What's happening
This bill requires retailers selling beer kegs for off-premises consumption to register each keg, attach identification, collect deposits, and maintain records.
Why it matters
Links beer kegs to individual purchasers and events. , making it easier for law enforcement to track the source of kegs if underage drinking or other violations occur, potentially deterring misuse.
Imposes financial accountability through deposits. , meaning customers risk losing money if they fail to return kegs or taps, or tamper with identification tags—encouraging responsible handling and returns.
Creates new recordkeeping and compliance duties for retailers. , requiring them to collect personal information, verify age, and maintain records for inspection, which could impact business operations and customer privacy.
Establishes penalties for tampering or non-compliance. , with fines for removing or damaging IDs, aiming to prevent attempts to anonymize keg sales and strengthen enforcement of alcohol laws.
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Who cares
Off-premises beer retailers
They would have to label kegs, collect purchaser information and signed statements, retain records, and collect refundable $50 keg registration and $25 tap deposits.
Keg buyers
They would forfeit deposits for kegs or taps not returned within 30 days and lose the keg registration deposit if the identification label or tag is missing.
State Liquor Authority
It would provide the purchaser statement, make identification labels or tags available to retailers at manufacturing cost, and be authorized to issue implementation rules.
Law enforcement officers
They would gain access to retailer keg records during normal business hours, with violations involving missing, damaged or improperly removed labels or tags subject to fines of $250 to $450.
Headline styles
Refundable Keg and Tap Deposit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
576
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. KENNEDY, COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the alcoholic beverage control law, in relation to the registration of kegs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The alcoholic beverage control law is amended by adding a new section 105-c to read as follows:
§ 105-c. Registration of bulk retail sales of beer for off-premises consumption. 1. Definition. As used in this section, the term "keg" shall mean a vessel containing four or more gallons of beer.
2. No person licensed to sell beer at retail for off-premises consumption pursuant to this chapter shall sell such beer by the keg unless such keg shall have an identification label or tag attached thereto. An identification label or tag shall consist of paper within a clear protective coating, plastic, metal or another durable material that is not easily damaged or destroyed. Identification labels used may contain a nonpermanent adhesive material in order to apply the label directly to an outside surface of a keg at the time of sale. Identification tags shall be attached to the keg at the time of sale with nylon ties or cording, wire ties or other metal attachment devices, or another durable means of tying or attaching the tag to the keg. Such identification label or tag shall be designed so that when affixed to a keg, such labels or tags will not mar or otherwise physically damage the keg. Such identification label or tag shall include the name and address of the retail licensee, the name of the purchaser, and an individual identification number assigned by the retailer that uniquely identifies such keg. The identification label or tag shall be kept on file with the licensee for not less than ninety days from the date of return.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02706-01-9
S. 576 2
3. Prior to the retail sale of beer in bulk by the keg for off-premises consumption, the retail licensee shall cause the purchaser thereof to sign a statement promulgated by the authority attesting under the penalty of perjury the accuracy of the purchaser's name as shown on the identification label or tag, and that the purchaser will not allow consumption of any of the beer in the keg in violation of the provisions of sections sixty-five-a, sixty-five-b and sixty-five-c of this chapter, and section 260.20 of the penal law. The licensee shall also record:
(a) the name and address of the purchaser;
(b) the identification card number from the purchaser's acceptable documentation of age as provided in paragraph (b) of subdivision two of section sixty-five-b of this chapter;
(c) the amount of the container deposit and the registration deposit;
(d) the date and time of the purchase; and
(e) the keg identification number required under subdivision two of this section.
4. All such records and statements shall be maintained by the licensee for a period of ninety days from the date of return. Such record and statements shall remain open to inspection by authorized agents of the authority and law enforcement officers during the licensee's normal business hours.
5. Upon the retail sale of beer by the keg for off-premises consumption, the retail licensee shall collect a fifty dollar registration deposit on each keg of beer purchased. The registration deposit shall be collected in addition to the purchase price of the beer, taxes thereon and any other deposit collected by the licensee. Upon the return of a keg to such licensee with the identification label or tag intact, the registration deposit shall be returned to the purchaser and the retail licensee shall remove such label or tag from each such keg. The registration deposit on each keg returned without the identification label or tag required by this section shall be forfeited. The registration deposit upon any keg not returned to the retail licensee within thirty days of the date of purchase shall be forfeited.
6. In addition to the deposit collected pursuant to subdivision five of this section, the retail licensee shall collect a twenty-five dollar deposit on each tap provided to a customer. The deposit shall be collected in addition to the purchase price of the beer, taxes thereon, and any other deposit collected by the licensee. Upon the return of such tap, the deposit provided pursuant to this subdivision shall be immediately returned to the customer. The deposit for any tap not returned within thirty days from the date of purchase shall be forfeited.
7. No person other than the licensee, a licensed wholesaler, a peace officer, or an agent of the authority may intentionally remove an identification label or tag placed on a keg. The possession of a beer keg without an identification label or tag or with a damaged label or tag in violation of this section, or the removal or damage of an identification label or tag in violation of this section shall be subject to a fine of no less than two hundred fifty dollars nor more than four hundred fifty dollars.
8. The authority is authorized to promulgate any rules and regulations necessary to implement the provisions of this section. The authority shall make readily available to licensees any keg identification labels or tags required by subdivision one of this section for the cost of manufacturing such tags or labels.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to the registration of kegs
Purpose
This bill creates requirements for identification tags attached to kegs, mandatory deposits for the rental of kegs, and mandatory deposits for the rental of a tap.
Summary of provisions
Section 1: adds section 105(c)to the alcoholic beverage control law, providing for mandatory identification labels attached to any keg provided for off-site consumption, provides the details to be included on each identification tag, provides for a 50 dollar deposit for each retail sale of beer by the keg for off-premises consumption, provides for a 25 dollar deposit for each tap provided by a retail licensee, and provides a fine for any individual who removes an identification tag or possesses a keg without the identification tag.
Section 2: sets the effective date.
Justification
The alcoholic beverage control law no longer requires identification tags on keg containers. However, this information that includes the name of the distributor and the purchaser of the beer, is vital in ensuring the keg returns to the proper distributor, and that any crime connected to the use of the keg is connected to the purchaser. Including an iden- tification requirement will streamline the reporting requirements needed for all kegs, instead of having different suppliers use different proc- esses.
Establishing a keg deposit at S50, and a tap deposit at S25, will help distributors properly cover the cost of items that fail to be returned. The cost of a new keg often exceeds $100 and the scrap value of an empty keg reaches upwards of $50, while the price of a new tap ranges from $30-$250. Setting a deposit level of $50 will ensure that the purchaser of the beer in the keg will not be able to profit by keeping the keg to sell as scrap. A $50 level also helps the distributor pay less when purchasing a replacement keg.
Additionally, a $25 tap deposit would better ensure the return of rented taps, and would help distributors recoup the cost towards replacing a lost tap. Setting deposit levels results in distributors having to spend less money out of pocket when replacing lost items, representing a savings to these companies.
Legislative history
2016: S.6293 Referred to Investigations and Government Operations 2017-18: S.1841 Referred to Investigations and Government Operations
Fiscal implications
To be determined.
Effective date
This act shall take effect 120 days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.