New York’s Governor Andrew Cuomo, and separately, the Pennsylvania state legislature, have been cleaning up many of its prohibition era and blue laws over the past few weeks. It’s been a step-by-step process in New York as Governor Cuomo has put in place reforms to allow small businesses to be less burdened by the restrictions setup near a century ago.
In Pennsylvania, all alcoholic beverage sales were mandated to be sold only at State Run Liquor Stores. Pennsylvania’s Liquor Board’s control has finally been challenged and many aspects which restricted direct-to-customer shipments, sales of wine, beer and distilled spirits along with a host of requirement have been voted out of existence.
The primary reasoning for the change in Pennsylvania is the estimated $150 million in annual tax revenue necessary to close the budget gap. The change in the PA liquor law would allow those businesses that already have the license to sell beer to now sell wine. Wine in Grocery was approved in the PA Law changes along with convenient stores. The PA changes will increase the number of wine outlets from the existing 6000 state run liquor stores to 15,000 locations across the state – some of which have been in effect since Prohibition, as long as the location meets the LCB guidelines which does maintain following the same four-bottle limit for wine.
The PA law also allows direct shipments of wine to homes and lets casinos get licenses to sell alcohol around the clock, while removing restrictions on when State Stores can open on Sundays and holidays while allowing variable pricing based on where located.
“We’ve worked hard to cut red tape, lower cost and roll back burdensome regulations to help New York’s craft beverage industry to thrive and create jobs, as well as to produce some of the best beer, wine, cider and distilled spirits in the world,” said New York Governor Andrew Cuomo. The so called ‘Bunch Bill’ which will begin in less than 60 days has been another step in the overhaul of the existing state alcohol laws has now been approved prior to the end of the session. One well publicized aspect of the bill would be for all licensed businesses to begin serving alcohol at 10 am on Sunday, versus the current noon start time.
“We open at 10:00 am on Sunday’s, but additional avenues for NYS Sparkling wines for bunches is a great thing,” mentioned Chris Missick – Owner Villa Bellangelo, “This continues a good trend (by the Governor and Legislature).”
Villa Bellangelo known for its Sparking wines could see increased sales. “Always err on the side of more liberty for producers and freedom for consumers! The reforms of the last years are a great start,” note Missick. Brunch service at the Strathallan’s Char Restaurant and The Revelry typically opens by 10:30 am, yet our patrons needed wait to noon to be served popular alcoholic beverages including mimosas, bloody Mary, and champagne (in New York labeled as Sparkling wine)”, explained James Myers - Strathallan, “This change will allow guest and visitors to enjoy these drinks especially those seeking to taste Finger Lakes Rieslings while here which has become increasingly ordered with their meals.”
For other Finger Lakes wineries the policy changes may not have the same level of impact. Meaghan Franks – Dr. Frank Vinifera Winery and Vineyard states, “This policy doesn’t really do much for us because we don’t serve wine by the glass (til noon) and are not going to change our operating hours at this time period. We may think about opening up before 12 pm on Sunday, but it is working well for us now.”
Beverage industry representatives are hailing an expansion of the New York tax credit earmarked for craft brewers, will now be available to other small-batch producers from wine to cider to spirits – a move that could save smaller and startup operations up to 2 million dollars per year overall - every year. “Small out-of-state wineries could ship directly to Pennsylvania consumers if they obtained a limited winery license, but only 22 of those licenses are active,” noted the Pennsylvania Liquor Control Board representative. Previous to the change, the PLCB would first have to approve the individual labels for sale in PA, then direct which cities and regions where wine would be sold in state run liquor stores.
Earlier alcohol sales on Sunday morning changed from noon to 10 am limited to twelve events per year. So for Buffalo Bills, the passing of this bill would allow to apply for a permit to sell alcohol in Ralph Wilson stadium before 10 am on Sunday home games. Among the changes now approved by the legislature include the ability to apply for permits to begin alcohol sales between 8 am and 10 am for spectator events football, international soccer and festivals.
For those traveling on wine trails, the New York law authorizes to sell wine in growlers, and ability to travel with re-corked partial wine bottles. In addition to the production credit, the previous sales tax exemption for tastings at breweries, cider mills, wineries and distilleries is expanded to include the alcoholic beverage tax that the producers would owe. If a brewery hosts tastings at its facility where the craft beer that it produces is also offered for sale, the brewery would not owe any taxes on the beer served at the tastings, as well as the bottles, caps and labels used to package the beer. Jim Trezise, president of the New York Wine & Grape Foundation, based in Canandaigua, New York has been publicly noted for praised the tax credit expansion.
More changes will broaden sales by producer as the New York Law changes will reduce fee for wineries, breweries and cider mills statewide and eliminate the paperwork required for craft beer manufacturing and reduce fees for craft beverage sales people. For smaller wholesale distributors, the lower fees for the sales force as individual licensing costs are restrictive when trying to represent the brands. For the public at large, movie theaters will be allowed to serve wine and beer once appropriate liquor licenses have been applied for and approved by the New York State Liquor Authority.
Additionally, Wine and Liquor shops will be authorized to provide gift wrapping and holiday / decorative baskets to customers. “It’s our first year anniversary celebration this Saturday, and I am so excited to see Governor Cuomo making amendments to the antiquated portions of the ABC Law,” commented Carrie Morabito Owner of 2foodies in Greece, “Hopefully future modifications will expand the services that liquor stores are able to provide to their customers. It is laughable that customers can purchase pre-recorded wine education seminars yet cannot purchase live educational seminars where an expert is in front of you.”
At some point in time, all state governments which do control the commerce of alcohol should attempt to achieve uniform codes, regulation and policies. Citizens across the nation shouldn’t have to make the choice to drive across state lines to simply purchase alcoholic beverages, or buying on-line, or shipping the gift of alcohol, then worry that bringing, receiving or sending those items maybe illegal based on decisions by the United State giving individual state the right to regulate alcohol as a requirement to end prohibition 83 years ago.
Luckily here in New York, these laws and statues are finally being washed away to allow new businesses to open and thrive creating more jobs in the process, thus providing incentive for tourism and a multi-billion dollar positive impact for the New York economy.
It seems like “common sense” will prevail with patience, or, as best stated by Thomas A. Edison ‘The three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense.’
