NY State Senate Bill 2025-S3136

Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 23, 2025	referred to commerce, economic development and small business

2025-S3136 (ACTIVE) - Details

See Assembly Version of this Bill:: A4511
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Rpld §63 sub 6, amd §§63, 66 & 105, ABC L; add §97-bbbbb, St Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A10527
2023-2024: S6473, A3397

2025-S3136 (ACTIVE) - Summary

Relates to enacting the "New York wine & distilled spirits development act"; allows individuals to hold more than one seven day license to sell liquor at retail for off-premises consumption; establishes the New York distilled spirits and wine industry marketing and promotion fund.

2025-S3136 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3136

SPONSOR: COONEY
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF THE BILL:

This legislation updates the antiquated section of New York State's
liquor licensing laws that precludes retailers of wine and spirits from
operating more than one outlet in the state. It will phase in multiple
licenses over an 8-year period, will cap the total number of retail
liquor licenses to 12 per entity and limits the overall number of
licenses issued per county. Additionally, it would create a New York
State Distilled Spirits and Wine Industry Marketing Fund to assist in
the promotion and marketing of New York's award-winning distilled spir-
its and wines. The Fund will focus on the promotion and marketing of
these products to consumers both outside of and within New York. This
legislation will unlock economic growth, increase consumer choice and

ensure that New York is no longer an outlier among surrounding states
with this archaic prohibition.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill defines the act as the "New York Wine and
Distilled Spirits Marketing Fund."

Section 2 of the bill amends subdivision 5 and 6 of section 63 of the
alcoholic beverage control law and adds new subdivisions 5a, 5b and 5c.
As it relates to the number of off-premise locations a person may be
granted by the New York State Liquor Authority to operate and the proc-
ess by which such licenses may be issued in certain counties.

Section 3 of the bill amends subdivision 16 of section 105 of the alco-
holic beverage control to clarify that a person may hold an interest in
more than one package store.

Section 4 of the bill amends subdivision .5 of section 66 of the alco-
holic beverage control law to establish the license fee for each license
issued by the New York State Liquor Authority to a person granted addi-
tional licenses under section 63 of the alcoholic beverage control law.

Section 5 of the bill amend section 97 of the State Finance Law by
adding a new section 97-BBBBB to create the New York Distilled Spirits
and Wine Industry Marketing Fund.

 
JUSTIFICATION:

Numerous aspects of New York's ABC laws have not been updated since
Prohibition, including precluding retailers of wine and spirits from
operating more than one outlet in the state. This has made New York an
outlier, has limited consumer choice and has negatively impacted the
growth of the New York wine and distilled spirits industries. It simply
makes no sense that liquor stores are the only type of business limited
to one location in the entire state, while other licensed business from
restaurants and drug stores to even marijuana dispensaries - have no
similar limits.

The proposed legislation addresses this in a comprehensive manner that
would still limit the overall number of licenses one entity could hold;
phases in this expansion over several years; provides for county-level
limits on licenses as a means to protect, and even benefit, smaller
retailers; and ensures that alcohol availability remains subject to
reasonable limits.

A recently undertaken economic impact study on multiple licenses
projected increases in NYS revenue, including $54 million from license
auctions and additional tax revenues of more than $43 million; as many
as 4,430 new jobs, generating $203.3 million in wages and benefits and
$500 million in new economic activity in the state; and as many as 1.9
million additional bottles sold by New York State wine and distilled
spirits producers each year. The study also looked at other states which
allow multiple licenses, such as Massachusetts, which updated its law in
2011 to allow up to 9 licenses and which has seen positive economic
impacts and no domination of the market by large chain retailers.

This legislation would allow current licensees to grow and diversify by
opening additional stores if wanted, while providing owners who do not
wish to expand with the ability to capitalize on the increased value of
their licenses (created by the restrictions on the number of licenses
allowed in each county) by selling them to other owners who could now
expand in the state.

Finally, the bill will provide direct assistance to the wine and
distilled spirits industries in New York State through the creation of
the New York Distilled Spirits and Wine Industry Marketing Fund. This
fund would commit a portion of revenue generated by the sale of new
licenses to a dedicated support fund that would seek to grow small busi-
ness, agricultural, and manufacturing jobs across the state.

 
PRIOR LEGISLATIVE HISTORY:

2023-24: S.6473

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

It is estimated that this would generate between $13.8 million and $54.5
million in new license auction revenue for New York State. In addition,
the additional beverage alcohol sales brought on by the addition of new
stores would increase excise and sales tax revenues by as much as $46.2
million.

 
EFFECTIVE DATE:
Immediate.

2025-S3136 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3136
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 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. Short title.  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-SIX, NOT more
 than  one  license  shall  be  granted to any person under this section.
 BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, 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-SIX, 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-EIGHT, 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 THIRTY,  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.
                                                            LBD03180-01-5

 S. 3136                             2
 
   (IV) ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY-TWO, 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-FOUR, 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:
 S. 3136                             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,
 EXCEPT  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.
 S. 3136                             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 on the first of January next  succeed-
 ing the date on which it shall have become a law.

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Senate Bill S3136

Sponsored By

Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Actions

2025-S3136 (ACTIVE) - Details

2025-S3136 (ACTIVE) - Summary

2025-S3136 (ACTIVE) - Sponsor Memo

2025-S3136 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jeremy Cooney

Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Actions

2025-S3136 (ACTIVE) - Details

2025-S3136 (ACTIVE) - Summary

2025-S3136 (ACTIVE) - Sponsor Memo

2025-S3136 (ACTIVE) - Bill Text download pdf

Comments