Bill S5832-2013

Provides for the brand or trade name labeling of alcoholic beverages

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

Details

Actions

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

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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.


Text

STATE OF NEW YORK ________________________________________________________________________ 5832 2013-2014 Regular Sessions IN SENATE 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]:
(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
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.
(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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