Governor Paterson Vetoes package of 49 bills

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ALBANY, N.Y. (WKTV) - Governor Paterson vetoes 49 bills as part of the state's efforts to reduce spending to fend off a $5.4 billion deficit projected for the coming fiscal year. The following locally sponsored bills were also vetoed:

1.) A.9055-B Destito/S.6101-B Griffo – Permits small beer brewers to terminate certain franchise agreements without good cause.

2.) S.6835-B Seward /A.10123-A Destito – Establishes a blue ribbon commission on competition in the outdoor recreation industry.

3.) S.6869 Griffo /A.9864 Magee – Allows volunteer firefighters and ambulance workers to receive both a real property tax exemption and an income tax credit.

4.) S.7899 Griffo /A.10750 Destito – Allows individuals to be granted permits for public displays of fireworks.

"I'm very disappointed in the Governor's recent decisions on my legislation," said Senator Joseph A. Griffo "I've made it clear to his
legal analysts that this'll have a negative effect with local employers, small and large, and with some emergency lifesaving workers, here and throughout the State."

Assemblwoman Destito's office had this to say:

“During difficult economic times, New York State needs to stand by our small businesses in order to grow our economy especially in the upstate region.  My bill to reform the state’s alcohol beverage control act would have corrected a restraint of trade problem currently in state law,”  Destito said.  “Essentially, my bill would have allowed small brewers to end their agreements with wholesalers who are not promoting their product in order to level the playing field with the large brewers.”

New York’s franchise law should protect small brewers who spend time and money to build a brand by preventing arbitrary cancellation of contracts between brewers and wholesalers which is what we have witnessed with a Lake Placid brewer.  However, today, some wholesalers use the law to lock in contracts with small brewers, while at the same time limiting their market share by not promoting the brand.  Destito’s measure sought to amend the law by giving New York’s small breweries the option of ending a contract with an unsatisfactory wholesaler to better develop their brands elsewhere.

The measure was agreed to by the New York State Brewers and the New York State Beer Wholesalers, Destito said.  The vetoed legislation required the brewer to pay the affected wholesaler the fair market value of the distribution rights that would be lost or diminished.

“We have over 55 small New York State brewers and the field is growing,” Destito said. “I am very disturbed by this veto because we need this change in the current law in order to give these small businesses more flexibility to sell their product.  This action hurts the small brewer at a time when the large brewers are consolidating with global companies that ultimately will prevent any competition.”

In addition, the Governor also vetoed legislation (Assembly Bill 10750) by Assemblywoman Destito that would have allowed New York State licensed, qualified pyrotechnic display companies to display their fireworks in places of public accommodation.

“Once again, the state has hurt small businesses that are trying to expand their business opportunities by vetoing this legislation which was supported by the Department of Labor (which had similar language in a departmental bill) as well as the New York State Pyrotechnic Coalition,”  Destito explained.  “Many private weddings, sporting events, conventions and other similar celebrations are hoping to have fireworks displays as part of their event, and this measure sought to open the law up to accommodate such activity.  The law hasn’t been updated since 1940.”

State law currently does not allow fireworks for private events.  The law denies businesses that are highly qualified in pyrotechnics and hold all the necessary insurance and licenses the additional business of weddings, birthday parties, engagement parties, etc. which is tantamount to their business and costly to the local economy.  Destito’s bill would have defined a public display to be viewed by a target audience at any place of public accommodation.

“Once again, I am deeply concerned that the state is not taking into account the role of the small business person by vetoing legislation that the State Legislature has overwhelmingly supported,”  Destito said.  “I am doing my best to focus on the entrepreneurs that create jobs and small businesses which we desperately need in upstate New York.  We need to be more creative and innovative in our thinking.  At this time, I will review the Governor’s concerns and consider future action.”

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