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- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
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Requires alcoholic beverages shipped from state that requires out of state shipments to be consigned to a licensee and stored, shall be so consigned and stored in this state
In Assembly Committee · Economic Development · Sponsor Joseph Lentol
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.