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A03844 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3844
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 8, 2023
                                       ___________
 
        Introduced  by M. of A. GUNTHER, BUTTENSCHON, JONES, SANTABARBARA, WOER-
          NER, JACOBSON, BARRETT,  LUPARDO,  STERN,  STIRPE,  HAWLEY,  BRABENEC,
          SILLITTI,   THIELE,  DAVILA,  PALMESANO,  KELLES,  GALLAHAN,  DICKENS,
          BURDICK, SIMPSON, PAULIN, GALLAGHER -- read once and referred  to  the
          Committee on Economic Development

        AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
          authorizing the direct intrastate and interstate shipment of liquor
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The alcoholic beverage control law is amended by adding two
     2  new sections 64-f and 64-g to read as follows:
     3    §  64-f. Direct intrastate liquor shipments. Any person having applied
     4  for and received a license as a distillery or farm  distillery  pursuant
     5  to  the provisions of section sixty-one of this article may ship no more
     6  than thirty-six cases (no more than nine  liters  per  case)  of  liquor
     7  produced  by  such  distillery or farm distillery per year directly to a
     8  New York state resident who is at least twenty-one  years  of  age,  for
     9  such resident's personal use and not for resale.
    10    1. Licensee's shipping responsibilities. Notwithstanding any provision
    11  to  the  contrary contained in this chapter, any above referred licensee
    12  shall:
    13    (a) in the case of a distillery or farm distillery licensee,  ship  no
    14  more  than thirty-six cases (no more than nine liters per case) per year
    15  of liquor produced by such license holder directly to a New  York  state
    16  resident  who  is  at least twenty-one years of age, for such resident's
    17  personal use and not for resale;
    18    (b) ensure that the outside of each shipping container  used  to  ship
    19  liquor  directly  to  a New York state resident is conspicuously labeled
    20  with the words:  "CONTAINS LIQUOR - SIGNATURE OF PERSON AGE 21 OR  OLDER
    21  REQUIRED  FOR DELIVERY," or with other language specifically approved by
    22  the New York state liquor authority;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06483-01-3

        A. 3844                             2
 
     1    (c) maintain records in such manner and  form  as  the  authority  may
     2  direct  showing  the  total  amount  of liquor shipped in the state each
     3  calendar year, the names and addresses of the  purchasers  to  whom  the
     4  liquor  was  shipped, the date purchased, the name of the common carrier
     5  used to deliver the liquor, and the quantity and value of each shipment.
     6  Such records shall be kept for three years and, upon written request, be
     7  provided to the authority or the department of taxation and finance;
     8    (d)  in  connection  with the acceptance of an order for a delivery of
     9  liquor to a New York  resident,  require  the  prospective  customer  to
    10  represent  that  he  or  she has attained the age of twenty-one years or
    11  more and that the liquor being purchased will not be  resold  or  intro-
    12  duced into commerce; and
    13    (e) require common carriers to:
    14    (i)  require  a  recipient, at the delivery address, upon delivery, to
    15  demonstrate that the recipient is at least twenty-one years  of  age  by
    16  providing  a  valid  form  of  photographic identification authorized by
    17  section sixty-five-b of this article;
    18    (ii) require a recipient to sign an electronic or paper form or  other
    19  acknowledgment of receipt as approved by the authority; and
    20    (iii)  refuse delivery when the proposed recipient appears to be under
    21  twenty-one years of age and refuses to present valid  identification  as
    22  required by paragraph (a) of this subdivision.
    23    2.  Violations.  In  any action brought under this section, the common
    24  carrier and the licensee shall only be held liable for their independent
    25  acts.
    26    §  64-g.  Direct  interstate  liquor  shipments.   1.   Authorization.
    27  Notwithstanding  any provision of law, rule or regulation to the contra-
    28  ry, any holder of a license to manufacture liquor in  any  other  state,
    29  who  obtains  an  out-of-state  direct shipper's license, as provided in
    30  this section, may ship no more than thirty-six cases (no more than  nine
    31  liters  each  case)  of  liquor produced by such license holder per year
    32  directly to a resident of New York who is at least twenty-one  years  of
    33  age,  for  such resident's personal use and not for resale, provided the
    34  state in which such person is so licensed affords lawful means for ship-
    35  ments of liquor to be received by a resident thereof  who  is  at  least
    36  twenty-one  years  of  age, for such resident's personal use and not for
    37  resale, from a person licensed in this  state  as  a  manufacturer  and,
    38  provided  further,  that the state in which such out-of-state distillery
    39  is located affords to New York  state  distillery  and  farm  distillery
    40  licensees  reciprocal  shipping  privileges, meaning shipping privileges
    41  that are substantially similar to the requirements in this  section.  No
    42  person shall place an order for shipment of liquor unless they are twen-
    43  ty-one  years  of  age or older. Any common carrier with a permit issued
    44  pursuant to this chapter to whom such out-of-state shipper's license  is
    45  presented is authorized to make delivery of shipments provided for here-
    46  under in this state in compliance with this section.
    47    2.  License.  Before  sending  any shipment hereunder to a resident in
    48  this state, the out-of-state shipper shall first obtain a  license  from
    49  the  authority  under  procedures prescribed by rules and regulations of
    50  the authority and after providing the authority with a true copy of  its
    51  current  license to manufacture liquor in the applicant's state of domi-
    52  cile along with a copy of the applicant's  federal  basic  permit  after
    53  payment  of  an  annual fee of one hundred twenty-five dollars. Notwith-
    54  standing the provisions of section one hundred ten of this chapter,  the
    55  authority  in its discretion, may excuse an out-of-state distillery from
    56  the submission of such information.

        A. 3844                             3
 
     1    3. Licensee's responsibilities. The holder of an  out-of-state  direct
     2  shipper's license shall:
     3    (a)  ship no more than thirty-six cases (no more than nine liters each
     4  case) per year of liquor produced by such license holder directly  to  a
     5  New  York  state  resident  who is at least twenty-one years of age, for
     6  such resident's personal use and not for resale;
     7    (b) ensure that the outside of each shipping container  used  to  ship
     8  liquor directly to a New York resident is conspicuously labeled with the
     9  words:  "CONTAINS  LIQUOR - SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED
    10  FOR DELIVERY - NOT FOR RESALE,"  or  with  other  language  specifically
    11  approved by the New York state liquor authority;
    12    (c)  maintain  records  in  such  manner and form as the authority may
    13  direct, showing the total amount of liquor shipped into the  state  each
    14  calendar  year;  the  names  and addresses of the purchasers to whom the
    15  liquor was shipped, the date purchased, the name of the  common  carrier
    16  used to deliver the liquor, and the quantity and value of each shipment;
    17    (d)  in  connection  with the acceptance of an order for a delivery of
    18  liquor to a New York  resident,  require  the  prospective  customer  to
    19  represent  that  he  or  she has attained the age of twenty-one years or
    20  more and that the liquor being purchased will not be  resold  or  intro-
    21  duced into commerce;
    22    (e) require common carriers to:
    23    (i)  require  a  recipient, at the delivery address, upon delivery, to
    24  demonstrate that the recipient is at least twenty-one years  of  age  by
    25  providing  a  valid  form  of  photographic identification authorized by
    26  section sixty-five-b of this article;
    27    (ii) require a recipient to sign an electronic or paper form or  other
    28  acknowledgement of receipt as approved by the authority; and
    29    (iii)  refuse delivery when the proposed recipient appears to be under
    30  twenty-one years of age and refuses to present valid  identification  as
    31  required by subparagraph (i) of this paragraph;
    32    (f)  file  returns  with  and  pay to the New York state department of
    33  taxation and finance all state and local sales taxes  and  excise  taxes
    34  due  on  sales  into  this  state  in  accordance  with  the  applicable
    35  provisions of the tax law relating to such taxes,  the  amount  of  such
    36  taxes  to be determined on the basis that each sale in this state was at
    37  the location where delivery is made;
    38    (g) keep all records required by this  section  for  three  years  and
    39  provide  copies  of such records, upon written request, to the authority
    40  or the department of taxation and finance;
    41    (h) permit the authority or the department of taxation and finance  to
    42  perform an audit of such out-of-state shipper upon request;
    43    (i)  execute  a written consent to the jurisdiction of this state, its
    44  agencies and instrumentalities and the courts of this  state  concerning
    45  enforcement of this section and any related laws, rules, or regulations,
    46  including tax laws, rules or regulations; and
    47    (j)  prior  to  obtaining  an  out-of-state  direct shipper's license,
    48  obtain a certificate of authority pursuant  to  section  eleven  hundred
    49  thirty-four  of the tax law and a registration as a distributor pursuant
    50  to sections four hundred twenty-one and four hundred twenty-two  of  the
    51  tax law.
    52    4.  Situs.  Delivery  of  a shipment in this state by the holder of an
    53  out-of-state direct shipper's license shall be deemed  to  constitute  a
    54  sale  in this state at the place of delivery and shall be subject to all
    55  excise taxes levied pursuant to section four hundred twenty-four of  the

        A. 3844                             4
 
     1  tax law and all sales taxes levied pursuant to articles twenty-eight and
     2  twenty-nine of such law.
     3    5.  Renewal.  The  out-of-state shipper may annually renew its license
     4  with the authority by paying a one hundred  twenty-five  dollar  renewal
     5  fee,  providing the authority with a true copy of its current license in
     6  such other state as an alcoholic beverage manufacturer and by  complying
     7  with such other procedures as are prescribed by rule of the authority.
     8    6. Rules and regulations. The authority and the department of taxation
     9  and  finance  may  promulgate  rules  and  regulations to effectuate the
    10  purposes of this section.
    11    7. Enforcement. The authority may enforce  the  requirements  of  this
    12  section  including  the  requirements  imposed on the common carrier, by
    13  administrative proceedings to suspend or revoke  an  out-of-state  ship-
    14  per's  license and the authority may accept payment of an administrative
    15  fine in lieu of suspension, such payments to be determined by  rules  or
    16  regulations  promulgated by the authority. In addition, the authority or
    17  the attorney general of the state of New York shall report violations of
    18  this section, where appropriate, to  the  United  States  department  of
    19  treasury,  tax and trade bureau, for administrative action to suspend or
    20  revoke the federal basic permit.
    21    8. Violations. In any action brought under this  section,  the  common
    22  carrier and the licensee shall only be held liable for their independent
    23  acts.
    24    §  2.  This  act shall take effect on the ninetieth day after it shall
    25  have become a law.    Effective  immediately,  the  addition,  amendment
    26  and/or repeal of any rule or regulation necessary for the implementation
    27  of  this  act  on  its  effective  date  are  authorized  to be made and
    28  completed on or before such effective date.
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