A10248 Summary:

BILL NOA10248
 
SAME ASSAME AS S07728
 
SPONSORSteck
 
COSPNSR
 
MLTSPNSR
 
Amd 118, ABC L
 
Relates 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 established standards in statute for the delivery of beverage alcohol.
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A10248 Actions:

BILL NOA10248
 
05/18/2016referred to economic development
06/01/2016reported referred to codes
06/06/2016reported referred to rules
06/14/2016reported
06/14/2016rules report cal.308
06/14/2016ordered to third reading rules cal.308
06/15/2016passed assembly
06/15/2016delivered to senate
06/15/2016REFERRED TO RULES
06/17/2016SUBSTITUTED FOR S7728
06/17/20163RD READING CAL.2004
06/17/2016PASSED SENATE
06/17/2016RETURNED TO ASSEMBLY
10/26/2016delivered to governor
11/04/2016vetoed memo.223
11/04/2016tabled
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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.
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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.
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