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Sponsors
Senator · Senate District 4
1 Co-sponsor
History
- Substituted by A10248
- Ordered to third reading cal.2004
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to clarifying the basis upon which the state liquor authority has the authority to revoke, suspend or cancel a license or permit
Vetoed · Sponsor Phil Steck
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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.
Read the full memo (697 words)
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 considering that 9NYCRR 53.1 (n) does not specifically list out-of-state shipments 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 legislation 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 independently 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.