Provides for the brand or trade name labeling of alcoholic beverages

2 Co-sponsors

• Patrick M. Gallivan
• David J. Valesky

BILL NUMBER:S5832

Title of bill

An act to amend the alcoholic beverage control law, in relation to brand or trade name labeling of alcoholic beverages

Purpose: This bill would amend section 107-a of the Alcoholic Beverage Control Law ("ABCL") to create an exemption from the brand label registration fee for distilled spirits produced in small batches, to modernize the standards used in approving brand labels, and to reduce the amount of information that brand owners and wholesalers must provide to the State Liquor Authority ("SLA") when applying for brand label approval.

Summary of Provisions:

Section 1 of the bill would amend ABCL § 107-a, which relates to the registration of brand or trade name labels for alcoholic beverages. In particular, the bill would make a number of technical amendments. Currently, subdivisions 1 and 2 grant the SLA authority to promulgate regulations regarding labeling. This bill would combine those provisions into one coherent subdivision. The bill would also update references to the "federal bureau of alcohol, tobacco and firearms" to the correct current name, "Alcohol and Tobacco Tax and Trade Bureau of the United States Department of Treasury."

In addition, the bill would add cider and wine products as alcoholic beverage types subject to New York labeling requirements. The current law provides an exemption from the brand label registration fees for brands of beer produced in batches of 1,500 barrels or less, and this bill would extend that exemption to small-batch ciders. The bill would also add a new paragraph (f) to subdivision 4 to provide an exemption from the brand label registration fee for distilled spirits produced in small batches of 1,000 gallons or less annually. Finally, the bill would add a new subdivision 5 to clarify the labeling requirements, confirm that they are consistent with federal requirements, and in some cases, reduce the information required to be included on alcoholic beverage labels in New York.

Section 2 of the bill provides that the act will take effect 180 days after becoming law,

Existing Law: Current ABCL § 107-a sets forth the requirements for the labeling of alcoholic beverages in New York, but it contains outdated provisions and is not as clear as it could be for regulated parties.

Statement in Support: This bill will provide clear, concise, and understandable requirements for the labeling of alcoholic beverages. It simplifies the brand labeling process by reducing the amount of information that must be submitted and reviewed for changes. This bill will provide a business-friendly exemption from brand labeling fees for ciders produced in small batches of 1,500 barrels or less and for distilled spirits produced in small batches of 1,000 gallons or less. This

exemption is particularly important to craft producers, many of whom produce several small-batch artisanal brands each year. A similar exemption for small-batch beers was enacted in 2012. This bill will also clarify the SLA's power to disapprove brand labels that are false or likely to mislead the consumer.

Budget Implications: This bill is not expected to have a significant impact on the State's budget.

Effective Date: This act shall take effect on the 180th day after it becomes law.