BILL NUMBER:  S7333

 TITLE OF BILL :

An act to amend the alcoholic beverage control law, in relation to
conferring rule making powers upon the authority in connection with
what constitutes a grocery store


 PURPOSE :

This bill would confer upon the State Liquor Authority (SLA)
rule-making powers in connection with what constitutes a grocery
store.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend Alcoholic Beverage Control (ABC) Law
§ 3(13) to empower the SLA to adopt, promulgate, amend and repeal such
rules and regulations as the SLA may deem necessary to carry out the
provisions of ABC Law § 3(13).

Section 2 of the bill would provide for an immediate effective date.

 EXISTING LAW :

              

ABC Law § 3(13) does not currently empower the SLA to promulgate rules
to enforce the provisions of this section.

 LEGISLATIVE HISTORY :

This is a new bill.

 STATEMENT IN SUPPORT :

The SLA seeks to clarify, through rule making, the standards by which
an establishment can be deemed a "grocery store" under the ABC Law.
Only grocery stores and drug stores are eligible for a license to sell
beer for off-premises consumption. The definition in the ABC Law dates
back to 1934, before the development of convenience stores and
mini-marts. Since many of these establishments do not fit into the
definition of a traditional grocery store, the SLA issued a Divisional
Order that imposes rigorous inventory standards that an applicant must
meet to be considered a bona fide grocery store.  However, with
convenience stores expanding the types of services they provide, these
establishments find it difficult, if not impossible, to meet those
inventory standards.

In addition, the convenience store industry has questioned the SLA's
ability to impose the inventory standard by use of the Divisional
Order, rather than by regulation. The SLA does not have rule making
power in this area. Clarifying the standards through limited rule
making would permit the issuance of a grocery store beer or a grocery
store beer and wine product license to persons operating convenience
stores, and will ensure that affected parties will have an opportunity
to participate in the process, and will provide ready access to
standards once the rule is promulgated.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE :
This bill would be effective immediately.