The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    556
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
   direct interstate and intrastate cider shipments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The alcoholic beverage control law is amended by adding two
 new sections 59-b and 59-c to read as follows:
   § 59-B. DIRECT INTERSTATE CIDER SHIPMENTS. 1. AUTHORIZATION.  NOTWITH-
 STANDING  ANY  PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, ANY
 HOLDER OF A LICENSE TO MANUFACTURE CIDER IN ANY OTHER STATE WHO  OBTAINS
 AN  OUT-OF-STATE  DIRECT SHIPPER'S LICENSE, AS PROVIDED IN THIS SECTION,
 MAY SHIP NO MORE THAN THIRTY-SIX CASES (NO MORE THAN  NINE  LITERS  EACH
 CASE)  OF  CIDER  PRODUCED BY SUCH LICENSE HOLDER PER YEAR DIRECTLY TO A
 RESIDENT OF NEW YORK WHO IS AT LEAST TWENTY-ONE YEARS OF AGE,  FOR  SUCH
 RESIDENT'S  PERSONAL USE AND NOT FOR RESALE, PROVIDED THE STATE IN WHICH
 SUCH PERSON IS SO LICENSED AFFORDS LAWFUL MEANS FOR SHIPMENTS  OF  CIDER
 TO BE RECEIVED BY A RESIDENT THEREOF WHO IS AT LEAST TWENTY-ONE YEARS OF
 AGE,  FOR SUCH RESIDENT'S PERSONAL USE AND NOT FOR RESALE, FROM A PERSON
 LICENSED IN THIS STATE AS A MANUFACTURER AND, PROVIDED FURTHER, THAT THE
 STATE IN WHICH SUCH OUT-OF-STATE CIDER PRODUCER IS  LOCATED  AFFORDS  TO
 NEW YORK STATE CIDER PRODUCER, FARM CIDERY, FARM WINERY AND FARM BREWERY
 LICENSEES  RECIPROCAL CIDER SHIPPING PRIVILEGES, MEANING SHIPPING PRIVI-
 LEGES THAT  ARE  SUBSTANTIALLY  SIMILAR  TO  THE  REQUIREMENTS  IN  THIS
 SECTION.  NO  PERSON  SHALL  PLACE AN ORDER FOR SHIPMENT OF CIDER UNLESS
 THEY ARE TWENTY-ONE YEARS OF AGE OR OLDER.   ANY COMMON CARRIER  WITH  A
 PERMIT  ISSUED  PURSUANT TO THIS CHAPTER TO WHOM SUCH OUT-OF-STATE SHIP-
 PER'S LICENSE IS PRESENTED IS AUTHORIZED TO MAKE DELIVERY  OF  SHIPMENTS
 PROVIDED FOR HEREUNDER IN THIS STATE IN COMPLIANCE WITH THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04462-01-1

 S. 556                              2
 
   2.  LICENSE.  BEFORE  SENDING  ANY SHIPMENT HEREUNDER TO A RESIDENT IN
 THIS STATE, THE OUT-OF-STATE SHIPPER SHALL FIRST OBTAIN A  LICENSE  FROM
 THE  AUTHORITY  UNDER  PROCEDURES PRESCRIBED BY RULES AND REGULATIONS OF
 THE AUTHORITY AND AFTER PROVIDING THE AUTHORITY WITH A TRUE COPY OF  ITS
 CURRENT  LICENSE  TO MANUFACTURE CIDER IN THE APPLICANT'S STATE OF DOMI-
 CILE ALONG WITH A COPY OF THE APPLICANT'S  FEDERAL  BASIC  PERMIT  AFTER
 PAYMENT  OF  AN  ANNUAL FEE OF ONE HUNDRED TWENTY-FIVE DOLLARS. NOTWITH-
 STANDING THE PROVISIONS OF SECTION ONE HUNDRED TEN OF THIS CHAPTER,  THE
 AUTHORITY  IN  ITS DISCRETION, MAY EXCUSE AN OUT-OF-STATE CIDER PRODUCER
 FROM THE SUBMISSION OF SUCH INFORMATION.
   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 CIDER 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
 CIDER  DIRECTLY TO A NEW YORK RESIDENT IS CONSPICUOUSLY LABELED WITH THE
 WORDS: "CONTAINS  HARD  CIDER--SIGNATURE  OF  PERSON  AGE  21  OR  OLDER
 REQUIRED  FOR  DELIVERY--NOT FOR RESALE", OR WITH OTHER LANGUAGE SPECIF-
 ICALLY APPROVED BY THE NEW YORK STATE LIQUOR AUTHORITY;
   (C) MAINTAIN RECORDS IN SUCH MANNER AND  FORM  AS  THE  AUTHORITY  MAY
 DIRECT,  SHOWING  THE  TOTAL AMOUNT OF CIDER SHIPPED INTO THE STATE EACH
 CALENDAR YEAR; THE NAMES AND ADDRESSES OF THE  PURCHASERS  TO  WHOM  THE
 CIDER  WAS  SHIPPED,  THE DATE PURCHASED, THE NAME OF THE COMMON CARRIER
 USED TO DELIVER THE CIDER, AND THE QUANTITY AND VALUE OF EACH SHIPMENT;
   (D) IN CONNECTION WITH THE ACCEPTANCE OF AN ORDER FOR  A  DELIVERY  OF
 CIDER 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  CIDER  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;
   (II)  REQUIRE A RECIPIENT TO SIGN AN ELECTRONIC OR PAPER FORM OR OTHER
 ACKNOWLEDGEMENT OF RECEIPT AS APPROVED BY THE AUTHORITY; 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;
   (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

 S. 556                              3

   (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.
   4.  SITUS.  DELIVERY  OF  A SHIPMENT IN THIS STATE BY THE HOLDER OF AN
 OUT-OF-STATE DIRECT SHIPPER'S LICENSE SHALL BE DEEMED  TO  CONSTITUTE  A
 SALE  IN THIS STATE AT THE PLACE OF DELIVERY AND SHALL BE SUBJECT TO ALL
 EXCISE TAXES LEVIED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FOUR OF  THE
 TAX LAW AND ALL SALES TAXES LEVIED PURSUANT TO ARTICLES TWENTY-EIGHT AND
 TWENTY-NINE OF SUCH LAW.
   5.  RENEWAL.  THE  OUT-OF-STATE SHIPPER MAY ANNUALLY RENEW ITS LICENSE
 WITH THE AUTHORITY BY PAYING A ONE HUNDRED  TWENTY-FIVE  DOLLAR  RENEWAL
 FEE,  PROVIDING THE AUTHORITY WITH A TRUE COPY OF ITS CURRENT LICENSE IN
 SUCH OTHER STATE AS AN ALCOHOLIC BEVERAGE MANUFACTURER AND BY  COMPLYING
 WITH SUCH OTHER PROCEDURES AS ARE PRESCRIBED BY RULE OF THE AUTHORITY.
   6. RULES AND REGULATIONS. THE AUTHORITY AND THE DEPARTMENT OF TAXATION
 AND  FINANCE  MAY  PROMULGATE  RULES  AND  REGULATIONS TO EFFECTUATE THE
 PURPOSES OF THIS SECTION.
   7. ENFORCEMENT. THE AUTHORITY MAY ENFORCE  THE  REQUIREMENTS  OF  THIS
 SECTION  INCLUDING  THE  REQUIREMENTS  IMPOSED ON THE COMMON CARRIER, BY
 ADMINISTRATIVE PROCEEDINGS TO SUSPEND OR REVOKE  AN  OUT-OF-STATE  SHIP-
 PER'S  LICENSE AND THE AUTHORITY MAY ACCEPT PAYMENT OF AN ADMINISTRATIVE
 FINE IN LIEU OF SUSPENSION, SUCH PAYMENTS TO BE DETERMINED BY  RULES  OR
 REGULATIONS  PROMULGATED BY THE AUTHORITY. IN ADDITION, THE AUTHORITY OR
 THE ATTORNEY GENERAL OF THE STATE OF NEW YORK SHALL REPORT VIOLATIONS OF
 THIS SECTION, WHERE APPROPRIATE, TO  THE  UNITED  STATES  DEPARTMENT  OF
 TREASURY,  TAX AND TRADE BUREAU, FOR ADMINISTRATIVE ACTION TO SUSPEND OR
 REVOKE THE FEDERAL BASIC PERMIT.
   8. VIOLATIONS. IN ANY ACTION BROUGHT UNDER THIS  SECTION,  THE  COMMON
 CARRIER AND THE LICENSEE SHALL ONLY BE HELD LIABLE FOR THEIR INDEPENDENT
 ACTS.
   §  59-C.  DIRECT INTRASTATE CIDER SHIPMENTS. ANY PERSON HAVING APPLIED
 FOR AND RECEIVED A LICENSE AS A CIDER  PRODUCER  OR  FARM  CIDERY  UNDER
 SECTION  FIFTY-EIGHT  OR  FIFTY-EIGHT-C  OF  THIS ARTICLE, A FARM WINERY
 UNDER SECTION SEVENTY-SIX-A OR SEVENTY-SIX-D OF THIS CHAPTER, OR A  FARM
 BREWERY  UNDER SECTION FIFTY-ONE-A OF THIS CHAPTER MAY SHIP NO MORE THAN
 THIRTY-SIX CASES (NO MORE THAN NINE LITERS PER CASE) OF  CIDER  PRODUCED
 BY  SUCH  CIDER  PRODUCER,  FARM CIDERY, FARM WINERY OR FARM BREWERY PER
 YEAR 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.
   1. LICENSEE'S SHIPPING RESPONSIBILITIES. NOTWITHSTANDING ANY PROVISION
 TO  THE  CONTRARY CONTAINED IN THIS CHAPTER, ANY ABOVE REFERRED LICENSEE
 SHALL:
   (A) SHIP NO MORE THAN THIRTY-SIX CASES (NO MORE THAN NINE LITERS)  PER
 YEAR  OF  CIDER  PRODUCED  BY SUCH LICENSE HOLDER DIRECTLY TO A NEW YORK
 STATE RESIDENT WHO IS AT LEAST TWENTY-ONE YEARS OF AGE, FOR  SUCH  RESI-
 DENT'S PERSONAL USE AND NOT FOR RESALE;
   (B)  ENSURE  THAT  THE OUTSIDE OF EACH SHIPPING CONTAINER USED TO SHIP
 CIDER DIRECTLY TO A NEW YORK STATE  RESIDENT  IS  CONSPICUOUSLY  LABELED
 WITH  THE  WORDS:  "CONTAINS HARD CIDER -- 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;
   (C)  MAINTAIN  RECORDS  IN  SUCH  MANNER AND FORM AS THE AUTHORITY MAY
 DIRECT SHOWING THE TOTAL AMOUNT OF  CIDER  SHIPPED  IN  THE  STATE  EACH
 CALENDAR  YEAR,  THE  NAMES  AND ADDRESSES OF THE PURCHASERS TO WHOM THE

 S. 556                              4
 
 CIDER WAS SHIPPED, THE DATE PURCHASED, THE NAME OF  THE  COMMON  CARRIER
 USED  TO DELIVER THE CIDER, 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
 CIDER 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 CIDER 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;
   (II) REQUIRE A RECIPIENT TO SIGN AN ELECTRONIC OR PAPER FORM OR  OTHER
 ACKNOWLEDGMENT OF RECEIPT AS APPROVED BY THE AUTHORITY; 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.
   2.  VIOLATIONS.  IN  ANY ACTION BROUGHT UNDER THIS SECTION, THE COMMON
 CARRIER AND THE LICENSEE SHALL ONLY BE HELD LIABLE FOR THEIR INDEPENDENT
 ACTS.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.