NY State Senate Bill 2017-S5677

Senate Bill S5677

2017-2018 Legislative Session

Relates to removing restrictions on on-site breweries and removing prohibitions on manufacturers and wholesalers; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Apr 25, 2017	referred to investigations and government operations

2017-S5677 (ACTIVE) - Details

See Assembly Version of this Bill:: A7361
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§101, 103 & 104, rpld §106 sub 13, §64-c subs 18 & 19, ABC L

2017-S5677 (ACTIVE) - Summary

Removes general prohibition of on-site breweries and removes prohibitions on manufacturers and wholesalers from having an interest in retail sales.

2017-S5677 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5677

 TITLE OF BILL :  An act to amend the alcoholic beverage control law,
in relation to removing prohibitions on manufacturers and wholesalers
from having an interest in retail sales and removing the general
prohibition of on-site breweries; and repealing certain provisions of
such law relating thereto

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this legislation is to remove restrictions on on-site
breweries and remove prohibitions on manufacturers and wholesalers.

 SUMMARY OF PROVISIONS :

Section 1. Paragraph (a) of subdivision 1 of section 101 of the
Alcoholic Beverage Control Law is REPEALED paragraphs (b), (c), (d)
and (e) are relettered paragraphs (a), (b), (c) and (d).

Section 2. Paragraph (d) of subdivision 1 of section 101 of the
Alcoholic Beverage Control Law is amended by removing these exact
letters, "b, c, and d above" and replacing it with "(a), (b) and (c)
of this subdivision".

Section 3. Subdivision 13 of section 106 of the Alcoholic Beverage
Control Law is REPEALED.

Section 4. Subdivisions 18 and 19 of section 64-c of the Alcoholic
Beverage Control Law are REPEALED.

Section 5. Subdivision 7 of section 103 of the Alcoholic Beverage
Control Law is amended by removing "(c)" and replacing it with "(b)".

Section 6. Removes the language "section one hundred and one,
subdivision one (c) of this chapter", and replaces it with "paragraph
(b) of subdivision one of section one hundred one of this article."

Section 7. Establishes the effective date.

 DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE) :

This portion is not applicable at this time.

 JUSTIFICATION :

In 2016, similar legislation was introduced, and become law, which was
specific to Peekskill. This legislation was needed to revitalize the
area known as the Charles Point Marina. After nearly all the
businesses at the marina had left, it was sold in 2014 to Diamond
Properties, a business in which two of the partners were operating
bowling alley/amusement centers and restaurants throughout
Westchester. There was excitement about the rebirth of the marina,
however, an obstacle arose when it was learned that the provisions of
the ABC Law would restrict the holder of a manufacturing license from
opening a restaurant-brewery at another location.

Since the 1930s, when Prohibition was repealed, New York State law has
restricted owners of alcohol manufacturer's licenses, wholesale
licenses and retail licenses from having an interest in each other.
This practice is outdated.

Previously, the Alcoholic Beverage Control Law has been amended to
create specific, limited exemptions from the 'tied house'
restrictions. This bill will remove the restrictions that currently
exist on on-site breweries, manufacturers and wholesalers. By

rectifying this issue on a statewide level we will eliminate the need
to carry endless numbers of individual proposals.

 PRIOR LEGISLATIVE HISTORY :

This is new legislation.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

There are no known fiscal implications to the State in association
with the passage of this legislation.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S5677 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5677                                                  A. 7361
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                              April 25, 2017
                                ___________
 
 IN  SENATE -- Introduced by Sen. MURPHY -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Investi-
   gations and Government Operations
 
 IN ASSEMBLY -- Introduced by M. of A. GALEF -- read once and referred to
   the Committee on Economic Development

 AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
   removing prohibitions on manufacturers and wholesalers from having  an
   interest  in  retail  sales  and  removing  the general prohibition of
   on-site breweries; and repealing certain provisions of such law relat-
   ing thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 1 of section 101 of the alco-
 holic beverage control law is REPEALED and paragraphs (b), (c), (d)  and
 (e) are relettered paragraphs (a), (b), (c) and (d).
   §  2.  Paragraph  (d) of subdivision 1 of section 101 of the alcoholic
 beverage control law, as added by chapter 557 of the laws of 1964 and as
 relettered by section one of this act, is amended to read as follows:
   (d) The prohibitions and restrictions contained in  paragraphs  [b,  c
 and d above] (A), (B) AND (C) OF THIS SUBDIVISION shall not apply to any
 contractual  arrangements  between a licensed manufacturer or wholesaler
 and a licensed retailer where such manufacturer or wholesaler has made a
 substantial investment,  directly  or  through  such  retailer,  in  the
 construction,  capitalization  or furnishing of any exhibit, facility or
 installation in the area leased by the city of  New  York  to  New  York
 World's  Fair  1964-1965  Corporation,  pursuant to chapter four hundred
 twenty-eight of the laws of nineteen hundred sixty, as amended, and such
 retailer is conducting his business as a part of such exhibit or instal-
 lation or is responsible to such corporation for the construction, oper-
 ation or maintenance of such exhibit,  facility  or  installation.  This
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08669-01-7

 S. 5677                             2                            A. 7361
 
 modification  to  the  prohibitions  and  restrictions contained in this
 paragraph shall continue until November first, nineteen  hundred  sixty-
 five.
   §  3.  Subdivision 13 of section 106 of the alcoholic beverage control
 law is REPEALED.
   § 4. Subdivisions 18 and 19 of section 64-c of the alcoholic  beverage
 control law are REPEALED.
   §  5.  Subdivision  7 of section 103 of the alcoholic beverage control
 law, as amended by chapter 221 of the laws of 2011, is amended  to  read
 as follows:
   7.  Each  manufacturer shall keep and maintain upon the licensed prem-
 ises, adequate books and records of all transactions involving the manu-
 facture and sale of his or its products, which shall show  the  ingredi-
 ents  but  not  the  formula  or  recipe used in the manufacture of such
 alcoholic beverages together with the quantity  of  alcoholic  beverages
 manufactured by such manufacturer; the names, addresses, and the license
 numbers of the purchasers of such alcoholic beverages, together with the
 quantities  involved  in  such purchases, whether the same shall be sold
 within or without the state. Each sale shall be recorded separately on a
 numbered invoice, which shall have printed thereon the number, the  name
 of  the  licensee, the address of the licensed premises, and the current
 license number. Such manufacturer shall deliver to the purchaser a  true
 duplicate  invoice  stating  the  name and address of the purchaser, the
 quantity of alcoholic beverages, description by brands and the price  of
 such alcoholic beverages, and a true, accurate and complete statement of
 the  terms  and  conditions  on  which  such sale is made. Any terms and
 conditions of a sale not stated  on  said  invoice  shall  constitute  a
 service  within the meaning of paragraph [(c)] (B) of subdivision one of
 section one hundred  one  of  this  article.  Such  books,  records  and
 invoices  shall be kept for a period of two years and shall be available
 for inspection by any authorized representative of the liquor authority.
 Provided, however, that any books and records required by  this  chapter
 to  be maintained by a winery, farm winery, special winery, special farm
 winery or microwinery must be kept either upon the licensed premises  or
 such other location as may be approved by the authority.
   §  6.  Subdivision 10 of section 104 of the alcoholic beverage control
 law, as amended by chapter 162 of the laws of 1969, is amended  to  read
 as follows:
   10.  Each  wholesaler  shall keep and maintain upon the licensed prem-
 ises, adequate books and records of all transactions involving the busi-
 ness transacted by such wholesaler, which shall show the amount of alco-
 holic beverages in gallons, purchased by such wholesaler  together  with
 the  names,  license  numbers and places of business of the persons from
 whom the same was purchased and the amount involved in  such  purchases,
 as  well  as the amount of alcoholic beverages, in gallons, sold by such
 wholesaler together with the names, addresses, and  license  numbers  of
 such  purchasers  whether  the same shall be purchased or sold within or
 without the state. Each sale shall be recorded separately on a  numbered
 invoice,  which  shall  have printed thereon the number, the name of the
 licensee, the address of the licensed premises, and the current  license
 number.  Such wholesaler shall deliver to the purchaser a true duplicate
 invoice stating the name and address of the purchaser, the  quantity  of
 alcoholic  beverages,  description by brands and the price of such alco-
 holic beverages, and a true, accurate  and  complete  statement  of  the
 terms  and  conditions  on which such sale is made. Any terms and condi-
 tions of a sale not stated on said invoice shall  constitute  a  service

 S. 5677                             3                            A. 7361

 within  the meaning of [section one hundred and one, subdivision one (c)
 of this chapter] PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION ONE HUNDRED
 ONE OF THIS ARTICLE.  Such books, records and invoices shall be kept for
 a  period  of  two  years  and  shall be available for inspection by any
 authorized representative of the liquor authority.
   § 7. This act shall take effect immediately.

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