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.
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 (al 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
FISCAL IMPLICATIONS: Increased tax revenues for the State.
EFFECTIVE DATE: The first of January next succeeding the date the bill becomes law.
STATE OF NEW YORK ________________________________________________________________________ S. 2473 A. 2981 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y January 21, 2011 ___________IN SENATE -- Introduced by Sen. MAZIARZ -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations IN ASSEMBLY -- Introduced by M. of A. LENTOL -- read once and referred to the Committee on Economic Development, Job Creation, Commerce and Industry 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 hisEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06462-01-1 S. 2473 2 A. 2981
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 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.