•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A03397 Summary:

BILL NOA03397
 
SAME ASSAME AS S06473
 
SPONSORFall
 
COSPNSRCunningham
 
MLTSPNSR
 
Rpld §63 sub 6, amd §§63, 66 & 105, ABC L; add §97-bbbbb, St Fin L
 
Relates to enacting the "New York wine & distilled spirits development act"; allows individuals to hold more than one seven day license to sell liquor at retail for off-premises consumption; establishes the New York distilled spirits and wine industry marketing and promotion fund.
Go to top    

A03397 Actions:

BILL NOA03397
 
02/03/2023referred to economic development
01/03/2024referred to economic development
Go to top

A03397 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3397
 
SPONSOR: Fall
  TITLE OF BILL: An act to amend the alcoholic beverage control law and the state finance law, in relation to enacting the "New York wine & distilled spirits development act"; and to repeal certain provisions of the alcoholic beverage control law relating thereto   PURPOSE OR GENERAL IDEA OF THE BILL: This legislation updates the antiquated section of New York State's liquor licensing laws that precludes retailers of wine and spirits from operating more than one outlet in the state. It will phase in multiple licenses over an 8-year period, will cap the total number of retail liquor licenses to 12 per entity and limits the overall number of licenses issued per county. Additionally, it would create a New York State Distilled Spirits and Wine Industry Marketing Fund to assist in the promotion and marketing of New York's award-winning distilled spir- its and wines. The Fund will focus on the promotion and marketing of these products to consumers both outside of and within New York. This legislation will unlock economic growth, increase consumer choice and ensure that New York is no longer an outlier among surrounding states with this archaic prohibition.   SUMMARY OF PROVISIONS: Section 1 of the bill defines the act as the "New York Wine and Distilled Spirits Marketing Fund." Section 2 of the bill amends subdivision 5 and 6 of section 63 of the alcoholic beverage control law and adds new subdivisions 5a, 5b and 5c. As it relates to the number of off-premise locations a person may be granted by the New York State Liquor Authority to operate and the proc- ess by which such licenses may be issued in certain counties. Section 3 of the bill amends subdivision 16 of section 105 of the alco- holic beverage control to clarify that a person may hold an interest in more than one package store. Section 4 of the bill amends subdivision .5 of section 66 of the alco- holic beverage control law to establish the license fee for each license issued by the New York State Liquor Authority to a person granted addi- tional licenses under section 63 of the alcoholic beverage control law. Section 5 of the bill amend section 97 of the State Finance Law by adding a new section 97-BBBBB to create the New York Distilled Spirits and Wine Industry Marketing Fund.   JUSTIFICATION: Numerous aspects of New York's ABC laws have not been updated since Prohibition, including precluding retailers of wine and spirits from operating more than one outlet in the state. This has made New York an outlier, has limited consumer choice and has negatively impacted the growth of the New York wine and distilled spirits industries. It simply makes no sense that liquor stores are the only type of business limited to one location in the entire state, while other licensed business from restaurants and drug stores to even marijuana dispensaries - have no similar limits. The proposed legislation addresses this in a comprehensive manner that would still limit the overall number of licenses one entity could hold; phases in this expansion over several years; provides for county-level limits on licenses as a means to protect, and even benefit, smaller retailers; and ensures that alcohol availability remains subject to reasonable limits. A recently undertaken economic impact study on multiple licenses projected increases in NYS revenue, including $54 million from license auctions and additional tax revenues of more than $43 million; as many as 4,430 new jobs, generating $203.3 million in wages and benefits and $500 million in new economic activity in the state; and as many as 1.9 million additional bottles sold by New York State wine and distilled spirits producers each year. The study also looked at other states which allow multiple licenses, such as Massachusetts, which updated its law in 2011 to allow up to 9 licenses and which has seen positive economic impacts and no domination of the market by large chain retailers. This legislation would allow current licensees to grow and diversify by opening additional stores if wanted, while providing owners who do not wish to expand with the ability to capitalize on the increased value of their licenses (created by the restrictions on the number of licenses allowed in each county) by selling them to other owners who could now expand in the state. Finally, the bill will provide direct assistance to the wine and distilled spirits industries in New York State through the creation of the New York Distilled Spirits and Wine Industry Marketing Fund. This fund would commit a portion of revenue generated by the sale of new licenses to a dedicated support fund that would seek to grow small busi- ness, agricultural, and manufacturing jobs across the state.   PRIOR LEGISLATIVE HISTORY: This is new legislation.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: It is estimated that this would generate between $13.8 million and $54.5 million in new license auction revenue for New York State. In addition, the additional beverage alcohol sales brought on by the addition of new stores would increase excise and sales tax revenues by as much as $46.2 million.   EFFECTIVE DATE: Immediate.
Go to top

A03397 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3397
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 3, 2023
                                       ___________
 
        Introduced  by  M. of A. FALL -- read once and referred to the Committee
          on Economic Development
 
        AN ACT to amend the alcoholic beverage control law and the state finance
          law, in relation to enacting the "New York wine  &  distilled  spirits
          development  act";  and  to repeal certain provisions of the alcoholic
          beverage control law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act shall be known and may be cited as the "New York
     2  wine & distilled spirits development act".
     3    § 2. Subdivision 6 of section 63 of the alcoholic beverage control law
     4  is REPEALED and subdivision 5 is amended to read as follows:
     5    5. [Not] (a) Prior to January first,  two  thousand  twenty-four,  not
     6  more than one license shall be granted to any person under this section.
     7  Beginning on and after January first, two thousand twenty-four, a person
     8  may be granted additional seven day licenses as follows, provided howev-
     9  er,  the issuance of such seven day licenses shall be in accordance with
    10  paragraphs (b), (c) and (d) of this subdivision:
    11    (i) On or after January first, two thousand twenty-four, not more than
    12  two additional seven day licenses may be granted  to  any  person  under
    13  this  section,  for a maximum of three seven day licenses any person may
    14  hold.
    15    (ii) On or after January first, two thousand twenty-six, not more than
    16  four additional seven day licenses may be granted to  any  person  under
    17  this  section,  for  a maximum of five seven day licenses any person may
    18  hold.
    19    (iii) On or after January first, two thousand twenty-eight,  not  more
    20  than  six  additional  seven  day  licenses may be granted to any person
    21  under this section, for a maximum of seven seven day licenses any person
    22  may hold.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06841-01-3

        A. 3397                             2
 
     1    (iv) On or after January first, two thousand  thirty,  not  more  than
     2  eight  additional  seven day licenses may be granted to any person under
     3  this section, for a maximum of nine seven day licenses  any  person  may
     4  hold.
     5    (v)  On or after January first, two thousand thirty-two, not more than
     6  eleven additional seven day licenses may be granted to any person  under
     7  this  section, for a maximum of twelve seven day licenses any person may
     8  hold.
     9    (b) Commencing on the effective date of this paragraph, and every five
    10  years thereafter, the authority shall  determine  the  ratio  of  active
    11  seven day licenses in a county per adult residents over the age of twen-
    12  ty-one  years  residing in such county, using the most current decennial
    13  census as conducted by the United States Department  of  Commerce.  Such
    14  ratio shall be used by the authority when considering an application for
    15  a seven day license within any county provided for in paragraphs (c) and
    16  (d) of this subdivision.
    17    (c) No additional seven day licenses shall be granted by the authority
    18  in  any  county  in which the ratio of active seven day licenses in such
    19  county per adult residents over the age of twenty-one years residing  in
    20  such  county  is  equal to or less than one active seven day license per
    21  three thousand adult residents over the age  of  twenty-one  years.  The
    22  provisions of this paragraph shall not apply to:
    23    (i) the renewal, removal or continuance of a seven day license;
    24    (ii) an application for a seven day license filed before the effective
    25  date of this paragraph; or
    26    (iii) an application by a purchaser of all or substantially all of the
    27  assets of an existing licensee of a seven day license within the county.
    28  A  purchaser  under  this  subparagraph shall make an application to the
    29  authority, which the authority  shall  grant,  provided  that  (A)  such
    30  purchaser  is  otherwise  qualified to hold a seven day license, and (B)
    31  the premises sought to be licensed under this section shall comply  with
    32  the  requirements  of  this  article  and are not located in a different
    33  county.
    34    (d) The authority may, in its discretion, auction additional seven day
    35  licenses to be used in any  county  whose  ratio  of  active  seven  day
    36  licenses  in  such county per adult residents over the age of twenty-one
    37  years residing in the county  is  greater  than  one  active  seven  day
    38  license  per  three  thousand adult residents over the age of twenty-one
    39  years. No seven day license may be auctioned if such license would cause
    40  the county's ratio of active seven day licenses per adult residents over
    41  the age of twenty-one years residing in the county to  be  equal  to  or
    42  less  than  three  thousand  adult  residents over the age of twenty-one
    43  years.
    44    § 3. Subdivision 5 of section 66 of  the  alcoholic  beverage  control
    45  law,  as  amended  by  section  3 of part Z of chapter 85 of the laws of
    46  2002, is amended to read as follows:
    47    5. The annual fee for [a] each license to sell liquor at retail not to
    48  be consumed on the premises where sold shall be thirteen hundred  sixty-
    49  six  dollars in the counties of New York, Kings, Bronx and Queens; eight
    50  hundred fifty-four dollars in the  county  of  Richmond  and  in  cities
    51  having  a population of more than one hundred thousand and less than one
    52  million; and elsewhere the sum of five hundred twelve dollars.
    53    § 4. Subdivision 16 of section 105 of the alcoholic  beverage  control
    54  law,  as  amended by chapter 621 of the laws of 1944, is amended to read
    55  as follows:

        A. 3397                             3
 
     1    16. No retail licensee to sell liquors and/or wines  for  off-premises
     2  consumption shall be interested, directly or indirectly, in any premises
     3  where  liquors,  wines or beer are manufactured or sold at wholesale or,
     4  expect as set forth in section sixty-three of this  chapter,  any  other
     5  premises  where  liquor  or  wine  is  sold  at  retail for off-premises
     6  consumption, by stock ownership,  interlocking  directors,  mortgage  or
     7  lien  on any personal or real property or by any other means.  Any lien,
     8  mortgage or other interest or estate, however, now held by such retailer
     9  on or in the personal or real property of such  manufacturer  or  whole-
    10  saler,  which  mortgage,  lien,  interest  or  estate was acquired on or
    11  before December thirty-first, nineteen hundred thirty-two, shall not  be
    12  included  within  the provisions of this subdivision; provided, however,
    13  the burden of establishing the time  of  the  accrual  of  the  interest
    14  comprehended by this subdivision, shall be upon the person who claims to
    15  be entitled to the protection and exemption afforded hereby.
    16    § 5. The state finance law is amended by adding a new section 97-bbbbb
    17  to read as follows:
    18    § 97-bbbbb. New York distilled spirits and wine industry marketing and
    19  promotion  fund.  1. There is hereby established in the joint custody of
    20  the commissioner of taxation and finance and  the  state  comptroller  a
    21  special  fund  to  be  known as the "New York distilled spirits and wine
    22  industry marketing fund". As used in this section, the term  "the  fund"
    23  shall  mean  the  New York distilled spirits and wine industry marketing
    24  fund established pursuant to this section.
    25    2. (a) The fund shall consist of twenty-five percent of  all  revenues
    26  received  pursuant to subdivision five of section sixty-six of the alco-
    27  holic beverage control law, and all other money  appropriated,  credited
    28  or  transferred  thereto  from any other fund or source pursuant to law.
    29  Nothing contained in this section shall prevent the state from receiving
    30  grants, gifts or bequests for the purposes of the  fund  and  depositing
    31  them into the fund according to law.
    32    (b)  On or before the first day of February each year, the comptroller
    33  shall certify to the governor, temporary president of the senate, speak-
    34  er of the assembly, chair of the senate finance committee, and chair  of
    35  the  assembly  ways  and  means committee, the amount of money deposited
    36  into the fund during the preceding calendar year as the result of reven-
    37  ue derived pursuant to subdivision five  of  section  sixty-six  of  the
    38  alcoholic beverage control law and from grants, gifts and bequests.
    39    (c) On or before the first day of February each year, the commissioner
    40  of  economic development shall provide a written report to the temporary
    41  president of the senate, speaker of the assembly, chair  of  the  senate
    42  finance committee, chair of the assembly ways and means committee, chair
    43  of  the senate investigations and government operations committee, chair
    44  of the senate agriculture  committee,  chair  of  the  senate  commerce,
    45  economic development and small business committee, chair of the assembly
    46  economic  development,  job  creation,  commerce and industry committee,
    47  chair of the assembly agriculture committee, the state comptroller,  and
    48  the  public.   Such report shall include how the moneys of the fund were
    49  utilized during the preceding calendar year including  expenditures  for
    50  all promotional and marketing activity.
    51    3.  Moneys  for  the fund shall be expended only for the marketing and
    52  promotional campaigns and education  projects  on  behalf  of  New  York
    53  produced distilled spirits and wine that are approved by the commission-
    54  er of economic development.

        A. 3397                             4
 
     1    4.  Moneys  shall be payable from the fund on the audit and warrant of
     2  the comptroller on vouchers approved and certified by  the  commissioner
     3  of economic development.
     4    5. To the extent practicable, the commissioner of economic development
     5  shall  ensure  that all moneys received by the fund during a fiscal year
     6  are expended prior to the end of the fiscal year.
     7    § 6. This act shall take effect January 1, 2024.
Go to top