BILL NUMBER:S5049

TITLE OF BILL:  An act to amend the alcoholic beverage control law, in
relation to directing the state liquor authority to issue a farm
winery license to the Concord Grape Belt Heritage Association Inc.
Grape Discovery Center

PURPOSE:  To direct the State Liquor Authority to issue a farm winery
license to the Concord Grape Belt Heritage Association Inc Grape
Discovery Center, authorizing the center to offer tastings and sell at
retail for consumption on the premises any New York State labeled wine
and wine products, and to also sell by the bottle for off-premises
consumption any New York State labeled wine manufactured by any winery
or farm winery. Those licenses currently available to the center under
the Alcoholic Beverage Control Law prevent the center from selling by
the bottle for off-premises consumption.

Currently available licenses also restrict the ability of the center
to solicit the general public for funds, prevent acceptance of
contributions from persons holding a license under the Alcoholic
Beverage Control Law, and restrict those persons who could serve on
the center's Board of Directors.

The further purpose of this legislation, therefore, is to remove,
solely for the purposes of the Grape Discovery Center, a public
charity, the restrictions on who may be solicited for contributions
              

and who may contribute to the center's support or who may serve on its
board of directors.

In furtherance of its promotional objectives, the center would also be
permitted to rent out its facilities for private events and to sell
and serve wine, malt beverages, and distilled spirits at such events

SUMMARY OF PROVISIONS:

Section 1. Amends section 101 of the Alcoholic Beverage Control Law by
adding a new subdivision 8 to allow the Concord Grape Belt Heritage
Association Inc Grape Discovery Center, located in the Town of
Westfield, to be issued a farm winery license from the State Liquor
Authority under section 76-a of this chapter.

Notwithstanding any other provision of law to the contrary, the center
is authorized to sell New York State produced wines, beers, and
distilled spirits for both on and off-premises consumption, offer
tastings on premises, and provide banquet and entertainment facilities
At such banquet and entertainment facility events, the center may sell
and serve wines, malt beverages, and distilled spirits.

The center is not required to produce wine as a condition of such
license.

Furthermore, no person shall be disqualified from acting as a
director, officer, or employee of, or purveyor to, the center due to
holding a license under this law or being affiliated with a licensee
under this law as a shareholder, partner, officer, director, or
employee


In addition, no person shall be disqualified from being a lender or
lessor to the center, or a donor, patron, contributor, or sponsor, due
to holding a license under this law or being affiliated with a
licensee under this law as a shareholder, partner, officer, director,
or employee. Such persons shall be entitled, regardless of their
licensing status under this law, to obtain all the benefits generally
approved by the board of directors of the center and offered to donors
of similar amounts

JUSTIFICATION:  The Grape Discovery Center, located in Westfield, New
York, along the southeastern shores of Lake Erie, is at the heart of
the largest and oldest Concord grape growing region in the world
Having been introduced in the 1870's, the climate, geography, and soil
of western New York proved to be highly conducive to the Concord
grape's production.

The Concord Grape Belt Heritage Association was formed in 2004 as a
non-profit organization of grape growers, juice processors, wineries,
and other grape-related businesses and regional organizations with the
mission to encourage and support the grape and wine industry, and
overall quality of life, in the region. With natural beauty, historic
communities, and engaging destinations to explore, the region was
designated a New York State Heritage Area in 2006 and in May 2013 the
Concord Grape Belt Heritage Association opened the Grape Discovery
Center.

The Grape Discovery Center is the official visitor's center for the
Lake Erie Concord Grape Belt and acts as a showcase for local
grape-related products, as well as a venue for sharing the rich
history and culture of the region Including exhibits and displays
telling the story of over 150 years of grape-growing along the
southeastern shores of Lake Erie in western New York and northwestern
Pennsylvania, the Grape Discovery Center is an experiential
destination with products and exhibits that seek to support and
promote the grape industry through sharing stories and engaging,
educating, and informing the public about all things grape

Furthermore, grapes are a vital and fundamental part of the regional
economy, with hundreds of growers annually producing 150,000 tons or
more of grapes on 30,000 acres of vineyards Value added products like
juices, jellies, and dozens of other products are processed locally
and sold across the country and around the world. Approximately 2,000
jobs in the area are directly related to grape production, which
according to data from a study in 2004 contributed an estimated $340
million to the Chautauqua and Erie County economies in that year. In
addition, total fruit and vegetable processing in the area, located
there largely due to the presence of the grape industry, supports over
5,000 jobs and contributes over $1 million to the two-county region's
annual economy

Currently, the Grape Discovery Center offers guests the opportunity to
enjoy wine by the glass, but cannot offer wine for sale by the bottle
for off premises consumption without this legislative designation.

The availability of wine for purchase by the bottle at the Grape
Discovery Center will allow the thousands of visitors and tourists who
come to experience and learn about Lake Erie's wine-making heritage to


take a bottle of local wine home to enjoy. The enhanced experience of
visitors and tourists will make the Grape Discovery Center a more
attractive and patronized destination, enhancing tourism in the region
and aiding in the promotion of all grape-related products and
educational material at the Grape Discovery Center. This in turn will
promote and support the larger region and expand awareness of the
state's wine and agricultural industry.

Additionally, depending on the license obtained by the center under
current law, retailers, wholesalers, and wine producers are forbidden
from contributing to or participating in the operations of the center
or from serving on its Board of Directors. They may also be forbidden
from contributing their goods or services to the center These current
prohibitions are intended to ensure that no supplier unlawfully
induces a person having a retail facility from purchasing from that
supplier to the exclusion of other suppliers Because the Grape
Discovery Center is a public non-profit charity and not a commercial
enterprise, any winery desiring to make their New York-produced
products available at the center may do so without exclusion. The
center will not restrict the ability of duly licensed retailers from
providing their goods and services to the center and should therefore
be exempt from these provisions of the law designed to prevent
commercial enterprises from making unlawful inducements and exclusions

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:  Increased tax revenue to the State as a result
of greater promotion of New York State-produced goods.

EFFECTIVE DATE:  This act shall take effect immediately