NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9070
SPONSOR: Stirpe TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
private label wine
PURPOSE:
To formally define "private label" products and the authorized sale
thereof.
SUMMARY OF PROVISIONS:
Section 1. Amends Section 3 of the Alcoholic Beverage Control Law, to
define "private label" as an alcoholic beverage with a brand name or
trade name label that is exclusively owned by a licensed retailer or
such retailer otherwise has the legal right to use the brand name or
trade name belonging to another entity, and such item is sold at retail
within the state exclusively by such retailer; provided, however,
private label wine may also be sold by licensees that are commonly owned
affiliates of such retailer.
Section 2. Amends Section 101-b(3) (3) of the Alcoholic Beverage Control
Law, to exempt "private label" liquor and wine from price posting
requirements.
section 3. Amends Section 106(3) of the Alcoholic Beverage Control Law,
to authorize the sale of "private label" wine for off-premises consump-
tion by certain restaurant licensees provided such sales are accompanied
by the purchase of a substantial food item.
EXISTING LAW:
Section 3 of the Alcoholic Beverage Control Law does not include a
formal definition of "private label." The NYS Liquor Authority defines
"private label brand" as a brand label owned by a licensed retailer. An
alcoholic beverage with a private brand label may only be sold by the
licensed retailer who owns the brand label. The licensed retailer must
own the brand name or otherwise have the legal right to use a brand or
trade name belonging to another entity.
Alcoholic Beverage Control Law Section 101-b requires price posting of
liquor and wine, except any item offered for sale to a retailer under a
brand which is owned exclusively by one retailer and at retail within
the state exclusively by such retailer.
Alcoholic Beverage Control Law Section 106 prohibits on-premises licen-
sees from selling liquor or wine for off-premises consumption, except
under certain circumstances.
JUSTIFICATION:
Providing a formal definition of "private label" will add clarity to•
the Alcoholic Beverage Control Law. Consumers will have an increased
opportunity to select from private label wines owned by their local
retailers and support growers throughout the State.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
This legislation will help generate sales, excise, and property tax
revenue.
EFFECTIVE DATE:
This legislation will take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9070
IN ASSEMBLY
February 6, 2024
___________
Introduced by M. of A. STIRPE -- read once and referred to the Committee
on Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to
private label wine
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3 of the alcoholic beverage control law is amended
2 by adding a new subdivision 23-a to read as follows:
3 23-a. "Private label" means an alcoholic beverage with a brand name or
4 trade name label that is exclusively owned by a licensed retailer, or
5 owned by an entity that has granted a retailer the legal right to use
6 such brand name or trade name, and such alcoholic beverage is sold at
7 retail within the state exclusively by such retailer; provided, however,
8 that private label wine may also be sold by licensees that are commonly
9 owned affiliates of such retailer.
10 § 2. Paragraph (c) of subdivision 3 of section 101-b of the alcoholic
11 beverage control law, as amended by chapter 531 of the laws of 1964, is
12 amended to read as follows:
13 (c) Provided however, nothing contained in this section shall require
14 any manufacturer or wholesaler to list any private label in any schedule
15 to be filed pursuant to this section [any item offered for sale to a
16 retailer under a brand which is owned exclusively by one retailer and
17 sold at retail within the state exclusively by such retailer].
18 § 3. Subdivision 3 of section 106 of the alcoholic beverage control
19 law, as amended by chapter 297 of the laws of 2016, is amended to read
20 as follows:
21 3. No retail licensee for on-premises consumption shall sell, deliver
22 or give away, or cause or permit or procure to be sold, delivered or
23 given away any liquors and/or wines for consumption off the premises
24 where sold; provided, however, notwithstanding any law to the contrary,
25 a restaurant licensed to sell wine under this chapter may sell sealed
26 bottles of private label wine for off-premises consumption with the
27 purchase of a substantial food item. The provisions of this subdivision
28 shall not prohibit a licensed winery or farm winery from allowing a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11655-01-3
A. 9070 2
1 patron to leave the winery or farm winery with a partially consumed
2 bottle of wine provided that the removal of the bottle is done in
3 accordance with subdivision four of section eighty-one of this chapter.
4 § 4. This act shall take effect immediately.
