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