NY Wine Industry Gets Boost from New Legislation

Cuomo Signs New Law Reducing Regulatory Burden on Farm Wineries by the State Liquor Authority

Governor Cuomo today announced that he has signed legislation to significantly reduce the regulatory burdens placed on farm wineries by the State Liquor Authority (SLA). This bill would implement several of the recommendations made by the New York State Wine Grape Task Force in its December 2008 report to the Commissioner of the Department of Agriculture and Markets.

"This bill is a huge boost for wineries across the state. Reducing the regulatory burdens on farm wineries will allow them to continue to thrive as a key tourism, agricultural, and economic engine for our state. I want to thank Commissioner Aubertine, Senator Young and Assemblyman Schimminger for their dedication to this bill," Governor Cuomo said.

The Fine Winery Bill includes:

Branch Store Capability: The bill would give farm wineries the ability to operate up to five branch stores. While farm wineries can currently operate up to five "satellite stores," under existing law those stores must obtain separate licenses and are subject to the same off-premise restrictions imposed on package/liquor stores. The new "branch store" system would allow such stores to be considered extensions of the farm winery, not as separate entities, making it much easier for such stores to be opened up around the state.

Custom Crush Capability: The bill clarifies the ability of farm wineries to provide and/or utilize custom crush services for purchasers of New York grapes, thereby encouraging smaller vineyards to enter in the industry, which in turn will foster rural economic growth.

Direct Shipper's Report Efficiencies: New York wineries have been able to ship directly to consumers in other states since 2005, but needed to produce a very costly, time consuming and underutilized report. This legislation now requires them to maintain reports on-site and provide them to SLA only upon request.

License Consolidation: Under this bill, the law no longer requires the State's wineries that manufacture less than 1,500 gallons of wine annually to apply for a separate micro-winery license; rather all farm wineries will have the same license, with micro-winery licenses continuing to cost $50 annually.

Charitable Events Filing Efficiencies: New York wineries seeking to participate in charitable events are no longer restricted to five per year. Now, wineries will have to obtain an annual permit and notify SLA of the event, greatly reducing the amount of burden on both wineries and SLA, while ensuring the same oversight.

"Farm wineries are a growing, profitable sector in our state's agricultural industry, and I thank Governor Cuomo for his focus on strengthening our economy. By signing this bill, the Governor is partnering with us to relieve these wineries from cumbersome regulations that have impeded their productivity," said State Senator Catharine Young.

"Not only will this new law permit both New York farm wineries and the State Liquor Authority to operate more efficiently, it also will allow these private businesses and state government to cut costs. This initiative is exactly what our state needs to generate more economic vitality, opportunity and prosperity, and I was proud to sponsor this legislation."

State Assemblyman Robin Schimminger also supports the new legislation.

"This bill delivers on our shared commitment to further promote the successful development of New York's wine and grape industry. By streamlining regulatory requirements on farm wineries in our state, this bill will encourage new businesses and expansion in the agricultural industry," said Schimminger.

"It also achieves efficiency and consolidation in reporting, licensing, and filing with the State Liquor Authority which will help both wineries and state government to function more resourcefully while ensuring an appropriate level of oversight. I thank the Governor for signing this bill. Working together we will continue to prove that New York is open for business."

New York State Agriculture Commissioner Darrel J. Aubertine said, "Governor Cuomo recognizes the significant role agriculture plays in the State's economy. With wine being one of the fastest growing sectors of that industry, this legislation offers numerous benefits to farm wineries that will have a ripple effect throughout the countryside. I thank Governor Cuomo, Senator Young and Assemblyman Schimminger for their hard work on this bill."

The New York wine and grape industry has a $3.76 billion economic impact from the production of wine and grapes grown on nearly 1,400 vineyards statewide. Since the passage of the Farm Winery Law in 1976, the number of New York's farm wineries has grown from under twenty to nearly 306 today.

Wine production has increased more than 50 percent in the last 20 years to nearly 200 million bottles annually. New York is now the third largest wine producing state in the country, behind California, and recently Washington. The sale of New York wines account for $420 million a year.

Today, more than 5 million tourists visit New York wineries annually. The five major wine producing regions in the state are the Finger Lakes, Long Island, the Hudson Valley, Lake Erie and the Niagra Escarpment, but there are wineries in 51 of New York's 62 counties.

Image courtesy of http://www.pdphoto.org.

LIPA to Undergo Major Audit, Rate Hike Review

Investigation Centers on Over $230 Million in Questionable Charges and Over-Billing

Governor Andrew Cuomo has directed New York State Inspector General Ellen Biben to conduct a thorough audit of the Long Island Power Authority (LIPA). Cuomo pointed to recent concerns that LIPA may be raising rates in a manner to avoid triggering a required review by the Public Service Commission (PSC), making questionable charges and overbilling more than $230 million over the last decade.

The governor directed Biben to do a comprehensive review and also to focus its audit on LIPA's billing and delivery charge practices to ensure Long Island ratepayers are treated fairly and are not subjected to unnecessary and avoidable rate hikes.

"The Inspector General's audit of how LIPA sets its rates will make sure Long Islanders know where their money is going, especially since they pay among the highest energy rates in the nation," Governor Cuomo said.

"We must make sure that LIPA is following the letter of the law when it comes to how much it charges ratepayers."

At the governor's request, the Inspector General Biben will conduct a full audit of LIPA's delivery charges and other billing actions to ensure that its rate structure is efficient and accurate. Concerns relating to the utility that have been raised by local elected officials include the following:

A recent discovery of more than $230 million in overcollections by the utility, which coincided with its 1.9 percent delivery charge increase.

Rate increases that fall just below the level that would require a review by the PSC. Annual delivery charge increases of less than 2.5 percent are not subjected to scrutiny by the PSC and the last two increases of 2.1 percent and 1.9 percent have fallen just below that level, raising the possibility that LIPA is increasing its rates just below the threshold to avoid a PSC review.

Questionable charges, including passing on approximately $33 million in charges to ratepayers for recovery from a storm that never happened.

The American Consumer Satisfaction Index gave LIPA the lowest customer satisfaction rating among municipal-owned utilities in the nation, underscoring an overall dissatisfaction with the power utility

"Our office has the tools and resources necessary to conduct a swift and thorough audit of the Long Island Power Authority's rate tactics, and I thank Governor Cuomo for the opportunity to verify and assess rate increases that impact Long Island ratepayers," said Biben.

Senator Charles J. Fuschillo, Jr. and Assemblyman Robert K. Sweeney have been vocal advocates on behalf of ratepayers on Long Island. Senator Fuschillo recently led a hearing on LIPA oversight and Assemblyman Sweeney has put forth legislation seeking oversight of the utility.

"I applaud Governor Cuomo for ordering a thorough audit of LIPA by the Inspector General. This is a critically important step in the right direction towards making LIPA more transparent and accountable to its 1.1 million ratepayers, who are sick and tired of paying some of the highest utility costs in the nation," stated Senator Fuschillo.

Assemblyman Sweeney said, "I am delighted that Governor Cuomo has begun the process of providing desperately needed public oversight of the Long Island Power Authority. A number of unfortunate and questionable decisions have caused the authority to lose public confidence. It is only through greater transparency and professional oversight that this trust can be restored. Long Islanders pay among the highest electric rates in the United States. They deserve no less than to receive the best possible management of their utility."