senate Bill S4125

2013-2014 Legislative Session

Establishes the wine industry and liquor store development act; repealers

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Jan 08, 2014 referred to commerce, economic development and small business
Mar 11, 2013 referred to commerce, economic development and small business

S4125 - Bill Details

Current Committee:
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Rpld §105 subs 2 & 7, sub 10 ¶¶(b) & (c), amd ABC L, generally; add §97-llll, St Fin L
Versions Introduced in 2011-2012 Legislative Session:
S5358

S4125 - Bill Texts

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Establishes the wine industry and liquor store development act; authorizes grocery or drug store wine licenses and temporary retail permits.

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BILL NUMBER:S4125

TITLE OF BILL: An act to amend the alcoholic beverage control law and
the state finance law, in relation to establishing the wine industry
and liquor store development act; and to repeal certain provisions of
the alcoholic beverage control law relating thereto

PURPOSE OF BILL: This bill expands authorizations under the alcoholic
beverage control law to provide opportunities for vendors to expand
their business

SUMMARY OF PROVISIONS:

Section one of the bill provides that this act shall be known as the
"wine industry and liquor store development act".

Section two of the bill provides for, in the annual report from the
authority to the Legislature and the Governor, information related to
the length of time required for licensure and renewals applied to
pursuant to subdivision two-c of section sixty-one of this chapter and
sections sixty-four, seventy-six, seventy-six-a, seventy-six-c,
seventy-six-d and seventy-six-f of this chapter.

Section three of the bill provides the expanded opportunity for liquor
stores to sell items complimentary to their business, allows such
stores to install ATM machines on the premises, provides for multiple
licenses and authorizes liquor stores occupying less than 3,000 square
feet to sell to retail establishments licensed for consumption on the
premises.

Section four of the bill authorizes liquor stores occupying less than
3,000 square feet to sell to retail establishments licensed for
consumption off the premises.

Section five of the bill provides for licensure of grocery stores and
drug stores to sell wine for consumption off the premises, provides
further opportunities for wine tastings, institutes a franchise fee
and annual fee structure for such licensure and provides that any
person licensed to sell wine may purchase any wine from a person
licensed under this section or sections sixty-three or seventy-nine of
this chapter.

Section six of the bill provides for an annual fee for the licensure
of grocery or drug stores to sell wine and provides for the
appropriation and allocation of funds for the New York wine marketing
program and farmland protection programs.

Section seven of the bill amends the state finance law by adding a new
section 97-1111, which provides for the New York wine industry
marketing and Promotion account.

Section eight of the bill provides that any person under eighteen
years of age may handle and deliver the wine and that any person under
eighteen years of age may record and receive payment for wine under
the supervision of a person who is eighteen years of age or older.


Section nine of the bill provides that proof of age must be provided
at every sale for alcoholic beverages and provides the valid proof.

Section ten of the bill provides for a "credit period" to mean a
period beginning on the date alcoholic beverages axe delivered and
ending sixty days thereafter for those licensed under section
sixty-three of this chapter.

Section eleven of the bill amends the circumstances in which a
retailer can be placed on the statewide default list. section twelve
of the bill provides for the sale of mixed cases of wine for resale.

Section thirteen, fourteen and fifteen of the bill remove advertising
restrictions within the licensed premises.

Section sixteen of the bill provides for expanded hours for the
operation of a liquor store and expands the retailer's (liquor store)
ability to conduct business other than selling wine or liquor.

Section seventeen of the bill provides for cooperative agreements so
that smaller liquor stores may agree to jointly purchase larger, more
cost effective, quantities than would be possible without cooperative
agreements.

Section eighteen of this bill provides that the effective date shall
be immediately except for the licensure of grocery and drug stores
which shall take effect 180 days after its enactment.

JUSTIFICATION: The Wine Industry and Liquor Store Development Act is
a comprehensive piece of legislation that provides economic stimulus
to industries that are at the core of the New York economy. The bill
provides fairness and opportunity for a New York wine and grape
industry; furthermore, it allows the small mom and pop liquor and wine
stores to compete and thrive in a new economy. The New York wine and
grape industry, once the second highest producer of wine in the
country, has fallen from its prominence and will continue to do so
without increased opportunities. The New York wine and grape industry
stretches across the entire state and provides opportunity in several
sectors of the economy, including; agriculture, manufacturing and
tourism. The diverse economic and geographic reach of the industry
primes the New York wine and grape industry to generate economic
benefit when provided with opportunity for expansion. In addition,
this bill provides significant opportunity for liquor stores by
repealing antiquated statues that presently prevent them from
expanding their businesses. For many small businesses across the
State, opportunities to expand and policies that provide fairness are
essential. This legislation revives the New York wine and grape
industry and will allow it to flourish.

PRIOR LEGISLATIVE HISTORY: 2011-2012 S.5358

FISCAL IMPLICATIONS: Enactment of this bill would provide
approximately $430 million in 2013-2014 through various franchise
fees, excise taxes, sales taxes and license fees and $62-70 million
each year thereafter.


EFFECTIVE DATE: This act shall take effect immediately except for
grocery and drug stores which shall take effect on the one hundred
eightieth day after it shall have become law.

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

                                  4125

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 11, 2013
                               ___________

Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN ACT to amend the alcoholic beverage control law and the state finance
  law,  in  relation  to establishing the wine industry and liquor store
  development act; and to repeal certain  provisions  of  the  alcoholic
  beverage control law relating thereto

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

  Section 1.  Short title. This act shall be known and may be  cited  as
the "wine industry and liquor store development act".
  S  2.  Subdivision 8-b of section 17 of the alcoholic beverage control
law, as added by chapter 396 of the laws of 2010, is amended to read  as
follows:
  8-b.  On  and  after  January  first,  two thousand eleven, the report
provided for in subdivision eight of this section shall include informa-
tion related to the number of licenses applied for, RENEWALS SOUGHT  and
the  length  of  time required for the approval or denial of such retail
[license] LICENSES AND RENEWALS  applied  for  pursuant  to  subdivision
two-c  of  section  sixty-one,  section sixty-four, section seventy-six,
section seventy-six-a, section seventy-six-c, section seventy-six-d, and
section seventy-six-f of this chapter.
  S 3. Subdivisions 4 and 5 of section  63  of  the  alcoholic  beverage
control  law,  subdivision  4  as  amended by chapter 603 of the laws of
1992, are amended and two new subdivisions 7 and 8 are added to read  as
follows:
  4.  (A)  No  licensee under this section shall be engaged in any other
business on the licensed premises. The SALE OF PRODUCTS COMPLEMENTARY TO
THE BUSINESS OF THE LICENSED PREMISES SHALL NOT CONSTITUTE  ENGAGING  IN
ANOTHER  BUSINESS  WITHIN THE MEANING OF THIS SUBDIVISION. SUCH PRODUCTS
SHALL INCLUDE BUT NOT BE LIMITED TO THE sale of  lottery  tickets,  when

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09735-01-3

S. 4125                             2

duly  authorized  and  lawfully conducted, the sale of corkscrews or the
sale of ice or the sale of  publications,  including  prerecorded  video
and/or audio cassette tapes, designed to help educate consumers in their
knowledge  and  appreciation  of  wine  and wine products, as defined in
section three of this chapter, or the sale of [non-carbonated,  non-fla-
vored  mineral  waters, spring waters and drinking waters or the sale of
glasses designed for the consumption of  wine]  BOTTLED  WATER,  MIXERS,
JUICE  AND  SODA, OR THE SALE OF CIGARS, CIGAR ACCESSORIES INCLUDING BUT
NOT LIMITED TO HUMIDORS, LIGHTERS AND CUTTERS,  CIGAR  RELATED  PUBLICA-
TIONS DESIGNED TO HELP EDUCATE CONSUMERS IN THEIR KNOWLEDGE AND APPRECI-
ATION  OF  CIGAR  PRODUCTS,  NEWSPAPERS  OR FOOD ITEMS INCLUDING BUT NOT
LIMITED TO LOCALLY GROWN FARM PRODUCTS AND  ANY  FOOD  NOT  SPECIFICALLY
PREPARED  FOR  IMMEDIATE ON PREMISES CONSUMPTION AND FOOD PRODUCTS TYPI-
CALLY CONSUMED WITH ALCOHOLIC BEVERAGES, INCLUDING BUT  NOT  LIMITED  TO
SNACK FOODS AND GOURMET FOODS, GIFTS, GIFT BAGS AND GIFT BASKETS, GLASS-
WARE  AND DECANTERS RELATED TO THE CONSUMPTION OR STORAGE OF WINE AND/OR
LIQUOR, WINE REFRIGERATORS AND COOLERS,  WINE  MAKING  PUBLICATIONS  AND
SUPPLIES,  racks  designed for the storage of wine, and devices designed
to minimize oxidation in bottles of  wine  which  have  been  uncorked[,
shall  not constitute engaging in another business within the meaning of
this subdivision].
  (B) THE INSTALLATION AND OPERATION OF AUTOMATED TELLER MACHINES  SHALL
NOT  CONSTITUTE  ENGAGING IN ANOTHER BUSINESS WITHIN THE MEANING OF THIS
SUBDIVISION.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  "AUTOMATED   TELLER
MACHINE" MEANS A DEVICE WHICH IS LINKED TO THE ACCOUNTS AND RECORDS OF A
BANKING  INSTITUTION  AND  WHICH  ENABLES CONSUMERS TO CARRY OUT BANKING
TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO, ACCOUNT  TRANSFERS,  DEPOS-
ITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND LOAN PAYMENTS.
  5.  [Not more than one license shall be] NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT MULTIPLE LICENSES FROM  BEING  granted  to  any
person under this section EXCEPT GROCERY AND DRUG STORES LICENSED PURSU-
ANT TO SECTION SEVENTY-NINE-E OF THIS CHAPTER.
  7.  ANY LICENSE UNDER THIS SECTION GRANTED FOR LICENSED PREMISES OCCU-
PYING LESS THAN THREE THOUSAND SQUARE FEET, INCLUDES THE  PRIVILEGES  TO
SELL UP TO FIFTEEN BOTTLES OF LIQUOR AND/OR WINE IN ANY THIRTY DAY PERI-
OD  TO  ANY  PERSON LICENSED UNDER THIS CHAPTER TO SELL LIQUOR AT RETAIL
FOR CONSUMPTION ON THE PREMISES AND WINE TO ANY  PERSON  LICENSED  UNDER
THIS  CHAPTER  TO  SELL  WINE AT RETAIL FOR CONSUMPTION ON THE PREMISES.
SUCH SALES SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED
ONE-AA OR ONE HUNDRED ONE-B OF THIS CHAPTER.
  8. EVERY LICENSEE UNDER THIS SECTION SHALL HAVE  AN  INDIVIDUAL  IN  A
POSITION  OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED A
CERTIFICATE OF COMPLETION FROM AN APPROVED  ALCOHOL  TRAINING  AWARENESS
PROGRAM.
  S 4. Subdivision 2 of section 79 of the alcoholic beverage control law
is  amended  and  two  new  subdivisions  5  and  6 are added to read as
follows:
  2. [Not more than one license shall be] NOTHING IN THIS SECTION  SHALL
BE  CONSTRUED  TO  PROHIBIT  MULTIPLE LICENSES FROM BEING granted to any
person under this section EXCEPT GROCERY AND DRUG STORES LICENSED PURSU-
ANT TO SECTION SEVENTY-NINE-E OF THIS ARTICLE.
  5. ANY LICENSE UNDER THIS SECTION GRANTED FOR LICENSED PREMISES  OCCU-
PYING  LESS  THAN  THREE THOUSAND SQUARE FEET INCLUDES THE PRIVILEGES TO
SELL UP TO FIFTEEN BOTTLES OF LIQUOR AND/OR WINE IN ANY THIRTY DAY PERI-
OD TO ANY PERSON LICENSED UNDER THIS CHAPTER TO SELL WINE AT RETAIL  FOR
CONSUMPTION  OFF  THE  PREMISES  OR  ANY PERSON HOLDING A SINGLE LICENSE

S. 4125                             3

GRANTED PURSUANT TO SECTION SEVENTY-NINE-E OF THIS ARTICLE.  SUCH  SALES
SHALL  NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED ONE-AA OR
ONE HUNDRED ONE-B OF THIS CHAPTER.
  6.  EVERY  LICENSEE  UNDER  THIS SECTION SHALL HAVE AN INDIVIDUAL IN A
POSITION OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED  A
CERTIFICATE  OF  COMPLETION  FROM AN APPROVED ALCOHOL TRAINING AWARENESS
PROGRAM.
  S 5. The alcoholic beverage control law is amended  by  adding  a  new
section 79-e to read as follows:
  S 79-E. GROCERY OR DRUG STORE WINE LICENSE. 1. ANY PERSON MAY APPLY TO
THE  AUTHORITY  FOR A LICENSE TO SELL FROM THE LICENSED PREMISES WINE IN
SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES;  PROVIDED,  HOWEVER
THAT  NO  PERSON LICENSED PURSUANT TO THIS SECTION MAY APPLY FOR A WARE-
HOUSE PERMIT PURSUANT TO SECTION NINETY-SIX OF THIS CHAPTER.
  2. NO SUCH LICENSE SHALL BE ISSUED, HOWEVER, TO  ANY  PERSON  FOR  ANY
PREMISES  OTHER THAN A GROCERY STORE, AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION THREE OF THIS CHAPTER, OR A DRUG STORE, AS DEFINED IN  SUBDI-
VISION TWELVE OF SECTION THREE OF THIS CHAPTER.
  3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A GROCERY OR DRUG STORE WINE
LICENSE  TO  THE HOLDER OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMP-
TION OFF THE PREMISES PURSUANT TO SECTION FIFTY-FOUR OF THIS CHAPTER, OR
BEER AND WINE PRODUCTS AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSU-
ANT TO SECTION FIFTY-FOUR-A OF THIS CHAPTER,  AT  THE  REQUEST  OF  SUCH
LICENSEE.
  (B)  FOR THE PURPOSES OF THIS SUBDIVISION, THE PREMISES OF THE GROCERY
OR DRUG STORE WINE LICENSEE SHALL BE THE SAME AS THE  PREMISES  LICENSED
UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.
  (C)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY LICENSE
ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
ING LICENSE UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A  OF  THIS  CHAPTER,
AND  SHALL  BE  DEEMED  EXPIRED  AT  SUCH TIME AS THE UNDERLYING LICENSE
EXPIRES.
  (D) ANY PERSON LICENSED TO SELL WINE PURSUANT TO THIS ARTICLE SHALL BE
PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS  WHICH  ARE  CONDUCTED
UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM WINERY, WINERY, WHOLE-
SALER,  OR  IMPORTER  AND  WHERE SUCH AGENT IS PHYSICALLY PRESENT AT ALL
TIMES DURING THE CONDUCT OF  THE  TASTING,  THEN,  IN  THAT  EVENT,  ANY
LIABILITY  STEMMING FROM A RIGHT OF ACTION RESULTING FROM A WINE TASTING
AS AUTHORIZED PURSUANT TO THIS  SECTION,  AND  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS LAW,
SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
  4.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE AUTHORITY
MAY ISSUE A LICENSE UNDER THIS SECTION TO THE HOLDER  OF  A  LICENSE  TO
SELL WINE AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSUANT TO SECTION
SEVENTY-NINE  OF THIS ARTICLE, PROVIDED THAT: (A) THE LICENSEE MEETS THE
REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION; AND (B)  UPON  ISSUANCE
OF  A  LICENSE,  THE  LICENSEE UNDER THIS SECTION SURRENDERS THE LICENSE
CERTIFICATE ISSUED PURSUANT TO SUCH SECTION SEVENTY-NINE.
  5. SUCH APPLICATION SHALL BE IN  SUCH  FORM  AND  SHALL  CONTAIN  SUCH
INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
BE  ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS ARTI-
CLE FOR SUCH LICENSE.
  6. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS  CHAPTER,  ANY  PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE

S. 4125                             4

PROVISIONS  OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE OF
THIS ARTICLE.
  7.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION ONE  HUNDRED
FIVE OF THIS CHAPTER.
  8. (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID BY EACH RETAIL OUTLET TO
THE  STATE LIQUOR AUTHORITY. THIS FRANCHISE FEE IS HEREBY IMPOSED PURSU-
ANT TO THE FOLLOWING SCHEDULE PER LOCATION BASED UPON GROSS SALES IN THE
PREVIOUS YEAR:
ANNUAL SALES               FRANCHISE FEE PER LOCATION
$0-$249,999                $1,000
$250,000-$499,999          0.39 OF ONE PERCENT OF TOTAL GROSS SALES
$500,000-$999,999          0.39 OF ONE PERCENT OF TOTAL GROSS SALES
$1,000,000-$2,499,000      0.49 OF ONE PERCENT OF TOTAL GROSS SALES
$2,500,000-$4,999,999      0.49 OF ONE PERCENT OF TOTAL GROSS SALES
$5,000,000-$9,999,999      0.49 OF ONE PERCENT OF TOTAL GROSS SALES
$10,000,000-$24,999,999    0.99 OF ONE PERCENT OF TOTAL GROSS SALES
$25,000,000-$39,999,999    1.5 OF ONE PERCENT OF TOTAL GROSS SALES
$40,000,000 AND GREATER    1.7 PERCENT OF TOTAL GROSS SALES
WAREHOUSE STORES           2.0 PERCENT OF TOTAL GROSS SALES
FOR THE PURPOSES OF  THIS  PARAGRAPH,  "TOTAL  GROSS  SALES"  SHALL  NOT
INCLUDE  SALES  RESULTING FROM THE SALE OF TOBACCO AS DEFINED BY ARTICLE
TWENTY OF THE TAX LAW, MOTOR FUEL AS DEFINED BY ARTICLE TWELVE-A OF  THE
TAX  LAW NOR SHALL IT INCLUDE A MEMBERSHIP FEE PURSUANT TO SECTION NINE-
TY-SIX OF THIS CHAPTER.  FOR THE PURPOSES OF  THIS  PARAGRAPH,  NOTWITH-
STANDING THE GROSS SALES OF THE APPLICANT, AN ESTABLISHMENT THAT CHARGES
A MEMBERSHIP FEE TO ITS CUSTOMERS SHALL BE DEEMED A "WAREHOUSE STORE".
  (B)  IN  THE  EVENT  AN  APPLICANT  HAS BEEN IN BUSINESS FOR LESS THAN
TWELVE MONTHS PRIOR TO THE FILING OF THE APPLICATION FOR  THIS  LICENSE,
SUCH  APPLICANT  SHALL,  IN  ACCORDANCE WITH THE RULES OF THE AUTHORITY,
REMIT AN ESTIMATE OF ITS FRANCHISE FEE BASED  ON  SQUARE  FOOTAGE  AT  A
LICENSEE'S LOCATION PURSUANT TO THE FOLLOWING SCHEDULE:
SQUARE FOOTAGE LICENSEE'S     FRANCHISE FEE PER LOCATION
LOCATION
0-999                         $825
1,000-1,999                   $1,650
2,000-3,999                   $3,300
4,000-9,999                   $8,250
10,000-19,999                 $16,500
20,000-24,999                 $33,000
25,000-29,999                 $82,500
30,000-39,999                 $132,000
40,000-79,999                 $250,000
80,000 AND GREATER            $350,000
  WITHIN  SIXTY DAYS AFTER SUCH LICENSEE SHALL HAVE BEEN IN BUSINESS FOR
TWELVE MONTHS, SUCH LICENSEE SHALL SUBMIT TO THE AUTHORITY,  IN  ACCORD-
ANCE  WITH  THE  RULES  OF THE AUTHORITY, A STATEMENT SHOWING ITS ACTUAL
TOTAL GROSS SALES FOR THE FIRST TWELVE MONTHS OF OPERATION AND THE FRAN-
CHISE FEE DUE PURSUANT TO PARAGRAPH (A)  OF  THIS  SUBDIVISION.  IN  THE
EVENT  THE  FRANCHISE  FEE DETERMINED PURSUANT TO SUCH PARAGRAPH EXCEEDS
THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH,  THE  LICENSEE  SHALL  REMIT
PAYMENT  FOR  THE  BALANCE  OF  THE  REQUIRED  FRANCHISE FEE WITHIN SUCH
SIXTY-DAY PERIOD. FAILURE TO REMIT PAYMENT WITHIN SUCH SIXTY-DAY  PERIOD
SHALL  BE GROUNDS FOR CANCELLATION OR REVOCATION OF SUCH LICENSE. IN THE
EVENT THAT THE FRANCHISE FEE DUE  PURSUANT  TO  PARAGRAPH  (A)  OF  THIS

S. 4125                             5

SUBDIVISION IS LESS THAN THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, THE
LICENSEE  SHALL  BE ENTITLED TO A REFUND EQUAL TO THE DIFFERENCE BETWEEN
THE FRANCHISE FEE PAID PURSUANT TO THIS PARAGRAPH  AND  THE  AMOUNT  DUE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (C)  NO  LICENSE  SHALL  BE  ISSUED PURSUANT TO THIS SECTION UNTIL THE
FRANCHISE FEE OR ESTIMATED FRANCHISE FEE UNDER THIS SUBDIVISION REQUIRED
BY EITHER PARAGRAPH (A) OR (B) OF THIS  SUBDIVISION  HAS  BEEN  PAID  IN
FULL.
  9.    EVERY  LICENSEE UNDER THIS SECTION SHALL HAVE AN INDIVIDUAL IN A
POSITION OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED  A
CERTIFICATE  OF  COMPLETION  FROM AN APPROVED ALCOHOL TRAINING AWARENESS
PROGRAM.
  10. NOTWITHSTANDING SUBDIVISION EIGHT OF THIS  SECTION,  NO  FRANCHISE
FEE  SHALL  BE REQUIRED FROM AN APPLICANT WHO IS PURCHASING THE BUSINESS
OF A LICENSEE WHO HAS ALREADY PAID A FRANCHISE FEE, PROVIDED  THAT  SUCH
APPLICANT  CONTINUES  THE  BUSINESS  OPERATION  AT  THE  SAME GEOGRAPHIC
LOCATION AS THE  LICENSEE.  IN  THE  EVENT  THE  APPLICANT  SUBSEQUENTLY
REMOVES  THE  BUSINESS  TO  ANOTHER LOCATION, PAYMENT OF THE APPROPRIATE
FRANCHISE FEE SHALL BE REQUIRED PRIOR TO THE  APPROVAL  OF  THE  REMOVAL
PURSUANT TO SUBDIVISION THREE OF SECTION NINETY-NINE-D OF THIS CHAPTER.
  11.  THE  AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS NECESSARY TO CARRY
OUT THE PROVISIONS OF THIS SECTION, HOWEVER, SUCH  RULES  SHALL  NOT  BE
CONSTRUED  TO  PLACE ADDITIONAL LIMITATIONS UPON THE HOLDERS OF LICENSES
ISSUED PURSUANT TO SECTION SEVENTY-NINE OF THIS ARTICLE UNRELATED TO THE
SALE OF WINE.
  S 6.  Section 83 of the alcoholic beverage control law is  amended  by
adding a new subdivision 8 to read as follows:
  8. THE ANNUAL FEE FOR A GROCERY OR DRUG STORE WINE LICENSE PURSUANT TO
SECTION  SEVENTY-NINE-E  OF  THIS ARTICLE SHALL BE FIVE HUNDRED DOLLARS.
WHERE, HOWEVER, THE  APPLICANT  IS  THE  HOLDER  OF  TWO  OR  MORE  SUCH
LICENSES,  THE ANNUAL FEE FOR EACH ADDITIONAL LICENSE SHALL BE ONE THOU-
SAND DOLLARS. TEN PERCENT OF THE OVERALL FEES PAID  UP  TO  ONE  MILLION
DOLLARS  SHALL  BE  DEPOSITED  TO THE MISCELLANEOUS SPECIAL REVENUE FUND
(339) WINE INDUSTRY MARKETING AND PROMOTION  ACCOUNT  FOR  APPROPRIATION
AND ALLOCATION TO THE NEW YORK WINE MARKETING PROGRAM, AS ESTABLISHED IN
SECTION  THREE-A  OF CHAPTER EIGHTY OF THE LAWS OF NINETEEN EIGHTY-FIVE,
SUCH SECTION AS ADDED BY CHAPTER THREE HUNDRED THIRTY OF THE LAWS OF TWO
THOUSAND FOUR. FURTHER, TEN PERCENT OF THE OVERALL FEES PAID UP  TO  TWO
MILLION  DOLLARS PER YEAR SHALL BE APPROPRIATED TO MAKE STATE ASSISTANCE
PAYMENTS  TO  NOT-FOR-PROFIT  CONSERVATION  ORGANIZATIONS  FOR  FARMLAND
PROTECTION  PROGRAMS  PURSUANT TO SECTION THREE HUNDRED TWENTY-FIVE-A OF
THE AGRICULTURE AND MARKETS LAW.
  S 7. The state finance law is amended by adding a new section  97-llll
to read as follows:
  S  97-LLLL. NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
TROLLER  AND  THE  COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE
KNOWN AS THE NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT.
  2. SUCH ACCOUNT SHALL CONSIST OF REVENUES  RECEIVED  FROM  GROCERY  OR
DRUG  STORE  WINE  LICENSE FEES PURSUANT TO SUBDIVISION EIGHT OF SECTION
EIGHTY-THREE OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  3. MONEYS OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE  LEGISLATURE,
SHALL  BE  EXPENDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION THREE-A
OF CHAPTER EIGHTY OF THE LAWS  OF  NINETEEN  HUNDRED  EIGHTY-FIVE,  SUCH
SECTION  AS  ADDED  BY  CHAPTER  THREE HUNDRED THIRTY OF THE LAWS OF TWO
THOUSAND FOUR. MONEYS SHALL BE PAID OUT OF THE ACCOUNT ON THE AUDIT  AND

S. 4125                             6

WARRANT  OF  THE  STATE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY
THE COMMISSIONER OF AGRICULTURE AND MARKETS.
  S  8. Subdivision 2-a of section 100 of the alcoholic beverage control
law, as amended by chapter 249 of the laws of 2002, is amended  to  read
as follows:
  2-a.  No  retailer  shall  employ,  or permit to be employed, or shall
suffer to work, on any premises licensed for retail sale hereunder,  any
person  under the age of eighteen years, as a hostess, waitress, waiter,
or in any other capacity where the duties  of  such  person  require  or
permit  such  person  to  sell,  dispense or handle alcoholic beverages;
except that: (1) any person under the age of eighteen years and employed
by any person holding a grocery or drug  store  beer  license  shall  be
permitted  to  handle and deliver beer and wine products for such licen-
see, (2) any person under the age of eighteen employed as a cashier by a
person holding a grocery or drug store beer license shall  be  permitted
to  record  and  receive payment for beer and wine product sales when in
the presence of and under the direct supervision of  a  person  eighteen
years  of  age or over, (2-a) any person under the age of eighteen years
and employed by a person holding a grocery  store  or  drug  store  beer
license  as  either a cashier or in any other position to which handling
of containers which may have  held  alcoholic  beverages  is  necessary,
shall  be permitted to handle the containers if such have been presented
for redemption in accordance with the provisions of title ten of article
twenty-seven of the environmental conservation law, [and] (3) any person
under the age of eighteen years employed as  a  dishwasher,  busboy,  or
other  such  position  as to which handling of containers which may have
held alcoholic beverages is necessary shall be permitted to do so  under
the  direct  supervision  of a person of legal age to purchase alcoholic
beverages in the state, (4) ANY PERSON UNDER THE AGE OF  EIGHTEEN  YEARS
AND  EMPLOYED  BY  A PERSON HOLDING A GROCERY OR DRUG STORE WINE LICENSE
SHALL BE PERMITTED TO HANDLE AND DELIVER WINE FOR SUCH LICENSEE, AND (5)
ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS  AND  EMPLOYED  BY  A  PERSON
HOLDING  A  GROCERY  OR  DRUG  STORE  WINE LICENSE SHALL BE PERMITTED TO
RECORD AND RECEIVE PAYMENT FOR WINE SALES WHEN IN THE  PRESENCE  OF  AND
UNDER THE DIRECT SUPERVISION OF A PERSON EIGHTEEN YEARS OR OVER.
  S  9.  Section 100 of the alcoholic beverage control law is amended by
adding a new subdivision 2-c to read as follows:
  2-C. NO PERSON SHALL SELL, DELIVER OR GIVE AWAY OR  CAUSE,  PERMIT  OR
PROCURE  TO  BE SOLD, DELIVERED OR GIVEN AWAY ANY ALCOHOLIC BEVERAGES TO
ANY PERSON, ACTUALLY OR APPARENTLY, UNDER THE AGE OF  TWENTY-ONE  YEARS.
AS A PRECONDITION TO THE SALE OF ANY ALCOHOLIC BEVERAGE FOR OFF-PREMISES
CONSUMPTION,  THE PURCHASER OF ANY ALCOHOLIC BEVERAGE MUST PROVIDE WRIT-
TEN EVIDENCE OF AGE. NO LICENSEE, OR AGENT OR  EMPLOYEE  OF  A  LICENSEE
UNDER  THIS CHAPTER, SHALL ACCEPT AS WRITTEN EVIDENCE OF AGE BY ANY SUCH
PERSON FOR THE PURCHASE OF ANY  ALCOHOLIC  BEVERAGE,  ANY  DOCUMENTATION
OTHER  THAN:  (A)  A VALID DRIVER'S LICENSE OR NON-DRIVER IDENTIFICATION
CARD ISSUED BY THE COMMISSIONER OF MOTOR VEHICLES, THE  FEDERAL  GOVERN-
MENT,  ANY    UNITED  STATES  TERRITORY, COMMONWEALTH OR POSSESSION, THE
DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITHIN THE UNITED STATES  OR  A
PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA, OR (B) A VALID PASSPORT
ISSUED  BY  THE UNITED STATES GOVERNMENT OR ANY OTHER COUNTRY, OR (C) AN
IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE UNITED STATES.
  S 10. Paragraph a of subdivision 1 of section 101-aa of the  alcoholic
beverage  control  law, as amended by chapter 84 of the laws of 2004, is
amended to read as follows:

S. 4125                             7

  a. "Credit period" means a period  beginning  on  the  date  alcoholic
beverages  are  delivered and ending thirty days thereafter, EXCEPT THAT
WITH REGARD TO LICENSEES LICENSED  UNDER  SECTION  SIXTY-THREE  OF  THIS
CHAPTER  THE  "CREDIT PERIOD" MEANS A PERIOD BEGINNING ON THE DATE ALCO-
HOLIC BEVERAGES ARE DELIVERED AND ENDING SIXTY DAYS THEREAFTER.
  S  11. Section 101-aa of the alcoholic beverage control law is amended
by adding a new subdivision 3-a to read as follows:
  3-A. NOTWITHSTANDING THE  PROVISIONS  OF  SUBDIVISION  THREE  OF  THIS
SECTION,  THE  HOLDER OF A LICENSE TO SELL LIQUOR AND WINE AT RETAIL FOR
CONSUMPTION OFF THE PREMISES, PURSUANT TO SECTION  SIXTY-THREE  OF  THIS
CHAPTER,  OR  A  LICENSE  TO SELL WINE AT RETAIL FOR CONSUMPTION OFF THE
PREMISES PURSUANT TO SECTION SEVENTY-NINE OF THIS  CHAPTER,  WHO  IS  IN
DEFAULT   EXCEPT   TO   A  FARM  WINERY  LICENSED  PURSUANT  TO  SECTION
SEVENTY-SIX-A OF THIS CHAPTER MAY PURCHASE ALCOHOLIC BEVERAGES ON CREDIT
EXCEPT FROM THE MANUFACTURER OR WHOLESALER WHO PLACED SUCH RETAIL LICEN-
SEE IN DEFAULT.
  S 12. Paragraph (b) of subdivision 2 of section 101-b of the alcoholic
beverage control law, as amended by chapter 669 of the laws of 1989,  is
amended to read as follows:
  (b)  to  grant,  directly  or  indirectly,  any discount, rebate, free
goods, allowance or other inducement of any kind  whatsoever,  except  a
discount or discounts for quantity of liquor or for quantity of wine and
a  discount not in excess of one per centum for payment on or before ten
days from date of shipment. A DISCOUNT ON WINE PURCHASED ON  A  QUANTITY
BASIS  SHALL  NOT BE AUTHORIZED ON THE PURCHASE OF MORE THAN ONE HUNDRED
CASES OF WINE PER MONTH, OF THE SAME VARIETAL.
  S 13. Paragraph (b) of subdivision 3 of section 101-b of the alcoholic
beverage control law, as amended by section 1 of part E of chapter 56 of
the laws of 2006, is amended to read as follows:
  (b) No brand of liquor or wine shall be sold  to  or  purchased  by  a
retailer  unless a schedule, as provided by this section, is transmitted
to and received by the liquor authority, and is  then  in  effect.  Such
schedule  shall  be  transmitted  to the authority in such form, manner,
medium and format as the authority may  direct;  shall  be  deemed  duly
verified by the person submitting such schedule upon its transmission to
the  authority;  and shall contain, with respect to each item, the exact
brand or trade name, capacity of package, nature of  contents,  age  and
proof where stated on the label, the number of bottles contained in each
case,  the  bottle  and case price to retailers, the net bottle and case
price paid by the seller, which prices, in each instance, shall be indi-
vidual for each item and not in "combination" with any other  item,  the
discounts  for  quantity, if any, and the discounts for time of payment,
if any. PROVIDED HOWEVER THAT,  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,
DIFFERENT PRODUCTS OR DIFFERENT SIZED BOTTLES FROM THE SAME MANUFACTURER
MAY  BE  COMBINED.  Such  brand  of  liquor or wine shall not be sold to
retailers except at the price and discounts then in effect unless  prior
written  permission of the authority is granted for good cause shown and
for reasons not inconsistent with the  purpose  of  this  chapter.  Such
schedule shall be transmitted by each manufacturer selling such brand to
retailers and by each wholesaler selling such brand to retailers.
  S  14.  Subdivision 2 of section 105 of the alcoholic beverage control
law is REPEALED.
  S 15. Subdivision 7 of section 105 of the alcoholic  beverage  control
law is REPEALED.
  S  16.  Paragraphs (b) and (c) of subdivision 10 of section 105 of the
alcoholic beverage control  law  are  REPEALED  and  paragraph  (a),  as

S. 4125                             8

amended  by  chapter  679  of  the  laws  of 1950, is amended to read as
follows:
  [(a)]  Each  retail  licensee  of  liquor and/or wine for off-premises
consumption shall have conspicuously displayed within  the  interior  of
the  licensed  premises where sales are made and where it can be readily
inspected by consumers a printed price list of the liquors and/or  wines
offered for sale therein; and no liquor and/or wine shall be sold except
at the price set forth in such list[;].
  S  17.  Paragraphs (a) and (b) of subdivision 14 of section 105 of the
alcoholic beverage control law, paragraph (a) as amended by section 1 of
part U of chapter 63 of the laws of 2003 and paragraph (b) as amended by
chapter 334 of the laws of 2004, are amended to read as follows:
  (a) No premises licensed to sell liquor and/or wine  for  off-premises
consumption shall be permitted to [remain open] SELL LIQUOR AND/OR WINE:
  (i)  On  Sunday  before  twelve  o'clock  post meridian and after nine
o'clock post meridian.
  (ii) On any day between midnight and eight o'clock antemeridian.
  (iii) On the twenty-fifth day of December, known as Christmas day.
  In any community where daylight saving time is in  effect,  such  time
shall be deemed the standard time for the purpose of this subdivision.
  (b) This subdivision shall only be interpreted to prohibit the sale of
liquor  and/or  wine  for off-premises consumption [when it is closed to
the public, provided however, retail licensees may undertake  all  other
activities  allowed  during the course of normal business operations]. A
LICENSEE MAY  ENGAGE  IN  ANY  OTHER  LAWFUL  ACTIVITY  ALLOWED  ON  THE
LICENSEE'S PREMISES, including but not limited to:
  (i)  placing  orders  with  or  taking deliveries from wholesalers AND
MANUFACTURERS;
  (ii) meeting with individuals who have valid solicitors permits issued
by the liquor authority;
  (iii) stocking shelves;
  (iv) filling or building displays; [and]
  (v) rotating product on store shelves; AND
  (VI) IN THE CASE OF PERSONS LICENSED UNDER SECTION  SEVENTY-NINE-E  OF
THIS  CHAPTER,  THE  SALE  OF  OTHER  PRODUCTS,  INCLUDING BEER AND WINE
PRODUCTS IF THE PERSON IS ALSO  LICENSED  UNDER  SECTION  FIFTY-FOUR  OR
SECTION FIFTY-FOUR-A OF THIS CHAPTER.
  S  18. Section 105 of the alcoholic beverage control law is amended by
adding a new subdivision 24 to read as follows:
  24. FOR THE PURPOSES OF PURCHASING  ONLY,  ANY  TWO  OR  MORE  PERSONS
LICENSED  PURSUANT  TO  SECTIONS SIXTY-THREE AND/OR SEVENTY-NINE OF THIS
CHAPTER MAY JOIN IN AN AGREEMENT  TO  MAKE  JOINT  PURCHASES  OF  LIQUOR
AND/OR  WINE  IN  LARGER  QUANTITIES  THAN MIGHT OTHERWISE BE PURCHASED;
PROVIDED, HOWEVER, THAT ALL SUCH ALCOHOLIC BEVERAGES PURCHASED  PURSUANT
TO ANY SUCH AGREEMENT SHALL BE DISTRIBUTED TO NONE OTHER THAN A LICENSEE
WHO IS A PARTY TO SUCH AGREEMENT. THE COOPERATIVE AGREEMENTS, AS AUTHOR-
IZED  UNDER  THIS  SUBDIVISION,  SHALL  BE VOID IF, WITHIN A CITY WITH A
POPULATION OF ONE MILLION OR MORE AND THE PREMISES OPERATING  UNDER  THE
COOPERATIVE  AGREEMENTS  AUTHORIZED IN THIS SUBDIVISION ARE LOCATED MORE
THAN ONE MILE FROM ONE ANOTHER. THE COOPERATIVE AGREEMENTS,  AS  AUTHOR-
IZED  UNDER THIS SUBDIVISION, SHALL BE VOID IF, OUTSIDE OF A CITY WITH A
POPULATION OF ONE MILLION OR  MORE  AND  THE  PREMISES  OPERATING  UNDER
AGREEMENTS  AUTHORIZED  IN  THIS SUBDIVISION ARE LOCATED MORE THAN FIFTY
MILES FROM ONE ANOTHER.   THE AUTHORITY MAY PROMULGATE  SUCH  RULES  AND
REGULATIONS  AS  MAY  BE  NECESSARY  TO CARRY OUT THE PROVISIONS OF THIS
SUBDIVISION.

S. 4125                             9

  S 19. This act shall  take  effect  immediately;  provided,  that  the
amendments  to  subdivision  8-b of section 17 of the alcoholic beverage
control law made by section two of this act shall  take  effect  on  the
same  date  as the reversion of such section as provided in section 4 of
chapter  118  of  the  laws  of 2012, as amended; provided further, that
section nine of this act shall take effect on the one hundred  eightieth
day after it shall have become a law; and provided further, that, effec-
tive  immediately, the addition, amendment and/or repeal of any rules or
regulations necessary for the implementation of this act  on  or  before
its effective date are authorized to be made by the state liquor author-
ity on or before such date.

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