BILL NUMBER: S6641

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend chapter 118 of the laws of 2012 amending the alcoholic
beverage control law relating to the powers of the chairman and members
of the authority, in relation to the effectiveness of certain provisions
thereof

1.  
PURPOSE:

This bill would extend for three years changes made to sections 15, 17
and 18 of the Alcoholic Beverage Control Law ("ABCL") via Chapter 118 of
the Laws of 2012 as amended by section two of chapter 355 of the laws of
2013, as amended via Chapter 78 of the Laws of 2015, as amended via
Chapter 117 of the Laws of 2018, that delegated to the Chairman of the
State Liquor Authority exclusive executive authority over the State
Liquor Authority and the Division of Alcoholic Beverage Control.

2.  
SUMMARY OF PROVISIONS:
              

Section 1 of the bill would amend Chapter 118 of the Laws of 2012, as
amended by section two of chapter 355 of the laws of 2013, as amended
via Chapter 78 of the Laws of 2015, as amended via Chapter 117 of the
Laws of 2018, by extending the expiration date of same for three years
from July 18, 2021 until July 18, 2024.

Section 2 of the bill would make the amendment effective immediately.

3.  
EXISTING LAW:

Prior to enactment of Chapter 118 of the Laws of 2012, the powers which
this bill would continue to extend to the Chairman were vested in the
board of the State Liquor Authority. Pursuant to the budget for State
Fiscal Year 2011-12, all Members of the Authority except the Chairman
became per diem members of the board, with the goal of vesting day-to-
day exclusive executive authority over the State Liquor Authority and
the Division of Alcoholic Beverage Control in the Chairman.

4.  
LEGISLATIVE HISTORY:

As stated above, this is a proposal to extend for three years amendments
to ABCL §§ 15,17 and 18 that were made via Chapter 118 of the Laws of
2012 as amended by section two of chapter 355 of the laws of 2013, and
as amended by Chapter 78 of the Laws of 2015, and as amended via Chapter
117 of the Laws of 2018.

5.  
STATEMENT IN SUPPORT:

Extension of these amendments will allow the Authority to continue to
operate in keeping with recommendations of the New York State Law
Revision Commission, who stated in their Report on the Alcoholic Bever-
age Control Law and its Administration ("Report"), in relevant part, as
follows (Report, p.25):

The ABC Law should be amended to grant the Chairman of the Authority
exclusive executive authority over both the division of alcoholic bever-
age control and the Authority, including the authority to hire, assign,
and fire deputies, counsels, assistants, investigators and all other
employees within the limits of the agency appropriation, in consultation
with the other members of the Authority, removing all such responsibil-
ity from the Authority.

ABC Law §§ 15 and 17(4) formerly delegated the power to hire and fire to
the three-member State Liquor Authority acting as a Full Board.  The Law
Revision Commission noted that the full board control over hiring and
firing may well prevent employment decisions from being made where there
is a vacancy on the Full Board and a disagreement between the two serv-
ing board members (Report, p. 122):

Although by statute, the Chairman has administrative control, he does
not have the power to hire and fire. Tice entire Board-has to agree on
an employment decision. If there were not unanimous agreement between
the two current Commissioners, no employment decisions could be made.

Even where the Authority's board Is fully Staffed with its three
members, the Chairman's to take administrative action may be called into
question by a challenge to the scope of his author*/ (Report, p.129):

The multiple agency head authority could result in the Chairman being
undermined if the other members disagree with him or her. For example,
in 2008, two of the Commissioners disagreed with certain actions of the
Chairman so they voted to rescind previous delegations of authority to
the Chairman.

Chapter 118 of the Laws of 2012, in the first instance, sought to imple-
ment the Law Revision Commission recommendation; that the Chairman be
delegated exclusive administrative ò control over hiring and firing.
These sections also make clear the scope of the Chairman's authority
over budget and fiscal matters, the submission of required reports, and
the development of minimum criteria for ATAP.

In addition, providing the Chairman, rather than the Full Board, with
administrative power over the agency recognizes the impact of another
significant change made to the organizational structure of the State
Liquor Authority. Commencing in Fiscal Year 20112012, the Commission= of
the Authority are no longer "full time employees. Instead, they serve on
a per diem basis centered primarily on their duties at Full Board meet-
ings. The Chairman, as the sole remaining "full time" Member of the
Authority. Is best situated to address the administrative functions of
the agency.

Extension of the delegation of administrative functions to the exclusive
control of the Chairman does not diminish the regulatory powers exer-
cised by the three-member Authority. The three members of the Authority,
acting together as a bill board, will continue to regal alcoholic bever-
age traffic within the State. Briefly stated, ABCL § 17 will continue to
empower the three-member Authority:

1. To approve or disapprove license and permit applications;
2. To limit the number of licenses of each class to be issued within the
state or any political subdivision thereof;
3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty for cause against
any holder of a license or permit issued pursuant to this chapter;

4. To fix by rule the standards in the manufacture of alcoholic beverag-
es to be sold or consumed in the state;
5. To hold hearings, subpoena and examine any person under oath, and
require the production of any books or papers relative to the inquire;
6. To prohibit during a period of a public emergency the sale of any or
all alcoholic beverages;
7. To delegate the powers provided in this section to the chairman, or
to such other officers or employees as may be designated by the chair-
man;
8. To appoint advisory groups; and
9. To approve or disapprove the request of a county legislative body to
restrict or modify the legal hours of sale within such county.

Thus, while extending the grant of exclusive administrative authority to
the Chairman, this legislation also prudently preserves for the Full
Board those functions best performed by a deliberative body, and those
regulatory determinations involving broad policy considerations that are
best left to a contemplative body.

6.  
POSSIBLE OBJECTIONS:

None known.

7.  
OTHER STATE AGENCIES INTERESTED:

None known.

8.  
KNOWN POSITIONS OF OTHERS:

None known.

9.  
BUDGET IMPLICATIONS:

None.

10.  
LOCAL IMPACT:

None.