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Tuesday, October 29, 2013

New York Issues Survey re Proposed “At Rest” Legislation

The New York State Liquor Authority (NYSLA) has asked state wholesalers to fill out a survey related to the potential impact of proposed “at rest” legislation. 

At rest legislation (New York Bill S3849-2013) would require any alcohol beverage delivered to a New York restaurant or retailer to go through a warehouse located within the state and only after it has come “to rest” for at least 24 hours in that warehouse.  This law would prevent wholesalers from delivering wine from warehouses located in neighboring states (New Jersey, Pennsylvania, Connecticut) to New York on-premise and off-premise establishments.   The New York Farm Bureau and an organization known as the New York Alliance of Fine Wine Wholesalers (which includes Michael Skurnik Wines, Polaner Selections, T. Edwards Wines, and Winebow) have opposed the “at rest” legislation.

The survey is being conducted by Ernest & Young in coordination with Empire State Development (ESD), the state government’s economic development agency.  ESD’s mandate is to “encourage the creation of new job[s]” and “increase revenues to the State and its municipalities.”  According to the survey website, the goal of the survey is to “a) measure how much product (in cases and dollars) of alcoholic beverages are currently being stored out of state before reaching clients in New York, and b) compare storage costs (including employment) for alcoholic beverages at facilities within New York to those located outside the state. “  Given this statement, it appears that the point of the survey is to collect data to show how much tax revenue and new jobs would be created in New York if “at rest” legislation was adopted.  

Even though the NYSLA website only asks for wholesaler response to the survey, the home page for the survey requests participation from “producers, wholesalers, and warehousers of alcoholic beverages.”  The survey encourages those who believe they are eligible for the survey to register by providing name, title, email address, NY Alcohol Beverage License Number and NY Alcohol Beverage License Type.  


For more information on wine law issues, please contact John Trinidad (jtrinidad@dpf-law.com).  

2 comments:

  1. What is the result of this survey?

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    1. Lorie:

      Thanks for your comment. Although the survey was closed in November, we have not seen a public release of the survey results to date. We are keeping track of the bills, and will post results when they become available.

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