senate Bill S3849

2013-2014 Legislative Session

Relates to the shipment of alcoholic beverages into the 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
Feb 22, 2013 referred to investigations and government operations

Co-Sponsors

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S3849 - Bill Details

See Assembly Version of this Bill:
A5125
Current Committee:
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §102, ABC L

S3849 - Bill Texts

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Relates to the shipment of alcoholic beverages into the state.

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BILL NUMBER:S3849

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 wholesaler for a period of 24
hours (i.e., "at-rest").

SUMMARY OF PROVISIONS:

Section 1: Legislative purpose.

Section 2: Amends paragraph (a) of subdivision 1 of section 102 of the
Alcoholic Beverage Control Law, 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 3: Provides for an effective date of January 1 next succeeding
the date the bill becomes law.

EXISTING LAW: Under current law a licensed wholesaler of wine or
distilled spirits can distribute to any licensed retailer even if such
shipment is coming from a warehouse located in another state.

JUSTIFICATION:; This bill would have no impact on the current
reciprocal direct shipment laws and would only seek to help to create
thousands of new jobs in New York State and level the current playing
field for our New York wine and distilled spirits wholesalers.
Presently, 32 states have enacted an at-rest statute, such as proposed
by this bill, and an additional 8 states have some form of at-rest
requirements that have been imposed by regulation or are implied in
the law.

When looking at practices in New York State, over 80% of the licensed
wholesalers of wine and distilled spirits do not warehouse their
products in New York State. In most cases they warehouse their product
in states such as New Jersey and Connecticut. Many fiscal studies have
shown that this has caused a dramatic loss in jobs in New York State
and some estimates show that the enactment of an "at-rest" statute in
New York State could create over 1,700 jobs and the creation of new
warehousing facilities in New York State.

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 an
"at-rest" facility in New York, facilitates the effective collection
of New York's taxes on alcoholic beverages. Currently excise taxes
(paid by wholesalers) is more difficult to collect when such alcoholic
beverages are shipped from out of state. New York should seek to


capitalize on opportunities which ensure that tax revenues are
collected for the State of New York.

LEGISLATIVE HISTORY:

S.6292 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
________________________________________________________________________

                                  3849

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 22, 2013
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment 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. Legislative purpose. The  legislature  finds  and  declares
that  the  proper  regulation  and  control of the manufacture, sale and
distribution of alcoholic beverages is in the best interest of the citi-
zens of New York state. In furtherance of this  policy  the  legislature
finds  that  requiring alcoholic beverage products to be maintained in a
warehouse owned or leased by a licensed New York  state  wholesaler  for
twenty-four hours will allow the state liquor authority and the New York
state  department of taxation and finance to verify the legality of such
product and the proper payment of taxes on such product.
  S 2. Paragraph (a) of subdivision 1 of section 102  of  the  alcoholic
beverage  control law, as amended by chapter 210 of the laws of 2005, is
amended to read as follows:
  (a) Except as provided in section seventy-nine-c of this  chapter,  no
alcoholic  beverages  shall  be  shipped  into the state unless the same
shall be consigned to a person duly licensed  hereunder  to  traffic  in
alcoholic  beverages.  NO SUCH ALCOHOLIC BEVERAGES SHALL BE DELIVERED TO
A RETAIL LICENSEE OTHER THAN FROM INVENTORY  STORED  AT  A  PREMISES  OR
WAREHOUSE  LOCATED  IN  THIS  STATE THAT IS OWNED, RENTED OR LEASED BY A
WHOLESALER LICENSED BY THE STATE OF NEW YORK. SUCH  INVENTORY  SHALL  BE
DEEMED  TO INCLUDE ONLY ALCOHOLIC BEVERAGES WHICH SHALL HAVE BEEN STORED
IN SUCH PREMISES OR WAREHOUSE FOR  AT  LEAST  A  PERIOD  OF  TWENTY-FOUR
CONTINUOUS HOURS. This prohibition shall apply to all shipments of alco-
holic beverages into New York state and includes importation or distrib-
ution for commercial purposes, for personal use, or otherwise, and irre-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08641-01-3

S. 3849                             2

spective  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 with-
in the meaning of this paragraph.
  S 3. 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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