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A07509 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7509
 
SPONSOR: Bronson
  TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to the hours during which liquor and/or wine stores may be open on Sunday (Part A); to amend the alcoholic beverage control law, in relation to permitting the sale of beer at retail on Sundays; and to repeal certain provisions of such law relating thereto (Part B); to amend the alcoholic beverage control law, in relation to authorizing special permits to remain open during certain hours of the morning (Part C); to amend the alcoholic beverage control law, in relation to permitting certain retail licensees to purchase wine and liquor from certain other retail licensees (Part D); to amend the alcoholic beverage control law, in relation to permissible sales by license holders (Part E); to amend the alcoholic beverage control law, in relation to allowing multi- ple off-premises licenses (Part F); to amend the alcoholic beverage control law, in relation to licensing restrictions for manufacturers and wholesalers of alcoholic beverages and retail licensees (Part G); to amend the alcoholic beverage control law, in relation to the approval of seven day licenses to sell liquor at retail for consumption off the premises (Part H); to amend the alcoholic beverage control law, in relation to adjusting licensing fees regarding certain alcoholic bever- ages (Part I); to amend the alcoholic beverage control law, in relation to notifying municipalities of the filing of certain applications (Part J); to amend the alcoholic beverage control law, in relation to chang- es of ownership of a licensed business (Part K); to amend the alcoholic beverage control law, in relation to the issuance of temporary retail permits; and to amend chapter 396 of the laws of 2010 amend- ing the alcoholic beverage control law relating to liquidator's permits and temporary retail permits, in relation to the effectiveness thereof (Part L); to amend the alcoholic beverage control law, in relation to the issuance of temporary wholesale permits (Part M); to amend the alcoholic beverage control law, in relation to licenses issued for on premises consumption within two hundred feet of a building occu- pied as a school, church, synagogue or other place of worship (Part N); and to repeal paragraphs b and f of subdivision 7 of section 64 of the alcoholic beverage control law relating to restricting licenses for premises located within five hundred feet of other licensed premises (Part O)   PURPOSE: To modernize and simplify the state's alcohol laws in accordance with recommendations made by the Commission to Study Reform of the Alcoholic Beverage Control Law.   SUMMARY OF PROVISIONS: Part A - Expands the hours during which liquor and wine stores may be open on Sunday to LOAM to 10PM. This Part incorporates 52854 of 2023 (Skoufis), amending section 105 of the ABC Law to change the time liquor and wine stores may open on Sundays from noon to LOAM and the time they may close from 9PM to 10PM. Part B - Permits beer to be sold for off-premise consumption between the hours of 3AM and 8AM on Sundays. This Part incorporates S5731 of 2023 (Skoufis), repealing section 105-a, amending section 34, amending section 54b, amending section 59-a, repealing subdivision 6 of section 117-a, and amending section 130 of the ABC Law. Part C - Allows restaurants and bars to apply for a special permit to stay open on January 1 between 4AM and 8AM. This Part incorporates S4742A of 2023 (Cooney), amending section 99 of the ABC Law. Part D - Allows on-premises retail licensees like bars and restaurants to buy and resell up to 12 bottles of wine and liquor per week from off-premises retailers. This Part incorporates S2853 of 2023 (Skoufis), amending sections 105 and 106 of the ABC Law. Part E - Expands off-premises retail sales to include promotional items, as well as any other items reasonably related to the storage, prepara- tion, service, or consumption of alcoholic beverages. Allows wholesalers to transport and sell such products. This Part incorporates and expands upon S3568 (Skoufis) and S3567 (Skoufis) of 2023, amending sections 63, 104, and 101-b of the ABC Law. Part F - Allows a holder of an off-premises retail license to be granted one additional license to sell liquor/wine at retail for off-premises consumption. Amends section 63 of the ABC Law to allow any person to hold up to two such licenses. Part G - Limits the application of New York's tied-house provisions to New York licensees. This Part incorporates 5163 of 2023 (Hoylman-Sigal), amending sections 101 and 106 of the ABC Law to limit the application of the New York's tied-house provisions to retailers, wholesalers, and Manufacturers licensed by the New York State Liquor Authority. Part H - Changes the "public convenience and advantage" standard with respect to issuing new retail licenses to sell liquor/wine for off-prem- ises consumption to a new "good cause for disapproval" standard. Amends section 63 of the ABC Law. Part I - Adjusts various fees for licensure for NYS manufacturers, wholesalers, and retailers. This Part incorporates 59033 of 2022 (Skouf- is), amending' multiple sections of the ABC Law to increase or decrease such fees. Part J.- Expedites the SLA municipal notification process to allow license applicants to notify a municipality that they are applying for an SLA license up to the same day they submit their application with the SLA and prohibits the SLA from acting to approve an application within the first 30 days after it has been submitted. Currently, applicants for an SLA license must notify a municipality of their intent to apply no earlier than 270 days before and no later than 30 days before. This change would allow for notification no earlier than 270 days prior and removes the 30-day minimum prior language, and requires proof of notifi- cation to the municipality to be submitted with the license application. This Part incorporates the Executive's proposed FY 24 State. Budget language found within PPGG Part N, amending section 110-b of the ABC Law. Part K - Expedites SLA review of corporate changes to deem any changes in corporate structure for LLCs or clubs automatically approved if the SLA has not acted on them in 90 days, unless the changes would violate tied-house restrictions or restrictions on certain individuals having an interest in an SLA license or taking part in an SLA licensed business. LLCs and clubs with SLA licenses must apply for permission to the SLA to make changes in their corporate structure or administrative staff. This Part incorporates the Executive's proposed FY 24 State Budget language found within PPGG Part M, amending section 99-d of the ABC Law. Part L - Allows for the issuance of temporary retail permits, permanent- ly extending the SLA's authority to issue temporary retail permits, allow businesses to apply for a permit for locations that have not had an active licensed retailer in the prior two years, give permit holders the ability to purchase alcohol for sale on credit, and allow permits to be extended for 90 days. This proposal removes the need for there to have been an active retailers within the previous two years and main- tains the ban on issuing a permit if a location had a license previously suspended, canceled, or revoked in the two years prior. This proposal lengthens the 30-day extension period to 90 days with the payment of a fee. This Part incorporates the Executive's proposed FY 24 State Budget language found within PPGG Part 0, amending section 97-a of the ABC Law. Part M - Allows for the issuance of temporary wholesaler permits, grant- ing the SLA the authority to issue such permits to those applicants whose applications are under review by the SLA in order to allow them to start doing business faster. Such permit may be granted once an appli- cant shows the have a pending application for the same location and have paid all necessary fees, that they would be likely to receive the license, and they have obtained all necessary permits and licenses to operate a business at the location. Provides that any current SLA license at the location that is prohibited from operating concurrently with a wholesale business must have been surrendered, placed in safe- keeping, or has been deemed abandoned by the SLA. Application fee would be $125 and the SLA would have to process an application in 45 days. The permit would remain in effect Until the application is approved or rejected. This Part incorporates the Senate's FY 24 1-House State Budget language found within S4005B Part L, adding a new section 97-d of the ABC Law. Part N - Modifies the 200' rule that prevents the issuance of a retail license for on-premises consumption when the premises is on the same street and within 200' of a school or place of worship. This proposal, would eliminate from consideration any places of worship that have occu- pied its' current location for less than five years prior to the date an application for an on-premises retail license is made, amending section 64 of the ABC Law. Part 0 - Repeals the 500' rule that prevents the issuance of a retail license for on-premises consumption when the prem- ises is within 500' of three or more licensed and existing premises, amending section 64 of the ABC Law.   JUSTIFICATION: New York's nearly 100-year-old alcohol laws are amongst the strictest and most antiquated in the country. Therefore, the 21-member Commission to Study Reform of the Alcoholic Beverage Control Law was established through the FY 2023 State Budget in order to make recommendations lead- ing to modernization and simplification of these laws. The Commission addressed issues including but not limited to the alcohol industry's state economic impact, changes in laws and resources to speed up license application processing, and general reform proposals as voted on by stakeholders. Representatives from across the industry included alcohol producers, wholesalers, and on-and off-premises retailers, as well as policymakers and regulators. This legislation embodies the recommenda- tions of the Commission issued as part of its May 2023 final report and represents much-needed changes for a major and multi-pronged industry in New York to survive and thrive in the 21st Century.   LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: TBD   EFFECTIVE DATE: This act shall take effect immediately provided, however, that the applicable effective date of Parts A through 0 of this act shall be as specifically set forth in the last section of such Parts.
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