S T A T E O F N E W Y O R K
________________________________________________________________________
1999
2023-2024 Regular Sessions
I N S E N A T E
January 18, 2023
___________
Introduced by Sens. MAY, ADDABBO, BRESLIN, HINCHEY, JACKSON, KRUEGER,
LIU, OBERACKER, O'MARA, SANDERS, SKOUFIS, STEC -- read twice and
ordered printed, and when printed to be committed to the Committee on
Commerce, Economic Development 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.
LBD00241-01-3
S. 1999 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. 1999 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. 1999 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.
