Bill Text: NY A05756 | 2019-2020 | 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: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced) 2019-02-14 - referred to economic development [A05756 Detail]

Download: New_York-2019-A05756-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 14, 2019
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee 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 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
    23  primary American source of supply to carry a specific brand of liquor or
    24  wine in this state.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 5756                             2
     1    §  2.  The  alcoholic  beverage control law is amended by adding a new
     2  section 116-a to read as follows:
     3    §  116-a.  Primary  American source of supply. 1. The primary American
     4  source of supply at the time the wine or  liquor  becomes  suitable  for
     5  wholesale or retail sale in New York or a wholesaler licensed under this
     6  chapter  who  has  been  appointed its exclusive agent for such purpose,
     7  shall file a  registration  application  with  the  authority  on  forms
     8  provided  by  the  authority. Each brand of such liquor or wine shall be
     9  individually listed on such registration.
    10    2. The authority shall allow  only  one  primary  American  source  of
    11  supply  to  register  any  brand of liquor or wine. The primary American
    12  source of supply may change the exclusive agent acting  and  cancel  any
    13  authority  granted  to  a prior agent by filing a new authorization with
    14  the authority not less than forty  days  before  the  new  authorization
    15  becomes effective.
    16    3.  A  primary  American source of supply or its exclusive agent shall
    17  file with the authority the names of each authorized wholesaler  permit-
    18  ted  to  sell  each  brand  of liquor or wine sold in this state. If the
    19  primary American source of supply is a wholesaler, it  may  list  itself
    20  and  other wholesalers as a wholesaler authorized to sell the brand. The
    21  filing of a wholesale price posting,  in  accordance  with  section  one
    22  hundred  one-b  of  this  article,  listing  the names of the authorized
    23  wholesalers shall  be  deemed  compliance  with  this  requirement.  The
    24  authorized  wholesalers  may  be  changed at any time at or prior to the
    25  time a wholesale price posting is to be filed pursuant to such  section.
    26  If  the  primary  American source of supply does not list any authorized
    27  wholesalers, any licensed wholesaler may purchase  the  liquor  or  wine
    28  from  the  primary  American source of supply and sell the brand in this
    29  state.
    30    4. Except as set forth in subdivisions seven and eight of this section
    31  or shipments of wine or liquor from a private collection  made  directly
    32  to  a  resident of New York for personal use pursuant to sections seven-
    33  ty-nine-c and seventy-nine-d of this chapter, no one shall ship or cause
    34  to be shipped into this state, nor shall any wholesaler or  retailer  in
    35  this  state  receive,  any  liquor  or  wine unless the primary American
    36  source of supply for such liquor or wine (i) has registered  such  brand
    37  with  the  authority,  (ii)  such  registration has been approved by the
    38  authority, and (iii) the brand is purchased from  the  primary  American
    39  source of supply or an authorized wholesaler.
    40    5.  Except  as  set  forth  in  subdivisions  seven  and eight of this
    41  section, a wholesaler in this state shall not purchase, receive or be in
    42  possession of any liquor or wine  unless  the  wholesaler  obtained  the
    43  liquor or wine directly from (i) a registered primary American source of
    44  supply,  (ii) a designated representative of the primary American source
    45  of supply if the primary American  source  of  supply  is  outside  this
    46  state, or (iii) an authorized wholesaler.
    47    6.  Nothing  in  this  section  shall be deemed to prohibit subsequent
    48  intrastate sales, transfer, and invoicing of a brand of liquor  or  wine
    49  between  authorized wholesalers of that brand subsequent to the purchase
    50  in this state from the primary American source of supply.
    51    7. The authority shall allow a wholesaler to bring liquor or wine into
    52  this state if the  wholesaler  certifies  to  the  satisfaction  of  the
    53  authority  that the brand of liquor or wine comes from a manufacturer or
    54  bottler that cannot, or has not and will not appoint a primary  American
    55  source of supply.

        A. 5756                             3
     1    8. This section shall not apply to (i) a brand of liquor or wine owned
     2  exclusively  by one retailer and sold at retail within this state exclu-
     3  sively by such retailer; or (ii) a product purchased by a wholesaler  or
     4  retailer  from  a private collection in accordance with sections eighty-
     5  five  and ninety-nine-g of this chapter consistent with the rules, regu-
     6  lations, orders and advisories established by the authority.
     7    9. The authority is authorized to perform such acts, prescribe  forms,
     8  and make rules, regulations, orders and advisories as it may deem neces-
     9  sary  or  proper  to  fully  effectuate  the  provisions of this section
    10  including, but not limited to, establishing a format for  recording  the
    11  primary American source of supply and its designees.
    12    §  3.  This  act shall take effect on the ninetieth day after it shall
    13  have become a law; provided, however, that  effective  immediately,  the
    14  addition,  amendment  and/or  repeal of any rule or regulation necessary
    15  for the implementation of this act on its effective date are  authorized
    16  and directed to be made and completed on or before such effective date.