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Liquor Lobby Scare Tactics Shouldn't Stop Opportunity in NY

November 10th, 2009

by Assembly Members Micah Kellner and Keith Wright

New York State government has the opportunity to help address our multi-billion dollar budget deficit through a landmark economic development initiative that is the ultimate win-win-win: creating new jobs, providing lucrative new markets to small businesses, boosting key agricultural industries, improving consumer choice, and generating over $160 million in revenue – and all without creating new taxes.  This unique opportunity is the comprehensive Liquor Store and Wine Revitalization Act.

This is a simple and common-sense measure.  The Act will allow the sale of wine in grocery stores and immediately generate millions of dollars for the state in new licensing fees.  At the same time, the bill is responsive to mom and pop liquor stores concerned about the increased competition and provides them with significant relief from the state’s antiquated and draconian liquor laws.  Working directly with many of these small liquor store owners, we’ve developed a comprehensive solution that will allow them to open new locations, develop cooperative buying agreements to leverage their purchasing power, and even offer other products to meet customer demand and grow their businesses. Indeed, one of our greatest frustrations in dealing with the liquor lobby has been the claim that a few associations represent all liquor stores. Meanwhile, many small business owners in our districts have told us of their excitement for the possibilities for their businesses to grow under these reforms.

The Act takes a big picture approach that will not only bring New York in line with the 35 other states that allow the sale of wine in grocery stores and help our struggling wine and grape growing industries, but will also fundamentally update liquor statutes that haven’t been changed since the days of Prohibition.  It is the first time that Albany has ever seen such strong leadership in both houses pushing to address the needs of all stakeholders – from liquor stores to grape growers – concurrently.

Unfortunately, the state’s liquor lobby – which has enjoyed monopoly control of its product for decades – continues to fight this publicly-supported initiative with misinformation and scare tactics, most recently falsely linking a report detailing deficiencies at the New York State Liquor Authority (SLA) to the issue of wine in grocery stores.  The report made no mention of wine in grocery stores and offered no conclusions about its merits, but that did not stop the liquor lobby from claiming that the failings of the SLA in addressing teen drinking would somehow be exacerbated by these reforms.

The facts?  The Liquor Store and Wine Revitalization Act will not add any additional outlets for the SLA to monitor and enforce, since it only adds the ability to sell wine at those establishments that are already licensed to sell beer.  Even more importantly, there is absolutely no evidence to support the suggestion that the sale of wine in grocery stores would increase underage drinking.  To the contrary, an FBI statistical report found no correlation between states that sell wine in grocery stores and increased incidences of underage drinking or drunk driving. 

An honest, substantive discussion of this proposal has no room for scare tactics and purposefully misleading arguments. We are gratified that journalists have taken a skeptical look at these fictions, including the Schenectady Daily Gazette, which, in response to this most recent incident, called the liquor lobby’s claim “far-fetched.”

We are facing a fiscal crisis of epic proportions and the need to be as creative as possible in our efforts to expand and evolve our state’s economy cannot be overstated. As legislators, we know that looking for opportunities to do this without slashing critical services and taxing our citizens to death is a sacred responsibility.  The Liquor Store and Wine Revitalization Act is an ideal place to begin.  It’s also an idea that is supported by an overwhelming majority of New York residents, who deserve to have their interests balanced ahead of a lobby desperately seeking to protect its monopoly.

The authors are members of the New York State Assembly and co-sponsors of the Wine Industry and Liquor Store Revitalization Act.  Assembly Member Micah Kellner represents Manhattan’s Upper East Side and Assembly Member Keith Wright’s district includes West and Central Harlem.

 

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