S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3397
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by  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 is REPEALED and subdivision 5 is amended to read as follows: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-FOUR,  NOT
 more than one license shall be granted to any person under this section.
 BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, A PERSON
 MAY BE GRANTED ADDITIONAL SEVEN DAY LICENSES AS FOLLOWS, PROVIDED HOWEV-
 ER,  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-FOUR, 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-SIX, 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-EIGHT,  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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06841-01-3
 A. 3397                             2
              

 
   (IV) ON OR AFTER JANUARY FIRST, TWO THOUSAND  THIRTY,  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.
   (V)  ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY-TWO, 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:
 A. 3397                             3
 
   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
 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.
 A. 3397                             4
 
   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, 2024.