Empire Wine Bill Vetoed

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Governor Cuomo has vetoed Assembly Bill 5920A, the closely watched legislation that would have limited the New York State Liquor Authority’s power to punish licensees for their conduct outside the State. In his veto message, he stated that the bill would have fostered lawlessness among retailers and made the state a haven for those who engage in illicit sales. The Governor has also directed NYSLA to conduct a series of roundtable discussions beginning March 1, 2016, "with industry representatives, interested stakeholders, and advocates to review and suggest changes to the law," as well as to work with other state liquor authorities to develop a legal framework for interstate sales. The beverage alcohol industry is in for an exciting year!

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Empire Wine Bill Sent to Governor Cuomo

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This week marks another development in the Empire Wine saga. On Monday, the bill that would limit the power of the New York State Liquor Authority (“NYSLA”) to enforce other states’ laws was delivered to Governor Cuomo. Introduced in March by Assembly Member Phil Steck (D-Colonie), Assembly Bill 5920A (A.5920A), would prohibit NYSLA from penalizing licensees for violating the laws of other states, unless the conduct in question (1) is a violation of the New York alcoholic beverage control law or (2) has resulted in a criminal conviction in another state.[1] The Governor has until December 11th to sign or veto the bill. If he takes no action, the bill will automatically become law.

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Empire Wine Perseveres

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In the ongoing Empire Wine-New York State Liquor Authority saga, an acting state supreme court justice has ruled that the Colonie wine retailer can question NYSLA employees regarding its enforcement of the Alcohol Beverage Control (“ABC”) Law. Justice Gerald Connolly ordered NYSLA to comply with subpoenas issued by the retailer during the course of a protracted license revocation proceeding. As you may recall, NYSLA issued Empire a citation in August 2014 for “improperly” shipping wine to customers in 16 other states. This proceeding, which is an administrative process, has made several detours into state court and even into the legislature.

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Empire Wine Litigation Leads to Legislative Proposal

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This Monday, New York State Assembly Member Phil Steck (D-Colonie) introduced legislation aimed at curtailing the State Liquor Authority’s reach into other states. Assembly Bill 5920, co-sponsored by Assembly Member Dan Quart (D-New York City), would expressly prohibit the Liquor Authority ("NYSLA") from penalizing licensees for violating the laws of other states, unless the conduct in question (1) is a violation of the New York alcoholic beverage control law or (2) has resulted in a criminal conviction in another state.

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