NY State Senate Bill 2009-S8249

Archive: Last Bill Status - In Senate Committee Rules 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
Jun 17, 2010	referred to rules

2009-S8249 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3, 53 & 54, ABC L

2009-S8249 (ACTIVE) - Summary

Relates to a license to operate a beverage center.

2009-S8249 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8249

TITLE OF BILL:

An act
to amend the alcoholic beverage
control law, in relation to a license to operate a beverage center

PURPOSE:

This bill would resolve a long standing issue with respect to beer
wholesalers who operate primarily as retailers.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Alcoholic Beverage Control (ABC) Law

§ 3 to add a definition for a "beverage center." Such establishments
would be eligible for off-premises retail beer licenses even though
they do not meet the criteria for either a grocery store or drug store.

Section 2 of the bill would amend ABC Law § 53 to sunset a privilege
granted to beer wholesalers that have been licensed since 1960. The
amendment would eliminate the privilege of selling beer at retail,
but allow wholesalers who wish to continue retail operations to
exchange their wholesale license for a retail "beverage center"

license. Wholesalers would be given until at least December 31, 2011
to decide whether to retain the wholesale license or become retailers.

Section 3 of the bill would amend ABC Law § 54 to add "beverage
centers" to the types of establishments that can obtain an
off-premises retail beer license.
Only beer wholesalers with a retail sales privilege who are exchanging
a wholesale license for a retail license would be eligible for such a
license.

Section 4 of the bill would make this bill effective immediately.

EXISTING LAW:

There is currently no definition of a "beverage center."

STATEMENT IN SUPPORT:

In 1960, ABC Law § 53 was amended to eliminate the retail sales
privilege granted to beer wholesalers. Only wholesale licenses that
were in effect at the time, and have subsequently been renewed or
transferred, retained that privilege.
These wholesalers are generally referred to as "C" licensees,
referring to the license code used by the State Liquor Authority
(Authority). In contrast, those beer wholesalers without the retail

privilege are referred to as "CO" licensees, again referring to the
license code used by the Authority.
Over time, a number of these "C" licensees have ceased, or have
greatly reduced their wholesale activities and have primarily become
retail operations.
However, since they continue to operate under the wholesale license,
they are governed by the statutes and regulations governing
wholesalers, not retailers. As a result, two significant problems
have arisen.

First, these wholesalers, given the retail nature of their business,
seek to expand the categories of goods they can sell to consumers.
Under current law, such wholesalers are limited to certain items
which can be sold on the licensed premises. Products which might
normally be associated with beverage sales cannot be sold at their
establishments.

Second, while they are limited with respect to the items that they can
sell, these wholesalers are not subject to meeting the requirement of
being either a grocery or drug store in order to obtain an
off-premises retail beer license.
Therefore, while a grocery store must maintain a specified inventory
of products, not including beer, to be considered a bona fide grocery
store, a "C" licensee can operate, if it so chooses, a beer-only
retail operation.

This proposal would address both issues. "C" licensees who wish to
continue as retailers would be able to exchange their wholesale
license for a retail license, without being subject to either the
inventory requirements for grocery stores, or the limitation on the
types of products it can offer for sale under the laws governing
wholesalers. Beer wholesalers will be able to retain their retail
privileges until at least December 31, 2011.

BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

This act would take effect immediately.

2009-S8249 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8249

                            I N  S E N A T E

                              June 17, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON -- (at request of the Governor) -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Rules

AN  ACT  to  amend  the alcoholic beverage control law, in relation to a
  license to operate a beverage center

  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 3-c to read as follows:
  3-C. "BEVERAGE CENTER" SHALL MEAN A PREMISES WHICH  DEVOTES  NOT  LESS
THAN NINETY PERCENT OF ITS PUBLIC FLOOR SPACE EXCLUSIVELY TO THE DISPLAY
OF ALCOHOLIC AND NON-ALCOHOLIC BEVERAGES.
  S  2.  Section 53 of the alcoholic beverage control law, as amended by
chapter 361 of the laws of 1994, is amended to read as follows:
  S 53. Wholesaler's license.  1. Any person may  apply  to  the  liquor
authority  for  a  license  to  sell beer at wholesale. Such application
shall be in writing and verified and shall contain such  information  as
the  liquor authority shall require.  Such application shall be accompa-
nied by a check or draft for the amount required  by  this  article  for
such  license.  If  the  liquor authority shall grant the application it
shall issue a license in such form as shall be determined by its  rules.
Such  a license shall contain a description of the licensed premises and
in form and in substance shall  be  a  license  to  the  person  therein
specifically designated to sell beer at wholesale in the premises there-
in  specifically  licensed  to  duly licensed wholesalers, retailers and
permittees in this state, and to sell or deliver beer to persons outside
the state pursuant to the laws of the place of such sale or delivery.
  2. A wholesaler's license issued or renewed prior to July first, nine-
teen hundred sixty, and thereafter renewed or transferred, shall author-
ize the holder thereof to sell beer at retail to a person  for  consump-
tion  in his home; provided, however, that [regardless] UPON THE RENEWAL
OR TRANSFER OF SUCH LICENSE AFTER DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
ELEVEN,  SUCH  LICENSE  SHALL  NO  LONGER  AUTHORIZE THE SALE OF BEER AT
RETAIL. UPON SUCH RENEWAL OR  TRANSFER,  THE  LICENSEE  MAY  RETAIN  THE

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

                                                           LBD12234-01-0

S. 8249                             2

WHOLESALE LICENSE WITHOUT SUCH RETAIL SALES OR APPLY TO THE AUTHORITY TO
OPERATE  A  BEVERAGE CENTER PURSUANT TO SECTION FIFTY-FOUR OF THIS ARTI-
CLE.
  3.  REGARDLESS  of  the  date issued, renewed or transferred, a whole-
saler's license issued to a brewer or to the wholly-owned subsidiary  of
a brewer, shall authorize the holder thereof to sell beer at retail to a
person for consumption in his home.
  S  3.  Subdivision  4  of section 54 of the alcoholic beverage control
law, as amended by chapter 503 of the laws of 1954, is amended  to  read
as follows:
  4. (A) No such license shall be issued, however, to any person for any
premises  other than a grocery store, drug store, OR BEVERAGE CENTER, AS
THOSE TERMS ARE DEFINED IN SECTION THREE OF  THIS  CHAPTER,  or  A  duly
licensed supply ship operating in harbors in Lake Erie.
  (B)  A  LICENSE TO OPERATE AS A BEVERAGE CENTER, PURSUANT TO PARAGRAPH
(A) OF THIS SUBDIVISION, SHALL BE ISSUED ONLY TO THE HOLDER  OF  A  BEER
WHOLESALER  LICENSE  ISSUED  OR  RENEWED  PRIOR  TO JULY FIRST, NINETEEN
HUNDRED SIXTY, AND THEREAFTER RENEWED  OR  TRANSFERRED,  WHO,  UPON  THE
RENEWAL  OR  TRANSFER  OF  SUCH LICENSE AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND ELEVEN, SEEKS TO EXCHANGE ITS WHOLESALE LICENSE  FOR  A  RETAIL
LICENSE.
  S 4. This act shall take effect immediately.

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Senate Bill S8249

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

2009-S8249 (ACTIVE) - Details

2009-S8249 (ACTIVE) - Summary

2009-S8249 (ACTIVE) - Sponsor Memo

2009-S8249 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8249

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Sponsored By

Craig M. Johnson

Archive: Last Bill Status - In Senate Committee Rules Committee

2009-S8249 (ACTIVE) - Details

2009-S8249 (ACTIVE) - Summary

2009-S8249 (ACTIVE) - Sponsor Memo

2009-S8249 (ACTIVE) - Bill Text download pdf

Comments