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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S2473-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 21, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2473-2011 Memo

BILL NUMBER:S2473

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.

S2473-2011 Text

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

      S. 2473                                                  A. 2981

                         2011-2012 Regular Sessions

                        SENATE - ASSEMBLY

                              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 his

   EXPLANATION--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.