Senate Bill S7737A

                                 BILL NUMBER:  S7737

 TITLE OF BILL :
An act to amend the alcoholic beverage control law, in relation to
permitting the holder of a wholesaler's license to install and operate
a single automated teller machine


 PURPOSE OF THE BILL :
This legislation would authorize holders of wholesalers' licenses to
install and operate ATMs at their facilities, as recommended by the
New York State Law Revision Commission,

 SUMMARY OF SPECIFIC PROVISIONS :
§ 1- Amends subdivision 1 of § 104 of the Alcoholic Beverage Control
law by adding a new paragraph (a-1) to allow for the installation and
operation of one automated teller machine.

§ 2- Effective date.

 JUSTIFICATION :
In its final report, the New York State Law Revision Commission
(NYSLRC) recommended that C Licensees be allowed to offer ATMs. ABCL §
104 currently prohibits New York State Liquor Authority (SLA)
C-Licensed beer wholesaler/retailers from conducting any other
business on the licensed premises, with very few exceptions (the sale
              

of soda, water, cigarettes, potato chips, pretzels, ice, promotional
items).

There are approximately 350 C-Licensed beer wholesaler/retailers in
New York State, from Montauk to Buffalo. They are typically
multi-generational "morn and pop" high-volume beverage centers, that
serve primarily retail consumers and some wholesale accounts (the
latter mostly taverns, bodegas, social clubs, volunteer fire
companies, fraternal organizations and other entities that are too
small, or in neighborhoods regarded as undesirable or unprofitable, to
be served by franchised wholesalers). In an old advisory opinion
dating back to the 1990's, issued when ATMs were a novelty, the SLA
concluded that § 104 prohibits C-Licensees from offering the
convenience of ATMs to their customers because ATMs constituted the
conducting of another business.

The SLA position no longer reflects the reality of either technology
or business; ATMs are now a widespread service just like credit cards.
The SLA ruling also puts C-licensees at a competitive disadvantage, as
all other retail off-premises beer licensees (supermarkets, groceries,
convenience stores, gas stations) can offer ATMs.

This amendment will allow C licensed beer wholesaler/retailers to
offer ATMs, putting these stores on an equal footing with their
competitors, and will allow the many customers of these
community-based stores the convenience of ATMs.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred eightieth day after it
shall have become a law.