STATE OF NEW YORK
________________________________________________________________________
3912
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. FAHY, LUPARDO, WOERNER, JONES, BARRETT, WALLACE,
EPSTEIN, JEAN-PIERRE, BRONSON, MANKTELOW, FITZPATRICK, SEAWRIGHT,
BURDICK, JACKSON, KELLES, PALMESANO, THIELE, JACOBSON, MAMDANI,
HAWLEY, GALLAHAN, DICKENS, SIMPSON, BUTTENSCHON, NORRIS -- read once
and referred to the Committee on Economic Development
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:
1 Section 1. The alcoholic beverage control law is amended by adding two
2 new sections 59-b and 59-c to read as follows:
3 § 59-b. Direct interstate cider shipments. 1. Authorization. Notwith-
4 standing any provision of law, rule or regulation to the contrary, any
5 holder of a license to manufacture cider in any other state who obtains
6 an out-of-state direct shipper's license, as provided in this section,
7 may ship no more than thirty-six cases (no more than nine liters each
8 case) of cider produced by such license holder per year directly to a
9 resident of New York who is at least twenty-one years of age, for such
10 resident's personal use and not for resale, provided the state in which
11 such person is so licensed affords lawful means for shipments of cider
12 to be received by a resident thereof who is at least twenty-one years of
13 age, for such resident's personal use and not for resale, from a person
14 licensed in this state as a manufacturer and, provided further, that the
15 state in which such out-of-state cider producer is located affords to
16 New York state cider producer, farm cidery, farm winery and farm brewery
17 licensees reciprocal cider shipping privileges, meaning shipping privi-
18 leges that are substantially similar to the requirements in this
19 section. No person shall place an order for shipment of cider unless
20 they are twenty-one years of age or older. Any common carrier with a
21 permit issued pursuant to this chapter to whom such out-of-state ship-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00241-01-3
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1 per's license is presented is authorized to make delivery of shipments
2 provided for hereunder in this state in compliance with this section.
3 2. License. Before sending any shipment hereunder to a resident in
4 this state, the out-of-state shipper shall first obtain a license from
5 the authority under procedures prescribed by rules and regulations of
6 the authority and after providing the authority with a true copy of its
7 current license to manufacture cider in the applicant's state of domi-
8 cile along with a copy of the applicant's federal basic permit after
9 payment of an annual fee of one hundred twenty-five dollars. Notwith-
10 standing the provisions of section one hundred ten of this chapter, the
11 authority in its discretion, may excuse an out-of-state cider producer
12 from the submission of such information.
13 3. Licensee's responsibilities. The holder of an out-of-state direct
14 shipper's license shall:
15 (a) ship no more than thirty-six cases (no more than nine liters each
16 case) per year of cider produced by such license holder directly to a
17 New York state resident who is at least twenty-one years of age, for
18 such resident's personal use and not for resale;
19 (b) ensure that the outside of each shipping container used to ship
20 cider directly to a New York resident is conspicuously labeled with the
21 words: "CONTAINS HARD CIDER--SIGNATURE OF PERSON AGE 21 OR OLDER
22 REQUIRED FOR DELIVERY--NOT FOR RESALE", or with other language specif-
23 ically approved by the New York state liquor authority;
24 (c) maintain records in such manner and form as the authority may
25 direct, showing the total amount of cider shipped into the state each
26 calendar year; the names and addresses of the purchasers to whom the
27 cider was shipped, the date purchased, the name of the common carrier
28 used to deliver the cider, and the quantity and value of each shipment;
29 (d) in connection with the acceptance of an order for a delivery of
30 cider to a New York resident, require the prospective customer to repre-
31 sent that he or she has attained the age of twenty-one years or more and
32 that the cider being purchased will not be resold or introduced into
33 commerce;
34 (e) require common carriers to:
35 (i) require a recipient, at the delivery address, upon delivery, to
36 demonstrate that the recipient is at least twenty-one years of age by
37 providing a valid form of photographic identification authorized by
38 section sixty-five-b of this chapter;
39 (ii) require a recipient to sign an electronic or paper form or other
40 acknowledgement of receipt as approved by the authority; and
41 (iii) refuse delivery when the proposed recipient appears to be under
42 twenty-one years of age and refuses to present valid identification as
43 required by subparagraph (i) of this paragraph;
44 (f) file returns with and pay to the New York state department of
45 taxation and finance all state and local sales taxes and excise taxes
46 due on sales into this state in accordance with the applicable
47 provisions of the tax law relating to such taxes, the amount of such
48 taxes to be determined on the basis that each sale in this state was at
49 the location where delivery is made;
50 (g) keep all records required by this section for three years and
51 provide copies of such records, upon written request, to the authority
52 or the department of taxation and finance;
53 (h) permit the authority or the department of taxation and finance to
54 perform an audit of such out-of-state shipper upon request;
55 (i) execute a written consent to the jurisdiction of this state, its
56 agencies and instrumentalities and the courts of this state concerning
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1 enforcement of this section and any related laws, rules, or regulations,
2 including tax laws, rules or regulations; and
3 (j) prior to obtaining an out-of-state direct shipper's license,
4 obtain a certificate of authority pursuant to section eleven hundred
5 thirty-four of the tax law and a registration as a distributor pursuant
6 to sections four hundred twenty-one and four hundred twenty-two of the
7 tax law.
8 4. Situs. Delivery of a shipment in this state by the holder of an
9 out-of-state direct shipper's license shall be deemed to constitute a
10 sale in this state at the place of delivery and shall be subject to all
11 excise taxes levied pursuant to section four hundred twenty-four of the
12 tax law and all sales taxes levied pursuant to articles twenty-eight and
13 twenty-nine of such law.
14 5. Renewal. The out-of-state shipper may annually renew its license
15 with the authority by paying a one hundred twenty-five dollar renewal
16 fee, providing the authority with a true copy of its current license in
17 such other state as an alcoholic beverage manufacturer and by complying
18 with such other procedures as are prescribed by rule of the authority.
19 6. Rules and regulations. The authority and the department of taxation
20 and finance may promulgate rules and regulations to effectuate the
21 purposes of this section.
22 7. Enforcement. The authority may enforce the requirements of this
23 section including the requirements imposed on the common carrier, by
24 administrative proceedings to suspend or revoke an out-of-state ship-
25 per's license and the authority may accept payment of an administrative
26 fine in lieu of suspension, such payments to be determined by rules or
27 regulations promulgated by the authority. In addition, the authority or
28 the attorney general of the state of New York shall report violations of
29 this section, where appropriate, to the United States department of
30 treasury, tax and trade bureau, for administrative action to suspend or
31 revoke the federal basic permit.
32 8. Violations. In any action brought under this section, the common
33 carrier and the licensee shall only be held liable for their independent
34 acts.
35 § 59-c. Direct intrastate cider shipments. Any person having applied
36 for and received a license as a cider producer or farm cidery under
37 section fifty-eight or fifty-eight-c of this article, a farm winery
38 under section seventy-six-a or seventy-six-d of this chapter, or a farm
39 brewery under section fifty-one-a of this chapter may ship no more than
40 thirty-six cases (no more than nine liters per case) of cider produced
41 by such cider producer, farm cidery, farm winery or farm brewery per
42 year directly to a New York state resident who is at least twenty-one
43 years of age, for such resident's personal use and not for resale.
44 1. Licensee's shipping responsibilities. Notwithstanding any provision
45 to the contrary contained in this chapter, any above referred licensee
46 shall:
47 (a) ship no more than thirty-six cases (no more than nine liters) per
48 year of cider produced by such license holder directly to a New York
49 state resident who is at least twenty-one years of age, for such resi-
50 dent's personal use and not for resale;
51 (b) ensure that the outside of each shipping container used to ship
52 cider directly to a New York state resident is conspicuously labeled
53 with the words: "CONTAINS HARD CIDER -- SIGNATURE OF PERSON AGE 21 OR
54 OLDER REQUIRED FOR DELIVERY -- NOT FOR RESALE", or with other language
55 specifically approved by the New York state liquor authority;
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1 (c) maintain records in such manner and form as the authority may
2 direct showing the total amount of cider shipped in the state each
3 calendar year, the names and addresses of the purchasers to whom the
4 cider was shipped, the date purchased, the name of the common carrier
5 used to deliver the cider, and the quantity and value of each shipment.
6 Such records shall be kept for three years and, upon written request, be
7 provided to the authority or the department of taxation and finance;
8 (d) in connection with the acceptance of an order for a delivery of
9 cider to a New York resident, require the prospective customer to repre-
10 sent that he or she has attained the age of twenty-one years or more and
11 that the cider being purchased will not be resold or introduced into
12 commerce; and
13 (e) require common carriers to:
14 (i) require a recipient, at the delivery address, upon delivery, to
15 demonstrate that the recipient is at least twenty-one years of age by
16 providing a valid form of photographic identification authorized by
17 section sixty-five-b of this chapter;
18 (ii) require a recipient to sign an electronic or paper form or other
19 acknowledgment of receipt as approved by the authority; and
20 (iii) refuse delivery when the proposed recipient appears to be under
21 twenty-one years of age and refuses to present valid identification as
22 required by paragraph (a) of this subdivision.
23 2. Violations. In any action brought under this section, the common
24 carrier and the licensee shall only be held liable for their independent
25 acts.
26 § 2. This act shall take effect on the thirtieth day after it shall
27 have become a law.
