NY State Senate Bill 2023-S6473

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to commerce, economic development and small business
Apr 21, 2023	referred to commerce, economic development and small business

2023-S6473 (ACTIVE) - Details

See Assembly Version of this Bill:: A3397
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 2021-2022 Legislative Session:: A10527

2023-S6473 (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.

2023-S6473 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6473

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:

This is new legislation.

 
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.

2023-S6473 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6473
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2023
                                ___________
 
 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. 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-FOUR, NOT
 more than one license shall be granted to any person under this section.
 BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, 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-FOUR, 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-SIX, 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 TWENTY-EIGHT, 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.
                                                            LBD06841-01-3

 S. 6473                             2
 
   (IV)  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND THIRTY, 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-TWO, 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. 6473                             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,
 EXPECT 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. 6473                             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 January 1, 2024.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S6473

Sponsored By

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

2023-S6473 (ACTIVE) - Details

2023-S6473 (ACTIVE) - Summary

2023-S6473 (ACTIVE) - Sponsor Memo

2023-S6473 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6473

Share this bill

Sponsored By

Jeremy A. Cooney

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

2023-S6473 (ACTIVE) - Details

2023-S6473 (ACTIVE) - Summary

2023-S6473 (ACTIVE) - Sponsor Memo

2023-S6473 (ACTIVE) - Bill Text download pdf

Comments