* § 68. Direct interstate liquor shipments. 1. Authorization.
Notwithstanding any provision of law, rule or regulation to the
contrary, any holder of a license to manufacture liquor in any other
state that is equivalent in class and/or production capacity per year to
those licenses authorized to make direct intrastate liquor shipments
under section sixty-nine of this article, 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 shipments 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 licensed manufacturers with the privilege of producing liquor
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 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 liquor in the applicant's state of
domicile along with a copy of the applicant's federal basic permit 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
distillery 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
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) 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 thirty-five, fifty-nine-b, and seventy-nine-c of
this chapter, as applicable;

(c) shall 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 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 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;

(e) shall 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
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.

* NB Effective November 16, 2024