S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3844
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by M. of A. GUNTHER, BUTTENSCHON, JONES, SANTABARBARA, WOER-
   NER, JACOBSON, BARRETT,  LUPARDO,  STERN,  STIRPE,  HAWLEY,  BRABENEC,
   SILLITTI,   THIELE,  DAVILA,  PALMESANO,  KELLES,  GALLAHAN,  DICKENS,
   BURDICK, SIMPSON, PAULIN, GALLAGHER -- read once and referred  to  the
   Committee on Economic Development

 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-f and 64-g to read as follows:
   §  64-F. 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 CASE) 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06483-01-3
              

 A. 3844                             2
 
   (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.
 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-G.  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.
 A. 3844                             3
 
   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
 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
 A. 3844                             4
 
 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.
   §  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.