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ALBANY, N.Y. -- The state's convenience store association withdrew its support from a proposal in Gov. David Paterson's state budget plan to raise revenue by allowing the sale of wine in grocery stores (or WIGS), according to Capitol Confidential.
Lawmakers had previously rejected the proposal.
The New York Association of Convenience Stores (NYACS), which had originally supported the idea, took issue with the medallion system that the Paterson Administration tried offer as a compromise to WIGS opponents, led by liquor stores, according to Capitol Confidential. Under the medallion system, liquor stores for a period of time, initially three years, would get two medallions that allowed the sale of wine -- one that they would keep and another that they could sell to grocery stores or convenience stores that could bid on the medallions, according to the report.
Convenience stores would have had a difficult time competing with larger, deeper-pocketed grocery chains in bidding for medallions and likely get squeezed out of selling wine at all -- putting them at a disadvantage against a supermarket that could sell wine.
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