What's happening
This bill requires liquor and wine sold in New York to be sourced from a registered primary American supplier, with exceptions for certain collectors and negociant wines.
Why it matters
Enhances supply chain transparency and accountability. by requiring that every brand of liquor and wine sold in New York be traceable to a registered "primary American source of supply" (usually the manufacturer or its exclusive U.S. agent), making it easier for regulators and consumers to identify the origin and legitimacy of products.
Limits parallel (gray market) imports and unauthorized distribution. , which could help protect brand integrity, reduce counterfeiting, and ensure that only authorized wholesalers—those appointed by the registered source—can legally sell specific brands in New York.
Provides targeted exceptions for collectors and unique wines. , allowing for continued access to rare, vintage, or discontinued products through "private collections" and negociant wines, thus preserving the secondary market for collectible or special wines and liquors.
Gives regulatory authorities new oversight tools. by mandating filings, brand registrations, and disclosure of authorized wholesalers, which could streamline enforcement and help ensure compliance with state alcohol laws.
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Who cares
Wine and liquor manufacturers and importers
The bill would generally require a registered primary American source for each brand and let that source designate authorized wholesalers.
New York wine and liquor wholesalers
The bill would restrict where they may obtain products, while providing exceptions for French negociant purchases and manufacturers or bottlers that cannot or will not appoint a primary American source.
Wine and liquor retailers
The bill would generally limit receipts to registered brands purchased from a primary American source or authorized wholesaler, with exceptions for exclusively owned retail brands and qualifying private collections.
New York State Liquor Authority
The bill would require the authority to approve brand registrations, maintain source and wholesaler filings, and administer exceptions to the sourcing requirements.
Headline styles
Require U.S. Wine, Liquor Sources
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
4 Co-sponsors
History
- Print number 3881c
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Print number 3881b
- Amend and recommit to investigations and government operations
- Print number 3881a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
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 US Wine Suppliers
In Assembly Committee · Economic Development · Sponsor Carrie Woerner
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3881--C
2019-2020 Regular Sessions
IN SENATE
February 20, 2019
Introduced by Sens. KAPLAN, GAUGHRAN, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 three new subdivisions 23-a, 23-b and 23-c are added to read as follows:
23-a. "Primary American source of supply" means (a) a manufacturer of liquor or wine or its exclusive agent in the United States if such liquor or wine can be secured directly from the manufacturer or its exclusive agent by a wholesaler in the United States; or (b) if the liquor or wine cannot be secured directly from such manufacturer or its exclusive agent, the source closest to such manufacturer in the United States when the brand enters the stream of commerce shall be the primary American source of supply in the United States.
23-b. "Private collection" means (a) bottled wine that (i) was purchased at retail or auction, (ii) is at minimum a vintage ten years old at the time of sale, or if sparkling wine, is a minimum vintage of fifteen years old at the time of sale, and (iii) was owned by a non-licensed person with proof of purchase, or (iv) is not price posted in New York at the time of sale; or (b) a bottled liquor that is either (i) not
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01255-11-0
S. 3881--C 2
price posted in New York at the time of sale, (ii) is no longer in production, or (iii) is contained in its original ceramic, lead, crystal or similar collectible specialty container which is no longer being offered for sale, or (iv) was bottled ten years prior to the date of sale.
23-c. "Negociant" means third-party wine merchants based in France who purchase stock directly from the producer with the authorization to mass distribute around the world on a non-exclusive basis to any authorized wholesaler to allow the resale of the wines into as many markets as possible.
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. (a) The primary American source of supply at the time the wine or liquor becomes suitable for wholesale or retail sale in New York or a wholesaler licensed under this chapter who has been appointed its exclusive agent for such purpose, shall file a form provided by the authority. Each brand of such liquor or wine shall be individually listed on such registration.
(b) For wines purchased through a negociant, the primary American source of supply is any wholesaler licensed under this chapter who shall file a form provided by the authority.
2. With the exception of wines purchased through a negociant, the authority shall allow only one primary American source of supply to register any brand of liquor or wine. The primary American source of supply may change the exclusive agent acting and cancel any authority granted to a prior agent 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 or its exclusive agent shall file with the authority the names of each authorized wholesaler permitted to sell 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 a wholesaler authorized to sell 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 of wine or liquor from a private collection made directly to a resident of New York, 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 (i) has registered such brand with the authority, (ii) such registration has been approved by the authority, and (iii) the brand is purchased from the primary American source of supply or an authorized wholesaler.
S. 3881--C 3
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 (i) a registered primary American source of supply, (ii) a designated representative of the primary American source of supply if the primary American source of supply is outside this state, (iii) an authorized wholesaler or (iv) a negociant.
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 subsequent to the purchase in this state from the primary American source of supply.
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 (i) a brand of liquor or wine owned exclusively by one retailer and sold at retail within this state exclusively by such retailer; or (ii) a product purchased by a wholesaler or retailer from a private collection in accordance with sections eightyfive and ninety-nine-g of 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.
Sponsor's memo
Title of bill
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
Purpose
This bill would require that all wine and liquor sold in the state be received from a primary American source of supply.
Summary of provisions
Section one defines the terms "Primary American source of supply," "private collection," "negociant," and "wholesaler"
Read the full memo (1,060 words)
Section two amends the alcoholic beverage control law by adding a new section 116-a. Subdivision one of the new section requires that the primary American source of supply shall file a registration application with the authority and that for wines purchased through a negociant, the primary American source of supply shall file a separate form provided by the authority.
Subdivision two establishes that the authority shall only allow one primary American source of supply to register any brand of liquor or wine, with the exception of wines purchased through a negociant.
Subdivision three establishes that 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 whole- salers as an authorized wholesaler of the brand. 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.
Subdivision four states that except as set forth in subdivisions seven and eight of this section or shipments of wine or liquor from a private collection made directly to a New York State resident for personal use, no one shall ship or caused 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 has registered such brand with the authority, the registration is approved, and the brand is purchased from the primary American source of supply.
Subdivision five states a wholesaler in the state shall not purchase, receive or be in possession of liquor or wine unless the wholesaler obtained it directly from a registered primary American source of supply, a designated representative if the primary American source of supply is outside this state, an authorized wholesaler, or a negociant.
Subdivision six states that 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 subse- quent to the purchase in this state from the primary American source of supply. Subdivision seven states that a wholesaler may bring liquor or wine into the state if the wholesaler certifies to the satisfaction of the author- ity that the brand of liquor or wine comes from a manufacturer or bott- ler that cannot, or has not and will not appoint a primary American source of supply.
Subdivision eight states the section will not apply to a brand of liquor or wine owned exclusively by one retailer and sold exclusively by such retailer within this state, or a product purchased by a wholesaler or retailer from a private collection
Subdivision nine authorizes the authority to perform acts, prescribe forms and make rules and regulations as it deems necessary including but not limited to establishing a format for recording the primary American source of supply and its designees.
Section three establishes the effective date.
Justification
The proposed legislation would amend several provisions of the Alcoholic Beverage Control ("ABC") law to create a "primary American source of supply" of liquor and wine for distribution and sale of alcoholic bever- ages in New York State. The legislation would direct the manufacturer or owner of a liquor or wine to designate the primary American source of supply and to file a registration application with the authority. The enactment of a primary source law would provide greater accountability for all wine and liquor distributed and sold in New York State.
Under a primary American source statute, wholesalers may only buy wine and liquor directly from the brand owner or manufacturer. The primary source is the manufacturer of liquor or wine, or the source closest to the manufacturer in the channel of commerce from whom the product can be secured by New York wholesalers. Under New York State's current statuto- ry framework, there is no restriction on wholesalers seeking sources of wine and liquor other than from the direct primary source. These non- primary sources encompass importers from other nations. This proposed primary source legislation would make it unlawful for any wholesale licensee to purchase wine or liquor from other than the primary source of supply in the United States. The legislation requires brand owners, distributors, owners, and retainers to keep and complete accurate records of the sales chain, the size, and brand of products. These provisions would also increase tax collections and ensure the integrity of the products.
According to the New York State Law Revision Commission-the oldest continuous agency in the common law world committed to law reform through legislation-primary source laws give a state precise excise tax assessment and collection. A study conducted by American Economics Group estimated approximately $39.3 million additional tax collections annual- ly. The New York State Law Revision Commission also asserts that a primary source law, which would identify all wholesalers able to distribute a manufacturer's brands, would decrease the potential for lost revenues from inaccurate reporting. Moreover, according to the Commission, "By far the most compelling reason to impose a primary source law or system involves the protection of the public's health and safety." Both brand owners and industry professionals have voiced
concern that without a primary source law, a brand owner would not be able to assure the purity and integrity of the product.
Legislative history
2018: A10737/S5437
Fiscal implications
Increase in tax revenue for the State.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law; provided, however, that effective immediately, the addi- tion, 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.