Bill Text: NY S03881 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires that all wine and liquor sold in the state be received from a primary American source of supply; such a source shall be the manufacturer or its exclusive agent, when the wine or liquor can be secured from the manufacturer or its exclusive agent by a wholesaler in the United States; provides that primary American sources of supply shall register with the state liquor authority.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2020-02-11 - PRINT NUMBER 3881C [S03881 Detail]

Download: New_York-2019-S03881-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3881
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 20, 2019
                                       ___________
        Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
          establishing  a  primary American source of supply for liquor and wine
          sold in this state
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.    Subdivision  35  of section 3 of the alcoholic beverage
     2  control law is amended, and two new subdivisions 23-a and 23-b are added
     3  to read as follows:
     4    23-a. "Primary American source of supply" means (a) a manufacturer  of
     5  liquor  or  wine  or  its  exclusive  agent in the United States if such
     6  liquor or wine can be secured directly  from  the  manufacturer  or  its
     7  exclusive  agent  by  a  wholesaler  in the United States; or (b) if the
     8  liquor or wine cannot be secured directly from such manufacturer or  its
     9  exclusive  agent,  the source closest to such manufacturer in the United
    10  States when the brand enters the stream of commerce shall be the primary
    11  American source of supply in the United States.
    12    23-b. "Private  collection"  means  (a)  bottled  wine  that  (i)  was
    13  purchased  at retail or auction, (ii) was owned by a non-licensed person
    14  for at least two years with proof of purchase, and (iii)  is  not  price
    15  posted  in New York at the time of sale; or (b) a bottled liquor that is
    16  either (i) not price posted in New York at the time of sale, (ii) is  no
    17  longer  in  production,  or  (iii) is contained in its original ceramic,
    18  lead, crystal or similar collectible specialty  container  which  is  no
    19  longer being offered for sale.
    20    35.  "Wholesaler" means any person who sells at wholesale any beverage
    21  for the sale of which a license is required under the provisions of this
    22  chapter. An "authorized wholesaler" is  a  wholesaler  authorized  by  a
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01255-02-9

        S. 3881                             2
     1  primary American source of supply to carry a specific brand of liquor or
     2  wine in this state.
     3    §  2.  The  alcoholic  beverage control law is amended by adding a new
     4  section 116-a to read as follows:
     5    § 116-a. Primary American source of supply. 1.  The  primary  American
     6  source  of  supply  at  the time the wine or liquor becomes suitable for
     7  wholesale or retail sale in New York or a wholesaler licensed under this
     8  chapter who has been appointed its exclusive  agent  for  such  purpose,
     9  shall  file  a  registration  application  with  the  authority on forms
    10  provided by the authority. Each brand of such liquor or  wine  shall  be
    11  individually listed on such registration.
    12    2.  The  authority  shall  allow  only  one primary American source of
    13  supply to register any brand of liquor or  wine.  The  primary  American
    14  source  of  supply  may change the exclusive agent acting and cancel any
    15  authority granted to a prior agent by filing a  new  authorization  with
    16  the  authority  not  less  than  forty days before the new authorization
    17  becomes effective.
    18    3. A primary American source of supply or its  exclusive  agent  shall
    19  file  with the authority the names of each authorized wholesaler permit-
    20  ted to sell each brand of liquor or wine sold  in  this  state.  If  the
    21  primary  American  source  of supply is a wholesaler, it may list itself
    22  and other wholesalers as a wholesaler authorized to sell the brand.  The
    23  filing  of  a  wholesale  price  posting, in accordance with section one
    24  hundred one-b of this article,  listing  the  names  of  the  authorized
    25  wholesalers  shall  be  deemed  compliance  with  this  requirement. The
    26  authorized wholesalers may be changed at any time at  or  prior  to  the
    27  time  a wholesale price posting is to be filed pursuant to such section.
    28  If the primary American source of supply does not  list  any  authorized
    29  wholesalers,  any  licensed  wholesaler  may purchase the liquor or wine
    30  from the primary American source of supply and sell the  brand  in  this
    31  state.
    32    4. Except as set forth in subdivisions seven and eight of this section
    33  or  shipments  of wine or liquor from a private collection made directly
    34  to a resident of New York for personal use pursuant to  sections  seven-
    35  ty-nine-c and seventy-nine-d of this chapter, no one shall ship or cause
    36  to  be  shipped into this state, nor shall any wholesaler or retailer in
    37  this state receive, any liquor  or  wine  unless  the  primary  American
    38  source  of  supply for such liquor or wine (i) has registered such brand
    39  with the authority, (ii) such registration  has  been  approved  by  the
    40  authority,  and  (iii)  the brand is purchased from the primary American
    41  source of supply or an authorized wholesaler.
    42    5. Except as set  forth  in  subdivisions  seven  and  eight  of  this
    43  section, a wholesaler in this state shall not purchase, receive or be in
    44  possession  of  any  liquor  or  wine unless the wholesaler obtained the
    45  liquor or wine directly from (i) a registered primary American source of
    46  supply, (ii) a designated representative of the primary American  source
    47  of  supply  if  the  primary  American  source of supply is outside this
    48  state, or (iii) an authorized wholesaler.
    49    6. Nothing in this section shall  be  deemed  to  prohibit  subsequent
    50  intrastate  sales,  transfer, and invoicing of a brand of liquor or wine
    51  between authorized wholesalers of that brand subsequent to the  purchase
    52  in this state from the primary American source of supply.
    53    7. The authority shall allow a wholesaler to bring liquor or wine into
    54  this  state  if  the  wholesaler  certifies  to  the satisfaction of the
    55  authority that the brand of liquor or wine comes from a manufacturer  or

        S. 3881                             3
     1  bottler  that cannot, or has not and will not appoint a primary American
     2  source of supply.
     3    8. This section shall not apply to (i) a brand of liquor or wine owned
     4  exclusively  by one retailer and sold at retail within this state exclu-
     5  sively by such retailer; or (ii) a product purchased by a wholesaler  or
     6  retailer  from  a private collection in accordance with sections eighty-
     7  five and ninety-nine-g of this chapter consistent with the rules,  regu-
     8  lations, orders and advisories established by the authority.
     9    9.  The authority is authorized to perform such acts, prescribe forms,
    10  and make rules, regulations, orders and advisories as it may deem neces-
    11  sary or proper to  fully  effectuate  the  provisions  of  this  section
    12  including,  but  not limited to, establishing a format for recording the
    13  primary American source of supply and its designees.
    14    § 3. This act shall take effect on the ninetieth day  after  it  shall
    15  have  become  a  law; provided, however, that effective immediately, the
    16  addition, amendment and/or repeal of any rule  or  regulation  necessary
    17  for  the implementation of this act on its effective date are authorized
    18  and directed to be made and completed on or before such effective date.
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