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A10448 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10448
 
                   IN ASSEMBLY
 
                                      May 18, 2020
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Gunther) --
          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-e and 64-f to read as follows:
     3    § 64-e. 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 year of liquor
    15  produced by such license holder directly to a New  York  state  resident
    16  who  is  at  least twenty-one years of age, for such resident's personal
    17  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;
    23    (c) maintain records in such manner and  form  as  the  authority  may
    24  direct  showing  the  total  amount  of liquor shipped in the state each
    25  calendar year, the names and addresses of the  purchasers  to  whom  the
    26  liquor  was  shipped, the date purchased, the name of the common carrier
    27  used to deliver the liquor, and the quantity and value of each shipment.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16324-01-0

        A. 10448                            2
 
     1  Such records shall be kept for three years and, upon written request, be
     2  provided to the authority or the department of taxation and finance;
     3    (d)  in  connection  with the acceptance of an order for a delivery of
     4  liquor to a New York  resident,  require  the  prospective  customer  to
     5  represent  that  he  or  she has attained the age of twenty-one years or
     6  more and that the liquor being purchased will not be  resold  or  intro-
     7  duced into commerce; and
     8    (e) require common carriers to:
     9    (i)  require  a  recipient, at the delivery address, upon delivery, to
    10  demonstrate that the recipient is at least twenty-one years  of  age  by
    11  providing  a  valid  form  of  photographic identification authorized by
    12  section sixty-five-b of this article;
    13    (ii) require a recipient to sign an electronic or paper form or  other
    14  acknowledgment of receipt as approved by the authority; and
    15    (iii)  refuse delivery when the proposed recipient appears to be under
    16  twenty-one years of age and refuses to present valid  identification  as
    17  required by paragraph (a) of this subdivision.
    18    2.  Violations.  In  any action brought under this section, the common
    19  carrier and the licensee shall only be held liable for their independent
    20  acts.
    21    §  64-f.  Direct  interstate  liquor  shipments.   1.   Authorization.
    22  Notwithstanding  any provision of law, rule or regulation to the contra-
    23  ry, any holder of a license to manufacture liquor in  any  other  state,
    24  who  obtains  an  out-of-state  direct shipper's license, as provided in
    25  this section, may ship no more than thirty-six cases (no more than  nine
    26  liters  each  case)  of  liquor produced by such license holder per year
    27  directly to a resident of New York who is at least twenty-one  years  of
    28  age,  for  such resident's personal use and not for resale, provided the
    29  state in which such person is so licensed affords lawful means for ship-
    30  ments of liquor to be received by a resident thereof  who  is  at  least
    31  twenty-one  years  of  age, for such resident's personal use and not for
    32  resale, from a person licensed in this  state  as  a  manufacturer  and,
    33  provided  further,  that the state in which such out-of-state distillery
    34  is located affords to New York  state  distillery  and  farm  distillery
    35  licensees  reciprocal  shipping  privileges, meaning shipping privileges
    36  that are substantially similar to the requirements in this  section.  No
    37  person shall place an order for shipment of liquor unless they are twen-
    38  ty-one  years  of  age or older. Any common carrier with a permit issued
    39  pursuant to this chapter to whom such out-of-state shipper's license  is
    40  presented is authorized to make delivery of shipments provided for here-
    41  under in this state in compliance with this section.
    42    2.  License.  Before  sending  any shipment hereunder to a resident in
    43  this state, the out-of-state shipper shall first obtain a  license  from
    44  the  authority  under  procedures prescribed by rules and regulations of
    45  the authority and after providing the authority with a true copy of  its
    46  current  license to manufacture liquor in the applicant's state of domi-
    47  cile along with a copy of the applicant's  federal  basic  permit  after
    48  payment  of  an  annual fee of one hundred twenty-five dollars. Notwith-
    49  standing the provisions of section one hundred ten of this chapter,  the
    50  authority  in its discretion, may excuse an out-of-state distillery from
    51  the submission of such information.
    52    3. Licensee's responsibilities. The holder of an  out-of-state  direct
    53  shipper's license shall:
    54    (a)  ship no more than thirty-six cases (no more than nine liters each
    55  case) per year of liquor produced by such license holder directly  to  a

        A. 10448                            3

     1  New  York  state  resident  who is at least twenty-one years of age, for
     2  such resident's personal use and not for resale;
     3    (b)  ensure  that  the outside of each shipping container used to ship
     4  liquor directly to a New York resident is conspicuously labeled with the
     5  words: "CONTAINS LIQUOR - SIGNATURE OF PERSON AGE 21 OR  OLDER  REQUIRED
     6  FOR  DELIVERY  -  NOT  FOR  RESALE," or with other language specifically
     7  approved by the New York state liquor authority;
     8    (c) maintain records in such manner and  form  as  the  authority  may
     9  direct,  showing  the total amount of liquor shipped into the state each
    10  calendar year; the names and addresses of the  purchasers  to  whom  the
    11  liquor  was  shipped, the date purchased, the name of the common carrier
    12  used to deliver the liquor, and the quantity and value of each shipment;
    13    (d) in connection with the acceptance of an order for  a  delivery  of
    14  liquor  to  a  New  York  resident,  require the prospective customer to
    15  represent that he or she has attained the age  of  twenty-one  years  or
    16  more  and  that  the liquor being purchased will not be resold or intro-
    17  duced into commerce;
    18    (e) require common carriers to:
    19    (i) require a recipient, at the delivery address,  upon  delivery,  to
    20  demonstrate  that  the  recipient is at least twenty-one years of age by
    21  providing a valid form  of  photographic  identification  authorized  by
    22  section sixty-five-b of this article;
    23    (ii)  require a recipient to sign an electronic or paper form or other
    24  acknowledgement of receipt as approved by the authority; and
    25    (iii) refuse delivery when the proposed recipient appears to be  under
    26  twenty-one  years  of age and refuses to present valid identification as
    27  required by subparagraph (i) of this paragraph;
    28    (f) file returns with and pay to the  New  York  state  department  of
    29  taxation  and  finance  all state and local sales taxes and excise taxes
    30  due  on  sales  into  this  state  in  accordance  with  the  applicable
    31  provisions  of  the  tax  law relating to such taxes, the amount of such
    32  taxes to be determined on the basis that each sale in this state was  at
    33  the location where delivery is made;
    34    (g)  keep  all  records  required  by this section for three years and
    35  provide copies of such records, upon written request, to  the  authority
    36  or the department of taxation and finance;
    37    (h)  permit the authority or the department of taxation and finance to
    38  perform an audit of such out-of-state shipper upon request;
    39    (i) execute a written consent to the jurisdiction of this  state,  its
    40  agencies  and  instrumentalities and the courts of this state concerning
    41  enforcement of this section and any related laws, rules, or regulations,
    42  including tax laws, rules or regulations; and
    43    (j) prior to  obtaining  an  out-of-state  direct  shipper's  license,
    44  obtain  a  certificate  of  authority pursuant to section eleven hundred
    45  thirty-four of the tax law and a registration as a distributor  pursuant
    46  to  sections  four hundred twenty-one and four hundred twenty-two of the
    47  tax law.
    48    4. Situs. Delivery of a shipment in this state by  the  holder  of  an
    49  out-of-state  direct  shipper's  license shall be deemed to constitute a
    50  sale in this state at the place of delivery and shall be subject to  all
    51  excise  taxes levied pursuant to section four hundred twenty-four of the
    52  tax law and all sales taxes levied pursuant to articles twenty-eight and
    53  twenty-nine of such law.
    54    5. Renewal. The out-of-state shipper may annually  renew  its  license
    55  with  the  authority  by paying a one hundred twenty-five dollar renewal
    56  fee, providing the authority with a true copy of its current license  in

        A. 10448                            4
 
     1  such  other state as an alcoholic beverage manufacturer and by complying
     2  with such other procedures as are prescribed by rule of the authority.
     3    6. Rules and regulations. The authority and the department of taxation
     4  and  finance  may  promulgate  rules  and  regulations to effectuate the
     5  purposes of this section.
     6    7. Enforcement. The authority may enforce  the  requirements  of  this
     7  section  including  the  requirements  imposed on the common carrier, by
     8  administrative proceedings to suspend or revoke  an  out-of-state  ship-
     9  per's  license and the authority may accept payment of an administrative
    10  fine in lieu of suspension, such payments to be determined by  rules  or
    11  regulations  promulgated by the authority. In addition, the authority or
    12  the attorney general of the state of New York shall report violations of
    13  this section, where appropriate, to  the  United  States  department  of
    14  treasury,  tax and trade bureau, for administrative action to suspend or
    15  revoke the federal basic permit.
    16    8. Violations. In any action brought under this  section,  the  common
    17  carrier and the licensee shall only be held liable for their independent
    18  acts.
    19    §  2.  This  act shall take effect on the ninetieth day after it shall
    20  have become a law.    Effective  immediately,  the  addition,  amendment
    21  and/or repeal of any rule or regulation necessary for the implementation
    22  of  this  act  on  its  effective  date  are  authorized  to be made and
    23  completed on or before such effective date.
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