What's happening
The bill requires most alcoholic beverages shipped to New York retailers to come from in-state wholesaler warehouses, but exempts New York-produced wine and spirits.
Why it matters
Supports New York wholesaler jobs and tax revenue. by requiring most alcoholic beverages shipped to retailers in the state to pass through in-state wholesaler warehouses, increasing in-state handling and oversight.
Gives a competitive advantage to New York wine and spirits producers,. as their products are exempt from the new warehousing requirement, potentially boosting local industry and small producers.
Tightens tax compliance and tracking. for alcoholic beverages sold in the state, aiming to reduce tax evasion and unreported sales, and ensure more accurate auditing of inventory.
May increase costs and complexity for out-of-state producers and retailers,. which could lead to higher prices or reduced selection for consumers, as non-New York products will need to be routed and stored through local wholesalers before reaching stores.
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Who cares
Headline styles
Restrict Out-of-State Alcohol Shipments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
385
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. S. RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the alcoholic beverage control law, in relation to enacting the "beverage industry jobs act" relating to the shipment of alcoholic beverages into the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "beverage industry jobs act".
§ 2. Legislative purpose. The legislature finds and declares that the proper regulation and control of the manufacture, sale and distribution of alcoholic beverages is in the best interest of the citizens of New York state. The legislature also believes it is in the interest of the citizens of New York state to promote and support the state's wine and craft spirits industry, a growing industry that is helping to revive local economies in many areas of the state. Helping the producers of alcoholic beverages while ensuring that all taxes are properly paid on all wine and liquor sales in the state will increase economic activity in the city and state, ensure that jobs that have left the state as a result of the lack of such a law will return to the state and will increase tax revenue for the state that is currently going unpaid and unaudited.
§ 3. Paragraph (a) of subdivision 1 of section 102 of the alcoholic beverage control law, as amended by chapter 210 of the laws of 2005, is amended and a new paragraph (a-1) is added to read as follows:
(a) Except as provided in section seventy-nine-c of this chapter, no alcoholic beverages shall be shipped into the state unless the same shall be consigned to a person duly licensed hereunder to traffic in alcoholic beverages. No such alcoholic beverages shall be delivered to a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD00454-01-5
retail licensee other than from inventory stored at a premises or warehouse located in this state that is owned, rented or leased by a wholesaler licensed by the state of New York. Such inventory shall be deemed to include only alcoholic beverages which shall have been stored in such premises or warehouse for a period of at least twenty-four continuous hours. 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] such resident's personal use while outside the United States for a minimum period of forty-eight consecutive hours and which [he] such resident has shipped as consignor to [himself] themself as consignee. Purchases made outside the United States by persons other than the purchaser [himself], regardless whether made as [his] their agent, or by [his] their authorization or on [his] their behalf, are deemed not to have been personally purchased within the meaning of this paragraph.
(a-1) Any wine or distilled spirits produced in the state of New York are deemed to be in compliance with the requirements of paragraph (a) of this subdivision.
§ 4. This act shall take effect on the first of January next succeeding the date on which 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 enacting the "beverage industry jobs act" relating 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 wholesaler for a period of 24 hours (i.e., "at-rest").
Summary of provisions
Section 1: Legislative purpose.
Read the full memo (619 words)
Section 2: Amends paragraph (a) of subdivision 1 of section 102 of the Alcoholic Beverage Control Law to require that, in certain circum- stances, 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. A Print specif- ically exempts products produced within New York from the requirements of this act.
Section 3: Provides for an effective date of January 1 next succeeding the date the bill becomes law. EXISTING LAW: Under current law a licensed wholesaler of wine or distilled spirits can distribute to any licensed retailer even if such shipment comes from a warehouse located in another state.
Justification
This bill would have no impact on the current reciprocal direct shipment laws and would only seek to help to create thousands of new jobs in New York State and level the current playing field for our New York wine and distilled spirits wholesalers. Presently, 32 states have enacted an at-rest statute like the one proposed by this bill, and an additional eight states have some form of at-rest requirements that have been imposed by regulation or are implied in the law.
When looking at practices in New York State, over 80% of the licensed wholesalers of wine and distilled spirits do not warehouse their products in New York State. In most cases they warehouse their product in states such as New Jersey and Connecticut. Many fiscal studies have shown that this has caused a dramatic loss in jobs in New York State and some estimates show that the enactment of an "at-rest" statute in New York State could produce over 1,700 jobs and could create new warehous- ing facilities in New York State, generate millions in revenue and ensure that consumers are not getting counterfeit beverage alcohol.
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 states require the warehousing of alcoholic beverages delivered from New York. Moreover, requiring the shipment of alcoholic beverages to an "at-rest" facility in New York facilitates the effective collection of New York's taxes on alcoholic beverages. Currently excise taxes (paid by wholesalers) are more difficult to collect when such alcoholic beverages are shipped from out of state. New York should seek to capitalize on opportunities that ensure that tax revenues are collected for the State of New York. With New York State on the verge of legalizing cannabis use for adults, legislators and regulators alike are looking for a streamlined model of wholesale manufacturing and management. The wine and liquor industry should be designed to be the gold standard of production which expands both job creation and revenue generation.
Legislative history
S.386/A.5153 of 2021-2022
S.5989A/A.8210A of 2019-2020
S.2473/A.2981 of 2011-12
A.5077 of 2009-10
S.1300 of 2007-2008
S.6292 of 2006
Fiscal implications
Increased tax revenues for the State.
Effective date
This act shall take effect on the first of January next succeeding the date on which 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.