Bill Text: NY S02827 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to direct interstate and intrastate cider shipments; establishes requirements regarding age verification and shipping limits.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2019-03-04 - ADVANCED TO THIRD READING [S02827 Detail]

Download: New_York-2019-S02827-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2827
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 29, 2019
                                       ___________
        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:
     1    Section 1. The alcoholic beverage control law is amended by adding two
     2  new sections 59-b and 59-c to read as follows:
     3    § 59-b. Direct interstate cider shipments. 1. Authorization.  Notwith-
     4  standing  any  provision of law, rule or regulation to the contrary, any
     5  holder of a license to manufacture cider in any other state who  obtains
     6  an  out-of-state  direct shipper's license, as provided in this section,
     7  may ship no more than thirty-six cases (no more than  nine  liters  each
     8  case)  of  cider  produced by such license holder per year directly to a
     9  resident of New York who is at least twenty-one years of age,  for  such
    10  resident's  personal use and not for resale, provided the state in which
    11  such person is so licensed affords lawful means for shipments  of  cider
    12  to be received by a resident thereof who is at least twenty-one years of
    13  age,  for such resident's personal use and not for resale, from a person
    14  licensed in this state as a manufacturer and, provided further, that the
    15  state in which such out-of-state cider producer is  located  affords  to
    16  New York state cider producer, farm cidery, farm winery and farm brewery
    17  licensees  reciprocal cider shipping privileges, meaning shipping privi-
    18  leges that  are  substantially  similar  to  the  requirements  in  this
    19  section.  No  person  shall  place an order for shipment of cider unless
    20  they are twenty-one years of age or older.   Any common carrier  with  a
    21  permit  issued  pursuant to this chapter to whom such out-of-state ship-
    22  per's license is presented is authorized to make delivery  of  shipments
    23  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.
                                                                   LBD02318-01-9

        S. 2827                             2
     1    2.  License.  Before  sending  any shipment hereunder to a resident in
     2  this state, the out-of-state shipper shall first obtain a  license  from
     3  the  authority  under  procedures prescribed by rules and regulations of
     4  the authority and after providing the authority with a true copy of  its
     5  current  license  to manufacture cider in the applicant's state of domi-
     6  cile along with a copy of the applicant's  federal  basic  permit  after
     7  payment  of  an  annual fee of one hundred twenty-five dollars. Notwith-
     8  standing the provisions of section one hundred ten of this chapter,  the
     9  authority  in  its discretion, may excuse an out-of-state cider producer
    10  from the submission of such information.
    11    3. Licensee's responsibilities. The holder of an  out-of-state  direct
    12  shipper's license shall:
    13    (a)  ship no more than thirty-six cases (no more than nine liters each
    14  case) per year of cider produced by such license holder  directly  to  a
    15  New  York  state  resident  who is at least twenty-one years of age, for
    16  such resident's personal use and not for resale;
    17    (b) ensure that the outside of each shipping container  used  to  ship
    18  cider  directly to a New York resident is conspicuously labeled with the
    19  words: "CONTAINS  HARD  CIDER--SIGNATURE  OF  PERSON  AGE  21  OR  OLDER
    20  REQUIRED  FOR  DELIVERY--NOT FOR RESALE", or with other language specif-
    21  ically approved by the New York state liquor authority;
    22    (c) maintain records in such manner and  form  as  the  authority  may
    23  direct,  showing  the  total amount of cider shipped into the state each
    24  calendar year; the names and addresses of the  purchasers  to  whom  the
    25  cider  was  shipped,  the date purchased, the name of the common carrier
    26  used to deliver the cider, and the quantity and value of each shipment;
    27    (d) in connection with the acceptance of an order for  a  delivery  of
    28  cider to a New York resident, require the prospective customer to repre-
    29  sent that he or she has attained the age of twenty-one years or more and
    30  that  the  cider  being  purchased will not be resold or introduced into
    31  commerce;
    32    (e) require common carriers to:
    33    (i) require a recipient, at the delivery address,  upon  delivery,  to
    34  demonstrate  that  the  recipient is at least twenty-one years of age by
    35  providing a valid form  of  photographic  identification  authorized  by
    36  section sixty-five-b of this chapter;
    37    (ii)  require a recipient to sign an electronic or paper form or other
    38  acknowledgement of receipt as approved by the authority; and
    39    (iii) refuse delivery when the proposed recipient appears to be  under
    40  twenty-one  years  of age and refuses to present valid identification as
    41  required by subparagraph (i) of this paragraph;
    42    (f) file returns with and pay to the  New  York  state  department  of
    43  taxation  and  finance  all state and local sales taxes and excise taxes
    44  due  on  sales  into  this  state  in  accordance  with  the  applicable
    45  provisions  of  the  tax  law relating to such taxes, the amount of such
    46  taxes to be determined on the basis that each sale in this state was  at
    47  the location where delivery is made;
    48    (g)  keep  all  records  required  by this section for three years and
    49  provide copies of such records, upon written request, to  the  authority
    50  or the department of taxation and finance;
    51    (h)  permit the authority or the department of taxation and finance to
    52  perform an audit of such out-of-state shipper upon request;
    53    (i) execute a written consent to the jurisdiction of this  state,  its
    54  agencies  and  instrumentalities and the courts of this state concerning
    55  enforcement of this section and any related laws, rules, or regulations,
    56  including tax laws, rules or regulations; and

        S. 2827                             3
     1    (j) prior to  obtaining  an  out-of-state  direct  shipper's  license,
     2  obtain  a  certificate  of  authority pursuant to section eleven hundred
     3  thirty-four of the tax law and a registration as a distributor  pursuant
     4  to  sections  four hundred twenty-one and four hundred twenty-two of the
     5  tax law.
     6    4.  Situs.  Delivery  of  a shipment in this state by the holder of an
     7  out-of-state direct shipper's license shall be deemed  to  constitute  a
     8  sale  in this state at the place of delivery and shall be subject to all
     9  excise taxes levied pursuant to section four hundred twenty-four of  the
    10  tax law and all sales taxes levied pursuant to articles twenty-eight and
    11  twenty-nine of such law.
    12    5.  Renewal.  The  out-of-state shipper may annually renew its license
    13  with the authority by paying a one hundred  twenty-five  dollar  renewal
    14  fee,  providing the authority with a true copy of its current license in
    15  such other state as an alcoholic beverage manufacturer and by  complying
    16  with such other procedures as are prescribed by rule of the authority.
    17    6. Rules and regulations. The authority and the department of taxation
    18  and  finance  may  promulgate  rules  and  regulations to effectuate the
    19  purposes of this section.
    20    7. Enforcement. The authority may enforce  the  requirements  of  this
    21  section  including  the  requirements  imposed on the common carrier, by
    22  administrative proceedings to suspend or revoke  an  out-of-state  ship-
    23  per's  license and the authority may accept payment of an administrative
    24  fine in lieu of suspension, such payments to be determined by  rules  or
    25  regulations  promulgated by the authority. In addition, the authority or
    26  the attorney general of the state of New York shall report violations of
    27  this section, where appropriate, to  the  United  States  department  of
    28  treasury,  tax and trade bureau, for administrative action to suspend or
    29  revoke the federal basic permit.
    30    8. Violations. In any action brought under this  section,  the  common
    31  carrier and the licensee shall only be held liable for their independent
    32  acts.
    33    §  59-c.  Direct intrastate cider shipments. Any person having applied
    34  for and received a license as a cider  producer  or  farm  cidery  under
    35  section  fifty-eight  or  fifty-eight-c  of  this article, a farm winery
    36  under section seventy-six-a or seventy-six-d of this chapter, or a  farm
    37  brewery  under section fifty-one-a of this chapter may ship no more than
    38  thirty-six cases (no more than nine liters per case) of  cider  produced
    39  by  such  cider  producer,  farm cidery, farm winery or farm brewery per
    40  year directly to a New York state resident who is  at  least  twenty-one
    41  years of age, for such resident's personal use and not for resale.
    42    1. Licensee's shipping responsibilities. Notwithstanding any provision
    43  to  the  contrary contained in this chapter, any above referred licensee
    44  shall:
    45    (a) ship no more than thirty-six cases (no more than nine liters)  per
    46  year  of  cider  produced  by such license holder directly to a New York
    47  state resident who is at least twenty-one years of age, for  such  resi-
    48  dent's personal use and not for resale;
    49    (b)  ensure  that  the outside of each shipping container used to ship
    50  cider directly to a New York state  resident  is  conspicuously  labeled
    51  with  the  words:  "CONTAINS HARD CIDER -- SIGNATURE OF PERSON AGE 21 OR
    52  OLDER REQUIRED FOR DELIVERY -- NOT FOR RESALE", or with  other  language
    53  specifically approved by the New York state liquor authority;
    54    (c)  maintain  records  in  such  manner and form as the authority may
    55  direct showing the total amount of  cider  shipped  in  the  state  each
    56  calendar  year,  the  names  and addresses of the purchasers to whom the

        S. 2827                             4
     1  cider was shipped, the date purchased, the name of  the  common  carrier
     2  used  to deliver the cider, and the quantity and value of each shipment.
     3  Such records shall be kept for three years and, upon written request, be
     4  provided to the authority or the department of taxation and finance;
     5    (d)  in  connection  with the acceptance of an order for a delivery of
     6  cider to a New York resident, require the prospective customer to repre-
     7  sent that he or she has attained the age of twenty-one years or more and
     8  that the cider being purchased will not be  resold  or  introduced  into
     9  commerce; and
    10    (e) require common carriers to:
    11    (i)  require  a  recipient, at the delivery address, upon delivery, to
    12  demonstrate that the recipient is at least twenty-one years  of  age  by
    13  providing  a  valid  form  of  photographic identification authorized by
    14  section sixty-five-b of this chapter;
    15    (ii) require a recipient to sign an electronic or paper form or  other
    16  acknowledgment of receipt as approved by the authority; and
    17    (iii)  refuse delivery when the proposed recipient appears to be under
    18  twenty-one years of age and refuses to present valid  identification  as
    19  required by paragraph (a) of this subdivision.
    20    2.  Violations.  In  any action brought under this section, the common
    21  carrier and the licensee shall only be held liable for their independent
    22  acts.
    23    § 2. This act shall take effect on the thirtieth day  after  it  shall
    24  have become a law.
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