S T A T E O F N E W Y O R K
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3567--A
2023-2024 Regular Sessions
I N S E N A T E
February 1, 2023
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the alcoholic beverage control law, in relation to
permitting the sale or promotional gifting of certain complementary
products for wine and spirits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1 of section 104 of the alco-
holic beverage control law, as amended by chapter 2 of the laws of 2013,
is amended to read as follows:
(a) No wholesaler shall be engaged in any other business on the prem-
ises to be licensed; except that nothing contained in this chapter
shall: (1) prohibit a beer wholesaler from (i) acquiring, storing or
selling non-alcoholic snack foods, as defined in paragraph (b) of this
subdivision, (ii) manufacturing, bottling, storing, or selling non-alco-
holic carbonated beverages, (iii) manufacturing, storing or selling
non-alcoholic non-carbonated soft drinks, mineral waters, spring waters,
drinking water, non-taxable malt or cereal beverages, juice drinks,
fruit or vegetable juices, ice, liquid beverage mixes and dry or frozen
beverage mixes, (iv) acquiring, storing or selling wine products, (v)
the sale of promotional items on such premises, or (vi) the sale of
tobacco products at retail by wholesalers who are licensed to sell beer
and other products at retail; (2) prohibit a wholesaler authorized to
sell wine from manufacturing, acquiring or selling wine merchandise, as
defined in paragraph (d) of this subdivision; (3) prohibit a licensed
winery or licensed farm winery from engaging in the business of a wine
wholesaler for New York state labeled wines produced by any licensed
winery or licensed farm winery or prohibit such wine wholesaler from
exercising any of its rights pursuant to sections seventy-six and seven-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06925-05-3
S. 3567--A 2
ty-six-a of this chapter provided that the operation of such beer and
wine wholesalers business shall be subject to such rules and regulations
as the liquor authority may prescribe; (4) prohibit a beer wholesaler
who is authorized to sell beer at retail from selling at retail: (i)
candy, chewing gum and cough drops; (ii) non-refrigerated salsa; (iii)
cigarette lighters, lighter fluid, matches and ashtrays; (iv) barbecue
and picnic-related products and supplies, which shall include, but not
be limited to, charcoal, grills, propane gas, plastic and paper cups,
paper or plastic tablecloths and coolers; (v) beer making and brewing
supplies and publications, which shall include, but not be limited to,
books, magazines, equipment and ingredients; (vi) steins, mugs and other
glassware appropriate for the consumption of beer, malt beverages and
wine products; (vii) items typically used to serve beer and malt bever-
ages including, but not limited to, taps, kegerators, koozies and beer
socks; (viii) lemons, limes and oranges, provided that no more than two
dozen of each shall be displayed at any one time; (ix) rock salt, ice
and snow melting compounds, snow shovels; windshield washer solvent;
firewood; beach umbrellas; sunglasses and sun block; and (x) prepaid
telephone cards; [or] (5) prohibit the installation and operation of a
single automated teller machine in the premises of a beer wholesaler who
is authorized to sell beer at retail; OR (6) PROHIBIT A LIQUOR WHOLE-
SALER FROM TRANSPORTING OR SELLING GIFTS OR PROMOTIONAL ITEMS ASSOCIATED
WITH WINE OR SPIRIT PRODUCTS AS PROVIDED FOR IN SUBDIVISION FOUR OF
SECTION SIXTY-THREE OF THIS CHAPTER. For the purposes of this subdivi-
sion, "automated teller machine" means a device which is linked to the
accounts and records of a banking institution and which enables consum-
ers to carry out banking transactions, including but not limited to,
account transfers, deposits, cash withdrawals, balance inquiries and
loan payments.
§ 2. Paragraph (a) of subdivision 3 of section 101-b of the alcoholic
beverage control law, as amended by section 1 of part E of chapter 56 of
the laws of 2006, is amended to read as follows:
(a) No brand of liquor or wine shall be sold to or purchased by a
wholesaler, irrespective of the place of sale or delivery, unless a
schedule, as provided by this section, is transmitted to and received by
the liquor authority, and is then in effect. Such schedule shall be
transmitted to the authority in such form, manner, medium and format as
the authority may direct; shall be deemed duly verified by the person
submitting such schedule upon its transmission to the authority; and
shall contain, with respect to each item, the exact brand or trade name,
capacity of package, nature of contents, age and proof where stated on
the label, the number of bottles contained in each case, the bottle and
case price to wholesalers, the net bottle and case price paid by the
seller, which prices, in each instance, shall be individual for each
item and not in "combination" with any other item, the discounts for
quantity, if any, and the discounts for time of payment, if any. Such
brand of liquor or wine shall not be sold to wholesalers except at the
price and discounts then in effect unless prior written permission of
the authority is granted for good cause shown and for reasons not incon-
sistent with the purpose of this chapter. Such schedule shall be trans-
mitted by (1) the owner of such brand, or (2) a wholesaler selling such
brand and who is designated as agent for the purpose of filing such
schedule if the owner of the brand is not licensed by the authority, or
(3) with the approval of the authority, by a wholesaler, in the event
that the owner of the brand is unable to transmit a schedule or desig-
nate an agent for such purpose. As used in this subdivision the term
S. 3567--A 3
"item" shall be deemed to include a sealed, pre-wrapped package consist-
ing of a sealed container OR CONTAINERS of liquor, wine or wine product
and other merchandise reasonably used in connection with the prepara-
tion, storage, PROMOTION, GIFTING, or service of liquor, wine or wine
products provided that such other merchandise shall not be potable or
edible. FOR THE PURPOSES OF THIS SECTION, GIFT AND PROMOTIONAL ITEMS
SHALL ONLY INCLUDE THOSE ITEMS THAT ARE COMPLIMENTARY AND DIRECTLY ASSO-
CIATED WITH THE SALE OF WINE OR DISTILLED SPIRITS THEY ARE GIFTING OR
PROMOTING AND SHALL MEAN: (I) ITEMS THAT ARE DE MINIMIS IN VALUE, BUT IN
NO INSTANCE SHALL MERCHANDISE BE VALUED AT MORE THAN FIFTEEN DOLLARS IN
TOTAL; (II) ITEMS THAT ARE IMPRINTED WITH THE WINE OR SPIRITS BRAND LOGO
ON THE GIFT OR PROMOTIONAL ITEM; AND (III) ITEMS THAT ARE INCLUDED AS
PART OF A MANUFACTURED PRE-SEALED PACKAGE WITH THE WINE OR DISTILLED
SPIRIT THAT IS BEING GIFTED OR PROMOTED. FURTHER, FOR THE PURPOSES OF
THIS SECTION, GIFT OR PROMOTIONAL ITEMS SHALL NOT INCLUDE ANY FOOD,
NON-ALCOHOLIC BEVERAGE, OR OTHER DRINK OR FOOD MIX, NOR SHALL THESE
ITEMS BE OFFERED FOR SALE TO THE GENERAL PUBLIC AS INDIVIDUAL ITEMS.
§ 3. Subdivision 4 of section 63 of the alcoholic beverage control
law, as amended by section 3 of part H of chapter 58 of the laws of
2019, is amended to read as follows:
4. No licensee under this section shall be engaged in any other busi-
ness on the licensed premises. The sale of lottery tickets, when duly
authorized and lawfully conducted, the sale of reusable bags as defined
in section 27-2801 of the environmental conservation law, the sale of
corkscrews or the sale of ice or the sale of publications, including
prerecorded video and/or audio cassette tapes, or educational seminars,
designed to help educate consumers in their knowledge and appreciation
of alcoholic beverages, as defined in section three of this chapter and
allowed pursuant to their license, or the sale of non-carbonated, non-
flavored mineral waters, spring waters and drinking waters or the sale
of glasses designed for the consumption of wine OR SPIRITS, racks
designed for the storage of wine, and devices designed to minimize
oxidation in bottles of wine which have been uncorked, or the sale of
gift bags, gift boxes, ASSOCIATED GIFT OR PROMOTIONAL ITEMS, or wrap-
ping, for alcoholic beverages purchased at the licensed premises shall
not constitute engaging in another business within the meaning of this
subdivision. Any fee obtained from the sale of an educational seminar
shall not be considered as a fee for any tasting that may be offered
during an educational seminar, provided that such tastings are available
to persons who have not paid to attend the seminar and all tastings are
conducted in accordance with section sixty-three-a of this article. FOR
THE PURPOSES OF THIS SECTION, GIFT OR PROMOTIONAL ITEMS SHALL ONLY
INCLUDE THOSE ITEMS THAT ARE COMPLIMENTARY AND DIRECTLY ASSOCIATED WITH
THE SALE OF WINE OR DISTILLED SPIRITS THEY ARE PROMOTING AND SHALL MEAN:
(I) ITEMS THAT ARE DE MINIMIS IN VALUE, BUT IN NO INSTANCE SHALL
MERCHANDISE BE VALUED AT MORE THAN FIFTEEN DOLLARS IN TOTAL; (II) ITEMS
THAT ARE IMPRINTED WITH THE WINE OR SPIRITS BRAND LOGO ON THE GIFT OR
PROMOTIONAL ITEM; AND (III) ITEMS THAT ARE INCLUDED AS PART OF A MANU-
FACTURED PRE-SEALED PACKAGE WITH THE WINE OR DISTILLED SPIRIT THAT IS
BEING GIFTED OR PROMOTED. FURTHER, FOR THE PURPOSES OF THIS SECTION,
PROMOTIONAL ITEMS SHALL NOT INCLUDE ANY FOOD, NON-ALCOHOLIC BEVERAGE, OR
OTHER DRINK OR FOOD MIX, NOR SHALL THESE ITEMS BE OFFERED FOR SALE TO
THE GENERAL PUBLIC AS INDIVIDUAL ITEMS.
§ 4. This act shall take effect on the ninetieth day after it shall
have become a law.
