Senate Bill S7204

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7204

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Commerce,  Economic
  Development and Small Business

AN  ACT  to amend the alcoholic beverage control law, in relation to the
  shipment of wine to residents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  3  of section 79-c of the alcoholic beverage
control law, as amended by chapter 221 of the laws of 2011,  is  amended
to read as follows:
  3.  Licensee's  responsibilities. The holder of an out-of-state direct
shipper's license shall:
  (a) ship no more than thirty-six cases (no more than nine liters  each
case) per year of wine produced by such license holder directly to a New
York  state  resident  who is at least twenty-one years of age, for such
resident's personal use and not for resale;
  (b) ensure that the outside of each shipping container  used  to  ship
wine  directly  to a New York resident is conspicuously labeled with the
words:  "CONTAINS WINE - SIGNATURE OF PERSON AGE 21  OR  OLDER  REQUIRED
FOR  DELIVERY  -  NOT  FOR  RESALE," or with other language specifically
approved by the New York state  liquor  authority.  THE  LABEL  REQUIRED
PURSUANT  TO  THIS  PARAGRAPH  MUST BE APPLIED REGARDLESS OF THE MODE OF
PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO, PURCHASES  MADE  BY  TELE-
PHONE,  BY  MAIL,  BY  CATALOG, IN PERSON AT AN ESTABLISHMENT THAT SELLS
WINE OR THROUGH AN ONLINE PURCHASE;
  (c) maintain records in such manner and  form  as  the  authority  may
direct,  showing  the  total  amount of wine shipped into the state each
calendar year; the names and addresses of the  purchasers  to  whom  the
wine  was  shipped,  the  date purchased, the name of the common carrier
used to deliver the wine, and the quantity and value of each shipment;
  (d) in connection with the acceptance of an order for  a  delivery  of
wine  to a New York resident, require the prospective customer to repre-
sent that he or she has attained the age of twenty-one years or more and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14314-06-2
              

S. 7204                             2

that the wine being purchased will not  be  resold  or  introduced  into
commerce;
  (e) require common carriers to:
  (i)  require  a  recipient, at the delivery address, upon delivery, to
demonstrate that the recipient is at least twenty-one years  of  age  by
providing  a  valid  form  of  photographic identification authorized by
section sixty-five-b of this chapter.  THE  IDENTIFICATION  REQUIRED  BY
THIS  SUBPARAGRAPH MUST BE PRESENTED TO THE COMMON CARRIER REGARDLESS OF
THE MODE OF PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO,  PURCHASES  OF
THE  WINE  BY TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT AN ESTABLISH-
MENT THAT SELLS WINE OR THROUGH AN ONLINE PURCHASE;
  (ii) require a recipient to sign an electronic or paper form or  other
acknowledgement  of  receipt as approved by the authority. THE SIGNATURE
REQUIRED BY THIS SUBPARAGRAPH MUST BE ACQUIRED  BY  THE  COMMON  CARRIER
REGARDLESS  OF THE MODE OF PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO,
PURCHASES OF THE WINE BY TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT AN
ESTABLISHMENT THAT SELLS WINE OR THROUGH AN ONLINE PURCHASE; and
  (iii) refuse delivery when the proposed recipient appears to be  under
twenty-one  years  of age and refuses to present valid identification as
required by subparagraph (i) of this paragraph, REGARDLESS OF  THE  MODE
OF  PURCHASE  AND INCLUDES, BUT IS NOT LIMITED TO, PURCHASES OF THE WINE
BY TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT  AN  ESTABLISHMENT  THAT
SELLS WINE OR THROUGH AN ONLINE PURCHASE;
  (f)  file  returns  with  and  pay to the New York state department of
taxation and finance all state and local sales taxes  and  excise  taxes
due  on  sales  into  this  state  in  accordance  with  the  applicable
provisions of the tax law relating to such taxes,  the  amount  of  such
taxes  to be determined on the basis that each sale in this state was at
the location where delivery is made;
  (g) keep all records required by this  section  for  three  years  and
provide  copies  of such records, upon written request, to the authority
or the department of taxation and finance;
  (h) permit the authority or the department of taxation and finance  to
perform an audit of such out-of-state shipper upon request;
  (i)  execute  a written consent to the jurisdiction of this state, its
agencies and instrumentalities and the courts of this  state  concerning
enforcement of this section and any related laws, rules, or regulations,
including tax laws, rules or regulations; and
  (j)  prior  to  obtaining  an  out-of-state  direct shipper's license,
obtain a certificate of authority pursuant  to  section  eleven  hundred
thirty-four  of the tax law and a registration as a distributor pursuant
to sections four hundred twenty-one and four hundred twenty-two  of  the
tax law.
  S  2.  Subdivision 1 of section 79-d of the alcoholic beverage control
law, as amended by chapter 184 of the laws of  2005,  paragraph  (c)  as
amended  by  chapter  221  of  the  laws  of 2011, is amended to read as
follows:
  1. Licensee's shipping responsibilities. Notwithstanding any provision
to the contrary contained in this chapter, any above  referred  licensee
shall:
  (a)  in  the case of a farm winery licensee or a winery licensee, ship
no more than thirty-six cases (no more than nine  liters)  per  year  of
wine  produced by such license holder directly to a New York state resi-
dent who is at least  twenty-one  years  of  age,  for  such  resident's
personal use and not for resale;

S. 7204                             3

  (b)  ensure  that  the outside of each shipping container used to ship
wine directly to a New York state resident is conspicuously labeled with
the words: "CONTAINS WINE - SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED
FOR DELIVERY," or with other language specifically approved by  the  New
York  state  liquor authority. THE LABEL REQUIRED PURSUANT TO THIS PARA-
GRAPH MUST BE APPLIED REGARDLESS OF THE MODE OF PURCHASE  AND  INCLUDES,
BUT IS NOT LIMITED TO, PURCHASES MADE BY TELEPHONE, BY MAIL, BY CATALOG,
IN  PERSON  AT  AN  ESTABLISHMENT  THAT  SELLS WINE OR THROUGH AN ONLINE
PURCHASE;
  (c) maintain records in such manner and  form  as  the  authority  may
direct showing the total amount of wine shipped in the state each calen-
dar year, the names and addresses of the purchasers to whom the wine was
shipped,  the  date  purchased,  the  name of the common carrier used to
deliver the wine, and the quantity and value of  each  shipment.    Such
records  shall  be  kept  for  three years and, upon written request, be
provided to the authority or the department of taxation and finance;
  (d) in connection with the acceptance of an order for  a  delivery  of
wine  to a New York resident, require the prospective customer to repre-
sent that he or she has attained the age of twenty-one years or more and
that the wine being purchased will not  be  resold  or  introduced  into
commerce; and
  (e) require common carriers to:
  (i)  require  a  recipient, at the delivery address, upon delivery, to
demonstrate that the recipient is at least twenty-one years  of  age  by
providing  a  valid  form  of  photographic identification authorized by
section sixty-five-b of this chapter.  THE  IDENTIFICATION  REQUIRED  BY
THIS  SUBPARAGRAPH MUST BE PRESENTED TO THE COMMON CARRIER REGARDLESS OF
THE MODE OF PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO,  PURCHASES  OF
THE  WINE  BY TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT AN ESTABLISH-
MENT THAT SELLS WINE OR THROUGH AN ONLINE PURCHASE;
  (ii) require a recipient to sign an electronic or paper form or  other
acknowledgment  of  receipt  as approved by the authority. THE SIGNATURE
REQUIRED BY THIS SUBPARAGRAPH MUST BE ACQUIRED  BY  THE  COMMON  CARRIER
REGARDLESS  OF THE MODE OF PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO,
PURCHASES OF THE WINE BY TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT AN
ESTABLISHMENT THAT SELLS WINE OR THROUGH AN ONLINE PURCHASE; and
  (iii) refuse delivery when the proposed recipient appears to be  under
twenty-one  years  of age and refuses to present valid identification as
required by paragraph (a) of this subdivision, REGARDLESS OF THE MODE OF
PURCHASE AND INCLUDES, BUT IS NOT LIMITED TO, PURCHASES OF THE  WINE  BY
TELEPHONE, BY MAIL, BY CATALOG, IN PERSON AT AN ESTABLISHMENT THAT SELLS
WINE OR THROUGH AN ONLINE PURCHASE.
  S  3.  Subdivision  1 of section 102 of the alcoholic beverage control
law is amended by adding a new paragraph (c-1) to read as follows:
  (C-1) ANY COMMON CARRIER OR OTHER PERSON BRINGING OR CARRYING INTO THE
STATE PACKAGES THAT MAY CONTAIN ALCOHOLIC  BEVERAGES  SHALL  VERIFY  THE
CONTENTS  OF SUCH PACKAGES AND IF SUCH PACKAGES CONTAIN ALCOHOLIC BEVER-
AGES, SUCH PERSON  OR  COMMON  CARRIER  SHALL  ADHERE  TO  THE  SHIPPING
REQUIREMENTS  SET  FORTH  IN SUBDIVISION THREE OF SECTION SEVENTY-NINE-C
AND SUBDIVISION ONE OF SECTION SEVENTY-NINE-D  OF  THIS  CHAPTER  OR  BE
GUILTY  OF  A MISDEMEANOR AS PROVIDED FOR IN SUBDIVISIONS THREE AND FIVE
OF SECTION ONE HUNDRED THIRTY OF THIS ARTICLE.
  S 4. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.