NY State Senate Bill 2025-S7398

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 14, 2025	referred to commerce, economic development and small business

2025-S7398 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§75, 83, 100 & 102, add §79-e, ABC L

2025-S7398 (ACTIVE) - Summary

Establishes grocery store wine licenses permitting the licensee to sell from the licensed premises wine produced in New York state or produced from ingredients grown or produced in New York state, in sealed containers for consumption off such premises.

2025-S7398 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7398

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to
establishing grocery store wine licenses

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation will establish grocery store wine licenses.

 
SUMMARY OF PROVISIONS:

Section 1: Adds grocery store wine license.

Section 2: Adds a new section 79-e which states that 1. any person may
apply to the authority for a grocery store wine license to sell from the
licensed premises wine produced in New York state or produced from
ingredients grown or produced in New York state, in sealed containers
for consumption off such premises.

2. Under the grocery store wine license, licensees are only allowed to
sell wine produced in New York state or produced from ingredients grown
or produced in New York state.

3. No license shall be issued to any person for any premises other than
a grocery store, as defined in subdivision thirteen of section three of
this chapter.

4a. A grocery store wine license can be issued to a holder of a retail
beer license (for off-premises consumption) or a retail beer and wine
license (for off-premises consumption) at their request, unless there is
good cause not to. This license allows the holder to sell beer for
consumption at home. The license can be renewed or transferred.

4b. The premises covered by the grocery store wine license are the same
as those under the original beer or beer and wine license.

4c. The grocery store wine license will be active as long as the under-
lying beer or beer and wine license is valid and will expire when that
license expires.

4d. Any person licensed to sell wine may conduct wine tastings. If the
tasting is conducted by an official agent of a farm winery, winery,
wholesaler, or importer, and the agent is present throughout the event,
any liability from the tasting will fall on the farm winery, winery,
wholesaler, or importer, in accordance with specific legal provisions
(sections 11-100 and 11-101 of the general obligations law).

5. The application must be in the required form, include the necessary
information as specified by the authority's rules, and be accompanied by
a check or draft for the required license fee.

6. Any person receiving a license pursuant to this section shall not be
subject to the provisions of subdivision two, three, or four of section
seventy-nine of this article.


7. Any person receiving a license pursuant to this section shall not be
subject to the provisions of paragraph (a) of subdivision three and
subdivision fourteen of section one hundred five of this chapter.

8a. Franchise fee will be imposed at a rate of $10,000. The one-time fee
shall be paid for by each licensee to the state liquor authority.

8b. No license shall be issued until the franchise fee or estimated
franchise fee has been paid in full.

8c. The fee shall be deposited and disposed of in the same manner as any
license fee.

9. Any person licensed to sell wine at retail consumption off the prem-
ises is authorized to sell wine to persons licensed to sell wine who
operate the premises of the grocery store wine licensee.

10. The state liquor authority may make such rules as it deems necessary
to carry out the provisions of this section.

Section 3: New section 10 is added. The annual fee for a grocery store
wine license shall be at a rate of one-half (0.5) percent of sales of
wine sold.

Section 4: Subdivision 2a of section 100 of the alcoholic beverage
control law is amended and adds: No retailer shall employ individuals
under 18 years old in any capacity that involves selling, dispensing, or
handling alcoholic beverages on licensed premises except that any person
under the age of eighteen years and employed by any person holding a
grocery store wine license shall be permitted to handle and deliver wine
for such licensee, and any person under the age of eighteen employed as
a cashier by a person holding a grocery store wine license shall be
permitted to record and receive payment for wine when in the presence of
and under the direct supervision of a person eighteen years of age or
over.

Section 5: Subdivision 3-a and 3-b of section 102 of the alcoholic
beverage control law is amended and adds section seventy-nine-e.

3-a. Licensees or permittees cannot purchase alcoholic beverages from
anyone within the state who is not properly licensed at the time of the
sale or agreement. They also cannot place orders for alcoholic beverages
with individuals who do not hold a solicitor's permit, except in certain
cases outlined in section eighty-five, ninety-nine-g, or seventy-nine-e
of this chapter

3-b. Retail licensees can only purchase, agree to purchase, or receive
alcoholic beverages from a person who is duly licensed within the state
by the liquor authority at the time of the sale or agreement, with
specific exceptions noted in section eighty-five, ninety-nine-g, or
seventy-nine-e of this chapter

Section 6: Severability Clause. If any part of the act (such as a
clause, sentence, or section) is found to be invalid by a court, the
rest of the act remains unaffected. The invalid portion's impact is
limited to the specific part involved in the legal case, and it is
declared that the legislature intended the act to be passed even without
the invalid provisions.
Section 7: This act shall take effect immediately.

 
JUSTIFICATION:

This legislation is intended to support family farms and local vintners
by boosting New York's wine industry, which contributes nearly $15
billion in direct economic impact to New York State. It also addresses
concerns that a general law allowing wine sales in supermarkets would
result in major national and international producers and distributors
dominating grocery store shelf space and crowding out New York-produced
wines.

Smaller wineries-many of which rely on direct-to-consumer sales and
limited distribution- would likely find themselves shut out of the
grocery market entirely. This would defeat the most important part of
New York State government intervening in the market - to support New
York grape farmers, wineries and small businesses.

Under current law, wine is sold primarily through standalone liquor
stores and small specialty wine shops. While proposals to allow wine
sales in grocery stores have surfaced for years, they've been repeatedly
idled over the concern that it would bring irreparable harm to these
small independent retailers.

By limiting grocery store wine sales to New York-produced wines, this
legislation strikes a balance- supporting the state's wine industry and
New York grape growers, while addressing the concerns of independent
retailers. The targeted approach would ensure that grocery sales expand
in a way that uplifts local agriculture without undermining small,
community-based wine and liquor stores.

The only justifiable reason for this intervention by the state should be
to support New York State small businesses. This bill achieves this
while giving everyone concerned, including grocery stores, new markets
and new profit centers while providing convenience for consumers.

 
PRIOR LEGISLATIVE HISTORY:

2025; New Bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
Immediately

2025-S7398 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7398
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 14, 2025
                                ___________
 
 Introduced  by Sen. BORRELLO -- 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, in relation to
   establishing grocery store wine licenses

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 3 and 5 of section 75 of the alcoholic bever-
 age control law, subdivision 3 as amended by section  4  of  part  K  of
 chapter 60 of the laws of 2004 and subdivision 5 as added by chapter 355
 of  the  laws  of  2013, are amended and a new subdivision 6 is added to
 read as follows:
   3. Seven day license to sell wine at retail for  consumption  off  the
 premises subject to paragraph (a) of subdivision fourteen of section one
 hundred five of this chapter[.];
   5. Roadside farm market license[.];
   6. GROCERY STORE WINE LICENSE.
   §  2.  The  alcoholic  beverage control law is amended by adding a new
 section 79-e to read as follows:
   § 79-E. GROCERY STORE WINE LICENSE. 1. ANY PERSON  MAY  APPLY  TO  THE
 AUTHORITY  FOR  A  GROCERY  STORE  WINE  LICENSE AS PROVIDED FOR IN THIS
 SECTION TO SELL FROM THE LICENSED PREMISES WINE  PRODUCED  IN  NEW  YORK
 STATE  OR PRODUCED FROM INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE,
 IN SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES.
   2. A GROCERY STORE WINE LICENSE SHALL PERMIT THE LICENSEE TO SELL ONLY
 WINE PRODUCED IN NEW YORK STATE OR PRODUCED FROM  INGREDIENTS  GROWN  OR
 PRODUCED IN NEW YORK STATE.
   3.  NO  SUCH  LICENSE  SHALL BE ISSUED, HOWEVER, TO ANY PERSON FOR ANY
 PREMISES OTHER THAN A GROCERY STORE, AS DEFINED IN SUBDIVISION  THIRTEEN
 OF SECTION THREE OF THIS CHAPTER.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11402-01-5
 S. 7398                             2

 
   4. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
 GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A GROCERY STORE WINE LICENSE
 TO  THE  HOLDER  OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMPTION OFF
 THE PREMISES PURSUANT TO SECTION FIFTY-FOUR OF THIS CHAPTER, OR BEER AND
 WINE  PRODUCTS  AT  RETAIL  FOR CONSUMPTION OFF THE PREMISES PURSUANT TO
 SECTION FIFTY-FOUR-A OF THIS CHAPTER, AT THE REQUEST  OF  SUCH  LICENSEE
 AND THEREAFTER RENEWED OR TRANSFERRED, WHICH AUTHORIZES THE HOLDER THER-
 EOF TO SELL BEER AT RETAIL TO A PERSON FOR CONSUMPTION IN THEIR HOME.
   (B)  FOR  THE  PURPOSES  OF  THIS SECTION, THE PREMISES OF THE GROCERY
 STORE WINE LICENSEE SHALL BE THE SAME AS  THE  PREMISES  LICENSED  UNDER
 SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.
   (C)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY LICENSE
 ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
 ING LICENSE UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A  OF  THIS  CHAPTER,
 AND  SHALL  BE  DEEMED  EXPIRED  AT  SUCH TIME AS THE UNDERLYING LICENSE
 EXPIRES.
   (D) ANY PERSON LICENSED TO SELL WINE PURSUANT TO THIS ARTICLE SHALL BE
 PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS  WHICH  ARE  CONDUCTED
 UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM WINERY, WINERY, WHOLE-
 SALER,  OR  IMPORTER  AND  WHERE SUCH AGENT IS PHYSICALLY PRESENT AT ALL
 TIMES DURING THE CONDUCT OF  THE  TASTING,  THEN,  IN  THAT  EVENT,  ANY
 LIABILITY  STEMMING FROM A RIGHT OF ACTION RESULTING FROM A WINE TASTING
 AS AUTHORIZED PURSUANT TO THIS  SECTION,  AND  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS LAW,
 SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
   5.  SUCH  APPLICATION  SHALL  BE  IN  SUCH FORM AND SHALL CONTAIN SUCH
 INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
 BE ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS  ARTI-
 CLE FOR SUCH LICENSE.
   6.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
 RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
 PROVISIONS OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE  OF
 THIS ARTICLE.
   7.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
 RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
 PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE AND  SUBDIVISION  FOUR-
 TEEN OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
   8.  (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID FOR BY EACH LICENSEE TO
 THE STATE LIQUOR AUTHORITY. THIS FRANCHISE FEE IS HEREBY  IMPOSED  AT  A
 RATE OF TEN THOUSAND DOLLARS.
   (B)  NO  LICENSE  SHALL  BE  ISSUED PURSUANT TO THIS SECTION UNTIL THE
 FRANCHISE FEE OR ESTIMATED FRANCHISE FEE REQUIRED BY  PARAGRAPH  (A)  OF
 THIS SUBDIVISION HAS BEEN PAID IN FULL.
   (C)  THE  FRANCHISE FEE SHALL BE DEPOSITED AND DISPOSED OF IN THE SAME
 MANNER AS ANY LICENSE FEE AS PROVIDED IN SECTION ONE HUNDRED TWENTY-FIVE
 OF THIS CHAPTER.
   9. ANY PERSON LICENSED TO SELL WINE AT RETAIL FOR CONSUMPTION OFF  THE
 PREMISES  UNDER  SECTION  SEVENTY-NINE  OF THIS ARTICLE IS AUTHORIZED TO
 SELL WINE TO PERSONS LICENSED TO SELL WINE UNDER THIS ARTICLE  AND  THIS
 SECTION WHO OPERATE THE PREMISES OF THE GROCERY STORE WINE LICENSEE.
   10.  THE STATE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS NECES-
 SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
   § 3. Section 83 of the alcoholic beverage control law  is  amended  by
 adding a new subdivision 10 to read as follows:
 S. 7398                             3
 
   10.  THE  ANNUAL  FEE  FOR  A  GROCERY  STORE WINE LICENSE PURSUANT TO
 SECTION SEVENTY-NINE-E OF THIS ARTICLE SHALL BE AT A  RATE  OF  ONE-HALF
 (0.5) PERCENT OF SALES OF WINE SOLD.
   §  4. Subdivision 2-a of section 100 of the alcoholic beverage control
 law, as amended by chapter 249 of the laws of 2002, is amended  to  read
 as follows:
   2-a.  No  retailer  shall  employ,  or permit to be employed, or shall
 suffer to work, on any premises licensed for retail sale hereunder,  any
 person under the age of eighteen years[, as a hostess, waitress, waiter,
 or]  in  any [other] capacity where the duties of such person require or
 permit such person to sell,  dispense  or  handle  alcoholic  beverages;
 except that: (1) any person under the age of eighteen years and employed
 by  any  person  holding  a  grocery or drug store beer license shall be
 permitted to handle and deliver beer and wine products for  such  licen-
 see, (2) any person under the age of eighteen employed as a cashier by a
 person  holding  a grocery or drug store beer license shall be permitted
 to record and receive payment for beer and wine product  sales  when  in
 the  presence  of  and under the direct supervision of a person eighteen
 years of age or over, (2-a) any person under the age of  eighteen  years
 and  employed  by  a  person  holding a grocery store or drug store beer
 license as either a cashier or in any other position to  which  handling
 of  containers  which  may  have  held alcoholic beverages is necessary,
 shall be permitted to handle the containers if such have been  presented
 for redemption in accordance with the provisions of title ten of article
 twenty-seven of the environmental conservation law, [and] (3) any person
 under  the  age  of  eighteen years employed as a dishwasher, busboy, or
 other such position as to which handling of containers  which  may  have
 held  alcoholic beverages is necessary shall be permitted to do so under
 the direct supervision of a person of legal age  to  purchase  alcoholic
 beverages  in  the state, (4) ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS
 AND EMPLOYED BY ANY PERSON HOLDING A GROCERY STORE WINE LICENSE SHALL BE
 PERMITTED TO HANDLE AND DELIVER WINE FOR  SUCH  LICENSEE,  AND  (5)  ANY
 PERSON UNDER THE AGE OF EIGHTEEN EMPLOYED AS A CASHIER BY A PERSON HOLD-
 ING  A  GROCERY  STORE  WINE  LICENSE  SHALL  BE PERMITTED TO RECORD AND
 RECEIVE PAYMENT FOR WINE WHEN IN THE PRESENCE OF AND  UNDER  THE  DIRECT
 SUPERVISION OF A PERSON EIGHTEEN YEARS OF AGE OR OVER.
   § 5. Subdivisions 3-a and 3-b of section 102 of the alcoholic beverage
 control  law, as amended by chapter 458 of the laws of 1993, are amended
 to read as follows:
   3-a. No licensee or permittee shall purchase or agree to purchase  any
 alcoholic  beverages  from  any  person within the state who is not duly
 licensed to sell such alcoholic beverage as the case may be, at the time
 of such agreement and sale nor give any order for any alcoholic beverage
 to any individual who is not the holder of a solicitor's permit,  except
 as  provided for in section eighty-five [or], ninety-nine-g, OR SEVENTY-
 NINE-E of this chapter.
   3-b. No retail licensee shall purchase, agree to purchase  or  receive
 any  alcoholic  beverage  except  from a person duly licensed within the
 state by the liquor authority to sell such  alcoholic  beverage  at  the
 time  of  such  agreement  and  sale  to such retail licensee, except as
 provided for in section eighty-five  [or],  ninety-nine-g,  OR  SEVENTY-
 NINE-E of this chapter.
   § 6. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 S. 7398                             4
 
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 7. This act shall take effect immediately.

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Senate Bill S7398

Sponsored By

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

2025-S7398 (ACTIVE) - Details

2025-S7398 (ACTIVE) - Summary

2025-S7398 (ACTIVE) - Sponsor Memo

2025-S7398 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7398

Share this bill

Sponsored By

George M. Borrello

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

2025-S7398 (ACTIVE) - Details

2025-S7398 (ACTIVE) - Summary

2025-S7398 (ACTIVE) - Sponsor Memo

2025-S7398 (ACTIVE) - Bill Text download pdf

Comments