BILL NUMBER: S7398A
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

Statutes affected:
S7398: 83 alcoholic beverage control law, 100 alcoholic beverage control law, 100(2-a) alcoholic beverage control law
S7398A: 83 alcoholic beverage control law, 100 alcoholic beverage control law, 100(2-a) alcoholic beverage control law