NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6277A
SPONSOR: Lupardo TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
establishing a brand owner's license
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to create a Brand Owner's license in
New York State.
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision 3 of section 17 of the alcoholic beverage
control law to allow the liquor authority to impose certain civil penal-
ties for cause against the holder of a brand owner license.
Section 2: Amends subdivision 3 of section 17 of the alcoholic beverage
control law to allow the liquor authority to impose certain civil penal-
ties for cause against the holder of a brand license.
Section 3: Adds a new section 61-c to the alcoholic beverage control law
to establish a brand owner's license, allowing the holder to (1)
contract with NYS manufacturers for the production of alcoholic beverag-
es and grants manufacturers the ability to contract with Brand owners
licenses. ; (2) appoint a NYS wholesaler as exclusive brand agent to
solicit, negotiate, and receive sales payments for alcoholic beverages;
and (3) sell alcoholic beverages to NYS wholesalers and be remitted
payments for those sales: and authorizes the SLA to promulgate rules and
regulations.
Section 4: Adds a new subdivision 3-b to section 66 of the alcoholic
beverage control law to require an annual $125 fee for a Brand Owner's
license.
Section 5: Section 183 of the alcohol beverage control law is amended to
add a new paragraph 10 to allow licensed manufacturers to enter into a
contract with a Brand Owner's Licensee.
Section 6: an effective date.
JUSTIFICATION:
A Brand Owner's license grants an individual the ability to contract
with a licensed alcohol producer to manufacture, package and distribute
the brand owner's product. Creating a brand owner's license would offer
tremendous business opportunities to our state's alcoholic beverage
producers by formally allowing them to engage in contract manufacturing
with major or up-and-coming brands. Co-packing arrangements amongst
independent brand owners, manufacturers, and distributors are common-
place across many industries, including food, beverage, and alcohol.
Unfortunately, and unlike virtually anywhere else in the country - this
multipronged relationship does not fully comport with NY's strict alco-
hol laws, confusing companies and our state's manufacturers to ultimate-
ly turn down badly needed business. This new license would memorialize
what is otherwise a standard practice for the alcohol industry, leading
to more brands being manufactured in NYS.
PRIOR LEGISLATIVE HISTORY:
Formerly A-9107 of 2023-24, died in Rules.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation would create a small increase in sales tax from the
sales of new alcohol product lines created under this license.
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to subdivision 3 of section 17 of the alcoholic beverage
control law made by section one of this act shall be subject to the
expiration and reversion of such section pursuant to section 4 of chap-
ter 118 of the laws of 2012, as amended, when upon such date section two
of this act shall take effect.
