BILL NUMBER: S1700
SPONSOR: MAYER
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
providing for certain limited direct interstate shipments of wine for
off-premises consumption
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow out-of-state wine retailers to ship wine to New York customers,
so long as the retailer obtains an out-of-state shipper's license.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the heading of section 79-c of the alcoholic beverage
control law.
Section two adds a new section 79-d to the alcoholic beverage control
law to allow out-of-state retailers to ship wine to New York customers,
so long as the retailer first obtains an out-of-state shipper's license.
Section three provides the effective date.
 
JUSTIFICATION:
In June of 2019, the Supreme Court ruling in Tennessee Wine v. Thomas
declared a Tennessee state law imposing durational residency require-
ments on persons and companies wishing to operate retail liquor stores
in the state unconstitutional. The law was found to have violated the
dormant Commerce Clause of the Constitution, which provides that any
state law discriminating against out-of-state goods or nonresident
economic actors may be sustained only upon a showing that it is narrowly
tailored to advance a legitimate purpose. Essentially, a law may not
plainly favor residents over nonresidents, absent a legitimate purpose.
In its analysis, the Court maintained that the non-discrimination prin-
ciples that it had previously tackled with respect to manufacturers also
apply to retailers, meaning states may not enact laws that strictly
promote in-state interests while discriminating against out-of-state
actors.
Currently, New York State consumers are not authorized to receive wine
shipments from out-of-state retailers. This legislation will allow out-
of-state retailers to ship wine to New York customers, so long as they
first obtain an out-of-state shipper's permit. The current system in our
state which prevents New Yorkers from receiving wine shipments from
out-of-state retailers is in conflict with the Court's ruling in Tennes-
see Wine which invalidated that state's protectionism schemes.
Furthermore, a change to our law is critical if New York is to influence
other states to change their laws to also allow for out-of-state ship-
ments to come in to their states. This bill will help to further legiti-
mize a national marketplace for wine shipping. It will also bring in
needed tax revenue to our state. Out-of-state retailers who go through
the proper channels provided for in this bill to obtain a permit should
be able to ship wine to New York customers without discrimination.
 
LEGISLATIVE HISTORY:
S3331/A1248 (2023-24): Referred to Commerce, Economic Development, and
Small Business
S7740/A799 (2021-22): Referred to Commerce, Economic Development, and
Small Business
A8899 (2019-20): Referred to Economic Development.
 
FISCAL IMPLICATIONS:
Increased tax revenue to the state.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.