NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10728
SPONSOR: Rules (Schimminger) TITLE OF BILL:
An act to amend the alcoholic beverage control law and the executive
law, in relation to a reorganization of the alcoholic beverage control
law
PURPOSE:
This bill would amend various provisions of the Alcoholic Beverage
Control Law ("ABCL") and make related amendments to other laws to imple-
ment recommendations made by the Alcoholic Beverage Working Group.
Summary of provisions:
Section 1 of the bill would amend ABCL § 10 to state that the Members of
the State Liquor Authority ("Authority") shall consist of a chairman and
two commissioners, rather than three commissioners.
Section 2 of the bill would amend ABCL § 14 to permit the Governor to
appoint a commissioner as Chairman in the case of a vacancy in the
office of Chairman pending the qualification of a new Chairman.
Section 3 of the bill would amend the ABCL § 17(3) to allow the Authori-
ty to impose civil penalties on two new licenses created by this bill.
Section 4 of the bill would amend the version of ABCL § 17(3) now sched-
uled to become effective in two years to allow the Authority to impose
civil penalties on two new licenses created by this bill.
Section 5 of the bill would add new ABCL § 61-a and § 61-b to create a
combined craft manufacturing license and an importer's license.
Section 6 of the bill would amend ABCL § 63(4) to permit off-premise
liquor and wine stores to sell gift bags and gift wrapping.
Section 7 of the bill would add a new ABCL § 66(3-a) to provide a
license fee for the new importer's license.
Section 8 of the bill would amend ABCL § 93(1) to eliminate the need for
a solicitor's permit for a sales person working for a craft manufactur-
er.
Section 9 of the bill would amend ABCL§ 93(4) to extend the duration of
a temporary solicitor's permit from sixty days to six months.
Section 10 of the bill would add a new ABCL § 99-h to create a permit to
allow on-premises licensees to sell alcoholic beverages on Sundays
between 8 a.m. and ten o'clock a.m. The permit would be valid for one
calendar day and each on-premises licensee is allowed to apply for
twelve such permits in one calendar year. Each permit application
requires notice to the local municipality. Only on-premises licensees in
a city with populations under one million are eligible to receive the
permit.
Section 11 of the bill would amend ABCL § 105(5) and (11) to provide
that a winery or farm winery may sell wine in open containers, such as
growlers.
Section 12 of the bill would amend ABCL § 106(5)(3)(a) to provide that a
winery or farm winery may allow patrons to take opened bottles of wine
away from the licensed premises and to eliminate the long-standing
prohibition against serving alcoholic beverages before noon on Sundays.
This section will allow sales of alcoholic beverages starting at 10 a.m.
on Sundays.
Section 13 of the bill would amend ABCL § 108 to allow a person with an
on-premises liquor or wine license establishment adjacent to such
person's off-premises beer license establishment to transport liquor and
wine through the off-premises establishment.
Section 14 of the bill would amend ABCL § 112 to eliminate the need for
the holder of a solicitor's permit to obtain a surety bond.
Section 15 of the bill would amend ABCL § 118 adding new subdivision 5
limiting the sanctions on prosecutions of combined manufacturing
licenses issued under ABCL § 61-a to apply to only the prosecuted manu-
facturing activity.
Sections 16 of the bill would amend Executive Law § 270 to coincide with
changes made by this bill to the ABCL.
Sections 17 of the bill would amend Executive Law § 273 to coincide with
changes made by this bill to the ABCL.
Section 18 of the bill would make it effective sixty days after it is
signed into law, provided that: sections 6 and 14 of this bill will
expire and be deemed repealed three years after this bill becomes law;
and section 12 of this bill would take effect immediately upon this bill
being signed into law.
EXISTING LAW:
This bill is intended to address the following omissions in the ABCL as
well as unduly burdensome complications within the ABCL. The ABCL
currently:
*Does not address who will have administrative power over the agency in
the case of a vacancy in the office of Chairman pending the qualifica-
tion of a new Chairman;
*Does not have a license for a company that intends to sell at whole-
sale, but only to other wholesalers;
*Unnecessarily requires any solicitor working for a manufacturer,
regardless of the size of the business, to file a surety bond with the
Authority;
*Unnecessarily requires manufacturers to obtain a permit to allow new
employees to work without a solicitor's permit, but only for sixty days;
*Prohibits on-premises sales of alcoholic beverages from 8 a.m. until
noon on Sundays;
*Unnecessarily requires a person with multiple manufacturing operations
at one location to obtain multiple licenses;
*Sets limits on the types of items that can be sold at a package store;
*Prohibits a winery from selling wine in growlers, or letting patrons
leave with an open bottle of wine; and
*Prohibits a person-with an on-premises liquor or wine license and an
adjacent off-premises beer license from moving liquor or wine from a
storage area, through the beer premises, and into the on-premises
location.
LEGISLATIVE HISTORY:
This is a new bill.
STATEMENT IN SUPPORT:
This bill would incorporate recommendations made by the Governor's ABCL
Working Group, which was tasked with offering suggestions to improve the
law and aid businesses.
*The ABCL does not contain a provision to appoint a temporary Chairman
when a vacancy arises. The bill would authorize the Governor, in the
event of the death, resignation, removal or disability of the Chairman,
to designate one of the Commissioners to serve as acting Chairman for a
period up to nine months until a new Chairman is nominated by the Gover-
nor and confirmed by the Senate.
*Small businesses that import products into the state to be wholesaled
by other entities must currently choose between: (i) obtaining a costly
wholesale license; or (ii) moving their business outside of New York
State. The importers license will enable them to stay in New York State
and operate with an inexpensive license.
*Small craft manufacturers find the filing of applications and fees for
solicitors permits burdensome. The bill would remove these requirements
for small entities and also remove the requirement of a bond for solici-
tor permits for larger entities. Those solicitors are still regulated
but employers are no longer obligated to obtain bonds.
*New York craft manufacturers may manufacture different products under
different licenses at the same location. This practice requires a sepa-
rate application, fee and renewal process for each license. This bill
would enable manufacturers to apply for one license for the selected
activities requiring one filing fee and one renewal application.
*The ABCL requires that wine sold at retail stores for off-premises
consumption be kept in sealed containers. This bill permits wineries to
sell wine in growlers. The ABCL also prohibits an individual from leav-
ing a winery with an open bottle of wine. This bill would permit the
patron to take the rest of the wine home.
*The ABCL imposes restrictions on the hours of sale of alcoholic bever-
ages on Sundays, referred to as "Blue Laws." This bill would enable
on-premises licenses throughout the state to begin serving alcoholic
beverages for consumption on the premises on Sundays at 10 a.m., rather
than noon. Licensees outside of New York City may also apply for a
permit to allow the licensee to serve alcoholic beverages starting at 8
a.m. on a particular day of the year. Licensees seeking the permit must
notify the local municipality and may only obtain twelve of these
permits each calendar year.
*The ABCL limits package stores and wine stores to selling only alcohol-
ic beverages and certain other specified items such as wine glasses.
This bill would also allow package stores and wine stores to sell gift
wrapping and gift bags.
*Numerous grocery stores own restaurants adjacent to the grocery stores.
Because wine and liquor may not enter a grocery store, licensees must
take the wine and liquor around the outside of the grocery store to
bring it into the restaurant. This bill would eliminate this burdensome
requirement and allow wine and liquor to pass through the grocery store
en-route to the restaurant.
BUDGET IMPLICATIONS:
None.
EFFECTIVE DATE:
Effective on the sixtieth day after it shall become law, provided that:
the amendments to section 17 of the ABCL made by section three shall be
subject to the expiration and reversion of such section pursuant to 2
section 4 of chapter 118 of the laws of 2012, as amended, when upon such
date the provisions of section four of this act shall take effect; the
provisions of sections six and thirteen of the bill will expire and be
deemed repealed three years after this bill becomes law; and the
provisions of section 12 of this bill would take effect immediately upon
this bill being signed into law
