Relates to the shipment of alcoholic beverages into the 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 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.
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
Increased tax revenues for the State.
The first of January next succeeding the date the bill becomes law.
STATE OF NEW YORK ________________________________________________________________________ 3849 2013-2014 Regular Sessions IN SENATE 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.