NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3132A
SPONSOR: Lupardo TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
authorizing the direct intrastate and interstate shipment of liquor,
cider, mead, and braggot and relates to direct shipments of wine
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - amends section 107-a of the alcoholic beverage control law
to clarify that NYS brand labelling requirements for alcoholic beverages
apply to direct interstate shipments.
Section 2 - amends the alcoholic beverage control law by adding a new
section 68 that authorizes the direct interstate shipment of up to thir-
ty-six cases of liquor per year to a New York resident, who is at least
twenty-one years of age, by a licensed manufacturer with the privilege
of, producing liquor from a state that affords reciprocal shipping abil-
ities to similarly licensed NYS manufacturers. Provides for certain
shipping privileges and responsibilities, including but not limited to:
out-of-state manufacturers first obtaining an out-of-state shipper's
license from the SLA, shipping products solely for such resident's
personal use, enabling shipment within the same packaging of other alco-
holic beverages lawfully produced by such manufacturer, conspicuous
labeling of packages, maintaining records, verifying ages of recipients,
and paying all state and local taxes.
Further amends the alcoholic beverage control law by adding a new
section 69 that authorizes the direct intrastate shipment of up to thir-
ty-six cases of liquor per year to .a New York resident, who is at least
twenty-one years of age, by a NYS Class A-1, Class B-1, Class C, or
Class D licensed manufacturer with the privilege of producing liquor.
Provides for certain shipping privileges and responsibilities, including
but not limited to: shipping products solely for such resident's
personal use, enabling shipment within the same packaging of other alco-
holic beverages lawfully produced by such manufacturer, conspicuous
labeling of packages, maintaining records, and verifying ages of recipi-
ents.
Section 3 - amends the alcoholic beverage control law by adding a new
section 59-b that authorizes the direct interstate shipment of up to
thirty-six cases of cider per year to a New York resident, who is at
least twenty-one years of age, by a licensed manufacturer with the priv-
ilege of producing cider from a state that affords reciprocal shipping
abilities to similarly licensed NYS manufacturers. Provides for certain
shipping privileges and responsibilities, including but not limited to:
out-of-state manufacturers first obtaining an out-of-state shipper's
license from the SLA, shipping products solely for such resident's
personal use, enabling shipment within the same packaging of other alco-
holic beverages lawfully produced by such manufacturer, conspicuous
labeling of packages, maintaining records, verifying ages of recipients,
and paying all state and local taxes.
Further amends the alcoholic beverage control law by adding a new
section 59c that authorizes the direct intrastate shipment of up to
thirty-six cases of cider per year to a New York resident, who is at
least twenty-one years of age, by a NYS licensed manufacturer with the
privilege of producing cider. Provides for certain shipping privileges
and responsibilities, including but not limited to: shipping products
solely for such resident's personal use, enabling shipment within the
same packaging of other alcoholic beverages lawfully produced by such
manufacturer, conspicuous labeling of packages, maintaining records, and
verifying ages of recipients.
Section 4 - amends the alcoholic beverage control law by adding a new
section 35 that authorizes the direct interstate shipment of up to thir-
ty-six cases of mead and/or braggot per year to a New York resident, who
is at least twenty-one years of age, by a licensed manufacturer with the
privilege of producing mead and/or braggot from a state that affords
reciprocal shipping abilities to similarly licensed NYS manufacturers.
Provides for certain shipping privileges and responsibilities, including
but not limited to: out-of-state manufacturers first obtaining an out-
of-state shipper's license from the SLA, shipping products solely for
such resident's personal use, enabling shipment within the same packag-
ing of other alcoholic beverages lawfully produced by such manufacturer,
conspicuous labeling of packages, maintaining records, verifying ages of
recipients, and paying all state and local taxes.
Further amends the alcoholic beverage control law by adding a new
section 36 that authorizes the direct intrastate shipment of up to thir-
ty-six cases of mead and/or braggot per year to a New York resident, who
is at least twenty-one years of age, by a NYS licensed manufacturer with
the privilege of producing mead and/or braggot. Provides for certain
shipping privileges and responsibilities, including but not limited to:
shipping products solely for such resident's personal use, enabling
shipment within the same packaging of other alcoholic beverages lawfully
produced by such manufacturer, conspicuous labeling of packages, main-
taining records, and verifying ages of recipients.
Section 5 - amends section 79-c of the alcoholic beverage control law to
expressly enable direct interstate shipment within the same packaging of
other alcoholic beverages lawfully produced by a licensed out-of-state
manufacturer with the privilege of producing wine. Makes conforming
changes to conspicuous labelling requirements.
Section 6 - amends section 79-d of the alcoholic beverage control law to
expressly enable direct intrastate shipment within the same packaging of
other alcoholic beverages lawfully produced by a licensed NYS manufac-
turer with the privilege of producing wine. Makes conforming changes to
conspicuous labelling requirements.
Section 7 - effective date.
JUSTIFICATION:
COVID-19 was financially disastrous for New York's licensed manufactur-
ers of alcoholic beverages. Without executive orders authorizing the
direct shipment of products during the onset of the pandemic and provid-
ing this economic lifeline, many more businesses would have been forced
to fully and/or permanently close.
Unlike New York wine manufacturers, producers of liquor, cider, mead,
and braggot are not allowed to ship their products directly to inter-
state or intrastate customers. However, our state's wine manufacturers
have proven that direct-to-consumer shipping can be done safely, respon-
sibly, and effectively. This legislation would provide much-needed pari-
ty to New York's other alcoholic beverage manufacturers, allow for
heightened sales opportunities across new markets, and facilitate broad-
er access to products by consumers.
PRIOR LEGISLATIVE HISTORY:
Formerly A-10573, Died in Economic Development Committee.
FISCAL IMPLICATIONS:
This legislation could potentially result in increased tax revenue due
to increased sales.
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.
