Relates to temporary manufacturing permits; makes permanent certain provisions of law relating to such permits; repeals certain provisions of law relating to temporary permits.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7757 Revised 6/7/2021
SPONSOR: Lupardo
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
temporary manufacturing permits; and to repeal certain provisions of
such law relating thereto
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to expand the temporary retail and
manufacturing permits granted by the State Liquor Authority to all qual-
ified alcohol beverage makers in New York State.
 
SUMMARY OF PROVISIONS:
Section 1: Section 76-b of the alcoholic beverage control law is
repealed;
Section 2: Subdivision 1-b of section 83 of the alcoholic beverage
control law is repealed;
Section 3: Adds a new section 97-c to the alcoholic beverage control law
creating the new temporary retail and manufacturing permit for qualified
alcohol beverage makers in New York State;
Section 4: Effective Date.
 
JUSTIFICATION:
New York's wineries, breweries, cideries, and distilleries are an
economic engine for many areas of the state. The COVID-19 pandemic has
offered the state the opportunity to reexamine and address stagnant
structures in New York that hinder progress. To create an economy that
works for all New Yorkers, small businesses must be supported and entre-
preneurs must be encouraged to build businesses in this state. The total
economic impact of the New York alcohol beverage making industry tracks
in billions of dollars. This legislation will help galvanize this indus-
try and create new jobs and increase tourism for all alcohol beverage
makers in New York. This bill would amend the Alcoholic Beverage
Control Law to authorize the State Liquor Authority (SLA) to issue
temporary permits to manufacturing businesses who are awaiting final
license approval. The final license approval takes approximately 6
months, during which time manufacturers must pay rent and utilities yet
cannot manufacture a product and hence earn money. Before a manufacturer
can apply for a license they must have secured a location and have their
manufacturing equipment assembled. The lag in receiving a license and
the business being able to open causes many hardships for new busi-
nesses.
 
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation will potentially increase state and local tax revenue.
 
EFFECTIVE DATE:
This bill would take effect on the 90th day after it shall become law.
STATE OF NEW YORK
________________________________________________________________________
7757
2021-2022 Regular Sessions
IN ASSEMBLY
May 21, 2021
___________
Introduced by M. of A. LUPARDO -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to
temporary manufacturing permits; and to repeal certain provisions of
such law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 76-b of the alcoholic beverage control law is
2 REPEALED.
3 § 2. Subdivision 1-b of section 83 of the alcoholic beverage control
4 law is REPEALED.
5 § 3. The alcoholic beverage control law is amended by adding a new
6 section 97-c to read as follows:
7 § 97-c. Temporary manufacturing permit. 1. Any person may apply to the
8 liquor authority for a temporary permit to operate any alcoholic bever-
9 age manufacturing facility as may be licensed under this chapter. Such
10 application shall be in writing and verified and shall contain informa-
11 tion as the liquor authority shall require. Such application shall be
12 accompanied by a check or draft in the amount of one hundred twenty-five
13 dollars for such permit.
14 2. Upon application, the liquor authority may issue such temporary
15 permit when:
16 (a) the applicant has a manufacturing license application at the same
17 premises pending before the liquor authority, together with all required
18 filing and license fees; and
19 (b) the applicant has obtained and provided evidence of all permits,
20 licenses and other documents necessary for the operation of such a busi-
21 ness; and
22 (c) any current license in effect at the premises has been surrendered
23 or placed in safekeeping, or has been deemed abandoned by the authority.
24 3. The liquor authority in granting such permit shall ensure that:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10592-04-1
A. 7757 2
1 (a) issuance of the permit will not inordinately hinder the operation
2 or effective administration of this chapter; and
3 (b) the applicant would in all likelihood be able to ultimately obtain
4 the manufacturing license being applied for; and
5 (c) the applicant has substantially complied with the requirements
6 necessary to obtain such license.
7 4. The application for a permit shall be approved or denied by the
8 liquor authority within forty-five days after the receipt of such appli-
9 cation.
10 5. A temporary permit shall authorize the permittee to operate a manu-
11 facturing facility for the manufacture and sale of alcoholic beverages
12 according to the laws applicable to the type of manufacturing license
13 being applied for.
14 6. Such temporary permit shall remain in effect for six months or
15 until the manufacturing license being applied for is approved and the
16 license granted, whichever is shorter. Such permit may be extended at
17 the discretion of the liquor authority for additional three-month peri-
18 ods of time upon payment of an additional fee of fifty dollars for each
19 such extension.
20 7. Notwithstanding any provision of law to the contrary, a temporary
21 permit may be summarily cancelled or suspended at any time if the liquor
22 authority determines that good cause for cancellation or suspension
23 exists. The liquor authority shall promptly notify the permittee in
24 writing of such cancellation or suspension and shall set forth the
25 reasons for such action.
26 8. The liquor authority in reviewing such application shall review the
27 entire record and grant the temporary permit unless good cause is other-
28 wise shown. A decision on an application shall be based on substantial
29 evidence in the record and supported by a preponderance of the evidence
30 in favor of the applicant.
31 § 4. This act shall take effect on the ninetieth day after it shall
32 have become a law; provided, however, that upon effect, any valid permit
33 issued under section 76-b of the alcoholic beverage control law shall
34 remain in effect according to the terms of section 76-b of the alcoholic
35 beverage control law as if such section had not been repealed, and
36 provided further, any application duly submitted prior to the effective
37 date of this act and not yet acted upon shall be processed as if such
38 section had not been repealed, and if such application is approved, any
39 permit issued shall remain in effect according to the terms of section
40 76-b of the alcoholic beverage control law as if such section had not
41 been repealed.