§ 35. Direct interstate mead and braggot shipments. 1. Authorization.
Notwithstanding any provision of law, rule or regulation to the
contrary, any holder of a license to manufacture mead and/or braggot 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 per case) of mead and/or braggot 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 mead and/or braggot 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 manufacturer of mead and/or braggot is located
affords to New York state manufacturers of mead and/or braggot
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 mead and/or braggot 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 shipper's
license is presented is authorized to make delivery of shipments
provided for hereunder 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 mead and/or braggot in the applicant's
state of domicile along with a copy of the applicant's federal basic
permit and/or brewer's notice after payment of an annual fee of one
hundred twenty-five dollars. Notwithstanding the provisions of section
one hundred ten of this chapter, the authority in its discretion, may
excuse an out-of-state manufacturer of mead and/or braggot from the
submission of such information.

3. Licensee's responsibilities. The holder of an out-of-state direct
shipper's license:

(a) shall ship no more than thirty-six cases (no more than nine liters
per case) per year of mead and/or braggot 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) may ship within the same packaging any and all alcoholic beverages
it lawfully produces and which it sells in accordance with its shipping
privileges and responsibilities pursuant to the provisions of this
section and sections fifty-nine-b, sixty-eight, and seventy-nine-c of
this chapter, as applicable;

(c) shall ensure that the outside of each shipping container used to
ship mead and/or braggot directly to a New York resident is
conspicuously labeled with the words: "CONTAINS ALCOHOLIC BEVERAGES -
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;

(d) shall maintain records in such manner and form as the authority
may direct, showing the total amount of mead and/or braggot shipped into
the state each calendar year; the names and addresses of the purchasers
to whom the mead and/or braggot was shipped, the date purchased, the
name of the common carrier used to deliver the mead and/or braggot, and
the quantity and value of each shipment;

(e) shall in connection with the acceptance of an order for a delivery
of mead and/or braggot 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 mead and/or braggot being purchased will not
be resold or introduced into commerce;

(f) shall 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;

(g) shall 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;

(h) shall 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;

(i) shall permit the authority or the department of taxation and
finance to perform an audit of such out-of-state shipper upon request;

(j) shall 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

(k) shall 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
shipper'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.