Assembly Bill A10737

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10737
 
                           I N  A S S E M B L Y
 
                               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:

   Section  1.    Subdivision  35  of section 3 of the alcoholic beverage
 control law is amended, and two new subdivisions 23-a and 23-b are added
 to read as follows:
   23-A. "PRIMARY AMERICAN SOURCE OF SUPPLY" MEANS (A) A MANUFACTURER  OF
 LIQUOR  OR  WINE IF SUCH LIQUOR OR WINE CAN BE SECURED DIRECTLY FROM THE
 MANUFACTURER BY A DISTRIBUTOR IN THE UNITED STATES; OR (B) IF THE LIQUOR
 OR WINE CANNOT BE SECURED DIRECTLY FROM THE LIQUOR OR WINE'S MANUFACTUR-
 ER BY A DISTRIBUTOR IN THE UNITED STATES, ANOTHER MANUFACTURER OR  BOTT-
 LER,  OR ITS LEGALLY AUTHORIZED EXCLUSIVE AGENT, FROM WHOM THE LIQUOR OR
 WINE CAN BE SECURED BY A WHOLESALER OR DISTRIBUTOR IN THE UNITED  STATES
 AND  IS  THE  SOURCE CLOSEST TO THE LIQUOR OR WINE'S MANUFACTURER IN THE
 CHANNEL OF COMMERCE.
   23-B. "PRIVATE COLLECTION" AS APPLIED TO WINE OR PRIVATELY HELD  WINES
 MEANS  BOTTLED WINE THAT (A) WAS PURCHASED AT RETAIL OR AUCTION, (B) WAS
 OWNED BY A NON-LICENSED PERSON FOR AT LEAST  TWO  YEARS  WITH  PROOF  OF
 PURCHASE,  AND  (C)  IS  AT  LEAST FIVE YEARS OLD IF IT IS WHITE OR ROSE
 WINE, AND AT LEAST TEN YEARS OLD IF IT IS RED WINE,  PORT  OR  SPARKLING
 WINE.
   35.  "Wholesaler" means any person who sells at wholesale any beverage
 for the sale of which a license is required under the provisions of this
 chapter. AN "AUTHORIZED WHOLESALER" IS  A  WHOLESALER  AUTHORIZED  BY  A
 PRIMARY AMERICAN SOURCE OF SUPPLY TO CARRY A SPECIFIC BRAND OF LIQUOR OR
 WINE IN THIS STATE.
   §  2.  The  alcoholic  beverage control law is amended by adding a new
 section 116-a to read as follows:
   § 116-A. PRIMARY AMERICAN SOURCE OF SUPPLY. 1. THE MANUFACTURER  OF  A
 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
 
 RETAIL SALE SHALL DESIGNATE THE PRIMARY AMERICAN SOURCE OF SUPPLY THERE-
 OF AND SUCH PRIMARY AMERICAN SOURCE OF SUPPLY SHALL FILE A  REGISTRATION
 APPLICATION  WITH THE AUTHORITY ON FORMS PROVIDED BY THE AUTHORITY. EACH
 BRAND OF SUCH LIQUOR OR WINE SHALL BE INDIVIDUALLY LISTED ON SUCH REGIS-
 TRATION.  A  WHOLESALER  SHALL  DESIGNATE ONE PRIMARY AMERICAN SOURCE OF
 SUPPLY FOR EACH BRAND OF LIQUOR OR WINE THE  WHOLESALER  SELLS  IN  THIS
 STATE.
   2.  THE  AUTHORITY  SHALL REGISTER ONLY ONE PRIMARY AMERICAN SOURCE OF
 SUPPLY FOR ANY SINGLE BRAND OF LIQUOR OR WINE. THE MANUFACTURER OR BOTT-
 LER MAY REGISTER A NEW PRIMARY AMERICAN SOURCE OF SUPPLY AND CANCEL  THE
 REGISTRATION OF THE FORMER PRIMARY AMERICAN SOURCE OF SUPPLY BY FILING A
 NEW AUTHORIZATION WITH THE AUTHORITY NOT LESS THAN FORTY DAYS BEFORE THE
 NEW AUTHORIZATION BECOMES EFFECTIVE.
   3.  A  PRIMARY AMERICAN SOURCE OF SUPPLY SHALL FILE WITH THE AUTHORITY
 THE NAMES OF AUTHORIZED WHOLESALERS FOR EACH BRAND  OF  LIQUOR  OR  WINE
 SOLD IN THIS STATE. IF THE PRIMARY AMERICAN SOURCE OF SUPPLY IS A WHOLE-
 SALER,  IT MAY LIST ITSELF AND OTHER WHOLESALERS AS AN AUTHORIZED WHOLE-
 SALER OF THE BRAND. THE FILING OF A WHOLESALE PRICE POSTING, IN  ACCORD-
 ANCE  WITH  SECTION ONE HUNDRED ONE-B OF THIS ARTICLE, LISTING THE NAMES
 OF THE AUTHORIZED WHOLESALERS  SHALL  BE  DEEMED  COMPLIANCE  WITH  THIS
 REQUIREMENT. THE AUTHORIZED WHOLESALERS MAY BE CHANGED AT ANY TIME AT OR
 PRIOR  TO  THE TIME A WHOLESALE PRICE POSTING IS TO BE FILED PURSUANT TO
 SUCH SECTION. IF THE PRIMARY AMERICAN SOURCE OF SUPPLY DOES NOT LIST ANY
 AUTHORIZED WHOLESALERS, ANY LICENSED WHOLESALER MAY PURCHASE THE  LIQUOR
 OR WINE FROM THE PRIMARY AMERICAN SOURCE OF SUPPLY AND SELL THE BRAND IN
 THIS STATE.
   4. EXCEPT AS SET FORTH IN SUBDIVISIONS SEVEN AND EIGHT OF THIS SECTION
 OR  SHIPMENTS  MADE  DIRECTLY TO A RESIDENT OF NEW YORK FOR PERSONAL USE
 PURSUANT TO SECTIONS SEVENTY-NINE-C AND SEVENTY-NINE-D OF THIS  CHAPTER,
 NO  ONE SHALL SHIP OR CAUSE TO BE SHIPPED INTO THIS STATE, NOR SHALL ANY
 WHOLESALER OR RETAILER IN THIS STATE RECEIVE, ANY LIQUOR OR WINE  UNLESS
 THE  PRIMARY AMERICAN SOURCE OF SUPPLY FOR SUCH LIQUOR OR WINE HAS FILED
 AN APPLICATION FOR  REGISTRATION  AS  THE  PRIMARY  AMERICAN  SOURCE  OF
 SUPPLY,  THAT  APPLICATION  HAS  BEEN APPROVED BY THE AUTHORITY, AND THE
 BRAND IS PURCHASED FROM THE PRIMARY AMERICAN  SOURCE  OF  SUPPLY  OR  AN
 AUTHORIZED WHOLESALER.
   5.  EXCEPT  AS  SET  FORTH  IN  SUBDIVISIONS  SEVEN  AND EIGHT OF THIS
 SECTION, A WHOLESALER IN THIS STATE SHALL NOT PURCHASE, RECEIVE OR BE IN
 POSSESSION OF ANY LIQUOR OR WINE  UNLESS  THE  WHOLESALER  OBTAINED  THE
 LIQUOR  OR  WINE  DIRECTLY  FROM A REGISTERED PRIMARY AMERICAN SOURCE OF
 SUPPLY, A DESIGNATED REPRESENTATIVE OF THE PRIMARY  AMERICAN  SOURCE  OF
 SUPPLY  IF  THE PRIMARY AMERICAN SOURCE OF SUPPLY IS OUTSIDE THIS STATE,
 OR AN AUTHORIZED WHOLESALER.
   6. NOTHING IN THIS SECTION SHALL  BE  DEEMED  TO  PROHIBIT  SUBSEQUENT
 INTRASTATE  SALES,  TRANSFER, AND INVOICING OF A BRAND OF LIQUOR OR WINE
 BETWEEN AUTHORIZED WHOLESALERS OF THAT BRAND.
   7. THE AUTHORITY SHALL ALLOW A WHOLESALER TO BRING LIQUOR OR WINE INTO
 THIS STATE IF THE  WHOLESALER  CERTIFIES  TO  THE  SATISFACTION  OF  THE
 AUTHORITY  THAT THE BRAND OF LIQUOR OR WINE COMES FROM A MANUFACTURER OR
 BOTTLER THAT CANNOT, OR HAS NOT AND WILL NOT APPOINT A PRIMARY  AMERICAN
 SOURCE OF SUPPLY.
   8. THIS SECTION SHALL NOT APPLY TO (A) A BRAND OF LIQUOR OR WINE OWNED
 EXCLUSIVELY  BY ONE RETAILER AND SOLD AT RETAIL WITHIN THIS STATE EXCLU-
 SIVELY BY SUCH RETAILER; OR (B) A PRODUCT PURCHASED BY A  WHOLESALER  OR
 RETAILER  IN  ACCORDANCE  WITH SECTIONS EIGHTY-FIVE AND NINETY-NINE-G OF

 A. 10737                            3
 
 THIS CHAPTER CONSISTENT WITH THE RULES, REGULATIONS,  ORDERS  AND  ADVI-
 SORIES ESTABLISHED BY THE AUTHORITY.
   9.  THE AUTHORITY IS AUTHORIZED TO PERFORM SUCH ACTS, PRESCRIBE FORMS,
 AND MAKE RULES, REGULATIONS, ORDERS AND ADVISORIES AS IT MAY DEEM NECES-
 SARY OR PROPER TO  FULLY  EFFECTUATE  THE  PROVISIONS  OF  THIS  SECTION
 INCLUDING,  BUT  NOT LIMITED TO, ESTABLISHING A FORMAT FOR RECORDING THE
 PRIMARY AMERICAN SOURCE OF SUPPLY AND ITS DESIGNEES.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have  become  a  law; provided, however, that effective immediately, the
 addition, amendment and/or repeal of any rule  or  regulation  necessary
 for  the implementation of this act on its effective date are authorized
 and directed to be made and completed on or before such effective date.