The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7765
 
                             I N  S E N A T E
 
                             January 11, 2022
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
   providing  for  alternative  penalties  for  a first-time violation of
   certain provisions of the alcoholic beverage control law
 
   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 is amended by adding a new paragraph (c) to read as follows:
   (C) AS USED IN THIS SECTION, THE TERM "FOR CAUSE" SHALL ALSO INCLUDE A
 LICENSEE'S OR PERMITTEE'S FAILURE TO CURE A VIOLATION OF LAW OR RULE  IN
 THE  TIME PERIOD PRESCRIBED BY THE AUTHORITY PURSUANT TO SUBDIVISION SIX
 OF THIS SECTION.
   § 2. Section 118 of the alcoholic beverage control law is  amended  by
 adding a new subdivision 6 to read as follows:
   6. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, IN LIEU OF
 COMMENCEMENT  OF A DISCIPLINARY PROCEEDING AGAINST A LICENSEE OR PERMIT-
 TEE, FOR A FIRST-TIME VIOLATION OF EITHER A PROVISION OF THIS CHAPTER OR
 A RULE OF THE AUTHORITY THAT  IS  DEEMED  BY  THE  AUTHORITY  UNDER  ITS
 DISCRETION  TO  BE DE MINIMIS UNDER THE CIRCUMSTANCES, AND IS RELATED TO
 (I) AN ADMINISTRATIVE PROCESS, OR (II) PAPERWORK REQUESTED  OR  RECEIVED
 BY  THE AUTHORITY, OR (III) ACTS OR OMISSIONS OF THE LICENSEE OR PERMIT-
 TEE, THE AUTHORITY SHALL PROVIDE A CURE PERIOD OR OTHER OPPORTUNITY  FOR
 AMELIORATIVE ACTION IF THE VIOLATION CAN BE CORRECTED.
   (B)  UPON  SUCH  FIRST-TIME VIOLATION, THE AUTHORITY SHALL (I) PROVIDE
 THE LICENSEE WITH A COPY OF THE APPLICABLE LAW OR  RULE  AND  ANY  OTHER
 HELPFUL  GUIDANCE  OR  INFORMATION  EXPLAINING  SUCH LAW OR RULE, TO THE
 EXTENT SUCH MATERIALS EXIST, OR (II) TO THE EXTENT PRACTICABLE,  PROVIDE
 SUCH LICENSEE ASSISTANCE WITH COMPLIANCE WITH THE LAW OR THE AUTHORITY'S
 RULES.
   (C) THE AUTHORITY SHALL HAVE THE DISCRETION TO DETERMINE THE APPROPRI-
 ATE  PERIOD  OF  TIME  TO ALLOW SUCH LICENSEE TO CURE OR TAKE SUCH OTHER
 AMELIORATIVE ACTION TO ADDRESS SUCH VIOLATION, WHICH SHALL BE REASONABLE
 BUT SHALL NOT BE LESS THAN FIFTEEN BUSINESS DAYS AND NOT MORE THAN TWEN-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08665-02-2
 S. 7765                             2
 
 TY BUSINESS DAYS, UNLESS A LONGER PERIOD IS ALLOWED PURSUANT TO  LAW  OR
 REGULATION.
   (D)  NO  WAIVER  OF  PENALTIES OR CURE PERIOD OR OTHER OPPORTUNITY FOR
 AMELIORATIVE ACTION MAY BE GIVEN IF THE AUTHORITY DETERMINES  THAT  SUCH
 VIOLATION MAY RESULT IN SERIOUS ACTUAL HARM, OR MAY PRESENT AN ENDANGER-
 MENT  TO  PUBLIC SAFETY, HUMAN HEALTH OR THE ENVIRONMENT, IS A VIOLATION
 OF HUMAN OR CIVIL RIGHTS LAW, RESULTS IN LOSS OF EMPLOYEE WAGES OR BENE-
 FITS, INTERFERES WITH ANY  REMEDY,  REVIEW,  OR  RESOLUTION  RELATED  TO
 HARASSMENT  OR  DISCRIMINATION  CLAIMS,  WAS  OR IS A WILLFUL VIOLATION,
 INVOLVES TAX FRAUD, VIOLATES REQUIREMENTS RELATED TO FEDERAL FUNDING  TO
 THE  STATE, RELATES TO STATE FUNDING OR PROCUREMENT, IS SIMILAR TO PRIOR
 VIOLATIONS, IS A PENAL LAW VIOLATION, RELATES TO A MATERIAL OR  SUBSTAN-
 TIVE  PORTION  OF THE LICENSEE'S BUSINESS, OR IS IN CONTRAVENTION OF THE
 PUBLIC INTEREST AND/OR POLICY REFLECTED BY THE AUTHORITY'S MISSION.
   § 3. Subdivision 3 of section 130 of the  alcoholic  beverage  control
 law,  as amended by a chapter of the laws of 2021 amending the alcoholic
 beverage control law relating to providing for alternative penalties for
 a first time violation of certain provisions of the  alcoholic  beverage
 control  law,  as  proposed  in legislative bills numbers S. 5979 and A.
 5972, is amended to read as follows:
   3. [(a)] Any violation by any person of any provision of this  chapter
 for  which  no  punishment  or  penalty is otherwise provided shall be a
 misdemeanor, provided, however, that the provisions of this  [paragraph]
 SUBDIVISION shall not apply to the prohibitions provided for in subdivi-
 sion six-a of section one hundred six of this article.
   [(b)  In lieu of such misdemeanor penalty as provided for in paragraph
 (a) of this subdivision, for a first time violation of either this chap-
 ter, an authority rule, or regulation,  any  of  which  are  related  to
 administrative  or paperwork violations submitted to or requested by the
 authority or to actions or omissions that are reasonably  determined  by
 the  authority  to  be de minimus under the circumstances, the authority
 shall provide for a cure period or other  opportunity  for  ameliorative
 action  if  the violation can be corrected, the successful completion of
 which will prevent the imposition of penalties on the party  or  parties
 subject  to  enforcement  of such violation. Provided, however, that the
 provisions of  this  paragraph  shall  not  apply  to  the  prohibitions
 provided  for  in section sixty-five or subdivision six-a of section one
 hundred six of this chapter. Further, no waiver  of  penalties  or  cure
 period  or other opportunity for ameliorative action may be given if the
 authority determines that such violation may result  in  serious  actual
 harm,  or  may present an endangerment to public safety, human health or
 the environment, is a violation of human or civil rights law, results in
 loss of employee wages or benefits, interferes with any remedy,  review,
 or  resolution related to harassment or discrimination claims, was or is
 a willful violation, involves tax fraud, violates  requirements  related
 to  federal  funding  to the state, relates to state funding or procure-
 ment, is similar to prior violations, is a penal law violation,  relates
 to  a  material or substantive portion of the licensee's business, or is
 in contravention of the public interest and/or policy reflected  by  the
 authority's  mission. Upon such first violation, the authority shall (i)
 provide the licensee with a copy of the applicable  rule  or  regulation
 guides pursuant to section one hundred two-a of the state administrative
 procedure  act  and  any other helpful guidance or information detailing
 the authority's rules and regulations,  to  the  extent  such  materials
 exist,  or (ii) to the extent practicable, provide such licensee assist-
 ance with compliance with the authority's rules and  regulations.    The
 S. 7765                             3

 authority  shall have the discretion to determine the appropriate period
 of time to allow such licensee to cure or take such  other  ameliorative
 action  to  address  such violation, which shall be reasonable but shall
 not be less than fifteen business days and not more than twenty business
 days unless a longer period is allowed pursuant to law or regulation.]
   §  4.  Notwithstanding  the  provisions  of  article  5 of the general
 construction law, the provisions of subdivision 5 of section 130 of  the
 alcoholic  beverage control law are hereby revived and shall continue in
 full force and effect as such provisions existed on the day  before  the
 date  of  a  chapter of the laws of 2021 amending the alcoholic beverage
 control law relating to providing for alternative penalties for a  first
 time  violation  of certain provisions of the alcoholic beverage control
 law, as proposed in legislative bills numbers S. 5979 and A. 5972, takes
 effect.
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as a chapter of the laws of 2021 amending the alcoholic beverage
 control law relating to providing for alternative penalties for a  first
 time  violation  of certain provisions of the alcoholic beverage control
 law, as proposed in legislative bills numbers S. 5979 and A. 5972, takes
 effect.