Legislative Successes Continue

What had been a good legislative session for the association and our members has gotten better. The Governor signed into law the bill calling for the state’s Law Review Commission to study the Alcoholic Beverage Control law and the Governor vetoed the bill changing the credit terms for purchases of wine and spirits, a bill we strongly opposed because it moved the date wholesalers notify the Liquor Authority of delinquent retailers resulting in fewer days for you to make payments before ending up on the SLA’s COD list.

A review of the antiquated Alcoholic Beverage Control law has been a priority for our association for many years. Most of the laws that dictate how you run your business were written in the days following the repeal of prohibition. This review will provide an opportunity to revise or eliminate laws whose purpose is no longer necessary or are out of touch with the modern world. The Commission is required to submit a preliminary report to the Governor and the legislature by March 1, 2008 with a final report due by September 1, 2008. Any changes recommended by the Commission would require approval by the legislature and the Governor and could be modified as part of the process. We will take advantage of every opportunity to provide input into this review and to have our point of view well represented in the Commission’s final report.

The veto of the liquor credit bill prevents your wholesalers from imposing a system that suits their business interests at the expense of yours. The wholesalers’ proposal would have shortened your payment period under the law, regardless of the day of the week your products were delivered, with the shortest payment period applying to deliveries at the end of the week – a common business practice for on-premise retailers. After the veto was announced the State Liquor Authority extended indefinitely Division Order 823 which fixes the notification of delinquencies at 35 days after the date of delivery, regardless of the day of week of the delivery. This is fair, consistent and makes sense.

Another bill signed into the law by Governor Spitzer requires agencies that enact regulations to publish guides for small businesses explaining in plain language the actions these businesses must take to be in compliance with the regulations. The Governor’s Office of Regulatory Reform will oversee the preparation and distribution of such guides. This should make it easier for businesses to follow the rules and avoid violations.