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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3881--B

                               2019-2020 Regular Sessions

                    IN SENATE

                                    February 20, 2019
                                       ___________

        Introduced  by Sens. KAPLAN, GAUGHRAN -- read twice and ordered printed,
          and when printed to be committed to the  Committee  on  Investigations
          and  Government  Operations  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        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) is at minimum a vintage  ten  years
    14  old  at  the time of sale, or if sparkling wine, is a minimum vintage of
    15  fifteen years old at the time of sale, and (iii) was owned by a  non-li-
    16  censed person with proof of purchase, or (iv) is not price posted in New
    17  York at the time of sale; or (b) a bottled liquor that is either (i) not
    18  price  posted  in  New  York  at  the time of sale, (ii) is no longer in
    19  production, or (iii) is contained in its original ceramic, lead, crystal
    20  or similar collectible specialty container  which  is  no  longer  being

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01255-09-9
        S. 3881--B                          2

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

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