Proposed bills would overhaul restrictions on Sunday alcohol sales, consolidate licensing, and ease regulatory requirements for breweries, wineries, distilleries and cideries
State Senator Joseph Griffo on Wednesday welcomed new legislation to modernize the state’s Alcohol Beverage Control Law in order to foster further growth in New York’s craft beverage industry.
Senator Griffo, R-Rome, expressed his support after Governor Andrew Cuomo announced proposed legislation stemming from the Alcoholic Beverage Control Law Working Group, a blue ribbon panel created in November 2015. This group was tasked with developing recommendations to modernize the laws governing the manufacturing, wholesale and retail of alcoholic beverages in New York State, such as lifting a ban that prohibits the sale of alcohol at bars before noon on Sundays.
Senator Griffo said: “An overhaul of the outdated liquor laws governing New York’s beverage industry is long overdue, and I welcome any changes that will allow and encourage our breweries, wineries and distilleries to continue growing and creating jobs. I look forward to reviewing these proposals to see if the Legislature can improve upon what’s been presented. By listening to stakeholders in the craft beverage industry who have identified laws that are needlessly burdening their businesses, we can hope to offer solutions that will generate even more economic opportunity.”
New York is now home to nearly 900 wineries, breweries, distilleries and cideries. The number of craft beverage producers in New York has more than doubled from 2011. Since 2015, 177 new manufacturing licenses have been issued, including 15 new cidery licenses, 42 distilleries, 29 winery licenses and 91 new brewery licenses. Combined with distribution and retail, producers account for more than $27 billion in economic impact and support tens of thousands of jobs statewide.
The success of New York’s investments in the craft beverage industry can be seen all across the state, with the number of microbreweries in New York increasing 248 percent since 2010. Since 2011, the state has implemented a number of significant reforms and expanded programs to grow the craft beverage industry, including creating new farm-based manufacturing licenses, launching a $60 million statewide promotional campaign and hosting wine, beer and spirits summits across the state.
This legislation will ensure the craft beverage industry in New York continues to thrive by modernizing the state’s ABC laws, consolidating licensing and reducing burdensome fees for wineries, breweries, distilleries and cideries statewide:
· Expand Sunday Sales: The Alcoholic Beverage Control Law includes provisions strictly prohibiting the sale of alcoholic beverages at on-premises establishments (restaurants, bars, taverns) before noon on Sunday. This legislation would create a permit to allow these establishments to serve between the hours of 8 a.m. and noon on Sunday.
· Modernize the Licensing Process: The ABC Law contains provisions, known as the “Two Hundred Foot Law,” prohibiting full liquor licenses to locations within 200 feet of a building that is exclusively used as a school or place of worship. There have been numerous examples where the local municipality, school or place or worship has not opposed, and in many cases supported, the approval of an application only to see the business denied because of the Two Hundred Foot Law. The law was first enacted in 1892 and included in statute when it was adopted in 1934, and strictly prohibits the SLA from issuing a license to a facility in that vicinity. This legislation would provide the SLA with discretion to consider license applications for restaurants that fall within the Two Hundred Foot Law, provided the local municipality, in addition to the school or place of worship, are provided prior notice and an opportunity to be heard on the application.
· Reduce Paperwork for Craft Manufacturers: At the 2012 Wine, Beer and Spirits Summit, Governor Cuomo ended the State Liquor Authority’s policy prohibiting multiple manufacturing licenses at the same location, recognizing the additional burdens this placed, for example, on a small winery that wanted to also make whiskey – including building a separate facility. However, businesses holding multiple licenses must still file paperwork and renewals for each separate license. The proposed legislation would combine craft manufacturing licenses into one application to reduce burdensome paperwork for these small businesses.
· Authorize the Sale of Wine in Growlers: Current law requires that wine sold at retail for off-premises consumption be kept in their original sealed containers, and consequently, New York wineries are prohibited from filling growlers. This prohibition unduly burdens wineries that can open a container to sell wine for on-premises consumption, or can sell wine for off-premises consumption, but cannot fill a growler to be taken away from the winery. The proposed legislation would enact a common sense change to the law to allow wineries to fill their customer’s growlers. In addition, the legislation would authorize wineries and farm wineries to allow customers to take home partially finished bottles of wine.
· Reduce Fees for Craft Beverage Salespeople: The ABC Law currently requires that any salesperson or solicitor employed by a manufacturer or wholesaler must obtain a solicitor’s permit in addition to a bond. Recognizing the financial hardship imposed by these unnecessary additional fees, the Governor’s legislation would reduce the fee for a solicitor’s permit and eliminate the bond requirement.
· Reduced Fees for Small Wholesalers: The primary business of most alcohol beverage wholesalers is selling their products to licensed retailers, such as bars, restaurants and liquor stores. However, there are currently a number of small wholesalers in New York that sell limited number of brands they import directly to large wholesalers for distribution to retailers. Under the current law, these small wholesalers must pay the same amount for their license as their larger counterparts, with costs ranging from $1,460 for a one year beer license to $27,280 for a three year liquor wholesale license. This financial burden often requires these small businesses to make a choice between continuing to hold a New York wholesale license or to relocate their business outside of New York. The proposed legislation would amend the ABC Law to create a low-cost “importer’s license” that would be available to wholesalers that sell only to other wholesalers.