Enacts the wine industry and liquor store revitalization act; repealer

Summary of specific provisions

Section one of the bill provides that this act shall be known as the "wine industry and liquor store revitali- zation act".

Section two of the bill provides the expanded opportunity for liquor stores to sell items complimentary to their business, allows such stores to install ATM machines on the premises, provides for multiple licenses, authorizes liquor stores to sell to retail establishments licensed for consumption on the premises and provides for a limitation on the number of licenses issued under section 63 of the alcoholic beverage control law.

Furthermore, section two creates a "medallion" system, through which existing store owners will be able to auction of their existing licenses to the highest bidder, and sell the one additional license this section allows them to obtain from the State Liquor Authority (SLA). Addi- tionally, the SLA is authorized to auction 1S licenses every two years to generate revenue for increased enforcement/licensure demands.

Section three of the bill provides that no additional licenses to sell wine for consumption off the premises shall be made available complemen- tary to the process that is authorized in section two.

Section four of the bill provides for an annual fee for the licensure of grocery or drug stores to sell wine.

Section five of the bill provides that any person under eighteen years of age may handle and deliver the wine and that any person under eigh- teen years of age may record and receive payment for wine under the supervision of a person who is eighteen years of age of older.

Section six of the bill provides that proof of age must be provided at every sale for alcoholic beverages and provides the valid proof.

Section seven of the bill provides for expanded hours for the operation of a liquor store.

Section eight of the bill provides for cooperative agreements so that smaller liquor stores may agree to jointly purchase larger, more cost effective, quantities than would be possible without cooperative agree- ments.

Section nine of the bill authorizes licensed alcohol beverage venders to purchase alcoholic beverages from those authorized by this chapter.

Section ten of the bill authorizes the authority to issue multiple licenses.

Sections eleven, twelve and fourteen of the bill remove advertising restrictions within the licensed premises.

Section thirteen of the bill provides for licensure of grocery stores and drug stores to sell wine for consumption off the premises, provides further opportunities for wine tastings, and institutes a fee structure for such licensure, and authorizes grocery stores and drug stores under 1,000 square feet to purchase wine from stores licensed to sell such products.

Section fifteen of the bill provides for temporary permits to sell as licensed in order for those premises awaiting licensure and renewals may continue to do business uninterrupted by the extended licensure process.

Section sixteen of the bill provides for, in the annual report from the authority to the Legislature and the Governor, information related to the length of time required for licensure and renewals applied to pursu- ant to subdivision two-c of section sixty-one of this chapter and sections sixty-four, seventy-six, seventy-six-a, seventy-six-c, seven- ty-six-d and seventy-six-f of this chapter.

Section seventeen of the bill provides for the sale of mixed cases of wine for resale.

Section eighteen of this bill provides that the effective date shall be 180 days after its enactment.

Justification

The Wine Industry and Liquor Store Revitalization Act is comprehensive legislation that provides stimulus to industries that are at the heart of the New York economy and New York culture. A bill that provides fairness and opportunity for a once nationally-recognized New York wine and grape industry to recover from its fall from the top, this bill also allows the small mom and pop liquor and wine stores to compete and thrive in a new economy.

The New York wine and grape industry, once the second highest producer of wine in the country, has fallen from its prominence and will continue to do so without increased opportunities. The New York wine and grape industry stretches across the entire state and provides opportunity in several sectors of the economy including agriculture, economic develop- ment and tourism. The diverse economic reach of the industry, coupled with its broad geographic reach, as well as its proven capacity for national success, primes the New York wine and grape industry to gener- ate economic benefit when provided with opportunity for expansion.

Similarly, the liquor store industry has had to operate under stringent, prohibition-era rules created in the 1930s, handicapping the industry, not only preventing growth; but also, facilitating the drastic reduction in the number of liquor stores. This bill provides significant opportu- nity for liquor stores by repealing antiquated statues that presently prevent them from expanding their businesses.

Furthermore, this bill institutes staunch identification requirements, the most aggressive in the nation, mandating proof of the age of every purchaser of alcohol in New York State. This provision will help prevent underage drinking and curb drunk driving.

For many small businesses across the State, opportunities to expand and policies that provide fairness are essential. This legislation revives failing industries and will return the New York wine and grape industry to its rightful place among the most respected and prominent in the nation.

Prior legislative history

New bill

Fiscal implications

Enactment of this bill would provide $105 million in 2009-10 through various franchise fees, excise taxes, sales taxes and license fees. In 2010-11 it is expected will generate $54 million and $3 million each year thereafter.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become law.