S T A T E O F N E W Y O R K
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7890
2011-2012 Regular Sessions
I N A S S E M B L Y
May 20, 2011
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Introduced by M. of A. CAHILL -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law, in relation to establish-
ing the New York wine council program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and purposes. The legislature finds
that while New York is the second leading state for consumption of wine
and the third leading state in production, there is no formal entity
charged with promoting New York wines to their fullest potential. Other
leading states, such as California, Washington and Virginia, spend
millions of dollars promoting wines produced in their states while New
York, with its considerable consumer market right in New York city,
spends relatively little. The result has been that the wine industry has
developed primarily as a tourism-focused industry. In the past 5 years,
the number of high quality producers of fine wine has grown dramat-
ically, and they face challenges in bringing a virtually unknown high
quality product to market. This is a critical point in the development
of the fine wine industry in New York. Expanded market access is needed
if the industry is going to continue to grow.
The legislature further finds and recognizes that an important step in
strengthening the agricultural and economic potential of New York's fine
wine industry is to encourage the long term operation of a wine council,
representative of all regions of the fine wine manufacturing industry
for the purpose of conducting an extensive and coordinated promotional
program intended to stimulate and centralize the New York fine wine
manufacturing industry. The focus of the wine council will be to devel-
op markets in major metropolitan areas for the sale of fine New York
state wines. This will foster growth in the wine manufacturing sector
and bring new money into New York from other states.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10903-02-1
A. 7890 2
In contrast with many tourism marketing efforts, the New York wine
council will be accountable for results and charged with reporting on
the effects of its efforts. Key performance indicators and metrics will
be developed for annual reporting to the legislature and the governor.
The economic impact of the marketing efforts will be measurable and
reported annually.
S 2. The economic development law is amended by adding a new article
5-F to read as follows:
ARTICLE 5-F
NEW YORK WINE COUNCIL PROGRAM
SECTION 181-F. SHORT TITLE.
181-G. GENERAL POWERS AND DUTIES OF THE COMMISSIONER.
181-H. NEW YORK WINE COUNCIL.
S 181-F. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "NEW YORK WINE COUNCIL PROGRAM".
S 181-G. GENERAL POWERS AND DUTIES OF THE COMMISSIONER. THE COMMIS-
SIONER SHALL DEVELOP AND IMPLEMENT A NEW YORK WINE PROMOTION PROGRAM.
THE NEW YORK WINE COUNCIL SHALL DEVELOP A MARKETING STRATEGY PURSUANT TO
THIS PROGRAM THAT SHALL PROMOTE NEW YORK AS A PREMIERE PRODUCER OF HIGH
QUALITY WINES.
S 181-H. NEW YORK WINE COUNCIL. 1. THE COMMISSIONER, IN ACCORDANCE
WITH THIS PROGRAM, SHALL CAUSE TO BE DEVELOPED A NEW YORK WINE COUNCIL
TO BE TASKED WITH BRANDING, MARKETING AND PROMOTING FINE NEW YORK STATE
WINES. THE NEW YORK WINE COUNCIL SHALL CONSIST OF AN EXECUTIVE DIRECTOR
AND A BOARD OF DIRECTORS TO BE APPOINTED AS FOLLOWS: ONE MEMBER SHALL BE
APPOINTED BY THE GOVERNOR, FOR THE PURPOSE OF PROVIDING FEEDBACK TO THE
EXECUTIVE AND LEGISLATIVE BRANCHES, ONE MEMBER WILL BE APPOINTED BY THE
NEW YORK WINE AND GRAPE FOUNDATION, FOR THE PURPOSE OF COORDINATING WITH
THE NEW YORK WINE AND GRAPE FOUNDATION'S TOURISM AND AGRICULTURAL
PROGRAMS. EACH OF THESE APPOINTED BOARD MEMBERS WILL BE EX OFFICIO
MEMBERS AND WILL HAVE NO VOTING RIGHTS. THE REMAINING VOTING MEMBERS OF
THE COUNCIL SHALL INCLUDE ONE REPRESENTATIVE FROM A RESTAURANT ASSOCI-
ATION WITHIN NEW YORK STATE, ONE REPRESENTATIVE FROM A NEW YORK STATE
WINE RETAILER ORGANIZATION AND WINERY REPRESENTATIVES. THE WINERIES
SHALL BE REPRESENTATIVE OF THE SIX WINE GROWING REGIONS IN NEW YORK
STATE: LONG ISLAND, HUDSON VALLEY, THE FINGER LAKES, THOUSAND
ISLANDS/ADIRONDACKS/CENTRAL NEW YORK, LAKE ERIE, AND NIAGARA. THE WINERY
BOARD MEMBERS WILL BE ELECTED BY NEW YORK WINE COUNCIL MEMBERS IN EACH
REGION. EACH REGION WILL HAVE ONE VOTING REPRESENTATIVE FOR UP TO FORTY
MEMBER WINERIES. IF A REGION HAS MORE THAN FORTY MEMBERS, THIS WOULD
EQUAL TWO REPRESENTATIVES, WHICH WILL BE THE MAXIMUM NUMBER FROM ANY
REGION. IF NEW REGIONS ARE DEVELOPED AND RECOGNIZED, THEY SHALL BE ADDED
TO THE BOARD. THE REGIONAL MAP WILL BE UPDATED ANNUALLY. THE BOARD
MEMBERS REPRESENTING WINE RETAILERS AND RESTAURANTS WILL BE ELECTED BY
THE WINERY MEMBER BOARD. THE MEMBERS OF THE COUNCIL SHALL RECEIVE NO
COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE COUNCIL, BUT EACH
SHALL BE ALLOWED THE NECESSARY AND ACTUAL EXPENSES WHICH HE OR SHE SHALL
INCUR IN THE PERFORMANCE OF HIS OR HER DUTIES.
2. WINERY MEMBERSHIP WILL BE DEFINED AS MEMBERS IN GOOD STANDING PER
THE BYLAWS OF THE NEW YORK WINE COUNCIL. EACH MEMBER WILL CONTRIBUTE
ANNUAL DUES TO THE COUNCIL TO BE DETERMINED BY THE BOARD OF DIRECTORS.
3. THE EXECUTIVE DIRECTOR OF THE NEW YORK WINE COUNCIL SHALL HAVE
PREVIOUS EXPERIENCE IN MARKETING WINE, EVENT PLANNING AND BRAND MANAGE-
MENT AND WILL BE APPOINTED BY THE BOARD OF DIRECTORS, DECIDED BY MAJORI-
TY VOTE. THE EXECUTIVE DIRECTOR WILL SERVE AS AN "AT WILL" EMPLOYEE AT
THE DISCRETION OF THE BOARD OF DIRECTORS.
A. 7890 3
4. THE NEW YORK WINE COUNCIL IS CHARGED WITH CREATING BRAND RECOGNI-
TION FOR FINE NEW YORK WINES. IN DOING SO THEY SHALL WORK TO MARKET NEW
YORK STATE LABELED WINE BOTH WITHIN AND OUTSIDE OF NEW YORK STATE WITH
THE GOAL OF PROMOTING FINE NEW YORK STATE WINES.
5. THE NEW YORK WINE COUNCIL SHALL, BY DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN SUBMIT A PRELIMINARY REPORT TO THE GOVERNOR AND LEGISLA-
TURE WITH AN ASSESSMENT OF MARKETING AND PROMOTION STRATEGIES TO IMPLE-
MENT THIS ARTICLE.
S 3. This act shall take effect immediately.