S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    901
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M. of A. WOERNER, LAVINE, BUTTENSCHON, GRIFFIN -- Multi-
   Sponsored by -- M. of A. WALSH  --  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 ASSEM-
 BLY, 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-LI-
 CENSED 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00949-01-1

 A. 901                              2
 
   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  AMERI-
 CAN 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 AUTHORI-
 TY NOT LESS THAN FORTY DAYS BEFORE THE NEW AUTHORIZATION BECOMES  EFFEC-
 TIVE.
   3.  A  PRIMARY  AMERICAN SOURCE OF SUPPLY OR ITS EXCLUSIVE AGENT SHALL
 FILE WITH THE AUTHORITY THE NAMES OF EACH AUTHORIZED WHOLESALER  PERMIT-
 TED  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.
   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

 A. 901                              3
 
 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 EXCLU-
 SIVELY BY SUCH RETAILER; OR (II) A PRODUCT PURCHASED BY A WHOLESALER  OR
 RETAILER  FROM  A PRIVATE COLLECTION IN ACCORDANCE WITH SECTIONS EIGHTY-
 FIVE AND NINETY-NINE-G OF THIS CHAPTER CONSISTENT WITH THE RULES,  REGU-
 LATIONS, 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 NECES-
 SARY 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. 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 to be made  and  completed
 on or before such effective date.