Permits persons licensed to sell wine at retail for consumption on the premises to sell certain low alcohol beverages

8 Co-sponsors

• John J. Bonacic
• Joseph A. Griffo
• Andrew J. Lanza
• Betty Little
• George D. Maziarz
• Stephen M. Saland
• James L. Seward
• George Winner

Title of bill

An act to amend the alcoholic beverage control law, in relation to the sale of certain low alcohol beverages at retail for consumption on the premises

Purpose

To expand the types of low/medium alcohol content beverages that a licensee that is authorized to sell wine for consumption on-premises is also authorized to sell.

Summary of provisions

Section 1: Amends Alcoholic Beverage Control Law section 81(3) to allow licensees that can sell wine, port and sherry for on-premise consumption and soju (an alcoholic beverage made exclusively in Korea with an alcohol content of no more than 24 percent) to also sell other alcohol beverages with low/medium alcohol content that are made from agricultural products that have an alcohol content of no more than 24 percent.

Existing law

Under current law, a New York restaurant or other eating establishment that has a license to sell wine, port or sherry for consumption on the premises can also sell beer and a liquor called "soju". The only "soju" that can be sold for consumption on the premises in New York State is soju that is imported from Korea that has an alcohol content of 24 percent or less.

Justification

New York restaurants that have a license to sell wine, beer and soju (that can only be imported soju from Korea) should also be able to sell other low to medium alcoholic beverages that are manufactured from products produced or grown in New York State and other localities.

In 2007, S.539/A.2600 was introduced to revise the law so that New York farmers could have at least as much equal access to sell their products in New York restaurants as do Korean farmers that produce soju. Under S.539/A.2600, alcoholic beverages manufactured in New York were added to the list of alcoholic beverages that could be sold. This bill passed both the Assembly and Senate, but was Vetoed by Governor Spitzer. The reason for the Veto was that the bill would allow for an illegal preference for the sale of NY produced alcoholic beverages in addition to those produced in Korea and that such a preference would violate the interstate commerce clause of the United States Constitution. Implicit in the veto message is that the current law which gives preferential treatment to Korean products would violate the U,S. Constitution and perhaps World Trade Organization (WTO) directives.

This new bill does not allow New York restaurants and other food establishments to sell alcoholic beverages that have a higher alcohol content than is currently authorized under the law. Under current law, licensees that can sell wine for on-premise consumption are also authorized to sell fortified wines such as ports and sherries that can have an alcohol content up to 24 percent. Also, under current law, such establishments can sell soju as long as its alcoholic content 24 percent or less.

This bill reforms the current law so that all alcoholic beverages that contain less than 24 percent alcohol, including products such as Korean produced soju and New York produced products can be sold in such restaurants.

Legislative history

See S.539/A.2600, Veto Message Number 50, S.6911 of 2007/2008

Fiscal implications

None.

Local fiscal implications

None.

Effective date

This act shall take effect on the 180th day after it shall have become law, but any rules and regulations needed to implement this act can be promulgated before such date.