BILL NUMBER: S6765
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
establishing a brand owner's license
 
PURPOSE:
To create a brand owner's license, allowing a holder to arrange with a
NYS manufacturer and wholesaler for the production and distribution of
alcoholic beverages.
 
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; (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.
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: Effective date.
 
JUSTIFICATION:
The creation of 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 virtu-
ally anywhere else in the country - this multi-pronged relationship does
not fully comport with NY's strict alcohol laws, causing confusion for
companies and our state's manufacturers to ultimately 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 NY.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPACT ON THE STATE:
Revenue from additional licensing fees.
 
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.

Statutes affected:
S6765: 66 alcoholic beverage control law