Establishes the wine industry and liquor store development act; repealers

Summary of provisions

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

Section two 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 pursuant to subdivision two-c of section sixty-one of this chapter and sections sixty four, seventy-six, seventy-six-a, seventy-six-c, seventy-six-d and seventy six-f of this chapter.

Section three 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 and authorizes liquor stores occupying less than 3,000 square feet to sell to retail establishments licensed for consumption on the premises.

Section four of the bill authorizes liquor stores occupying less than 3,000 square feet to sell to retail establishments licensed for consumption off the premises.

Section five 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, institutes a franchise fee and annual fee structure for such licensure and provides that any person licensed to sell wine may purchase any wine from a person licensed under this section or sections sixty-three or seventy-nine of this chapter.

Section six of the bill provides for an annual fee for the licensure of grocery or drug stores to sell wine and provides for the appropriation and allocation of funds for the New York wine marketing program and farmland protection programs.

Section seven of the bill amends the state finance law by adding a new section 97-kkkk, which provides for the New York wine industry marketing and promotion account.

Section eight 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 nine of the bill provides that any person under eighteen years of age may handle and deliver the wine and that any person under eighteen years of age may record and receive payment for wine under the supervision of a person who is eighteen years of age or older.

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

Section eleven of the bill provides for a "credit period" to mean a period beginning on the date alcoholic beverages are delivered and ending sixty days thereafter for those licensed under section sixty-three of this chapter.

Section twelve of the bill amends the circumstances in which a retailer can be placed on the statewide default list.

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

Section fourteen, fifteen and sixteen of the bill remove advertising restrictions within the licensed premises.

Section seventeen of the bill provides for expanded hours for the operation of a liquor store and expands the retailer's (liquor store) ability to conduct business other than selling wine or liquor.

Section eighteen 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 agreements.

Section twenty of this bill provides an immediate effective date.

Justification

The Wine Industry and Liquor Store Development Act is a comprehensive piece of legislation that provides economic stimulus to industries that are at the core of the New York economy. The bill provides fairness and opportunity for a New York wine and grape industry; furthermore, it 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, manufacturing and tourism. The diverse economic and geographic reach of the industry primes the New York wine and grape industry to generate economic benefit when provided with opportunity for expansion. In addition, this bill provides significant opportunity for liquor stores by repealing antiquated statues that presently prevent them from expanding their businesses. For many small businesses across the State, opportunities to expand and policies that provide fairness are essential. This legislation revives the New York wine and grape industry and will allow it to flourish.

Prior legislative history

New bill.

Fiscal implications

Enactment of this bill would provide approximately $430 million in 2011-12 through various franchise fees, excise taxes, sales taxes and license fees and $62-70 million each year thereafter.

Effective date

This act shall take effect immediately except for grocery and drug stores which shall take effect on the one hundred eightieth day after it shall have become law.