Senate Bill S5331A

                                 BILL NUMBER:  S5331A

 TITLE OF BILL :

An act to amend the alcoholic beverage control law, in relation to the
sale of privately held wines and liquors

 PURPOSE :

To allow a wine and liquor auction permit holder to conduct
forty-eight auctions of wine and/or liquor during the period the wine
and liquor permit shall be in effect.

 SUMMARY OF PROVISIONS :

Section one amends paragraph b of subdivision 2 of section 99-g of the
alcoholic beverage control law to allow a wine and liquor auction
permit holder to conduct forty-eight auctions of wine and/or liquor
during the period the wine and liquor permit shall be in effect.

Section two provides the effective date.

 JUSTIFICATION :

In 1994, New York authorized licensed retailers to conduct wine and
liquor auctions. As a result, New York became a center of this growing
              

world-wide business, particularly as collectors of fine wines sought
to add to their collections, or conversely dispose of them. As the
nationwide, and worldwide, interest in wine auctions continues to
grow, the current limit of 24 auctions has become an impediment to the
industry. Other states, such as California, have no such limit.  It
should be noted that besides providing jobs, a single auction can
typically produce about $75,000 in sales taxes to the state.

In order to maintain its position as a center of the worldwide wine
and liquor auction industry, New York should allow forty-eight
auctions, rather than keep the yearly limit of 24 in place. With
frequent internet auctions now becoming the norm, maintaining such a
low numerical limit will force New York retailers to re-locate their
auctions to other states or become uncompetitive.

All other controls on the sale of alcoholic beverages will remain in
place with this legislation. Only the frequency of such sales is at
issue. Retailers must still obtain a permit to conduct auctions, and
only retailers with a prescribed amount of experience are eligible to
apply for a permit. No change in these restrictions is contemplated.

New York remains a strong competitor in the auction market, but in
order to maintain that position, the limit of 24 yearly auctions,
which serves no desirable regulatory purpose, should be eliminated.

 LEGISLATIVE HISTORY :

2016: Referred to Investigations and Government Operations

 FISCAL IMPLICATIONS :

No negative fiscal impact to the state. There is a potential for
increased sales tax revenue.

 EFFECTIVE DATE :
This act shall take effect immediately.