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A07907 Summary:

BILL NOA07907
 
SAME ASSAME AS S06724
 
SPONSORBenedetto
 
COSPNSR
 
MLTSPNSR
 
Amd §102, ABC L
 
Requires 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 the wholesaler for a period of twenty-four hours.
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A07907 Actions:

BILL NOA07907
 
07/19/2023referred to economic development
01/03/2024referred to economic development
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A07907 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7907
 
SPONSOR: Benedetto
  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. 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 is coming 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, such as 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 Hat-rest" statute in New York State could create over 1,700 jobs and the creation of new ware- housing 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 state requires 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) is more difficult to collect when such alcoholic beverages are shipped from out of state. New York should seek to capitalize on opportunities which 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 streamline d model of wholesale manufacturing and management.. The Wine and Liquor industry should be designed to be the gold standard of product ions which expand both job creation and revenue generation.   LEGISLATIVE HISTORY: 2020 A.8210A Referred to Economic Development 2019 A.8210 A Amended & Recommit to Economic Development 2019 A.8210 Referred to Economic Development
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A07907 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7907
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      July 19, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  BENEDETTO  --  read once and referred to the
          Committee on Economic Development
 
        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  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act shall be known and may be cited as the "beverage
     2  industry jobs act".
     3    § 2. Legislative purpose. The legislature finds and declares that  the
     4  proper  regulation and control of the manufacture, sale and distribution
     5  of alcoholic beverages is in the best interest of the  citizens  of  New
     6  York  state.  The legislature also believes it is in the interest of the
     7  citizens of New York state to promote and support the state's  wine  and
     8  craft  spirits  industry,  a  growing industry that is helping to revive
     9  local economies in many areas of the state.  Helping  the  producers  of
    10  alcoholic  beverages  while ensuring that all taxes are properly paid on
    11  all wine and liquor sales in the state will increase  economic  activity
    12  in  the  city  and state, ensure that jobs that have left the state as a
    13  result of the lack of such a law will  return  to  the  state  and  will
    14  increase  tax  revenue  for the state that is currently going unpaid and
    15  unaudited.
    16    § 3. Paragraph (a) of subdivision 1 of section 102  of  the  alcoholic
    17  beverage  control law, as amended by chapter 210 of the laws of 2005, is
    18  amended and a new paragraph (a-1) is added to read as follows:
    19    (a) Except as provided in section seventy-nine-c of this  chapter,  no
    20  alcoholic  beverages  shall  be  shipped  into the state unless the same
    21  shall be consigned to a person duly licensed  hereunder  to  traffic  in
    22  alcoholic beverages. No such alcoholic beverages shall be delivered to a
    23  retail  licensee other than from inventory stored at a premises or ware-
    24  house located in this state that is owned, rented or leased by a  whole-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11186-01-3

        A. 7907                             2
 
     1  saler  licensed by the state of New York. Such inventory shall be deemed
     2  to include only alcoholic beverages which shall have been stored in such
     3  premises or warehouse for a period of at  least  twenty-four  continuous
     4  hours. This prohibition shall apply to all shipments of alcoholic bever-
     5  ages  into  New  York state and includes importation or distribution for
     6  commercial purposes, for personal use, or otherwise, and irrespective of
     7  whether such alcoholic beverages were purchased within  or  without  the
     8  state,  provided, however, this prohibition shall not apply to any ship-
     9  ment consigned to a New York resident who has personally purchased alco-
    10  holic beverages for his personal use while outside the United States for
    11  a minimum period of forty-eight  consecutive  hours  and  which  he  has
    12  shipped as consignor to himself as consignee. Purchases made outside the
    13  United  States  by  persons other than the purchaser himself, regardless
    14  whether made as his agent, or by his authorization or on his behalf, are
    15  deemed not to have been personally purchased within the meaning of  this
    16  paragraph.
    17    (a-1)  Any wine or distilled spirits produced in the state of New York
    18  are deemed to be in compliance with the requirements of paragraph (a) of
    19  this subdivision.
    20    § 4. This act shall take effect on the first of January next  succeed-
    21  ing the date on which it shall have become a law.
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