Albany Times Union

Whose interests?

Will donors sabotage a change that could help small businesses and consumers?

- To comment:

Acompany connected to a generous contributo­r to Gov. Kathy Hochul’s campaign is twice turned down for a liquor license by the State Liquor Authority. A company executive contacts the governor’s policy director ... and copies the governor’s top fundraiser.

And then — as the Times Union’s Chris Bragg found through Freedom of Informatio­n Law requests — the notoriousl­y slow SLA changes its mind within a mere five days.

The only people who even pretend to be surprised by this are Ms. Hochul’s Executive Chamber staff, who insist that campaign donations never, ever influence a government action. It’s the same claim made by Ms. Hochul’s predecesso­r, Andrew Cuomo, and it’s no more believable now than it was then.

What’s concerning here — beyond the sense that the governor and her team seem to think New Yorkers are naive enough to buy this line — is that not all favoritism is so petty. Another pending matter before the SLA could be a boon for small businesses and consumers, but costly for at least one of Ms. Hochul’s big contributo­rs.

tuletters@timesunion.com

As the Times Union’s Steve Barnes reports, the SLA is considerin­g updating its “split-case fee” — the charge that a liquor distributo­r can impose when a buyer such as a liquor store, bar or restaurant wants to order a particular brand but doesn’t want a full case. Buying in smaller quantities can allow businesses to try new products and offer customers a greater variety without tying up cash or storage space.

Split-case fees, allowed since 1969, were last set in 1980 and are supposedly capped at $1.98 per case. But those in the business say the cap isn’t enforced, and some distributo­rs charge $30 to $40 or more per case. Obviously, that adds up in fees that liquor stores and restaurant­s have to pay, costs that are no doubt passed on to consumers.

The SLA is exploring a $7.39 cap on split-case fees, bringing the per-bottle cost from what’s now well over $3 in some cases to just 62 cents. Of course, that means less for giant distributo­rs that have, according to restaurate­urs and other industry insiders, been soaking small operators for years.

And that’s where the concern about not-so-petty favoritism at the SLA comes back into play. The nation’s biggest distributo­r, Southern Glazer’s Wine & Spirits, has given the governor’s campaign $25,000 in the span of less than a year since she rose from lieutenant governor. It’s hard to envision Southern Glazer’s having much trouble getting access to the governor’s office to make its case. A decision on the split-case fees isn’t expected before September, giving Southern Glazer’s and other distributo­rs time to keep pumping money into Ms. Hochul’s campaign and press her to reject the regulatory change.

Here’s a better idea: Update the fee — it has, after all, been set for over 40 years — but also direct SLA investigat­ors to get out and vigorously enforce the cap. And if past violations are found, fine the offenders and make them reimburse the overcharge­s.

Now there’s something that would send a credible message that money doesn’t buy favors in this administra­tion.

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