NY State Senate Bill 2019-S8572

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 16, 2020	referred to rules

co-Sponsors

2019-S8572 (ACTIVE) - Details

See Assembly Version of this Bill:: A10448
Current Committee:: Senate Rules
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Add §§64-e & 64-f, ABC L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4245, A3275
2023-2024: A3844

2019-S8572 (ACTIVE) - Summary

Authorizes the direct intrastate and interstate shipment of liquor.

2019-S8572 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8572

SPONSOR: METZGER
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to
authorizing the direct intrastate and interstate shipment of liquor

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - amends the alcoholic beverage control law by adding new
section 64-e that authorizes any person licensed as a distillery or farm
distillery in the state to ship up to thirty-six cases of liquor
produced by the distillery or farm distillery by year to a New York
resident of legal drinking age.

This section also adds a new section 64-f that authorizes interstate
shipping of up to thirty-six cases of liquor per year with states that
enter into reciprocal agreements, provided that the out-of-state shipper
receives a license to do so.

Section 2 - Effective date.

 
JUSTIFICATION:

The outbreak of COVID-19 has not only harmed the health of New Yorkers
but has fractured our nation's economy and exposed weaknesses in our
critical supply chains. During this time of crisis, New York distillers
have pivoted from their core business of making beverage spirits to
producing and providing critically needed alcohol-based hand sanitizers
using local supply chains.

However, our New York craft spirits sector has been hit incredibly hard
economically. Most of our craft distillers rely entirely on direct to
consumer sales driven by tourism in their tasting rooms and farmers
markets. Many do not have distribution in New York State.  Almost all
tasting rooms are now and for the foreseeable future crippled by neces-
sary social distancing measures. More established distillers, Who gave a
more balanced amount of sales between tasting rooms and traditional
distribution channels have also been devastated as restaurants and bars
have been closed. Sales outside of New York State have diminished as
COVID is impacting all states.

Unfortunately, unlike New York wine producers, spirits producers are not
allowed to ship their product directly to consumers via third party
carriers outside of New York State. There is a clear and simple solution
to this problem that has proven to be safe and effective, as wine
producers have demonstrated for a number of years: direct to consumer
sales both inside and outside of New York State fulfilled through third
party providers.

Providing for direct to consumer sales for craft spirit producers would
simultaneously solve many timely and compelling issues: by minimizing
person to person contact and exercising social distancing, it maximizes
the public health and safety benefit; by allowing producers to exercise
their right to sell to consumers without an in-person visit we can stim-
ulate the economic recovery within the craft spirits sector; by utiliz-
ing third party fulfillment companies we increase economic activity in
the broader economy and ensure age verification and control; and direct
to consumer sales outside of New York State will allow smaller brands to
reach consumers organically and help to grow their brands.

Recent executive orders in this state have provided temporary regulatory
relief that has allowed for consumers to order online with orders being
fulfilled through third party carriers. Many of our craft distillers are
reporting critical sales that have allowed them to keep their businesses
open as a result of direct to consumer shipment.

The passing of direct to consumer shipping both inside and outside of
this state will allow distillers to begin to revive their core busi-
nesses in the safest way possible, while still contributing to the
health, welfare, and economy of our state and communities.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Potential increased tax revenue

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2019-S8572 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8572
 
                             I N  S E N A T E
 
                               June 16, 2020
                                ___________
 
 Introduced  by  Sen. METZGER -- 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
   authorizing the direct intrastate and interstate shipment of liquor
 
   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 64-e and 64-f to read as follows:
   § 64-E. DIRECT INTRASTATE LIQUOR SHIPMENTS. ANY PERSON HAVING  APPLIED
 FOR  AND  RECEIVED A LICENSE AS A DISTILLERY OR FARM DISTILLERY PURSUANT
 TO THE PROVISIONS OF SECTION SIXTY-ONE OF THIS ARTICLE MAY SHIP NO  MORE
 THAN  THIRTY-SIX  CASES  (NO  MORE  THAN NINE LITERS PER CASE) OF LIQUOR
 PRODUCED BY SUCH DISTILLERY OR FARM DISTILLERY 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)  IN  THE CASE OF A DISTILLERY OR FARM DISTILLERY LICENSEE, SHIP NO
 MORE THAN THIRTY-SIX CASES (NO MORE THAN NINE LITERS) PER YEAR OF LIQUOR
 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
 LIQUOR  DIRECTLY  TO  A NEW YORK STATE RESIDENT IS CONSPICUOUSLY LABELED
 WITH THE WORDS:  "CONTAINS LIQUOR - SIGNATURE OF PERSON AGE 21 OR  OLDER
 REQUIRED  FOR DELIVERY," 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 LIQUOR SHIPPED IN THE STATE EACH
 CALENDAR YEAR, THE NAMES AND ADDRESSES OF THE  PURCHASERS  TO  WHOM  THE
 LIQUOR  WAS  SHIPPED, THE DATE PURCHASED, THE NAME OF THE COMMON CARRIER
 USED TO DELIVER THE LIQUOR, AND THE QUANTITY AND VALUE OF EACH SHIPMENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16324-01-0

 S. 8572                             2
 
 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
 LIQUOR TO A NEW YORK  RESIDENT,  REQUIRE  THE  PROSPECTIVE  CUSTOMER  TO
 REPRESENT  THAT  HE  OR  SHE HAS ATTAINED THE AGE OF TWENTY-ONE YEARS OR
 MORE AND THAT THE LIQUOR BEING PURCHASED WILL NOT BE  RESOLD  OR  INTRO-
 DUCED 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 ARTICLE;
   (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.
   §  64-F.  DIRECT  INTERSTATE  LIQUOR  SHIPMENTS.   1.   AUTHORIZATION.
 NOTWITHSTANDING  ANY PROVISION OF LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY HOLDER OF A LICENSE TO MANUFACTURE LIQUOR 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  LIQUOR 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 SHIP-
 MENTS OF LIQUOR 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 DISTILLERY
 IS LOCATED AFFORDS TO NEW YORK  STATE  DISTILLERY  AND  FARM  DISTILLERY
 LICENSEES  RECIPROCAL  SHIPPING  PRIVILEGES, MEANING SHIPPING PRIVILEGES
 THAT ARE SUBSTANTIALLY SIMILAR TO THE REQUIREMENTS IN THIS  SECTION.  NO
 PERSON SHALL PLACE AN ORDER FOR SHIPMENT OF LIQUOR UNLESS THEY ARE TWEN-
 TY-ONE  YEARS  OF  AGE OR OLDER. ANY COMMON CARRIER WITH A PERMIT ISSUED
 PURSUANT TO THIS CHAPTER TO WHOM SUCH OUT-OF-STATE SHIPPER'S LICENSE  IS
 PRESENTED IS AUTHORIZED TO MAKE DELIVERY OF SHIPMENTS PROVIDED FOR HERE-
 UNDER IN THIS STATE IN COMPLIANCE WITH THIS SECTION.
   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 LIQUOR 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 DISTILLERY 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 LIQUOR PRODUCED BY SUCH LICENSE HOLDER DIRECTLY  TO  A

 S. 8572                             3

 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
 LIQUOR DIRECTLY TO A NEW YORK RESIDENT IS CONSPICUOUSLY LABELED WITH THE
 WORDS: "CONTAINS LIQUOR - 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 LIQUOR SHIPPED INTO THE STATE EACH
 CALENDAR YEAR; THE NAMES AND ADDRESSES OF THE  PURCHASERS  TO  WHOM  THE
 LIQUOR  WAS  SHIPPED, THE DATE PURCHASED, THE NAME OF THE COMMON CARRIER
 USED TO DELIVER THE LIQUOR, AND THE QUANTITY AND VALUE OF EACH SHIPMENT;
   (D) IN CONNECTION WITH THE ACCEPTANCE OF AN ORDER FOR  A  DELIVERY  OF
 LIQUOR  TO  A  NEW  YORK  RESIDENT,  REQUIRE THE PROSPECTIVE CUSTOMER TO
 REPRESENT THAT HE OR SHE HAS ATTAINED THE AGE  OF  TWENTY-ONE  YEARS  OR
 MORE  AND  THAT  THE LIQUOR BEING PURCHASED WILL NOT BE RESOLD OR INTRO-
 DUCED 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 ARTICLE;
   (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
   (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

 S. 8572                             4
 
 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.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

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Senate Bill S8572

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2019-S8572 (ACTIVE) - Details

2019-S8572 (ACTIVE) - Summary

2019-S8572 (ACTIVE) - Sponsor Memo

2019-S8572 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8572

Share this bill

Sponsored By

Jen Metzger

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Thomas F. O'Mara

Roxanne J. Persaud

Julia Salazar

James Skoufis

2019-S8572 (ACTIVE) - Details

2019-S8572 (ACTIVE) - Summary

2019-S8572 (ACTIVE) - Sponsor Memo

2019-S8572 (ACTIVE) - Bill Text download pdf

Comments