Relates to off-premises beer and wine products sales in premises licensed for on-premises consumption

Summary of provisions

Section 1 of the bill amends Section 100 (2-a) of the ABC Law to allow an individual holding an on-premises consumption license to follow the same rules as a food or drug store with respect to employing persons under the age of 18 to stock shelves; to redeem returnable bottles; and, in regard to beer and wine coolers sold for off-premises consumption only, to act as a cashier under direct supervision.

Section 2 of the bill amends Section 106 (5) of the ABC Law to provide that an individual holding an on-premises (restaurant) license may follow the same hours of operation as food stores in regard to the sale of beer for off-premises consumption.

Section 3 of the bill amends Section 81 (4) of the ABC Law to provide that the existing authority to take home a partially consumed bottle of wine from a restaurant shall not apply in the case of food stores which serve wine on-premises as part of a dining area operated pursuant to an on-premises license.

Section 4 of the bill provides that the State Liquor Authority shall conduct a study on the provisions of this act and issue a report by April 30, 2015.

Section 5 of the bill authorizes the State Liquor Authority to promulgate rules and regulations necessary for the effective implementation of this act.

Justification

The food and restaurant industries continue to evolve in New York, providing consumers with additional options. For example, restaurants may now sell beer and wine coolers to be taken away from the restaurant for off-premises consumption. Supermarkets may now apply for and operate under a restaurant license. Some food stores with pub style eating facilities have chosen this option. Other supermarkets have developed a model where they currently hold an on-premises license for their restaurant facility and a food store license for their supermarket operation.

This bill will allow food stores in New York to follow a national trend where upscale food courts are incorporated into the supermarket design. These new food courts include on-premises serving privileges

to complement the gourmet food being served. While it is currently permissible for a food store to hold a restaurant license, this situation raises some unique issues regarding both the hours of operation and the use of staff under the age of 18 in regard to the facility's grocery operations. This legislation addresses these issues to allow facilities to apply for the type of license which best meets their needs.

For example, under an on-premises restaurant license, a restaurant may not sell alcohol between 4:00 a.m. and 12 noon on Sundays and 4:00 a.m. to 8:00 a.m. the other days of the week. In comparison, except where local options limit the hours of sale, food stores may sell beer Monday through Saturday on a 24/7 basis. On Sundays -- which are now the second busiest shopping days for supermarkets -- they may begin selling beer for off-premises consumption at 8:00 a.m. Individuals shopping during these off hours don't just buy beer, but typically make their full grocery purchases during these hours. This bill maintains the existing hour requirements for on-premises sales, but follows the food and drug store hours for off-premises sales.

Similarly, current law generally prohibits persons under the age of 18 from selling or handling alcoholic beverages, but provides specific exemptions for employees who stock shelves, redeem bottles and act as a cashier (under direct supervision) in selling beer and wine coolers for off-premises consumption. This bill applies these existing provisions to holders of on-premises licenses.

This bill will encourage new economic development in the state and allow supermarket operators to pick select sites with the correct demographics and traffic to open these new upscale food courts.

Fiscal implications

None.

Local fiscal implications

None.

Effective date

This act shall take effect June 30, 2012, and shall expire on June 30, 2015.