What's happening
This bill requires liquor and wine sold in New York to be sourced from a registered "primary American source of supply" and defines related terms.
Why it matters
Aims to increase transparency and control over the supply chain for liquor and wine. by requiring manufacturers to designate a registered "primary American source of supply" for each brand sold in New York, making it easier to trace product origins and ensure compliance with state regulations.
Could limit "gray market" imports and parallel distribution channels. by prohibiting wholesalers and retailers from purchasing liquor or wine that is not sourced through a registered primary American source or their authorized wholesalers, potentially reducing the risk of counterfeit or improperly handled products.
May impact pricing and availability of certain brands. as only one primary American source of supply can be registered per brand, possibly consolidating distribution and affecting competition, which could in turn influence costs for consumers and businesses.
Includes specific exceptions and carve-outs. (such as private collections, products owned exclusively by one retailer, or brands with no source willing to register), showing an attempt to balance regulatory goals with flexibility for unique or rare products and small business interests.
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Who cares
Wine and liquor manufacturers and bottlers
The bill would establish one registered primary American source of supply per brand, with manufacturers designating the source and manufacturers or bottlers able to replace it with at least forty days’ notice.
Wine and liquor wholesalers
The bill would generally restrict their purchases to registered primary sources, designated representatives of out-of-state sources or authorized wholesalers, while providing exceptions.
Wine and liquor retailers
The bill would generally require them to receive brands purchased from registered primary sources or authorized wholesalers, with exemptions including brands owned and sold exclusively by one retailer.
State Liquor Authority
The bill would require the authority to register primary sources, receive authorized-wholesaler listings and administer exceptions, while authorizing implementation rules.
Headline styles
Require US Source for Alcohol
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to economic development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require U.S. Wine, Liquor Sources
In Senate Committee · Rules · Sponsor Terrence P. Murphy
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10737
IN ASSEMBLY
May 16, 2018
Introduced by M. of A. WOERNER -- read once and referred to the Committee 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 Assembly, 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 manufacturer by a distributor in the United States, another manufacturer or bottler, 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 thereof 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 registration. 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 bottler 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 wholesaler, it may list itself and other wholesalers as an authorized wholesaler of the brand. The filing of a wholesale price posting, in accordance 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 exclusively 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 advisories 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 necessary 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.