New York State Assembly

 
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A10248 Summary:

A10248 Actions:

A10248 Committee Votes:

Committee:ECONOMIC DEVELOPMENT   Chair:Schimminger      
DATE:06/01/2016AYE/NAY:23/2  Action: Favorable refer to committee Codes        
Schimminger
Aye
Walter
Aye
Gantt
Aye
Tedisco
Aye
Cahill
Aye
Butler
Aye
Magnarelli
Aye
Crouch
Aye
Russell
Aye
Katz
Absent
Lupardo
Aye
McLaughlin
Aye
Bronson
Aye
DiPietro
Aye
Jaffee
Nay
Simanowitz
Nay
Brindisi
Aye
Stirpe
Aye
Barrett
Aye
Skartados
Aye
Davila
Aye
Bichotte
Aye
Jean-Pierre
Aye
Walker
Aye
Barron
Aye
Hyndman
Aye

Committee:CODES   Chair:Lentol      
DATE:06/06/2016AYE/NAY:20/1  Action: Favorable refer to committee Rules        
Lentol
Aye
Graf
Aye
Schimminger
Aye
Giglio
Aye
Weinstein
Nay
McKevitt
Aye
Hevesi
Aye
Montesano
Aye
Wright
Absent
Ra
Aye
Pretlow
Aye
Tenney
Aye
Cook
Aye
Cymbrowitz
Aye
Titus
Aye
O'Donnell
Aye
Lavine
Aye
Perry
Aye
Zebrowski
Aye
Abinanti
Aye
Weprin
Aye
Mosley
Aye

Committee:RULES   Chair:Heastie      
DATE:06/14/2016AYE/NAY:27/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Tedisco
Aye
Lentol
Aye
Oaks
Aye
Farrell
Aye
Butler
Aye
Gantt
Aye
Crouch
Aye
Nolan
Aye
Finch
Excused
Weinstein
Aye
Barclay
Aye
Hooper
Aye
Raia
Aye
Ortiz
Aye
Duprey
Aye
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Wright
Excused
Dinowitz
Excused
Colton
Aye
Magnarelli
Aye
Perry
Aye
Markey
Aye

A10248 Floor Votes:

A10248 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A10248
 
SPONSOR: Steck

 
TITLE OF BILL:  An act to amend the alcoholic beverage control law, in
relation to clarifying the basis upon which the state liquor authority
has the authority to revoke, suspend or cancel a license or permit by
excluding perceived violations of the laws of other states unless the
conduct falls within certain exceptions and establishes standards in
statute for the delivery of alcoholic beverage
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
To amend the alcoholic beverage control law to clarify the State Liquor
Authority's (SLA) legal authority to enforce what it perceives that the
laws of other states require concerning any New York State issued
license or permit. The bill provides that, with certain exceptions, the
SLA cannot make any judgment as to the requirements of any other state
as to a particular licensee/permittee until such licensee/permittee has
exhausted its due process rights in such other state.
 
 
SUMMARY OF PROVISIONS:
 
Section 1. Amends subdivision 3 of section 118 of the alcoholic beverage
control law by excluding conduct which the authority determines to be in
violation of the laws of another state from the definition of "for
cause" for purposes of the power to revoke, cancel, or suspend any
license unless such conduct independently violates a specific provision
of this chapter, due process of law has been provided by authorities of
competent jurisdiction in such other state and the licensee or permittee
has exhausted its due process rights and has been determined to have
violated the laws of such other state, engaged in illegal sales to
minors in another state or failed to pay properly owed taxes of another
state.
 
Section 2. Effective date.
 
 
JUSTIFICATION:
 
The State Liquor Authority has fined, and could suspend, revoke or
cancel the license of small businesses for "improper conduct" due to
online, direct to consumer interstate wine shipments to state(s) that
may have laws restricting such sales and shipments. It is concerning
that the State Liquor Authority (SLA) is conducting enforcement activity
on, behalf of other states, when these states have not requested their
enforcement or intervention, nor has the New York merchant been found to
have violated the law of those states.  Additionally, a multitude of
out-of-state interests are shipping alcoholic beverages into New York
including interests from states where the SLA is attempting to use their
laws against New York businesses. It appears that the SLA's enforcement
of other states' laws against New York state businesses is a solely
unique enforcement action by a state.
 
The area of law the SLA is attempting to enforce is also vague consider-
ing that 9NYCRR 53.1 (n) does not specifically list out-of-state ship-
ments as constituting "improper conduct". While the SLA has used its
authority under 9NYCRR 53.1 (n) in the past to appropriately sanction
licensees for "improper conduct" involving the committing of felonies or
serious misdemeanors, the notable difference in this case being that the
New York merchant has not violated any provision of the New York State
Alcoholic Beverage Law, or any SLA rule or regulation, nor has it been
found to have violated such other state's law or regulation. The legis-
lation clarifies that the SLA's authority does not extend to the
enforcement of other states' laws with exceptions.

Despite the troubling exercise by the SLA of enforcement authority of
other states' laws against New York licensees, the legislation limits
the refinement of the SLA's authority to permit the SLA to exercise
authority over New York licensees for out of state conduct which inde-
pendently constitutes a violation of the Alcoholic Beverage Control Law,
conduct where a licensee has been found to violate another state's law
provided that due process of law has been provided, sales to minors in
other states, situations in which another state has notified a licensee
that the conduct is a violation of that state's laws and the licensee
continues to engage in the conduct and a demonstrated failure to pay
other state taxes. These modifications address concerns raised with a
prior version of the legislation.
 
 
LEGISLATIVE HISTORY:
 
Similar legislation passed both houses in 2015 but was vetoed.
 
 
FISCAL IMPLICATIONS:
 
None to the State of New York.
 
 
EFFECTIVE DATE:
After 60 days.

A10248 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10248
 
                   IN ASSEMBLY
 
                                      May 18, 2016
                                       ___________
 
        Introduced  by M. of A. STECK -- read once and referred to the Committee
          on Economic Development
 
        AN ACT to amend the alcoholic beverage control law, in relation to clar-
          ifying the basis upon which the state liquor authority has the author-
          ity to revoke, suspend or cancel a  license  or  permit  by  excluding
          perceived  violations  of  the laws of other states unless the conduct
          falls within certain exceptions and establishes standards  in  statute
          for the delivery of alcoholic beverage
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 3 of section  118  of  the  alcoholic  beverage
     2  control  law, as added by chapter 536 of the laws of 1996, is amended to
     3  read as follows:
     4    3. (a) As used in this  section,  the  term  "for  cause"  shall  also
     5  include  the  existence  of a sustained and continuing pattern of noise,
     6  disturbance, misconduct, or disorder on or about the licensed  premises,
     7  related  to the operation of the premises or the conduct of its patrons,
     8  which adversely affects the health, welfare or safety of the inhabitants
     9  of the area in which such licensed premises are located.
    10    (b) As used in this chapter, the term "for cause"  shall  not  include
    11  conduct  by a licensee outside New York or violations of another state's
    12  laws or regulations unless:
    13    (i) such conduct independently violates a specific provision  of  this
    14  chapter;
    15    (ii)  the  licensee  or  permittee  is  found guilty by authorities in
    16  another state of violating such state's laws for having engaged in  such
    17  conduct provided that due process of law, including an opportunity to be
    18  heard and present evidence, has been provided to the licensee or permit-
    19  tee by authorities of competent jurisdiction in such other state;
    20    (iii)  the  other  state  notifies the licensee that such conduct is a
    21  violation of that state's law  and,  after  having  requested  that  the
    22  licensee  cease  and  desist from engaging in such conduct, the licensee
    23  knowingly and repeatedly continues to engage  in  such  conduct  in  the
    24  other state;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15453-01-6
        A. 10248                            2
 
     1    (iv)  the licensee or permittee has knowingly engaged in illegal sales
     2  to minors in another state; or
     3    (v)  the  licensee  has  failed to pay taxes in such other state where
     4  such taxes are shown to be properly owed by the licensee or permittee.
     5    § 2. This act shall take effect on the sixtieth  day  after  it  shall
     6  have become a law.