BILL NUMBER: S4575
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend chapter 118 of the laws of 2012 amending the alcoholic
beverage control law relating to the powers of the chairman and members
of the authority, in relation to the effectiveness of certain provisions
thereof (Part A); to amend the alcoholic beverage control law, in
relation to authorizing special permits to remain open during certain
hours of the morning (Part B); to amend the alcoholic beverage control
law, in relation to permitting certain retail licensees to purchase
wine and liquor from certain other retail licensees (Part C); to amend
the alcoholic beverage control law, in relation to permissible
sales by license holders (Part D); to amend the alcoholic beverage
control law, in relation to allowing multiple off-premises licenses
(Part E); to amend the alcoholic beverage control law, in relation to
licensing restrictions for manufacturers and wholesalers of alcoholic
beverages and retail licensees (Part F); to amend the alcoholic beverage
control law, in relation to the approval of seven day licenses to sell
liquor at retail for consumption off the premises (Part G); to amend
the alcoholic beverage control law, in relation to adjusting licensing
fees regarding certain alcoholic beverages (Part H); to amend the
alcoholic beverage control law, in relation to changes of ownership of a
licensed business (Part I); to amend the alcoholic beverage control law,
in relation to the issuance of temporary retail permits; and to
amend chapter 396 of the laws of 2010 amending the alcoholic
beverage control law relating to liquidator's permits and temporary
retail permits, in relation to the effectiveness thereof (Part J); to
amend the alcoholic beverage control law, in relation to establishing a
temporary wholesale permit and allowing multiple wholesale licenses
owned by the same person or entity to be located at the same premises
(Part K); to amend the alcoholic beverage control law, in relation to
licenses issued for on-premises consumption within certain distances of
a building occupied as a school, church, synagogue or other place of
worship with consent of such building's owner or administrator (Part L);
and to amend the alcoholic beverage control law, in relation to permit-
ting licenses for premises located within five hundred feet of other
premises outside of certain counties (Part M)
 
PURPOSE:
To modernize and simplify the state's alcohol laws, including recommen-
dations made by the Commission to Study Reform of the Alcoholic Beverage
Control Law.
 
SUMMARY OF PROVISIONS:
Section 1: Enacts into law major components of legislation necessary to
implement certain provisions regarding licensing and sales under the
alcoholic beverage control law. Each component is contained within a
Part identified as Parts A through M.
Part A: (Sole Administrative Authority - Powers of the Chair) Permanent-
ly extends the administrative powers granted to the Chair of the SLA
(e.g. everyday administrative operations, including all hiring, firing,
and spending decisions). This Part incorporates the Executive's proposed
FY 25 State Budget language within PPGG Part J.
Part B: (Special NYE On-Premises Retail Permit) Allows restaurants and
bars to apply for a special permit to stay open on January 1 between 4
AM and 8 AM, amending subdivision 1 of section 99 of the ABC Law.
Part C: (Retailer-to-Retailer Sales) Allows on-premises retail licensees
like bars and restaurants to buy and resell up to 12 bottles of wine and
liquor per week from off-premises retailers, as well as for off-premises
retailers to sell such bottles. This Part amends sections 105 and 106 of
the ABC Law.
Part D: (Allowing More Products to be Sold by Off-Premises Retailers)
Expands off-premises retail sales to include tonic water, bitters,
maraschino cherries, and dealcoholized wine/spirits. Allows wholesalers
to transport and sell such products. This Part amends sections 63 and
104 of the ABC Law.
Part E: (Multiple Off-Premises Retail Licenses) Allows a holder of an
off-premises retail license to be granted one additional license to sell
liquor/wine at retail for off-premises consumption. This Part amends
section 63 of the ABC Law to allow any person to hold up to two such
licenses.
Part F: (NYS Tied House) Limits the application of New York's tied-house
provisions to New York licensees. This Part incorporates S163 of 2023
(Hoylman-Sigal), amending sections 101 and 106 of the ABC Law to limit
the application of New York's tied-house provisions to retailers, whole-
salers, and manufacturers licensed by the New York State Liquor Authori-
ty.
Part G: (Revising the Public Convenience and Advantage Standard) Changes
the "public convenience and advantage" standard with respect to issuing
new retail licenses to sell liquor/wine for off-premises consumption to
a new "good cause for disapproval" standard. This Part amends sections
63 and 79 of the ABC Law.
Part H: (Licensing Fees Adjustments) Adjusts various fees for licensure
for NYS manufacturers, wholesalers, and retailers. This Part incorpo-
rates and modifies 59033 of 2022 (Skoufis), amending multiple sections
of the ABC Law to increase or decrease such fees.
Part I: (Changes in Membership or Corporate Structure) Requires the SLA
to act on changes in membership or other corporate structure to a limit-
ed liability company (LLC) within 90 days of receipt of an application.
The application would be deemed approved if the SLA takes no action
before 90 days. This Part amends section 99-d of the ABC Law.
Part J: (Temporary Retail Permits) Allows for the issuance of temporary
retail permits, permanently extends the SLA's authority to issue tempo-
rary retail permits, gives permit holders the ability to purchase alco-
hol for sale on credit, and allows permits to be extended for 90 days.
This proposal lengthens the 30-day extension period to 90 days with the
payment of a fee. This Part incorporates the Executive's proposed FY 24
State Budget language found within PPGG Part 0, amending section 97-a of
the ABC Law.
Part K: (Temporary Wholesale Permits and Multiple Wholesale Licenses)
Authorizes the SLA to issue temporary permits to wholesalers while their
pending applications for permanent wholesale licenses are reviewed, as
long as the applicant has obtained all permits, licenses, and other
documents necessary for the operation of such a business. Allows multi-
ple wholesale licenses for different types of alcohol held by the same
entity to operate on the same licensed premises. This Part adds new
sections 97-e and 104 to the ABC Law.
Part L: (200' Rule) Modifies the 200' rule that prevents the issuance of
a retail license for on-premises consumption when the premises are on
the same street and within 200' of a school or place of worship. This
proposal would allow the SLA to issue such retail licenses when the
owner or administrator of a school or place of worship affirmatively
states its support. This Part amends sections 64, 64-a, 64-b, 64-c, and
64-d of the ABC Law.
Part M: (500' Rule) Limits the applicability of the 500' rule that
prevents the issuance of a retail license for on-premises consumption
when the premises are within 500' of three or more licensed and existing
premises to a county having a population between one million six hundred
thousand and one million seven hundred thousand. This Part amends
sections 64, 64-a, 64-b, 64c, and 64-d of the ABC Law.
Section 2: Serves as the severability clause.
Section 3: Sets the effective date.
 
JUSTIFICATION:
New York's nearly 100-year-old alcohol laws are amongst the strictest
and most antiquated in the country. Therefore, the 21-member Commission
to Study Reform of the Alcoholic Beverage Control Law was established
through the FY 2023 State Budget to make recommendations for the modern-
ization and simplification of these laws.
The Commission addressed issues including but not limited to the alcohol
industry's state economic impact, changes in laws and resources to speed
up license application processing, and general reform proposals as voted
on by stakeholders.
Representatives from across the industry included alcohol producers,
wholesalers, on- and off-premises retailers, policymakers, and regula-
tors. This legislation embodies the recommendations of the Commission
issued as part of its May 2023 final report and represents much-needed
changes for a significant and multi-pronged industry in New York to
survive and thrive in the 21st Century.
 
LEGISLATIVE HISTORY:
Senate
2023: S6785A, Reported and Committed to Commerce, Economic Development,
and Small Business.
2024: S6785B, Amended and Recommitted to Investigations and Government
Operations
Assembly
2023: A9244, Referred to Economic Development
2024: A9244, Referred to Economic Development
 
FISCAL IMPLICATIONS:
NONE.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
applicable effective date of Parts A through M of this act shall be as
specifically set forth in the last section of such Parts.

Statutes affected:
S4575: 99 alcoholic beverage control law, 99(1) alcoholic beverage control law, 106 alcoholic beverage control law, 105 alcoholic beverage control law, 63 alcoholic beverage control law, 63(4) alcoholic beverage control law, 104 alcoholic beverage control law, 104(1) alcoholic beverage control law, 63(5) alcoholic beverage control law, 101 alcoholic beverage control law, 101(1) alcoholic beverage control law, 106(13) alcoholic beverage control law, 63(6) alcoholic beverage control law, 79 alcoholic beverage control law, 79(4) alcoholic beverage control law, 94 alcoholic beverage control law, 94(2) alcoholic beverage control law, 64 alcoholic beverage control law, 64(6) alcoholic beverage control law, 79-a alcoholic beverage control law, 79-a(1) alcoholic beverage control law, 122 alcoholic beverage control law, 99-d alcoholic beverage control law, 99-d(2) alcoholic beverage control law, 97-a alcoholic beverage control law, 97-a(4) alcoholic beverage control law, 97-a(6) alcoholic beverage control law, 64-a alcoholic beverage control law, 64-a(7) alcoholic beverage control law, 64-b alcoholic beverage control law, 64-b(5) alcoholic beverage control law, 64-c alcoholic beverage control law, 64-c(11) alcoholic beverage control law, 64-d alcoholic beverage control law, 64-d(8) alcoholic beverage control law