NY State Senate Bill 2009-S8216

Archive: Last Bill Status - Stricken

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 21, 2010	recommit, enacting clause stricken
Jun 16, 2010	referred to rules

2009-S8216 (ACTIVE) - Details

Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3, 53 & 54, ABC L

2009-S8216 (ACTIVE) - Summary

Relates to beer wholesale licenses.

2009-S8216 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8216

TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to beer
wholesale licenses

PURPOSE:

To resolve a long standing issue with respect to beer wholesalers who
operate primarily as retailers.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend § 3 of the Alcoholic Beverage Control
Law to add a definition for a "beverage center". Such establishments
would be eligible for off-premises retail beer licenses even though they
do not meet the criteria for either a grocery store or drug store.

Section 2 of the bill would amend § 53 of the Alcoholic Beverage Control
Law to sunset a privilege granted to beer wholesalers that have been
licensed since 1960. The amendment would eliminate the privilege of
selling beer at retail, but allow wholesalers who wish to continue
retail operations to exchange their wholesale license for a retail
"beverage center" license.  Wholesalers would be given until their at
least December 31, 2011, to decide whether to retain the wholesale
license or become retailers.

Section 3 of the bill would amend § 54 of the Alcoholic Beverage Control
Law to add "beverage centers" to the types of establishments that can
obtain an off-premises retail beer license. Only beer wholesalers with a
retail sales privilege who are exchanging their wholesale license for a
retail license would be eligible for such a license.

Section 17 of the bill would make this bill effective immediately.
However, beer wholesalers will be able to retain their retail privileges
until at least December 31, 2011.

LEGISLATIVE HISTORY:
New bill.

STATEMENT IN SUPPORT:

In 1960, §53 of the Alcoholic Beverage Control Law was amended to elimi-
nate the retail sales privilege granted to beer wholesalers.  Only
wholesale licenses that were in effect at the time, and have subsequent-
ly been renewed and/or transferred, retained that privilege. These
wholesalers are generally referred to as "C" licensees, referring to the
license code used by the State Liquor Authority. In contrast, those beer
wholesalers without the retail privilege are referred to as "CO" licen-
sees, again referring to the license code used by the Authority.

Over time, however, a number of these "C" licensees have ceased, or have
greatly reduced their wholesale activities and have primarily become
retail operations. However, since they continue to operate under the
wholesale license, they are governed by the statutes and regulations
governing wholesalers, not retailers.

As a result, two significant problems have arisen. First, these whole-
salers, given the retail nature of their business, seek to expand the
categories of goods they can sell to consumers. Under current law, such
wholesalers are limited to certain items which can be sold on the
licensed premises. Products which might normally be associated with
beverage sales cannot be sold at their establishments.

Second, while they are limited with respect to the items that they can
sell, these wholesalers are not subject to meeting the requirement of
being either a grocery or drug store in order to obtain an off-premises
retail beer license.  Therefore, while a grocery store must maintain a
specified inventory of products, not including beer, to be considered a
bona fide grocery store, a "C" licensee can operate, if it so chooses, a
beer only retail operation.

This proposal would address both issues "C" licensees who wish to
continue as retailers would be able to exchange their wholesale license
for a retail license, without being subject to either the inventory
requirements for grocery stores, or the limitation on the types of
products it can offer for sale under the laws governing wholesalers.

BUDGET IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

2009-S8216 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8216

                            I N  S E N A T E

                              June 16, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the alcoholic beverage control law, in relation to  beer
  wholesale licenses

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 3-a and 3-b of  section  3  of  the  alcoholic
beverage  control  law are renumbered subdivisions 3-b and 3-c and a new
subdivision 3-a is added to read as follows:
  3-A. "BEVERAGE CENTER" SHALL MEAN A PREMISES WHICH  DEVOTES  NOT  LESS
THAN NINETY PERCENT OF ITS PUBLIC FLOOR SPACE EXCLUSIVELY TO THE DISPLAY
OF ALCOHOLIC AND NON-ALCOHOLIC BEVERAGES.
  S  2.  Section 53 of the alcoholic beverage control law, as amended by
chapter 361 of the laws of 1994, is amended to read as follows:
  S 53. Wholesaler's license. 1. Any person  may  apply  to  the  liquor
authority  for  a  license  to  sell beer at wholesale. Such application
shall be in writing and verified and shall contain such  information  as
the  liquor authority shall require.  Such application shall be accompa-
nied by a check or draft for the amount required  by  this  article  for
such  license.  If  the  liquor authority shall grant the application it
shall issue a license in such form as shall be determined by its  rules.
Such  a license shall contain a description of the licensed premises and
in form and in substance shall  be  a  license  to  the  person  therein
specifically designated to sell beer at wholesale in the premises there-
in  specifically  licensed  to  duly licensed wholesalers, retailers and
permittees in this state, and to sell or deliver beer to persons outside
the state pursuant to the laws of the place of such sale or delivery.
  2. A wholesaler's license issued or renewed prior to July first, nine-
teen hundred sixty, and thereafter renewed or transferred, shall author-
ize the holder thereof to sell beer at retail to a person  for  consump-
tion  in his home; provided, however, that [regardless] UPON THE RENEWAL
OR TRANSFER OF SUCH LICENSE AFTER DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
ELEVEN,  SUCH  LICENSE  SHALL  NO  LONGER  AUTHORIZE THE SALE OF BEER AT
RETAIL. UPON SUCH RENEWAL OR  TRANSFER,  THE  LICENSEE  MAY  RETAIN  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD17788-01-0

S. 8216                             2

WHOLESALE LICENSE WITHOUT SUCH RETAIL SALES OR APPLY TO THE AUTHORITY TO
OPERATE  A  BEVERAGE CENTER PURSUANT TO SECTION FIFTY-FOUR OF THIS ARTI-
CLE.
  3.  REGARDLESS  of  the  date issued, renewed or transferred, a whole-
saler's license issued to a brewer or to the wholly-owned subsidiary  of
a brewer, shall authorize the holder thereof to sell beer at retail to a
person for consumption in his home.
  S  3.  Subdivision  4  of section 54 of the alcoholic beverage control
law, as amended by chapter 503 of the laws of 1954, is amended  to  read
as follows:
  4.  No  such  license  shall be issued, however, to any person for any
premises other than a grocery store, drug store, OR A  BEVERAGE  CENTER,
AS  THOSE  TERMS  ARE  DEFINED IN SECTION THREE OF THIS CHAPTER, or duly
licensed supply ship operating in harbors in Lake Erie.
  S 4. Section 54 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 6 to read as follows:
  6.  A LICENSE TO OPERATE AS A BEVERAGE CENTER, PURSUANT TO SUBDIVISION
THREE OF THIS SECTION, SHALL BE ISSUED ONLY TO  THE  HOLDER  OF  A  BEER
WHOLESALER  LICENSE  ISSUED  OR  RENEWED  PRIOR  TO JULY FIRST, NINETEEN
HUNDRED SIXTY, AND THEREAFTER RENEWED  OR  TRANSFERRED,  WHO,  UPON  THE
RENEWAL  OR  TRANSFER  OF  SUCH LICENSE AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN, SEEKS TO EXCHANGE ITS WHOLESALE LICENSE  FOR  A  RETAIL
LICENSE.
  S 5. This act shall take effect immediately.

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Senate Bill S8216

Sponsored By

Archive: Last Bill Status - Stricken

Actions

2009-S8216 (ACTIVE) - Details

2009-S8216 (ACTIVE) - Summary

2009-S8216 (ACTIVE) - Sponsor Memo

2009-S8216 (ACTIVE) - Bill Text download pdf

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Sponsored By

Craig M. Johnson

Archive: Last Bill Status - Stricken

Actions

2009-S8216 (ACTIVE) - Details

2009-S8216 (ACTIVE) - Summary

2009-S8216 (ACTIVE) - Sponsor Memo

2009-S8216 (ACTIVE) - Bill Text download pdf

Comments