senate Bill S1070

2013-2014 Legislative Session

Requires alcoholic beverages shipped from state that requires out of state shipments to be consigned to a licensee and stored, shall be so consigned and stored in this state

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Co-Sponsors

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S1070 - Bill Details

See Assembly Version of this Bill:
A5462
Current Committee:
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd ยง102, ABC L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2473, A2981
2009-2010: S2779, A5077

S1070 - Bill Texts

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Requires that alcoholic beverages shipped into this state from any state that requires out of state shipments of alcoholic beverages to be consigned to a licensee of that state and stored upon the premises of such licensee, shall be so consigned and stored in this state.

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BILL NUMBER:S1070

TITLE OF BILL: An act to amend the alcoholic beverage control law, in
relation to the shipment of alcoholic beverages into the state

PURPOSE:
To require that alcoholic beverages imported into New York be first
delivered to a licensed New York State wholesaler and maintained at a
premises or warehouse operated by such wholesaler for a period of 48
hours (i.e., "at-rest") if the out-of-state shipment emanates from a
state which also has an "at-rest" statutory requirement.

SUMMARY OF PROVISIONS:
Section 1 amends paragraphs (a) and (b) of subdivision 1 of section
102 of the Alcoholic Beverage Control Law, as amended by chapter 210
of the laws of 2005, to require that, in certain circumstances,
alcoholic beverages shipped into the State from out-of-state locations
be shipped to a licensed New York wholesaler and maintained at a
premises or warehouse operated by such wholesaler.

Section 2 of the bill provides an effective date of January 1 next
succeeding the date the bill becomes law.

EXISTING LAW:
Section 511 of the Vehicle and Traffic Law covers various means in
which persons may be guilty of aggravated unlicensed operation in the
second degree. This legislation expands upon the circumstances of
aggravated unlicensed operation of a motor vehicle, which is a
misdemeanor.

JUSTIFICATION:
Under current New York Law, out-of-state alcoholic shipments can be
made by out of state wholesalers directly to New York retailers,
despite the fact that many states outside of New York prohibit such
direct shipments to retail licensees in their respective states. In
fact, many of the states surrounding New York (e.g. New Jersey,
Connecticut) have laws which require that alcohol shipped into the
state from out-of-state suppliers be shipped to a licensed wholesaler
within the state and maintained at a premises operated by such
wholesaler for a minimum period of time _ commonly referred to as
"at-rest" laws. This requirement from states bordering New York,
clearly puts New York businesses who wish to ship to neighboring
states at a competitive disadvantage. This legislation simply
establishes a reciprocal "at-rest" provision of law (i.e., one that
applies to shipments which come from states that have existing
"at-rest" laws).

Unlike out-of-state shippers who can deliver alcohol directly to New
York retailers, New York distributors are not afforded the same luxury
in many states, denying them the same competitive opportunities as
their foreign competitors. This legislation "levels the playing field"
between New York businesses and out of state businesses whose state
requires the warehousing of alcoholic beverages delivered from New
York. Moreover, requiring the shipment of alcoholic beverages to be
"at-rest" in New York, facilitates the effective collection of New
York's taxes on alcoholic beverages. Currently, the collection of


excise taxes (paid by wholesalers) is more difficult when the alcohol
is shipped from out of state. At a time when the state's economy is
revitalizing, New York should seek to capitalize on opportunities
which ensure that tax revenues are collected. Finally, this
legislation has the ancillary benefit of business growth in New York
as out of state distributors are required to ware house alcoholic
beverages in New York. To the extent such storage facilities do not
currently exist, the construction of facilities will need to take
place.

LEGISLATIVE HISTORY:
S.6382 of 2006; Referred to Investigations & Government Operations
S.1300 of 2007-2008
A.5077 of 2009-10
S.2473/A.2981 of 2011-12; Referred to Investigations & Government
Operations

FISCAL IMPLICATIONS:
Increased tax revenues for the State.

EFFECTIVE DATE:
The first of January next succeeding the date the bill becomes law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1070

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MAZIARZ, GRISANTI -- read twice and ordered printed,
  and  when  printed  to be committed to the Committee on Investigations
  and Government Operations

AN ACT to amend the alcoholic beverage control law, in relation  to  the
  shipment of alcoholic beverages into the state

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs (a) and (b) of subdivision 1 of section  102  of
the  alcoholic  beverage  control  law, as amended by chapter 210 of the
laws of 2005, are amended to read as follows:
  (a) (I) Except as provided in section seventy-nine-c of this  chapter,
SUBJECT  TO  THE  PROVISIONS  OF SUBPARAGRAPH (II) OF THIS PARAGRAPH, no
alcoholic beverages shall be shipped into  the  state  unless  the  same
shall  be  consigned  to  a person duly licensed [hereunder] PURSUANT TO
THIS CHAPTER to traffic in alcoholic beverages. [This] EXCEPT AS  OTHER-
WISE  PROVIDED  IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, THIS prohibition
shall apply to all shipments of alcoholic beverages into New York  state
and  includes  importation  or distribution for commercial purposes, for
personal use, or otherwise, and irrespective of whether  such  alcoholic
beverages were purchased within or without the state, provided, however,
this prohibition shall not apply to any shipment consigned to a New York
resident  who  has  personally  purchased  alcoholic  beverages  for his
personal use while outside the United States for  a  minimum  period  of
forty-eight  consecutive  hours and which he has shipped as consignor to
himself as consignee.  Purchases  made  outside  the  United  States  by
persons other than the purchaser himself, regardless whether made as his
agent,  or by his authorization or on his behalf, are deemed not to have
been personally purchased within the meaning of this paragraph.
  (II) WITH RESPECT TO ANY STATE THAT PROHIBITS THE  OUT-OF-STATE  SHIP-
MENT OF ALCOHOLIC BEVERAGES TO ANYONE OTHER THAN A LICENSEE OF THE STATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02254-01-3

S. 1070                             2

AND  FURTHER REQUIRES THAT SUCH ALCOHOLIC BEVERAGES BE STORED AT A PREM-
ISES OR WAREHOUSE LOCATED WITHIN SUCH STATE MAINTAINED BY SUCH LICENSEE,
NO ALCOHOLIC BEVERAGES SHALL BE SHIPPED FROM SAID STATE, INTO THIS STATE
UNLESS THE SAME SHALL BE CONSIGNED TO A PERSON DULY LICENSED AS A WHOLE-
SALER  OF  ALCOHOLIC  BEVERAGES  IN  THIS STATE. IN SUCH INSTANCES, SUCH
ALCOHOLIC BEVERAGES SHALL BE STORED AT A PREMISES OR  WAREHOUSE  LOCATED
IN  THIS STATE AND MAINTAINED BY A LICENSED WHOLESALER FOR NOT LESS THAN
FORTY-EIGHT HOURS BEFORE DELIVERY TO A RETAIL LICENSEE.
  (b) Except as provided in section seventy-nine-c of this  chapter,  no
common  carrier  or other person shall bring or carry into the state any
alcoholic beverages, unless the same shall be consigned,  IN  ACCORDANCE
WITH PARAGRAPH (C) OF THIS SUBDIVISION, to a person duly licensed [here-
under]  PURSUANT  TO  THIS  CHAPTER  to  traffic in alcoholic beverages,
provided, however, that alcoholic beverages may be delivered by a truck-
ing permittee from a steamship or railroad station or terminal to a  New
York  resident  who has personally purchased alcoholic beverages for his
personal use while outside the United States for  a  minimum  period  of
forty-eight  consecutive hours, and which he has shipped as consignor to
himself as consignee, and except as so  stated,  no  trucking  permittee
shall  accept  for  delivery,  deliver  or transport from a steamship or
railroad  station  or  terminal  any  shipment  of  alcoholic  beverages
consigned  to  a  non-licensed person having his home or business in New
York state.  Purchases of alcoholic beverages made  outside  the  United
States  by  persons other than the purchaser himself, regardless whether
made as his agent, or by his authorization or on his behalf, are  deemed
not  to  have been personally purchased within the meaning of this para-
graph.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

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