NY State Senate Bill 2023-S6786

Current 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, 2024	referred to investigations and government operations
May 10, 2023	referred to investigations and government operations

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2023-S6786 (ACTIVE) - Details

See Assembly Version of this Bill:: A6989
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3, 75, 83, 100 & 102, add §79-e, ABC L

2023-S6786 (ACTIVE) - Summary

Establishes supermarket wine licenses to sell from the licensed premises wine in sealed containers for consumption off such premises.

2023-S6786 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6786

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to
establishing supermarket wine licenses

 
PURPOSE:

To allow certain off premises sales locations to sell wine in addition
to their existing alcohol sales of beer, cider, and wine products.

 
SUMMARY OF PROVISIONS:

This bill creates a new definition of supermarket for purposes of estab-
lishing a supermarket wine license. This license would only be available
to full-service grocery stores that are primarily engaged in the sale of
food (at least 65% of sales from food-related products), already have a
license for off premises beer sales, and are more than five thousand
square feet. Applicants would pay a one-time franchise fee of ten thou-
sand dollars per location. There would also be an annual fee for main-

taining such licenses that is based on the licensee's total sales of
wine in the prior year. Sales of New York wines would not be included,
thereby providing an incentive to promote and sell New York wines.

 
JUSTIFICATION:

New York's restriction on the sale of wine in supermarkets can be traced
back to the era of Prohibition. While many laws have been updated to
reflect modern times, consumers are still stuck making multiple trips to
different stores for groceries and wine. This anachronistic model
provides no consumer protections, but instead protects an entrenched
monopoly that is to the detriment of convenient access for consumers. If
consumers can be trusted to buy beer in supermarkets, they should be
given the option to also purchase wine with their groceries as well.

A January 2023 Siena poll found that 76% of New Yorkers support the sale
of wine in grocery stores and 86% supported modernizing NY laws on wine
sales to create more opportunities for NY wineries and grape producers
to sell their products. New York is the only major wine-producing state
that does not allow wine to be sold in grocery stores- unlike our larg-
est competitors California, Washington, and Oregon- and New York's
wineries will significantly benefit from increased distribution in
supermarkets under this bill.

Currently, more than forty states allow for the sale of wine in super-
markets. In the states where wine is sold in grocery stores, such as
Florida, liquor stores still exist and thrive. Allowing supermarkets to
sell wine is simply about consumer access and ease, while also striking
a balance - not including liquor - which ensures there will always be a
market for traditional liquor stores. These traditional liquor stores
will also likely continue to offer wines beyond what a supermarket can
dedicate floor space to.

The requirement for 65% of sales to be food-related will exclude
national big box retailers and superstores (which may sell some food,
but primarily are general goods retailers with significant buying
power). Additionally, the bill's proposed minimum square foot threshold
of 5,000 square feet would ensure that only full-service grocery stores
are included, and not thousands of smaller convenience stores, gas
station quick marts, drug stores, etc.

This legislation also seeks to incentivize the sale of New York made
wines by providing reductions in the stores' annual fees for New York
wines sold. The focus on New York wines will greatly boost New York
wineries and provide a steady stream of new customers for locally made
products.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None to the State, but there is expected increased revenue from applica-
tion and license fees.

 
EFFECTIVE DATE:
Immediately.

2023-S6786 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 6786                                                  A. 6989
 
                        2023-2024 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                               May 10, 2023
                                ___________
 
 IN  SENATE -- Introduced by Sens. KRUEGER, COONEY, FELDER, HOYLMAN-SIGAL
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Investigations and Government Operations
 
 IN ASSEMBLY --  Introduced  by  M.  of  A.  HUNTER,  HYNDMAN,  WILLIAMS,
   CUNNINGHAM  --  read  once  and  referred to the Committee on Economic
   Development
 
 AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
   establishing supermarket wine licenses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3 of the alcoholic beverage control law is  amended
 by adding a new subdivision 13-a to read as follows:
   13-A.    "SUPERMARKET"  SHALL  MEAN ANY RETAIL ESTABLISHMENT (A) WHOSE
 PRIMARY BUSINESS IS THE SALE OF FOODSTUFFS FOR OFF-PREMISES CONSUMPTION,
 AND (B) WHICH IS AT LEAST FIVE THOUSAND  SQUARE  FEET,  IN  TOTAL  FLOOR
 AREA.  THERE  SHALL BE A REBUTTABLE PRESUMPTION THAT A RETAIL ESTABLISH-
 MENT IS PRIMARILY ENGAGED IN THE SALE OF FOODSTUFFS WHERE SUCH SALES  OF
 FOODSTUFFS  CONSTITUTES  GREATER  THAN  SIXTY-FIVE  PERCENT OF THE TOTAL
 REVENUE OF SUCH ESTABLISHMENT IN THE TWELVE MONTHS PRECEDING  SUBMISSION
 OF AN APPLICATION.
   §  2.  Subdivisions  3  and  5 of section 75 of the alcoholic beverage
 control law, subdivision 3 as amended by section 4 of part K of  chapter
 60  of  the  laws  of 2004, subdivision 5 as added by chapter 355 of the
 laws of 2013, are amended and a new subdivision 6 is added  to  read  as
 follows:
   3.  Seven  day  license to sell wine at retail for consumption off the
 premises subject to paragraph (a) of subdivision fourteen of section one
 hundred five of this chapter[.];
   5. Roadside farm market license[.];
   6. SUPERMARKET WINE LICENSE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10893-01-3

 S. 6786                             2                            A. 6989
 
   § 3. The alcoholic beverage control law is amended  by  adding  a  new
 section 79-e to read as follows:
   §  79-E.  SUPERMARKET  WINE  LICENSE.  1.  ANY PERSON MAY APPLY TO THE
 AUTHORITY FOR A LICENSE TO SELL  FROM  THE  LICENSED  PREMISES  WINE  IN
 SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES.
   2.  NO  SUCH  LICENSE  SHALL BE ISSUED, HOWEVER, TO ANY PERSON FOR ANY
 PREMISES OTHER THAN A SUPERMARKET, AS DEFINED IN SUBDIVISION  THIRTEEN-A
 OF SECTION THREE OF THIS CHAPTER.
   3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
 GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A SUPERMARKET LICENSE TO THE
 HOLDER OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMPTION OFF THE PREM-
 ISES  PURSUANT  TO  SECTION FIFTY-FOUR OF THIS CHAPTER, OR BEER AND WINE
 PRODUCTS AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSUANT TO  SECTION
 FIFTY-FOUR-A OF THIS CHAPTER, AT THE REQUEST OF SUCH LICENSEE AND THERE-
 AFTER  RENEWED  OR  TRANSFERRED,  WHICH AUTHORIZES THE HOLDER THEREOF TO
 SELL BEER AT RETAIL TO A PERSON FOR CONSUMPTION IN HIS OR HER HOME.
   (B) FOR THE PURPOSES OF THIS SECTION, THE PREMISES OF THE  SUPERMARKET
 WINE  LICENSEE  SHALL BE THE SAME AS THE PREMISES LICENSED UNDER SECTION
 FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.
   (C) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY  LICENSE
 ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
 ING  LICENSE  UNDER  SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER,
 AND SHALL BE DEEMED EXPIRED AT  SUCH  TIME  AS  THE  UNDERLYING  LICENSE
 EXPIRES.
    (D)  ANY  PERSON LICENSED TO SELL WINE PURSUANT TO THIS ARTICLE SHALL
 BE PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS WHICH ARE CONDUCTED
 UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM WINERY, WINERY, WHOLE-
 SALER, OR IMPORTER AND WHERE SUCH AGENT IS  PHYSICALLY  PRESENT  AT  ALL
 TIMES  DURING  THE  CONDUCT  OF  THE  TASTING,  THEN, IN THAT EVENT, ANY
 LIABILITY STEMMING FROM A RIGHT OF ACTION RESULTING FROM A WINE  TASTING
 AS  AUTHORIZED  PURSUANT  TO  THIS  SECTION,  AND IN ACCORDANCE WITH THE
 PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS LAW,
 SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
   4. SUCH APPLICATION SHALL BE IN  SUCH  FORM  AND  SHALL  CONTAIN  SUCH
 INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
 BE  ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS ARTI-
 CLE FOR SUCH LICENSE.
   5. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS  CHAPTER,  ANY  PERSON
 RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
 PROVISIONS  OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE OF
 THIS ARTICLE.
   6. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS  CHAPTER,  ANY  PERSON
 RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
 PROVISIONS  OF  SUBDIVISION TWO, PARAGRAPH (A) OF SUBDIVISION THREE, AND
 SUBDIVISION FOURTEEN OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   7. (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID FOR BY EACH LICENSEE  TO
 THE  STATE  LIQUOR  AUTHORITY. THIS FRANCHISE FEE IS HEREBY IMPOSED AT A
 RATE OF TEN THOUSAND DOLLARS.
   (B) NO LICENSE SHALL BE ISSUED PURSUANT  TO  THIS  SECTION  UNTIL  THE
 FRANCHISE  FEE  OR  ESTIMATED FRANCHISE FEE REQUIRED BY PARAGRAPH (A) OF
 THIS SUBDIVISION HAS BEEN PAID IN FULL.
   (C) THE FRANCHISE FEE SHALL BE DEPOSITED AND DISPOSED OF IN  THE  SAME
 MANNER AS ANY LICENSE FEE AS PROVIDED IN SECTION ONE HUNDRED TWENTY-FIVE
 OF THIS CHAPTER.
   8.  ANY PERSON LICENSED TO SELL WINE AT RETAIL FOR CONSUMPTION OFF THE
 PREMISES UNDER SECTION SEVENTY-NINE OF THIS  ARTICLE  IS  AUTHORIZED  TO
 S. 6786                             3                            A. 6989
 
 SELL  WINE  TO PERSONS LICENSED TO SELL WINE UNDER THIS ARTICLE AND THIS
 SECTION WHO OPERATE THE PREMISES OF THE SUPERMARKET WINE LICENSEE.
   9.  THE  STATE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS NECES-
 SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
   § 4. Section 83 of the alcoholic beverage control law  is  amended  by
 adding a new subdivision 10 to read as follows:
   10.  THE ANNUAL FEE FOR A SUPERMARKET WINE LICENSE PURSUANT TO SECTION
 SEVENTY-NINE-E OF THIS ARTICLE SHALL BE AT  A  RATE  OF  ONE-HALF  (0.5)
 PERCENT  OF SALES OF WINE SOLD, LESS THE AMOUNT FROM SALES OF WINES SOLD
 THAT WERE PRODUCED IN NEW YORK STATE.
   § 5. Subdivision 2-a of section 100 of the alcoholic beverage  control
 law,  as  amended by chapter 249 of the laws of 2002, is amended to read
 as follows:
   2-a. No retailer shall employ, or permit  to  be  employed,  or  shall
 suffer  to work, on any premises licensed for retail sale hereunder, any
 person under the age of eighteen years, as a hostess, waitress,  waiter,
 or  in  any  other  capacity  where the duties of such person require or
 permit such person to sell,  dispense  or  handle  alcoholic  beverages;
 except that: (1) any person under the age of eighteen years and employed
 by  any  person  holding  a  grocery or drug store beer license shall be
 permitted to handle and deliver beer and wine products for  such  licen-
 see, (2) any person under the age of eighteen employed as a cashier by a
 person  holding  a grocery or drug store beer license shall be permitted
 to record and receive payment for beer and wine product  sales  when  in
 the  presence  of  and under the direct supervision of a person eighteen
 years of age or over, (2-a) any person under the age of  eighteen  years
 and  employed  by  a  person  holding a grocery store or drug store beer
 license as either a cashier or in any other position to  which  handling
 of  containers  which  may  have  held alcoholic beverages is necessary,
 shall be permitted to handle the containers if such have been  presented
 for redemption in accordance with the provisions of title ten of article
 twenty-seven of the environmental conservation law, [and] (3) any person
 under  the  age  of  eighteen years employed as a dishwasher, busboy, or
 other such position as to which handling of containers  which  may  have
 held  alcoholic beverages is necessary shall be permitted to do so under
 the direct supervision of a person of legal age  to  purchase  alcoholic
 beverages  in  the state, (4) ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS
 AND EMPLOYED BY ANY PERSON HOLDING A SUPERMARKET WINE LICENSE  SHALL  BE
 PERMITTED  TO  HANDLE  AND  DELIVER  WINE FOR SUCH LICENSEE, AND (5) ANY
 PERSON UNDER THE AGE OF EIGHTEEN EMPLOYED AS A CASHIER BY A PERSON HOLD-
 ING A SUPERMARKET WINE LICENSE SHALL BE PERMITTED TO RECORD AND  RECEIVE
 PAYMENT  FOR  WINE  WHEN  IN THE PRESENCE OF AND UNDER THE DIRECT SUPER-
 VISION OF A PERSON EIGHTEEN YEARS OF AGE OR OVER.
   § 6. Subdivisions 3-a and 3-b of section 102 of the alcoholic beverage
 control law, as amended by chapter 458 of the laws of 1993, are  amended
 to read as follows:
   3-a.  No licensee or permittee shall purchase or agree to purchase any
 alcoholic beverages from any person within the state  who  is  not  duly
 licensed to sell such alcoholic beverage as the case may be, at the time
 of such agreement and sale nor give any order for any alcoholic beverage
 to  any individual who is not the holder of a solicitor's permit, except
 as provided for in section eighty-five [or], ninety-nine-g, OR  SEVENTY-
 NINE-E of this chapter.
   3-b.  No  retail licensee shall purchase, agree to purchase or receive
 any alcoholic beverage except from a person  duly  licensed  within  the
 state  by  the  liquor  authority to sell such alcoholic beverage at the
 S. 6786                             4                            A. 6989
 
 time of such agreement and sale  to  such  retail  licensee,  except  as
 provided  for  in  section  eighty-five [or], ninety-nine-g, OR SEVENTY-
 NINE-E of this chapter.
   § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 8. This act shall take effect immediately.

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Senate Bill S6786

Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2023-S6786 (ACTIVE) - Details

2023-S6786 (ACTIVE) - Summary

2023-S6786 (ACTIVE) - Sponsor Memo

2023-S6786 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6786

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Sponsored By

Liz Krueger

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

Leroy Comrie

Jeremy A. Cooney

Simcha Felder

Brad Hoylman-Sigal

2023-S6786 (ACTIVE) - Details

2023-S6786 (ACTIVE) - Summary

2023-S6786 (ACTIVE) - Sponsor Memo

2023-S6786 (ACTIVE) - Bill Text download pdf

Comments