Assembly Bill A10431

                                BILL NUMBER:A10431

TITLE  OF BILL:   An act to amend the alcoholic beverage control law, in
relation to the definition of a grocery store

PURPOSE OF THE BILL: To update the definition of a grocery store in  the
Alcoholic  Beverage Control Law to include the kinds of products custom-
ers expect to find in food stores.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Amends § 3(13) of the Alcoholic Beverage Control Law to update  the
definition  of  a  grocery  stoic  to provide that such stores must sell
"foodstuffs" for off-premises consumption and that 50% or  more  of  the
shelf  space  must be devoted to consumer commodities as defined in § 2a
of the Agriculture and Markets Law. Consumer commodities are defined  in
the  Agriculture  and  Markets  Law to consist of foods, both liquid and
solid, for humans and domestic pets, paper products and food  wrappings,
soaps and detergents, non-prescription drugs and toiletries.

§ 2- Effective date.

JUSTIFICATION:  Recently,  the  New  York, State Law Revision Commission
released its "Report on the  Alcoholic  Beverage  Control  Law  and  its
Administration"  in which the Commission made several recommendations to
improve upon the Law and streamline its management and enforcement.
              

This bill follows the recommendation of the New York State Law  Revision
Commission  in  updating  the  definition  of a grocery store to include
those other products consumers expect to find  in  food  stores  of  all
sizes.  As per the Law Revision Commission recommendation, the bill uses
the definition of consumer commodities contained in § 214-h of the Agri-
culture and markets Law.

The definition of a grocery store contained in  the  Alcoholic  Beverage
Control  Law  was  adopted in 1934 and has remained unchanged since that
date. The law states that a grocery  store  is  a  retail  establishment
where  foodstuffs  are  regularly  and customarily sold for off-premises
consumption, However, the State Liquor Authority later adopted  a  Divi-
sional  Order  to provide that the definition in the statute was limited
to retailers who sell food and for off-premises consumption and maintain
50% or more of the wholesale dollar value of its total display  in  food
products,  not  including beer and soda.  Other grocery products such as
over-the-counter drugs, health and beauty aids,  soaps  and  detergents,
paper  products  and food wrappings are not counted under the Divisional
Order.

The bill is necessary because although the State liquor Authority issues
licenses to sell beer for off-premises consumption to small stores which
carry the traditional grocery product mix of food and related  products,
it also often issues violation notices and then fines these small stores

which  do not meet the Divisional Order definition. Adoption of this act
will rectify this inequity.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately,