 4. No licensee under this section shall be engaged in any other busi-
21 ness on the licensed premises. The sale of lottery tickets, when duly
22 authorized and lawfully conducted, the sale of reusable bags as defined
23 in section 27-2801 of the environmental conservation law, the sale of
24 corkscrews or the sale of ice or the sale of publications, including
25 prerecorded video and/or audio cassette tapes, or educational seminars,
26 designed to help educate consumers in their knowledge and appreciation
27 of alcoholic beverages, as defined in section three of this chapter and
28 allowed pursuant to their license, or the sale of non-carbonated, non-
29 flavored mineral waters, spring waters and drinking waters or the sale
30 of glasses designed for the consumption of wine or spirits, racks
31 designed for the storage of wine, and devices designed to minimize
32 oxidation in bottles of wine which have been uncorked, or the sale of
33 gift bags, gift boxes, associated gift or promotional items, or wrap-
34 ping, for alcoholic beverages purchased at the licensed premises shall
35 not constitute engaging in another business within the meaning of this
36 subdivision. Any fee obtained from the sale of an educational seminar
37 shall not be considered as a fee for any tasting that may be offered
38 during an educational seminar, provided that such tastings are available
39 to persons who have not paid to attend the seminar and all tastings are
40 conducted in accordance with section sixty-three-a of this article. For
41 the purposes of this section, gift or promotional items shall only
42 include those items that are complimentary and directly associated with
43 the sale of wine or distilled spirits they are promoting and shall mean:
44 (i) items that are de minimis in value, but in no instance shall
45 merchandise be valued at more than fifteen dollars in total; (ii) items
46 that are imprinted with the wine or spirits brand logo on the gift or
47 promotional item; and (iii) items that are included as part of a manu-
48 factured pre-sealed package with the wine or distilled spirit that is
49 being gifted or promoted. Further, for the purposes of this section,
50 promotional items shall not include any food, non-alcoholic beverage, or
51 other drink or food mix, nor shall these items be offered for sale to
52 the general public as individual items.
53 § 4. This act shall take effect on the ninetieth day after it shall
54 have become a law.
