Shortening NYSLA's Long Arm: Senate Bill 7728

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On Thursday, New York State Senator Phil Boyle introduced legislation that would limit the circumstances under which the State Liquor Authority (“NYSLA”) may penalize licensees[1] for perceived violations of other states’ laws.[2] The measure, Senate Bill 7728 (S.7728), is currently under consideration in the Committee on Investigations and Government Operations. If you are experiencing déjà vu, you are not crazy; similar legislation was introduced last year in response to the Empire Wine interstate alcohol shipment controversy.

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2016 Policy and Budget Preview

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Governor Cuomo gave his State of the State address and released his proposed Executive Budget for Fiscal Year 2017 last week, announcing his priorities for the year and setting the stage for important budget and policy discussions. One of the Governor’s goals for this fiscal year is to expand New York’s craft beverage industry, and he has proposed a number of investments and legislative changes to facilitate that expansion. Perhaps the most intriguing item for the wine industry is the modernization of the 81-year-old Alcoholic Beverage Control (“ABC”) Law, including by addressing e-commerce. Read on for a summary of a few of the Governor’s proposals. As always, refer to the Division of the Budget for complete information.

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COOL Requirement Partially Repealed Under Threat of Sanctions

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In May 2015, the World Trade Organization (“WTO”) settled a years-long international trade dispute arising out of the United States’ country of origin labeling (“COOL”) requirement for muscle cuts of meat. Finding that the U.S. COOL requirement violated the terms of two international trade agreements, the WTO paved the way for the aggrieved countries, Canada and Mexico, to retaliate. Then on December 9th, the WTO authorized Canada and Mexico to seek sanctions against the U.S. totaling approximately $1 billion. On December 21, however, the U.S. Congress passed a budget bill that contained language repealing part of the COOL requirement. The President signed the bill into law the same day. Misleading headlines proliferated, so let’s take a look at what was really repealed—and what this change in the law means to the wine industry.

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Empire Wine Bill Vetoed

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Governor Cuomo has vetoed Assembly Bill 5920A, the closely watched legislation that would have limited the New York State Liquor Authority’s power to punish licensees for their conduct outside the State. In his veto message, he stated that the bill would have fostered lawlessness among retailers and made the state a haven for those who engage in illicit sales. The Governor has also directed NYSLA to conduct a series of roundtable discussions beginning March 1, 2016, "with industry representatives, interested stakeholders, and advocates to review and suggest changes to the law," as well as to work with other state liquor authorities to develop a legal framework for interstate sales. The beverage alcohol industry is in for an exciting year!

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