What's happening
This bill allows out-of-state wine retailers, not just manufacturers, to ship wine directly to New York residents if reciprocal privileges exist.
Why it matters
Expands consumer choice. By allowing out-of-state wine retailers (not just producers) to ship wine to New York residents, the bill increases access to a broader selection of wines, including rare or exclusive bottles not available through in-state channels.
Promotes market competition. The change could pressure New York wine retailers to improve their offerings and pricing to compete with out-of-state sellers, potentially benefiting consumers through better deals or more diverse inventories.
Reciprocity requirement matters. Only retailers from states that grant New York retailers similar shipping privileges can participate, which may incentivize more states to open their markets and foster a national standard for interstate wine sales.
Potential impact on tax revenue and regulation. With more direct shipments crossing state lines, New York will need to track and tax these sales, potentially increasing state revenue but also creating new enforcement and regulatory challenges to ensure compliance and prevent underage access.
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Who cares
Headline styles
Allow Reciprocal Wine Shipping
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
1 Co-sponsor
History
- Reported and committed to finance
- Referred to commerce, economic development and small business
- Reported and committed to finance
- Referred to commerce, economic development and small business
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.
Expand Wine Shipping Access
In Assembly Committee · Economic Development · Sponsor Amy Paulin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5330
2017-2018 Regular Sessions
IN SENATE
March 21, 2017
Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the alcoholic beverage control law, in relation to reciprocal wine shipping privileges
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 79-c of the alcoholic beverage control law, as amended by chapter 184 of the laws of 2005, is amended to read as follows:
1. Authorization. Notwithstanding any provision of law, rule or regulation to the contrary, any holder of a license to manufacture wine or any holder of a retail license to sell wine for off-premises consumption, in any other state who obtains an out-of-state direct shipper's license, as provided in this section, may ship no more than thirty-six cases (no more than nine liters each case) of wine produced or sold by such license holder per year directly to a resident of New York who is at least twenty-one years of age, for such resident's personal use and not for resale, provided the state in which such person is so licensed affords lawful means for shipments of wine to be received by a resident thereof who is at least twenty-one years of age, for such resident's personal use and not for resale, from a person licensed in this state as a manufacturer or retail licensee and, provided further, that the state in which such out-of-state winery or retail premises is located affords to New York state winery and farm winery licensees or New York state retail licensees reciprocal shipping privileges, meaning shipping privileges that are substantially similar to the requirements in this section. No person shall place an order for shipment of wine unless they are twenty-one years of age or older. Any common carrier with a permit issued pursuant to this chapter to whom such out-of-state shipper's
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08579-04-7
S. 5330 2
license is presented is authorized to make delivery of shipments provided for hereunder in this state in compliance with this section.
§ 2. Subdivision 2 of section 79-c of the alcoholic beverage control law, as amended by chapter 221 of the laws of 2011, is amended to read as follows:
2. License. Before sending any shipment hereunder to a resident in this state, the out-of-state shipper shall first obtain a license from the authority under procedures prescribed by rules and regulations of the authority and after providing the authority with a true copy of its current license to manufacture wine or its current retail license to sell wine for off-premises consumption in the applicant's state of domicile along with a copy of the applicant's federal basic permit after payment of an annual fee of one hundred twenty-five dollars. Notwithstanding the provisions of section one hundred ten of this chapter, the authority in its discretion, may excuse an out-of-state winery or retail licensee from the submission of such information.
§ 3. Paragraph (a) of subdivision 3 of section 79-c of the alcoholic beverage control law, as amended by chapter 221 of the laws of 2011, is amended to read as follows:
(a) ship no more than thirty-six cases (no more than nine liters each case) per year of wine produced or sold by such license holder directly to a New York state resident who is at least twenty-one years of age, for such resident's personal use and not for resale;
§ 4. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to reciprocal wine shipping privileges
Purpose
To enable out-of-state holders of a license to sell wine for off premise consumption, who obtain an out-of-state direct shipper's license, to ship wine to New York residents, provided that the state in which such license holder is licensed affords reciprocal shipping privileges to New York State retail licensees.
Summary of provisions
Section one amends subdivision 1 of section 79-c of the alcoholic beverage control law to provide that any holder of a retail license to sell wine for off premise consumption in any other state, who obtains an out-of-state direct shipper's license, may ship no more than thirty-six cases of wine sold by such license holder per year directly to a New York resident who is at least twenty-one years of age, for such resident's personal use and not for resale, provided the state in which such person is licensed affords lawful means for shipments of wine to be received by a resident thereof who is at least twenty-one years of age, for such resident's personal use and not for resale, from a person licensed in New York as a retail licensee and, provided further, that the state in which such retail premises is located affords to New York retail licensees reciprocal shipping privileges, meaning shipping privileges that are substantially similar to the requirements in this section.
Read the full memo (684 words)
Section two amends subdivision 2 of section 79-c of the alcoholic beverage control law to provide that before sending any shipment to a New York resident, the out-of-state shipper shall first obtain a license from the state liquor authority.
Section three amends paragraph (a) of subdivision 3 of section 79-c of the alcoholic beverage control law to provide that the holder of an out-of-state direct shipper's license shall: (a) ship no more than thirty-six cases (no more than nine liters each case) per year of wine sold by such license holder directly to a New York resident who is at least twenty-one years of age, for such resident's personal use and not for resale.
Section four provides the effective date.
Justification
In recent years, New York amended its system of requiring that all wine for sale must first move through in-state wholesalers, so as to allow direct interstate shipping of wine produced by wineries. In order to better serve consumer demand, as well as assist New York based retailers of wines, the system should be further amended so as to allow New York consumers to have wine shipped directly to them. This legislation would allow New York residents to purchase wine from out-of-state retailers in states that afford reciprocal shipping privileges to New York licensees.
New York State wine retailers benefit when they are able to legally ship wine directly to out-of-state consumers who are accustomed to looking for goods on the internet that they are unable to find locally. If New York were to embrace free trade in wine, other states would be encouraged to begin allowing shipments to their consumers from retailers in New York, as well as from other states. Furthermore, this bill addresses concerns highlighted in a 2015 veto message that the alcoholic beverage control law should be amended to reflect modern-day business practices, specifically with regards to e-commerce and the desire to see proposed recommendations for legal interstate sales of alcohol.
Ultimately, allowing direct shipments from out-of-state retailers who are licensed in the same manner as out-of-state wineries will not only provide New York consumers with access to thousands of products not available in our state, but will also provide millions of dollars in tax revenue to New York. It will also lesson the enforcement costs and time burdens experienced by the New York State Liquor Authority in their efforts to stop consumers from ordering wine from unlicensed out-of-state sources.
Legislative history
New bill
Fiscal implications
Increase in tax revenue to the State.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.