A10448 Summary:

SPONSORRules (Gunther)
COSPNSRButtenschon, Jones, Santabarbara, Ashby, Woerner, Barrett
Add 64-e & 64-f, ABC L
Authorizes the direct intrastate and interstate shipment of liquor.
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A10448 Actions:

05/18/2020referred to economic development
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A10448 Committee Votes:

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A10448 Floor Votes:

There are no votes for this bill in this legislative session.
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A10448 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Rules (Gunther)
  TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to authorizing the direct intrastate and interstate shipment of liquor   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to allow direct to consumer interstate ship- ping of distilled spirits from New York distillers direct to consumers of legal drinking age outside of NY State to States with reciprocal agreements.   JUSTIFICATION: The outbreak of COVID-19 has not only harmed the health of New Yorkers but has fractured our nation's economy and exposed weaknesses in our critical supply chains. During this time of crisis, New York distillers have pivoted from their core business of making beverage spirits to producing and providing critically needed alcohol-based hand sanitizers using local supply chains. However, our New York craft spirits sector has been hit incredibly hard economically. Most of our craft distillers rely entirely on direct to consumer sales driven by tourism in their tasting rooms and farmers markets. Many do not have distribution in New York State. Almost all tasting rooms are now and for the foreseeable future crippled by neces- sary social distancing measures. More established distillers, who have a more balanced amount of sales between tasting rooms and traditional distribution channels have also been devastated as restaurants and bars have been closed. Sales outside of New York State have diminished as Covid is impacting all states. Unfortunately, unlike New York wine producers, spirits producers are not allowed to ship their product directly to consumers via third party carriers outside of New York State. There is a clear and simple solution to this problem that has proven to be safe and effective - as wine producers have demonstrated for a number of years: direct to consumer sales outside of New York State fulfilled through third party providers. Providing for direct to consumer sales for craft spirit producers would simultaneously solve many timely and compelling issues: by minimizing person to person contact and exercising social distancing, it maximizes the public health and safety benefit; by allowing producers to exercise their right to sell to consumers without an in-person visit we can stim- ulate the economic recovery within the craft spirits sector; by utiliz- ing third party fulfillment companies we increase economic activity in the broader economy and ensure age verification and control; and direct to consumer sales outside of New York State will allow smaller brands to reach consumers organically and help to grow their brands. Recent executive orders New York State have provided temporary regulato- ry relief that has allowed for consumers to order online with orders being fulfilled through third party carriers. Many of our craft distil- lers are reporting critical sales that have allowed them to keep their businesses open as a result of direct to consumer shipment. The passing of direct to consumer shipping outside of NY State will allow distillers to begin to revive their core businesses in the safest way possible, while still contributing to the health, welfare, and econ- omy of our states and communities.   PRIOR LEGISLATIVE HISTORY: New   FISCAL IMPLICATIONS: Potential increased tax revenue   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
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