senate Bill S5832

Provides for the brand or trade name labeling of alcoholic beverages

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Jun / 2013
    • REFERRED TO RULES
  • 21 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1578
  • 21 / Jun / 2013
    • SUBSTITUTED BY A8046

Summary

Provides for the brand or trade name labeling of alcoholic beverages.

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Bill Details

See Assembly Version of this Bill:
A8046
Versions:
S5832
Legislative Cycle:
2013-2014
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §107-a, ABC L

Sponsor Memo

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5832

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 17, 2013
                               ___________

Introduced by Sens. MARCELLINO, GALLIVAN -- (at request of the Governor)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Rules

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 107-a of the alcoholic  beverage  control  law,  as
added  by  chapter  479 of the laws of 1940, subdivision 1 as amended by
chapter 204 of the laws of 1963, subdivisions 3  and  4  as  amended  by
chapter  490  of  the  laws  of  1993,  subparagraph 1 and clause (i) of
subparagraph 2 of paragraph (c) of subdivision 4 as amended  by  chapter
213  of  the  laws of 2010, paragraph (d) of subdivision 4 as amended by
chapter 361 of the laws of 1994 and paragraph (g) of  subdivision  4  as
amended  by  chapter  109  of  the  laws  of 2012, is amended to read as
follows:
  S 107-a. Labeling containers of alcoholic  beverages.  1.  The  liquor
authority  is  hereby  authorized  to  promulgate  rules and regulations
governing the labeling and  offering  of  alcoholic  beverages  bottled,
packaged, sold or possessed for sale within this state.
  [2.] Such regulations shall be calculated to prohibit deception of the
consumer;  to  afford  him OR HER adequate information as to quality and
identity; and to achieve national uniformity [in this field] in  so  far
as possible.
  [3.] 2. The bottling, packaging, sale or possession by any licensee of
any  alcoholic  beverage not labelled or offered in conformity with this
section shall be ground for suspension, revocation  or  cancellation  of
the license.
  [4.  (a)]  3.  No  [liquor,  wine or beer] ALCOHOLIC BEVERAGE shall be
[labelled,] offered or advertised for sale  IN  THIS  STATE  unless  [in
accordance with this section and unless the]:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12039-01-3

S. 5832                             2

  (A)  THERE IS A brand or trade name label affixed to or imprinted upon
the container of such alcoholic beverage [shall have been];
  (B)  SUCH  LABEL  IS registered with and approved by the authority and
CONTAINS THE INFORMATION REQUIRED IN THIS SECTION; AND
  (C) the appropriate fee HAS BEEN paid as provided for in this section.
  [(b)] 4. An application for registration of  a  brand  or  trade  name
label shall be filed by (1) the owner of the brand or trade name if such
owner  is  licensed  by  the authority, or (2) a wholesaler selling such
brand who is appointed as exclusive agent, in writing, by the  owner  of
the  brand  or trade name for the purpose of filing such application, if
the owner of the brand or trade name is not licensed by  the  authority,
or  (3) any wholesaler, with the approval of the authority, in the event
that the owner of the brand or trade name does not file or is unable  to
file  such  application  or designate an agent for such purposes, or (4)
any wholesaler, with the approval of the authority, in  the  event  that
the  owner  of  the  brand or trade name is a retailer who does not file
such application, provided that  the  retailer  shall  consent  to  such
filing  by  such wholesaler. Such retailer may revoke his consent at any
time, upon written notice to the authority and to such wholesaler.
  Unless otherwise permitted or required by the authority, the  applica-
tion  for  registration  of  a  liquor or wine brand or trade name label
filed pursuant to this section shall  be  filed  by  the  same  licensee
filing schedules pursuant to section one hundred one-b of this [chapter]
ARTICLE.
  Cordials  and  wines  which  differ  only as to fluid content, age, or
vintage year, as defined by such regulations, shall  be  considered  the
same  brand; and those that differ as to type or class may be considered
the same brand by the authority where consistent with  the  purposes  of
this section.
  [(c)]  (A)  (1)  The  application for registration of a brand or trade
name label shall be filed by certified mail  return  receipt  requested,
registered  mail return receipt requested, or overnight delivery service
with proof of mailing, on a form prescribed by the authority, and  shall
contain  such  information as the authority shall require. Such applica-
tion shall be accompanied by the appropriate fee prescribed by paragraph
[(d)] (B) of this subdivision.
  (2) Provided, however, where a brand or  trade  name  label  has  been
approved  by the [federal bureau of alcohol, tobacco and firearms] ALCO-
HOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES DEPARTMENT  OF
TREASURY,  it  shall  be deemed registered and approved by the authority
if:
  (i) the applicant submits on a form prescribed by  the  authority,  by
certified  mail return receipt requested, registered mail return receipt
requested, or overnight delivery service with proof of mailing,  a  true
copy  of  the  brand or trade name label approval issued by the [federal
bureau of alcohol, tobacco and firearms] ALCOHOL  AND  TOBACCO  TAX  AND
TRADE  BUREAU OF THE UNITED STATES DEPARTMENT OF TREASURY along with the
appropriate fee as established in paragraph [(d)] (B) of  this  subdivi-
sion; and
  (ii)  the  authority does not deny such application within thirty days
after receipt.
  (3) Provided, however, that where a brand or trade name label for wine
has been approved  by  the  [federal  bureau  of  alcohol,  tobacco  and
firearms]  ALCOHOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES
DEPARTMENT OF TREASURY, it shall be deemed registered  and  approved  by

S. 5832                             3

the  authority  and no application, application fee, or annual registra-
tion fee shall be submitted to the authority.
  [(d)]  (B)  The annual fee for registration of any brand or trade name
label for liquor shall be two hundred fifty dollars; the annual fee  for
registration of any brand or trade name label for beer OR CIDER shall be
one  hundred fifty dollars; the annual fee for registration of any brand
or trade name label for wine OR WINE PRODUCTS shall  be  fifty  dollars.
Such  fee  shall  be  in the form of a check or draft. No annual fee for
registration of any brand or trade name label for wine shall be required
if it has been approved by the [federal bureau of alcohol,  tobacco  and
firearms]  ALCOHOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES
DEPARTMENT OF TREASURY pursuant to this section.
  Each brand or trade name label registration approved pursuant to  this
section shall be valid for a term [which shall run concurrently with the
term  of  the license of the person registering such brand or trade name
label] OF ONE YEAR AS SET FORTH BY THE  AUTHORITY  AND  WHICH  SHALL  BE
PRO-RATED FOR PARTIAL YEARS AS APPLICABLE.
  Each  brand or trade name label registration approved pursuant to this
section shall be valid only for the licensee to whom  issued  and  shall
not be transferable.
  [(e)] (C) If the authority shall deny the application for registration
of a brand or trade name label pursuant to this section, it shall return
the  registration  fee  to the applicant, less twenty-five per centum of
such fee and shall notify the applicant, in writing  with  the  specific
reasons for its denial.
  [(f)  When  not inconsistent with the purposes of this subdivision and
whenever necessary to avoid practical difficulties or unnecessary  hard-
ship  to any licensee affected by this section, the authority may, until
October first, nineteen hundred sixty-three, exempt any brand  from  the
fee  provisions  of  this  subdivision  upon satisfactory showing by the
licensee that such brand is being discontinued.] (D) The  authority  may
at any time exempt any discontinued brand from such fee provisions where
a  manufacturer  or  wholesaler has an inventory of one hundred cases or
less of liquor or wine and five hundred  cases  or  less  of  beer,  and
certifies  to  the authority in writing that such brand is being discon-
tinued. The authority may also at any time exempt any discontinued brand
from such fee provisions where a retailer discontinuing a brand owned by
him has a balance of an order yet to be delivered of fifty cases or less
of liquor or wine, or two hundred fifty cases  or  less  of  beer,  WINE
PRODUCTS OR CIDER.
  [(g)]  (E)  The  authority  shall  exempt from such fee provisions the
registration of each brand OR TRADE NAME label used for  beer  OR  CIDER
that  is produced in small size batches totaling fifteen hundred barrels
[of beer] or less OF BEER OR CIDER annually.
  (F) THE AUTHORITY SHALL EXEMPT FROM SUCH FEE PROVISIONS THE  REGISTRA-
TION  OF  EACH BRAND OR TRADE NAME LABEL USED FOR SPIRITS OR LIQUOR THAT
IS PRODUCED IN SMALL SIZE BATCHES TOTALING ONE THOUSAND GALLONS OR  LESS
OF SPIRITS OR LIQUOR ANNUALLY.
  5.  (A)  EACH  BRAND  OR  TRADE NAME LABEL SHALL CONTAIN THE FOLLOWING
INFORMATION:
  (I) THE BRAND OR TRADE NAME;
  (II) THE CLASS AND TYPE  (IF  APPLICABLE)  OF  ALCOHOLIC  BEVERAGE  IN
ACCORDANCE  WITH THE LABELING REGULATIONS PROMULGATED BY THE ALCOHOL AND
TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES DEPARTMENT  OF  TREAS-
URY; AND
  (III) THE NET CONTENTS OF THE CONTAINER.

S. 5832                             4

  (B) THE BRAND OR TRADE NAME LABEL, OR A SEPARATE LABEL ON THE FRONT OR
BACK  OF  THE  CONTAINER  SHALL  CONTAIN INFORMATION CONSISTENT WITH THE
LABELING REGULATIONS PROMULGATED BY THE  ALCOHOL  AND  TOBACCO  TAX  AND
TRADE BUREAU OF THE UNITED STATES DEPARTMENT OF TREASURY.
  (C)  NO  BRAND OR TRADE NAME LABEL, OR ANY SEPARATE LABEL ON THE FRONT
OR BACK OF THE CONTAINER SHALL CONTAIN:
  (I) ANY STATEMENT THAT IS FALSE OR UNTRUE IN ANY PARTICULAR MANNER;
  (II) ANY STATEMENT THAT IS DISPARAGING OF A COMPETITOR'S PRODUCT;
  (III) ANY STATEMENT, DESIGN, DEVICE OR REPRESENTATION THAT  IS  LIKELY
TO MISLEAD THE CONSUMER; OR
  (IV)  ANY  STATEMENT  OR  CLAIM  OF HEALTH BENEFITS TO BE DERIVED FROM
CONSUMPTION BY THE CONSUMER.
  (D) A SEPARATE LABEL REGISTRATION SHALL BE REQUIRED IN CONNECTION WITH
THE REGISTRATION OF A BRAND OR TRADE NAME LABEL USED WHERE  THERE  IS  A
DIFFERENCE IN ANY OF THE FOLLOWING INFORMATION:
  (I) THE BRAND OR TRADE NAME;
  (II)  THE  CLASS  AND  TYPE  (IF  APPLICABLE) OF ALCOHOLIC BEVERAGE IN
ACCORDANCE WITH FEDERAL LABEL REGULATIONS; OR
  (III) A PRIVATE LABEL OWNED AND  SOLD  EXCLUSIVELY  BY  ONE  RETAILER,
WHERE  THE ALCOHOLIC BEVERAGE IS MANUFACTURED, BOTTLED, OR IMPORTED BY A
DIFFERENT MANUFACTURER, BOTTLER, OR IMPORTER, PROVIDED ALL OTHER  INFOR-
MATION APPEARING ON THE LABEL IS THE SAME.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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