NY State Senate Bill S7728

senate Bill S7728

Vetoed By Governor

2015-2016 Legislative Session

Relates to clarifying the basis upon which the state liquor authority has the authority to revoke, suspend or cancel a license or permit

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Archive: Last Bill Status Via A10248 - Vetoed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Vetoed by Governor

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Actions

view actions (11)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 04, 2016	tabled vetoed memo.223
Oct 26, 2016	delivered to governor
Jun 17, 2016	returned to assembly passed senate 3rd reading cal.2004 substituted for s7728
Jun 17, 2016	substituted by a10248 ordered to third reading cal.2004 committee discharged and committed to rules
May 12, 2016	referred to investigations and government operations

Votes

Co-Sponsors

S7728 - Details

See Assembly Version of this Bill:: A10248
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §118, ABC L

S7728 - Summary

Relates to clarifying the basis upon which the state liquor authority has the authority to revoke, suspend or cancel a license or permit by excluding perceived violations of the laws of other states unless the conduct falls within certain exceptions and established standards in statute for the delivery of beverage alcohol.

S7728 - Sponsor Memo

 BILL NUMBER:  S7728

 TITLE OF BILL :

An act to amend the alcoholic beverage control law, in relation to
clarifying the basis upon which the state liquor authority has the
authority to revoke, suspend or cancel a license or permit by
excluding perceived violations of the laws of other states unless the
conduct falls within certain exceptions and establishes standards in
statute for the delivery of alcoholic beverage

 PURPOSE OR GENERAL IDEA OF BILL :

To amend the alcoholic beverage control law to clarify the State
Liquor Authority's (SLA) legal authority to enforce what it perceives
that the laws of other states require concerning any New York State
issued license or permit. The bill provides that, with certain
exceptions, the SLA cannot make any judgment as to the requirements of
any other state as to a particular licensee/permittee until such
licensee/permittee has exhausted its due process rights in such other
state.

 SUMMARY OF PROVISIONS :

Section 1. Amends subdivision 3 of section 118 of the alcoholic
beverage control law by excluding conduct which the authority

determines to be in violation of the laws of another state from the
definition of "for cause" for purposes of the power to revoke, cancel,
or suspend any license unless such conduct independently violates a
specific provision of this chapter, due process of law has been
provided by authorities of competent jurisdiction in such other state
and the licensee or permittee has exhausted its due process rights and
has been determined to have violated the laws of such other
state,engaged in illegal sales to minors in another state or failed to
pay properly owed taxes of another state.

Section 2. Effective date.

 JUSTIFICATION :

The State Liquor Authority has fined, and could suspend, revoke or
cancel the license of small businesses for "improper conduct" due to
online, direct to consumer interstate wine shipments to state(s) that
may have laws restricting such sales and shipments. It is concerning
that the State Liquor Authority (SLA) is conducting enforcement
activity on, behalf of other states, when these states have not
requested their enforcement or intervention, nor has the New York
merchant been found to have violated the law of those states.
Additionally, a multitude of out-of-state interests are shipping
alcoholic beverages into New York including interests from states
where the SLA is attempting to use their laws against New York
businesses. It appears that the SLA's enforcement of other states'
laws against New York state businesses is a solely unique enforcement
action by a state.

The area of law the SLA is attempting to enforce is also vague
considering that 9NYCRR 53.1 (n) does not specifically list
out-of-state shipments as constituting "improper conduct". While the
SLA has used its authority under 9NYCRR 53.1 (n) in the past to
appropriately sanction licensees for "improper conduct" involving the
committing of felonies or serious misdemeanors, the notable difference
in this case being that the New York merchant has not violated any
provision of the New York State Alcoholic Beverage Law, or any SLA
rule or regulation, nor has it been found to have violated such other
state's law or regulation. The legislation clarifies that the SLA's

authority does not extend to the enforcement of other states' laws
with exceptions.

Despite the troubling exercise by the SLA of enforcement authority of
other states' laws against New York licensees, the legislation limits
the refinement of the SLA's authority to permit the SLA to exercise
authority over New York licensees for out of state conduct which
independently constitutes a violation of the Alcoholic Beverage
Control Law, conduct where a licensee has been found to violate
another state's law provided that due process of law has been
provided, sales to minors in other states, situations in which another
state has notified a licensee that the conduct is a violation of that
state's laws and the licensee continues to engage in the conduct and a
demonstrated failure to pay other state taxes. These modifications
address concerns raised with a prior version of the legislation.

 LEGISLATIVE HISTORY :

Similar legislation passed both houses in 2015 but was vetoed.

 FISCAL IMPLICATIONS :

None to the State of New York.

 EFFECTIVE DATE :
After 60 days.

S7728 - Bill Text download pdf

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

                                  7728

                            I N  S E N A T E

                              May 12, 2016
                               ___________

Introduced  by  Sen.  BOYLE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the alcoholic beverage control law, in relation to clar-
  ifying the basis upon which the state liquor authority has the author-
  ity to revoke, suspend or cancel a  license  or  permit  by  excluding
  perceived  violations  of  the laws of other states unless the conduct
  falls within certain exceptions and establishes standards  in  statute
  for the delivery of alcoholic beverage

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

  Section 1. Subdivision 3 of section  118  of  the  alcoholic  beverage
control  law, as added by chapter 536 of the laws of 1996, is amended to
read as follows:
  3. (A) As used in this  section,  the  term  "for  cause"  shall  also
include  the  existence  of a sustained and continuing pattern of noise,
disturbance, misconduct, or disorder on or about the licensed  premises,
related  to the operation of the premises or the conduct of its patrons,
which adversely affects the health, welfare or safety of the inhabitants
of the area in which such licensed premises are located.
  (B) AS USED IN THIS CHAPTER, THE TERM "FOR CAUSE"  SHALL  NOT  INCLUDE
CONDUCT  BY A LICENSEE OUTSIDE NEW YORK OR VIOLATIONS OF ANOTHER STATE'S
LAWS OR REGULATIONS UNLESS:
  (I) SUCH CONDUCT INDEPENDENTLY VIOLATES A SPECIFIC PROVISION  OF  THIS
CHAPTER;
  (II)  THE  LICENSEE  OR  PERMITTEE  IS  FOUND GUILTY BY AUTHORITIES IN
ANOTHER STATE OF VIOLATING SUCH STATE'S LAWS FOR HAVING ENGAGED IN  SUCH
CONDUCT PROVIDED THAT DUE PROCESS OF LAW, INCLUDING AN OPPORTUNITY TO BE
HEARD AND PRESENT EVIDENCE, HAS BEEN PROVIDED TO THE LICENSEE OR PERMIT-
TEE BY AUTHORITIES OF COMPETENT JURISDICTION IN SUCH OTHER STATE;
  (III)  THE  OTHER  STATE  NOTIFIES THE LICENSEE THAT SUCH CONDUCT IS A
VIOLATION OF THAT STATE'S LAW  AND,  AFTER  HAVING  REQUESTED  THAT  THE
LICENSEE  CEASE  AND  DESIST FROM ENGAGING IN SUCH CONDUCT, THE LICENSEE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15453-01-6

S. 7728                             2

KNOWINGLY AND REPEATEDLY CONTINUES TO ENGAGE  IN  SUCH  CONDUCT  IN  THE
OTHER STATE;
  (IV)  THE LICENSEE OR PERMITTEE HAS KNOWINGLY ENGAGED IN ILLEGAL SALES
TO MINORS IN ANOTHER STATE; OR
  (V) THE LICENSEE HAS FAILED TO PAY TAXES IN  SUCH  OTHER  STATE  WHERE
SUCH TAXES ARE SHOWN TO BE PROPERLY OWED BY THE LICENSEE OR PERMITTEE.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

The New York State Senate

senate Bill S7728

Sponsored By

Archive: Last Bill Status Via A10248 - Vetoed by Governor

Actions

Votes

Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 17, 2016 - Rules committee Vote

Rules Committee Vote: Jun 17, 2016

Co-Sponsors

S7728 - Details

S7728 - Summary

S7728 - Sponsor Memo

S7728 - Bill Text download pdf

senate Bill S7728

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Sponsored By

Phil Boyle

Archive: Last Bill Status Via A10248 - Vetoed by Governor

Actions

Votes

Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 17, 2016 - Rules committee Vote

Rules Committee Vote: Jun 17, 2016

Co-Sponsors

Michael H. Ranzenhofer

S7728 - Details

S7728 - Summary

S7728 - Sponsor Memo

S7728 - Bill Text download pdf