STATE OF NEW YORK ________________________________________________________________________ 9107 IN ASSEMBLY February 7, 2024 ___________ Introduced by M. of A. STIRPE -- read once and referred to the Committee on Economic Development AN ACT to amend the alcoholic beverage control law, in relation to establishing a brand owner's license 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 17 of the alcoholic beverage 2 control law, as amended by section 8 of chapter 522 of the laws of 2018, 3 is amended to read as follows: 4 3. To revoke, cancel or suspend for cause any license or permit issued 5 under this chapter and/or to impose a civil penalty for cause against 6 any holder of a license or permit issued pursuant to this chapter. Any 7 civil penalty so imposed shall not exceed the sum of ten thousand 8 dollars as against the holder of any retail permit issued pursuant to 9 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 10 paragraph f of subdivision one of section ninety-nine-b of this chapter, 11 and as against the holder of any retail license issued pursuant to 12 sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty- 13 five-a, sixty-three, sixty-four, sixty-four-a, sixty-four-b, 14 sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eighty-one-a 15 of this chapter, and the sum of thirty thousand dollars as against the 16 holder of a license issued pursuant to sections thirty, thirty-one, 17 fifty-three, sixty-one-a, sixty-one-b, sixty-one-c, seventy-six, seven- 18 ty-six-a, and seventy-eight of this chapter, provided that the civil 19 penalty against the holder of a wholesale license issued pursuant to 20 section fifty-three of this chapter shall not exceed the sum of ten 21 thousand dollars where that licensee violates provisions of this chapter 22 during the course of the sale of beer at retail to a person for consump- 23 tion at home, and the sum of one hundred thousand dollars as against the 24 holder of any license issued pursuant to sections fifty-one, sixty-one, 25 and sixty-two of this chapter. Any civil penalty so imposed shall be in 26 addition to and separate and apart from the terms and provisions of the 27 bond required pursuant to section one hundred twelve of this chapter. 28 Provided that no appeal is pending on the imposition of such civil 29 penalty, in the event such civil penalty imposed by the division remains 30 unpaid, in whole or in part, more than forty-five days after written 31 demand for payment has been sent by first class mail to the address of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11143-02-3A. 9107 2 1 the licensed premises, a notice of impending default judgment shall be 2 sent by first class mail to the licensed premises and by first class 3 mail to the last known home address of the person who signed the most 4 recent license application. The notice of impending default judgment 5 shall advise the licensee: (a) that a civil penalty was imposed on the 6 licensee; (b) the date the penalty was imposed; (c) the amount of the 7 civil penalty; (d) the amount of the civil penalty that remains unpaid 8 as of the date of the notice; (e) the violations for which the civil 9 penalty was imposed; and (f) that a judgment by default will be entered 10 in the supreme court of the county in which the licensed premises are 11 located, or other court of civil jurisdiction or any other place 12 provided for the entry of civil judgments within the state of New York 13 unless the division receives full payment of all civil penalties due 14 within twenty days of the date of the notice of impending default judg- 15 ment. If full payment shall not have been received by the division with- 16 in thirty days of mailing of the notice of impending default judgment, 17 the division shall proceed to enter with such court a statement of the 18 default judgment containing the amount of the penalty or penalties 19 remaining due and unpaid, along with proof of mailing of the notice of 20 impending default judgment. The filing of such judgment shall have the 21 full force and effect of a default judgment duly docketed with such 22 court pursuant to the civil practice law and rules and shall in all 23 respects be governed by that chapter and may be enforced in the same 24 manner and with the same effect as that provided by law in respect to 25 execution issued against property upon judgments of a court of record. A 26 judgment entered pursuant to this subdivision shall remain in full force 27 and effect for eight years notwithstanding any other provision of law. 28 § 2. Subdivision 3 of section 17 of the alcoholic beverage control 29 law, as amended by section 9 of chapter 522 of the laws of 2018, is 30 amended to read as follows: 31 3. To revoke, cancel or suspend for cause any license or permit issued 32 under this chapter and/or to impose a civil penalty for cause against 33 any holder of a license or permit issued pursuant to this chapter. Any 34 civil penalty so imposed shall not exceed the sum of ten thousand 35 dollars as against the holder of any retail permit issued pursuant to 36 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 37 paragraph f of subdivision one of section ninety-nine-b of this chapter, 38 and as against the holder of any retail license issued pursuant to 39 sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty- 40 five-a, sixty-three, sixty-four, sixty-four-a, sixty-four-b, 41 sixty-four-c, seventy-six-f, seventy-nine, eighty-one, and eighty-one-a 42 of this chapter, and the sum of thirty thousand dollars as against the 43 holder of a license issued pursuant to sections thirty, thirty-one, 44 fifty-three, sixty-one-a, sixty-one-b, sixty-one-c, seventy-six, seven- 45 ty-six-a and seventy-eight of this chapter, provided that the civil 46 penalty against the holder of a wholesale license issued pursuant to 47 section fifty-three of this chapter shall not exceed the sum of ten 48 thousand dollars where that licensee violates provisions of this chapter 49 during the course of the sale of beer at retail to a person for consump- 50 tion at home, and the sum of one hundred thousand dollars as against the 51 holder of any license issued pursuant to sections fifty-one, sixty-one 52 and sixty-two of this chapter. Any civil penalty so imposed shall be in 53 addition to and separate and apart from the terms and provisions of the 54 bond required pursuant to section one hundred twelve of this chapter. 55 Provided that no appeal is pending on the imposition of such civil 56 penalty, in the event such civil penalty imposed by the division remainsA. 9107 3 1 unpaid, in whole or in part, more than forty-five days after written 2 demand for payment has been sent by first class mail to the address of 3 the licensed premises, a notice of impending default judgment shall be 4 sent by first class mail to the licensed premises and by first class 5 mail to the last known home address of the person who signed the most 6 recent license application. The notice of impending default judgment 7 shall advise the licensee: (a) that a civil penalty was imposed on the 8 licensee; (b) the date the penalty was imposed; (c) the amount of the 9 civil penalty; (d) the amount of the civil penalty that remains unpaid 10 as of the date of the notice; (e) the violations for which the civil 11 penalty was imposed; and (f) that a judgment by default will be entered 12 in the supreme court of the county in which the licensed premises are 13 located, or other court of civil jurisdiction, or any other place 14 provided for the entry of civil judgments within the state of New York 15 unless the division receives full payment of all civil penalties due 16 within twenty days of the date of the notice of impending default judg- 17 ment. If full payment shall not have been received by the division with- 18 in thirty days of mailing of the notice of impending default judgment, 19 the division shall proceed to enter with such court a statement of the 20 default judgment containing the amount of the penalty or penalties 21 remaining due and unpaid, along with proof of mailing of the notice of 22 impending default judgment. The filing of such judgment shall have the 23 full force and effect of a default judgment duly docketed with such 24 court pursuant to the civil practice law and rules and shall in all 25 respects be governed by that chapter and may be enforced in the same 26 manner and with the same effect as that provided by law in respect to 27 execution issued against property upon judgments of a court of record. A 28 judgment entered pursuant to this subdivision shall remain in full force 29 and effect for eight years notwithstanding any other provision of law. 30 § 3. The alcoholic beverage control law is amended by adding a new 31 section 61-c to read as follows: 32 § 61-c. Brand owner's license. Any person with a federal basic permit 33 may apply to the liquor authority for a brand owner's license. Such 34 license shall authorize the holder thereof to: 35 1. contract with a licensed manufacturer of alcoholic beverages in 36 this state for the purposes of manufacturing such products; 37 2. appoint a licensed wholesaler authorized to sell and deliver alco- 38 holic beverages in this state as exclusive brand agent for the purposes 39 of soliciting, negotiating, and receiving payments for the sale of alco- 40 holic beverages to retail licensees for on-premises or off-premises 41 consumption; and 42 3. sell such alcoholic beverages to licensed wholesalers authorized to 43 sell and deliver alcoholic beverages in this state appointed as exclu- 44 sive brand agent and be remitted payments for such sales. 45 § 4. Section 66 of the alcoholic beverage control law is amended by 46 adding a new subdivision 3-b to read as follows: 47 3-b. The annual fee for a brand owner's license shall be one hundred 48 twenty-five dollars. 49 § 5. This act shall take effect immediately; provided, however, that 50 the amendments to subdivision 3 of section 17 of the alcoholic beverage 51 control law made by section one of this act shall be subject to the 52 expiration and reversion of such section pursuant to section 4 of chap- 53 ter 118 of the laws of 2012, as amended, when upon such date section two 54 of this act shall take effect.