S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10527
 
                           I N  A S S E M B L Y
 
                               June 15, 2022
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Fall) --
   read once and referred to the Committee on Economic Development
 
 AN ACT to amend the alcoholic beverage control law and the state finance
   law, in relation to enacting the "New York wine  &  distilled  spirits
   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.  This act shall be known and may be cited as the "New York
 wine & distilled spirits development act".
   § 2. Subdivision 6 of section 63 of the alcoholic beverage control law
 is REPEALED and subdivision 5 is amended to read as follows:
   5. [Not] (A) PRIOR TO JANUARY FIRST, TWO  THOUSAND  TWENTY-THREE,  NOT
 more than one license shall be granted to any person under this section.
 BEGINNING  ON  AND  AFTER  JANUARY  FIRST,  TWO THOUSAND TWENTY-THREE, A
 PERSON MAY BE GRANTED ADDITIONAL SEVEN DAY LICENSES AS FOLLOWS, PROVIDED
 HOWEVER, THE ISSUANCE OF SUCH SEVEN DAY LICENSES SHALL BE IN  ACCORDANCE
 WITH PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION:
   (I)  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND TWENTY-THREE, NOT MORE
 THAN TWO ADDITIONAL SEVEN DAY LICENSES MAY  BE  GRANTED  TO  ANY  PERSON
 UNDER THIS SECTION, FOR A MAXIMUM OF THREE SEVEN DAY LICENSES ANY PERSON
 MAY HOLD.
   (II)  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, NOT MORE
 THAN FOUR ADDITIONAL SEVEN DAY LICENSES MAY BE  GRANTED  TO  ANY  PERSON
 UNDER  THIS SECTION, FOR A MAXIMUM OF FIVE SEVEN DAY LICENSES ANY PERSON
 MAY HOLD.
   (III) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN,  NOT  MORE
 THAN  SIX  ADDITIONAL  SEVEN  DAY  LICENSES MAY BE GRANTED TO ANY PERSON
 UNDER THIS SECTION, FOR A MAXIMUM OF SEVEN SEVEN DAY LICENSES ANY PERSON
 MAY HOLD.
   (IV) ON OR AFTER JANUARY FIRST, TWO  THOUSAND  TWENTY-NINE,  NOT  MORE
 THAN  EIGHT  ADDITIONAL  SEVEN DAY LICENSES MAY BE GRANTED TO ANY PERSON
 UNDER THIS SECTION, FOR A MAXIMUM OF NINE SEVEN DAY LICENSES ANY  PERSON
 MAY HOLD.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              
             
                          
                                                                            LBD15948-01-2
 A. 10527                            2
 
   (V)  ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY-ONE, NOT MORE THAN
 ELEVEN ADDITIONAL SEVEN DAY LICENSES MAY BE GRANTED TO ANY PERSON  UNDER
 THIS  SECTION, FOR A MAXIMUM OF TWELVE SEVEN DAY LICENSES ANY PERSON MAY
 HOLD.
   (B) COMMENCING ON THE EFFECTIVE DATE OF THIS PARAGRAPH, AND EVERY FIVE
 YEARS  THEREAFTER,  THE  AUTHORITY  SHALL  DETERMINE THE RATIO OF ACTIVE
 SEVEN DAY LICENSES IN A COUNTY PER ADULT RESIDENTS OVER THE AGE OF TWEN-
 TY-ONE YEARS RESIDING IN SUCH COUNTY, USING THE MOST  CURRENT  DECENNIAL
 CENSUS  AS  CONDUCTED  BY THE UNITED STATES DEPARTMENT OF COMMERCE. SUCH
 RATIO SHALL BE USED BY THE AUTHORITY WHEN CONSIDERING AN APPLICATION FOR
 A SEVEN DAY LICENSE WITHIN ANY COUNTY PROVIDED FOR IN PARAGRAPHS (C) AND
 (D) OF THIS SUBDIVISION.
   (C) NO ADDITIONAL SEVEN DAY LICENSES SHALL BE GRANTED BY THE AUTHORITY
 IN ANY COUNTY IN WHICH THE RATIO OF ACTIVE SEVEN DAY  LICENSES  IN  SUCH
 COUNTY  PER ADULT RESIDENTS OVER THE AGE OF TWENTY-ONE YEARS RESIDING IN
 SUCH COUNTY IS EQUAL TO OR LESS THAN ONE ACTIVE SEVEN  DAY  LICENSE  PER
 THREE  THOUSAND  ADULT  RESIDENTS  OVER THE AGE OF TWENTY-ONE YEARS. THE
 PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO:
   (I) THE RENEWAL, REMOVAL OR CONTINUANCE OF A SEVEN DAY LICENSE;
   (II) AN APPLICATION FOR A SEVEN DAY LICENSE FILED BEFORE THE EFFECTIVE
 DATE OF THIS PARAGRAPH; OR
   (III) AN APPLICATION BY A PURCHASER OF ALL OR SUBSTANTIALLY ALL OF THE
 ASSETS OF AN EXISTING LICENSEE OF A SEVEN DAY LICENSE WITHIN THE COUNTY.
 A PURCHASER UNDER THIS SUBPARAGRAPH SHALL MAKE  AN  APPLICATION  TO  THE
 AUTHORITY,  WHICH  THE  AUTHORITY  SHALL  GRANT,  PROVIDED THAT (A) SUCH
 PURCHASER IS OTHERWISE QUALIFIED TO HOLD A SEVEN DAY  LICENSE,  AND  (B)
 THE  PREMISES SOUGHT TO BE LICENSED UNDER THIS SECTION SHALL COMPLY WITH
 THE REQUIREMENTS OF THIS ARTICLE AND ARE  NOT  LOCATED  IN  A  DIFFERENT
 COUNTY.
   (D) THE AUTHORITY MAY, IN ITS DISCRETION, AUCTION ADDITIONAL SEVEN DAY
 LICENSES  TO  BE  USED  IN  ANY  COUNTY  WHOSE RATIO OF ACTIVE SEVEN DAY
 LICENSES IN SUCH COUNTY PER ADULT RESIDENTS OVER THE AGE  OF  TWENTY-ONE
 YEARS  RESIDING  IN  THE  COUNTY  IS  GREATER  THAN ONE ACTIVE SEVEN DAY
 LICENSE PER THREE THOUSAND ADULT RESIDENTS OVER THE  AGE  OF  TWENTY-ONE
 YEARS. NO SEVEN DAY LICENSE MAY BE AUCTIONED IF SUCH LICENSE WOULD CAUSE
 THE COUNTY'S RATIO OF ACTIVE SEVEN DAY LICENSES PER ADULT RESIDENTS OVER
 THE  AGE  OF  TWENTY-ONE  YEARS RESIDING IN THE COUNTY TO BE EQUAL TO OR
 LESS THAN THREE THOUSAND ADULT RESIDENTS  OVER  THE  AGE  OF  TWENTY-ONE
 YEARS.
   §  3.  Subdivision  5  of section 66 of the alcoholic beverage control
 law, as amended by section 3 of part Z of chapter  85  of  the  laws  of
 2002, is amended to read as follows:
   5. The annual fee for [a] EACH license to sell liquor at retail not to
 be  consumed on the premises where sold shall be thirteen hundred sixty-
 six dollars in the counties of New York, Kings, Bronx and Queens;  eight
 hundred  fifty-four  dollars  in  the  county  of Richmond and in cities
 having a population of more than one hundred thousand and less than  one
 million; and elsewhere the sum of five hundred twelve dollars.
   §  4.  Subdivision 16 of section 105 of the alcoholic beverage control
 law, as amended by chapter 621 of the laws of 1944, is amended  to  read
 as follows:
   16.  No  retail licensee to sell liquors and/or wines for off-premises
 consumption shall be interested, directly or indirectly, in any premises
 where liquors, wines or beer are manufactured or sold at  wholesale  or,
 EXPECT  AS  SET  FORTH IN SECTION SIXTY-THREE OF THIS CHAPTER, any other
 premises where liquor  or  wine  is  sold  at  retail  for  off-premises
 A. 10527                            3
 
 consumption,  by  stock  ownership,  interlocking directors, mortgage or
 lien on any personal or real property or by any other means.  Any  lien,
 mortgage or other interest or estate, however, now held by such retailer
 on  or  in  the personal or real property of such manufacturer or whole-
 saler, which mortgage, lien, interest  or  estate  was  acquired  on  or
 before  December thirty-first, nineteen hundred thirty-two, shall not be
 included within the provisions of this subdivision;  provided,  however,
 the  burden  of  establishing  the  time  of the accrual of the interest
 comprehended by this subdivision, shall be upon the person who claims to
 be entitled to the protection and exemption afforded hereby.
   § 5. The state finance law is amended by adding a new section 97-bbbbb
 to read as follows:
   § 97-BBBBB. NEW YORK DISTILLED SPIRITS AND WINE INDUSTRY MARKETING AND
 PROMOTION FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF
 THE  COMMISSIONER  OF  TAXATION  AND FINANCE AND THE STATE COMPTROLLER A
 SPECIAL FUND TO BE KNOWN AS THE "NEW YORK  DISTILLED  SPIRITS  AND  WINE
 INDUSTRY  MARKETING  FUND". AS USED IN THIS SECTION, THE TERM "THE FUND"
 SHALL MEAN THE NEW YORK DISTILLED SPIRITS AND  WINE  INDUSTRY  MARKETING
 FUND ESTABLISHED PURSUANT TO THIS SECTION.
   2.  (A)  THE FUND SHALL CONSIST OF TWENTY-FIVE PERCENT OF ALL REVENUES
 RECEIVED PURSUANT TO SUBDIVISION FIVE OF SECTION SIXTY-SIX OF THE  ALCO-
 HOLIC  BEVERAGE  CONTROL LAW, AND ALL OTHER MONEY APPROPRIATED, CREDITED
 OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE  PURSUANT  TO  LAW.
 NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING
 GRANTS,  GIFTS  OR  BEQUESTS FOR THE PURPOSES OF THE FUND AND DEPOSITING
 THEM INTO THE FUND ACCORDING TO LAW.
   (B) ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMPTROLLER
 SHALL CERTIFY TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAK-
 ER  OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE, AND CHAIR OF
 THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE  AMOUNT  OF  MONEY  DEPOSITED
 INTO THE FUND DURING THE PRECEDING CALENDAR YEAR AS THE RESULT OF REVEN-
 UE  DERIVED  PURSUANT  TO  SUBDIVISION  FIVE OF SECTION SIXTY-SIX OF THE
 ALCOHOLIC BEVERAGE CONTROL LAW AND FROM GRANTS, GIFTS AND BEQUESTS.
   (C) ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF ECONOMIC DEVELOPMENT SHALL PROVIDE A WRITTEN REPORT TO THE  TEMPORARY
 PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE
 FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, CHAIR
 OF THE SENATE INVESTIGATIONS AND GOVERNMENT OPERATIONS COMMITTEE,  CHAIR
 OF  THE  SENATE  AGRICULTURE  COMMITTEE,  CHAIR  OF THE SENATE COMMERCE,
 ECONOMIC DEVELOPMENT AND SMALL BUSINESS COMMITTEE, CHAIR OF THE ASSEMBLY
 ECONOMIC DEVELOPMENT, JOB CREATION,  COMMERCE  AND  INDUSTRY  COMMITTEE,
 CHAIR  OF THE ASSEMBLY AGRICULTURE COMMITTEE, THE STATE COMPTROLLER, AND
 THE PUBLIC.  SUCH REPORT SHALL INCLUDE HOW THE MONEYS OF THE  FUND  WERE
 UTILIZED  DURING  THE PRECEDING CALENDAR YEAR INCLUDING EXPENDITURES FOR
 ALL PROMOTIONAL AND MARKETING ACTIVITY.
   3. MONEYS FOR THE FUND SHALL BE EXPENDED ONLY FOR  THE  MARKETING  AND
 PROMOTIONAL  CAMPAIGNS  AND  EDUCATION  PROJECTS  ON  BEHALF OF NEW YORK
 PRODUCED DISTILLED SPIRITS AND WINE THAT ARE APPROVED BY THE COMMISSION-
 ER OF ECONOMIC DEVELOPMENT.
   4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF ECONOMIC DEVELOPMENT.
   5. TO THE EXTENT PRACTICABLE, THE COMMISSIONER OF ECONOMIC DEVELOPMENT
 SHALL ENSURE THAT ALL MONEYS RECEIVED BY THE FUND DURING A  FISCAL  YEAR
 ARE EXPENDED PRIOR TO THE END OF THE FISCAL YEAR.
   § 6. This act shall take effect January 1, 2023.