Allows Direct Shipment of Wine for In-State and Out-of-State Wineries

Imposes Safeguards to Prevent Underage Drinking by Minors

Governor George E. Pataki today announced that he has signed legislation into law that provides a significant boost to New York's wine industry by permitting the direct interstate shipment of wine in New York State. The new law opens up New York's world-class wineries to the national market while giving New Yorkers more choices as consumers, and it imposes the necessary safeguards to prevent underage drinking

The law follows a landmark U.S. Supreme Court ruling made in May, which struck down a New York law that barred out-of-state wineries from directly shipping their wine to New York residents. It also recognizes the constraints that the State's law has placed on New York's wineries ability to conduct business in other states.

"New York's wine industry is one of the fastest growing and most successful segments of the State's agriculture industry," Governor Pataki said. "I am pleased to sign this legislation into law that permits the interstate shipment of wine in New York, allowing New York's wineries to grow by opening the doors to new markets across the nation that were previously closed to them."

"We have been advocating for a change in New York's law to allow for the interstate shipment for years," Governor Pataki said. "The recent U.S. Supreme Court ruling provided us with an excellent opportunity to promote New York's wine industry. This law puts in place the necessary safeguards and guidelines to ensure that the interstate shipment of wine is done responsibly."

Senator George H. Winner, Jr., the Senate sponsor of the legislation said, "It's been a long time coming, but we're finally beginning a new, modern economic era for New York State's grape and wine industry. It promises exciting economic opportunities for our wineries, and it's a vital contribution to the overall economic future of the Finger Lakes region."

Assemblyman Herman D. Farrell, Jr., Chair of the Assembly Ways and Means Committee said, "This is landmark legislation that will not only strengthen New York's wine and grape industry, but the agricultural industry as a whole. I am proud to have been a part of its development, knowing that our State's reputation as a national leader of wine production will continue to grow."

New York Wine & Grape Foundation President, Jim Trezise said, "This new law transforms the New York wine industry from a local curiosity into a national player. In the past 30 years, New York has grown from only 19 wineries to 218 today. This law extends direct shipment to a national scale, and will have an immediate impact on sales as well as New York's reputation for quality wines. This is a great investment in New York's economy, and we are grateful to Governor Pataki and the Legislature for propelling our industry into a new era."

The law will establish a strict licensing mechanism to ensure that proper safeguards are in place to prevent underage drinking and to provide for the responsible shipment of wine to and from New York State. The law requires, among other things:

Limiting shipments from each winery to not more than 36 cases (no more than 9 liters each case) per year to a resident of New York;

Licensed wineries to sell their wines only to adults at least 21 years of age;

Common carriers to obtain a valid photo identification and signature before delivering wine to a resident;

Each shipping container to be clearly labeled with the words "Contains Wine - Signature of Person Age 21 or Older Required for Delivery;"

Limiting shipments from wine manufacturers to not more than 36 cases (no more than 9 liters each case) per year to a resident of New York;

Licensed wineries to register with the Department of Taxation and Finance and pay all applicable State and local sales and excise taxes; and

Out-of-state wineries that apply for a license to ship into New York to be located in a state which affords New York wineries reciprocal shipping privileges.

New York State is the third largest producer of grapes in the nation. The wine and grape industry generates over $500 million in gross annual sales, which produces upwards of $85 million in State and local revenues and approximately 18,000 New York jobs from the Southern Tier and the Finger Lakes to Suffolk County.

Nathan L. Rudgers, Commissioner of the Department of Agriculture and Markets said, "New York has a vibrant and growing wine industry that is fast earning the respect and admiration of more and more consumers across the nation and around the world. As a strong supporter of New York's more than 200 wineries, Governor Pataki is helping our wineries by signing this legislation, enabling them to reach new customers and further enhance the marketability of our fine wines."

In 2000, 2.7 million people visited New York wineries. When out-of-state tourists visit New York State wineries, they often inquire about having a favorite wine shipped directly to their homes in other states. However, since many states require reciprocal shipping privileges, our current ban on interstate shipment often prevents New York wineries from shipping to residents of other states. This prevents New York wineries from establishing long-standing relationships with customers in other states, which would help promote New York wines.

New York State wineries have received numerous awards as well as favorable reviews by nationally-recognized wine magazines. With this legislation, out-of-state customers, who hear about one of the award-winning New York wines or read a favorable review, will be able to have New York wineries ship the wine directly to their homes. Direct shipment will also allow local wineries to establish popular wine clubs. An expanded wine and grape industry will create additional jobs throughout the State and generate millions of dollars in economic revenue.

The new law will take effect August 12, 2005.