Bill Text: NY A00901 | 2021-2022 | General Assembly | Introduced


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: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2022-01-05 - referred to economic development [A00901 Detail]

Download: New_York-2021-A00901-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           901

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  M. of A. WOERNER, LAVINE, BUTTENSCHON, GRIFFIN -- Multi-
          Sponsored by -- M. of A. WALSH  --  read  once  and  referred  to  the
          Committee on Economic Development

        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 three new subdivisions 23-a, 23-b and 23-c
     3  are added 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
    21  offered for sale, or (iv) was bottled ten years prior  to  the  date  of
    22  sale.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00949-01-1

        A. 901                              2

     1    23-c. "Negociant" means third-party wine merchants based in France who
     2  purchase stock directly from the producer with the authorization to mass
     3  distribute  around  the world on a non-exclusive basis to any authorized
     4  wholesaler to allow the resale of the wines  into  as  many  markets  as
     5  possible.
     6    35.  "Wholesaler" means any person who sells at wholesale any beverage
     7  for the sale of which a license is required under the provisions of this
     8  chapter. An "authorized wholesaler" is  a  wholesaler  authorized  by  a
     9  primary American source of supply to carry a specific brand of liquor or
    10  wine in this state.
    11    §  2.  The  alcoholic  beverage control law is amended by adding a new
    12  section 116-a to read as follows:
    13    § 116-a. Primary American source of supply. 1. (a) The primary  Ameri-
    14  can source of supply at the time the wine or liquor becomes suitable for
    15  wholesale or retail sale in New York or a wholesaler licensed under this
    16  chapter  who  has  been  appointed its exclusive agent for such purpose,
    17  shall file a form provided by the authority. Each brand of  such  liquor
    18  or wine shall be individually listed on such registration.
    19    (b)  For  wines  purchased  through  a negociant, the primary American
    20  source of supply is any wholesaler licensed under this chapter who shall
    21  file a form provided by the authority.
    22    2.  With the exception of wines purchased  through  a  negociant,  the
    23  authority  shall  allow  only  one  primary American source of supply to
    24  register any brand of liquor or wine. The  primary  American  source  of
    25  supply  may  change  the exclusive agent acting and cancel any authority
    26  granted to a prior agent by filing a new authorization with the authori-
    27  ty not less than forty days before the new authorization becomes  effec-
    28  tive.
    29    3.  A  primary  American source of supply or its exclusive agent shall
    30  file with the authority the names of each authorized wholesaler  permit-
    31  ted  to  sell  each  brand  of liquor or wine sold in this state. If the
    32  primary American source of supply is a wholesaler, it  may  list  itself
    33  and  other wholesalers as a wholesaler authorized to sell the brand. The
    34  filing of a wholesale price posting,  in  accordance  with  section  one
    35  hundred  one-b  of  this  article,  listing  the names of the authorized
    36  wholesalers shall  be  deemed  compliance  with  this  requirement.  The
    37  authorized  wholesalers  may  be  changed at any time at or prior to the
    38  time a wholesale price posting is to be filed pursuant to such  section.
    39  If  the  primary  American source of supply does not list any authorized
    40  wholesalers, any licensed wholesaler may purchase  the  liquor  or  wine
    41  from  the  primary  American source of supply and sell the brand in this
    42  state.
    43    4. Except as set forth in subdivisions seven and eight of this section
    44  or shipments of wine or liquor from a private collection  made  directly
    45  to a resident of New York, no one shall ship or cause to be shipped into
    46  this  state, nor shall any wholesaler or retailer in this state receive,
    47  any liquor or wine unless the primary American source of supply for such
    48  liquor or wine (i) has registered such brand with  the  authority,  (ii)
    49  such  registration  has  been  approved  by the authority, and (iii) the
    50  brand is purchased from the primary American  source  of  supply  or  an
    51  authorized wholesaler.
    52    5.  Except  as  set  forth  in  subdivisions  seven  and eight of this
    53  section, a wholesaler in this state shall not purchase, receive or be in
    54  possession of any liquor or wine  unless  the  wholesaler  obtained  the
    55  liquor or wine directly from (i) a registered primary American source of
    56  supply,  (ii) a designated representative of the primary American source

        A. 901                              3

     1  of supply if the primary American  source  of  supply  is  outside  this
     2  state, (iii) an authorized wholesaler or (iv) a negociant.
     3    6.  Nothing  in  this  section  shall be deemed to prohibit subsequent
     4  intrastate sales, transfer, and invoicing of a brand of liquor  or  wine
     5  between  authorized wholesalers of that brand subsequent to the purchase
     6  in this state from the primary American source of supply.
     7    7. The authority shall allow a wholesaler to bring liquor or wine into
     8  this state if the  wholesaler  certifies  to  the  satisfaction  of  the
     9  authority  that the brand of liquor or wine comes from a manufacturer or
    10  bottler that cannot, or has not and will not appoint a primary  American
    11  source of supply.
    12    8. This section shall not apply to (i) a brand of liquor or wine owned
    13  exclusively  by one retailer and sold at retail within this state exclu-
    14  sively by such retailer; or (ii) a product purchased by a wholesaler  or
    15  retailer  from  a private collection in accordance with sections eighty-
    16  five and ninety-nine-g of this chapter consistent with the rules,  regu-
    17  lations, orders and advisories established by the authority.
    18    9.  The authority is authorized to perform such acts, prescribe forms,
    19  and make rules, regulations, orders and advisories as it may deem neces-
    20  sary or proper to  fully  effectuate  the  provisions  of  this  section
    21  including,  but  not limited to, establishing a format for recording the
    22  primary American source of supply and its designees.
    23    § 3. This act shall take effect on the ninetieth day  after  it  shall
    24  have become a law. Effective immediately, the addition, amendment and/or
    25  repeal  of  any  rule  or regulation necessary for the implementation of
    26  this act on its effective date are authorized to be made  and  completed
    27  on or before such effective date.
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