S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7864--A
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced by Sens. HINCHEY, SCARCELLA-SPANTON -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations  and  Government  Operations  --  committee  discharged,  bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to amend the alcoholic beverage control law, in relation to the
   sale of non-alcoholic versions of alcoholic beverages
 
   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 20-h to read as follows:
   20-H. "NON-ALCOHOLIC VERSION OF AN ALCOHOLIC BEVERAGE" MEANS A NON-AL-
 COHOLIC  BEVERAGE  THAT  CONTAINS FIVE-TENTHS PERCENT OR LESS ALCOHOL BY
 VOLUME AND THAT IS MARKETED TO APPEAL TO PERSONS  MORE  THAN  TWENTY-ONE
 YEARS OF AGE AS A SUBSTITUTE FOR AN ALCOHOLIC BEVERAGE.
   §  2.  Subdivision  4  of section 63 of the alcoholic beverage control
 law, as amended by chapter 24 of the laws of 2024, 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 NON-ALCOHOLIC VERSIONS OF ALCOHOLIC BEVERAGES, or  the  sale  of
 glasses  designed  for the consumption of wine or liquor, 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 wrapping, for alcoholic
 beverages purchased at the licensed premises shall not constitute engag-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13402-03-4
 S. 7864--A                          2
 
 ing 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 semi-
 nar,  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
 liquor 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
 liquor 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 liquor that is being gifted or promoted. Further, for the purposes of
 this section, promotional items shall not include any food, non-alcohol-
 ic beverage, or other drink or  food  mix,  nor  shall  these  items  be
 offered  for  sale to the general public as individual items, EXCEPT FOR
 THOSE BEVERAGES SPECIFICALLY AUTHORIZED TO  BE  SOLD  PURSUANT  TO  THIS
 SUBDIVISION.
   §  3.  Paragraph  (a) of subdivision 1 of section 104 of the alcoholic
 beverage control law, as amended by chapter 24 of the laws of  2024,  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 (I) manufacturing, acquiring or selling wine merchandise,
 as defined in paragraph (d)  of  this  subdivision  OR  (II)  ACQUIRING,
 TRANSPORTING,  OR SELLING NON-ALCOHOLIC VERSIONS OF ALCOHOLIC BEVERAGES;
 (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  seventy-six-a of this chapter provided that the opera-
 tion of such beer and wine wholesalers business shall be subject to such
 rules and regulations as the liquor authority may prescribe; (4) prohib-
 it a beer wholesaler who is authorized to sell beer at retail from sell-
 ing at retail: (i) candy, chewing gum and cough drops;  (ii)  non-refri-
 gerated  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 beverages  including,  but  not  limited  to,  taps,
 S. 7864--A                          3
 
 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; (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) prohib-
 it  a liquor or a wine wholesaler from (I) transporting or selling gifts
 or promotional items associated with wine or liquor products as provided
 for in subdivision four of section sixty-three of this chapter  OR  (II)
 ACQUIRING,  TRANSPORTING, OR SELLING NON-ALCOHOLIC VERSIONS OF ALCOHOLIC
 BEVERAGES.   For the purposes of  this  subdivision,  "automated  teller
 machine" means a device which is linked to the accounts and records of a
 banking  institution  and  which  enables consumers to carry out banking
 transactions, including but not limited to, account transfers, deposits,
 cash withdrawals, balance inquiries and loan payments.
   § 4. This act shall take effect immediately.