BILL NUMBER: S567A
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 owner license.
Section 3: Adds a new section 61-c to the alcoholic beverage control law
to establish a brand owners license, allowing the holder to (1)contract
with NYS manufacturers for the production of alcoholic beverages; (2)
appoint a NYS wholesaler as an exclusive brand agent to solicit, negoti-
ate, and receive sales payments for alcoholic beverages; and (3) sell
alcoholic beverages to NYS wholesalers and be remitted payments for
those sales; 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: Amends section 103 of the alcoholic beverage control law to
allow licensed manufacturers to enter into a contract with a brand
owner's licensee.
Section 6: Sets effective date.
 
JUSTIFICATION:
Creating a brand owner's license would offer tremendous business oppor-
tunities to our state's alcoholic beverage producers by formally allow-
ing them to engage in contract manufacturing with major or up-and-coming
brands. Co-packing arrangements amongst independent brand owners,
manufacturers, and distributors are commonplace across many industries,
including food, beverage, and alcohol.
Unfortunately, unlike virtually anywhere else in the country, this
multipronged relationship does not fully comport with New York's strict
alcohol laws, confusing companies and our state manufacturers to ulti-
mately turn down badly needed business. This new license would memorial-
ize what is otherwise a standard practice for the alcohol industry,
leading to more brands being manufactured in NYS.
 
LEGISLATIVE HISTORY:
Senate
2023: S6765, Advanced to Third Reading
2024: S6765, Advanced to Third Reading Assembly
2023: N/A
2024: A9107, Referred to Economic Development
 
FISCAL IMPLICATIONS:
None to the state.
 
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:
S567: 17 alcoholic beverage control law, 17(3) alcoholic beverage control law, 66 alcoholic beverage control law
S567A: 17 alcoholic beverage control law, 17(3) alcoholic beverage control law, 66 alcoholic beverage control law, 103 alcoholic beverage control law