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Legislative Memo

518.465.7511

BILL:

A.5739-A (Farrell) / S.3015-A (Kuhl)

Support

SUBJECT:

Allows certain limited direct interstate shipments of wine

 

DATE:

June 11, 2002

 

The Business Council of New York State, whose membership includes over 3,500 member firms as well as over one hundred chambers of commerce and professional trade associations, has reviewed the above mentioned legislation and supports its enactment.

This legislation would permit New York State licensed wineries and retailers to ship thirty six liters of wine per year to customers located in states that allow reciprocal wine shipments. The legislation calls for licensees in other states to apply in New York for out-of-state shippers' licenses which will in turn permit them to make limited direct shipments to individual adult consumers in New York subject to appropriate controls of the state liquor authority and payment of all sales and excise taxes.

New York State currently boasts 160 wineries which together produce over 100 million bottles of wine annually. There are over nine hundred vineyards throughout the state. With twelve other states having wine shipment laws in place, New York is placing the entire wine industry at a competitive disadvantage by not reciprocating with these states. This legislation would help foster continual growth of wineries in New York State and allow the opportunity for out-of-state consumers to sample what New York has to offer.

Compared to other states, the wine industry in New York does not currently have the volume or resources to contract with a wine distributor to boost their wine sales. By allowing them to sell to out-of-state consumers, New York has a chance to compete with other states and broaden its markets.

For these reasons, The Business Council strongly supports this legislation and requests that it be reported.