Bill Text: NY A10737 | 2017-2018 | 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, when the wine or liquor can be secured by a distributor in the United States, or a manufacturer or bottler who is the authorized exclusive agent of the manufacturer of liquor or wine, from whom a distributor in the United States can secure the wine or liquor; provides that primary American sources of supply shall register with the state liquor authority, and such registration shall include the brands of wine and liquor sold by such source and the wholesalers who buy wine and liquor from them.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-05-16 - referred to economic development [A10737 Detail]

Download: New_York-2017-A10737-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          10737
                   IN ASSEMBLY
                                      May 16, 2018
                                       ___________
        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 if such liquor or wine can be secured directly from the
     6  manufacturer by a distributor in the United States; or (b) if the liquor
     7  or wine cannot be secured directly from the liquor or wine's manufactur-
     8  er by a distributor in the United States, another manufacturer or  bott-
     9  ler,  or its legally authorized exclusive agent, from whom the liquor or
    10  wine can be secured by a wholesaler or distributor in the United  States
    11  and  is  the  source closest to the liquor or wine's manufacturer in the
    12  channel of commerce.
    13    23-b. "Private collection" as applied to wine or privately held  wines
    14  means  bottled wine that (a) was purchased at retail or auction, (b) was
    15  owned by a non-licensed person for at least  two  years  with  proof  of
    16  purchase,  and  (c)  is  at  least five years old if it is white or rose
    17  wine, and at least ten years old if it is red wine,  port  or  sparkling
    18  wine.
    19    35.  "Wholesaler" means any person who sells at wholesale any beverage
    20  for the sale of which a license is required under the provisions of this
    21  chapter. An "authorized wholesaler" is  a  wholesaler  authorized  by  a
    22  primary American source of supply to carry a specific brand of liquor or
    23  wine in this state.
    24    §  2.  The  alcoholic  beverage control law is amended by adding a new
    25  section 116-a to read as follows:
    26    § 116-a. Primary American source of supply. 1. The manufacturer  of  a
    27  liquor  or  wine  at  the time the same became suitable for wholesale or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10771-03-8

        A. 10737                            2
     1  retail sale shall designate the primary American source of supply there-
     2  of and such primary American source of supply shall file a  registration
     3  application  with the authority on forms provided by the authority. Each
     4  brand of such liquor or wine shall be individually listed on such regis-
     5  tration.  A  wholesaler  shall  designate one primary American source of
     6  supply for each brand of liquor or wine the  wholesaler  sells  in  this
     7  state.
     8    2.  The  authority  shall register only one primary American source of
     9  supply for any single brand of liquor or wine. The manufacturer or bott-
    10  ler may register a new primary American source of supply and cancel  the
    11  registration of the former primary American source of supply by filing a
    12  new authorization with the authority not less than forty days before the
    13  new authorization becomes effective.
    14    3.  A  primary American source of supply shall file with the authority
    15  the names of authorized wholesalers for each brand  of  liquor  or  wine
    16  sold in this state. If the primary American source of supply is a whole-
    17  saler,  it may list itself and other wholesalers as an authorized whole-
    18  saler of the brand. The filing of a wholesale price posting, in  accord-
    19  ance  with  section one hundred one-b of this article, listing the names
    20  of the authorized wholesalers  shall  be  deemed  compliance  with  this
    21  requirement. The authorized wholesalers may be changed at any time at or
    22  prior  to  the time a wholesale price posting is to be filed pursuant to
    23  such section. If the primary American source of supply does not list any
    24  authorized wholesalers, any licensed wholesaler may purchase the  liquor
    25  or wine from the primary American source of supply and sell the brand in
    26  this state.
    27    4. Except as set forth in subdivisions seven and eight of this section
    28  or  shipments  made  directly to a resident of New York for personal use
    29  pursuant to sections seventy-nine-c and seventy-nine-d of this  chapter,
    30  no  one shall ship or cause to be shipped into this state, nor shall any
    31  wholesaler or retailer in this state receive, any liquor or wine  unless
    32  the  primary American source of supply for such liquor or wine has filed
    33  an application for  registration  as  the  primary  American  source  of
    34  supply,  that  application  has  been approved by the authority, and the
    35  brand is purchased from the primary American  source  of  supply  or  an
    36  authorized wholesaler.
    37    5.  Except  as  set  forth  in  subdivisions  seven  and eight of this
    38  section, a wholesaler in this state shall not purchase, receive or be in
    39  possession of any liquor or wine  unless  the  wholesaler  obtained  the
    40  liquor  or  wine  directly  from a registered primary American source of
    41  supply, a designated representative of the primary  American  source  of
    42  supply  if  the primary American source of supply is outside this state,
    43  or an authorized wholesaler.
    44    6. Nothing in this section shall  be  deemed  to  prohibit  subsequent
    45  intrastate  sales,  transfer, and invoicing of a brand of liquor or wine
    46  between authorized wholesalers of that brand.
    47    7. The authority shall allow a wholesaler to bring liquor or wine into
    48  this state if the  wholesaler  certifies  to  the  satisfaction  of  the
    49  authority  that the brand of liquor or wine comes from a manufacturer or
    50  bottler that cannot, or has not and will not appoint a primary  American
    51  source of supply.
    52    8. This section shall not apply to (a) a brand of liquor or wine owned
    53  exclusively  by one retailer and sold at retail within this state exclu-
    54  sively by such retailer; or (b) a product purchased by a  wholesaler  or
    55  retailer  in  accordance  with sections eighty-five and ninety-nine-g of

        A. 10737                            3
     1  this chapter consistent with the rules, regulations,  orders  and  advi-
     2  sories established by the authority.
     3    9.  The authority is authorized to perform such acts, prescribe forms,
     4  and make rules, regulations, orders and advisories as it may deem neces-
     5  sary or proper to  fully  effectuate  the  provisions  of  this  section
     6  including,  but  not limited to, establishing a format for recording the
     7  primary American source of supply and its designees.
     8    § 3. This act shall take effect on the ninetieth day  after  it  shall
     9  have  become  a  law; provided, however, that effective immediately, the
    10  addition, amendment and/or repeal of any rule  or  regulation  necessary
    11  for  the implementation of this act on its effective date are authorized
    12  and directed to be made and completed on or before such effective date.
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