S T A T E O F N E W Y O R K ________________________________________________________________________ 4446--A Cal. No. 932 2015-2016 Regular Sessions I N S E N A T E March 20, 2015 ___________ Introduced by Sens. BOYLE, AMEDORE, CROCI, MARCHIONE, RANZENHOFER, ROBACH, SERRANO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report AN ACT to amend the alcoholic beverage control law, in relation to limiting the authority of the state liquor authority to penalize licensees based on perceived violations of the laws of other states, unless the conduct in question amounts to an independent violation of the alcoholic beverage control law or has resulted in a criminal conviction in another state 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 2 of chapter 355 of the laws of 2013, 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, 7 PROVIDED, HOWEVER, THAT THE LIQUOR AUTHORITY SHALL NOT HAVE THE POWER TO 8 REVOKE, CANCEL OR SUSPEND ANY LICENSE OR IMPOSE ANY CIVIL PENALTY 9 AGAINST ANY HOLDER OF A LICENSE OR PERMIT BASED UPON CONDUCT OUTSIDE NEW 10 YORK, OR VIOLATIONS OF ANOTHER STATE'S LAW, UNLESS, FOLLOWING DUE PROC- 11 ESS OF LAW, INCLUDING, BUT NOT LIMITED TO A FULL OPPORTUNITY TO BE HEARD 12 THE AUTHORIZED PUBLIC AGENCY OR OFFICIAL HAVING LAWFUL JURISDICTION 13 DETERMINES THAT SUCH LICENSEE OR PERMITTEE HAS VIOLATED SUCH STATE'S 14 LAWS OR REGULATIONS, SUCH DETERMINATION IS FINAL, AND EITHER: 15 (A) SUCH WRONGFUL CONDUCT INDEPENDENTLY VIOLATES A SPECIFIC PROVISION 16 OF THIS CHAPTER; OR EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09265-04-5 S. 4446--A 2 1 (B) SUCH WRONGFUL CONDUCT, HAD IT OCCURRED WITHIN THIS STATE, WOULD 2 CONSTITUTE A VIOLATION OF THIS CHAPTER. 3 Any civil penalty so imposed shall not exceed the sum of ten thousand 4 dollars as against the holder of any retail permit issued pursuant to 5 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 6 paragraph f of subdivision one of section ninety-nine-b of this chapter, 7 and as against the holder of any retail license issued pursuant to 8 sections [fifty-two,] fifty-three-a, fifty-four, fifty-four-a, fifty- 9 five, fifty-five-a, sixty-three, sixty-four, sixty-four-a, sixty-four-b, 10 sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eighty-one-a 11 of this chapter, and the sum of thirty thousand dollars as against the 12 holder of a license issued pursuant to sections fifty-three, seventy- 13 six, seventy-six-a, and seventy-eight of this chapter, provided that the 14 civil penalty against the holder of a wholesale license issued pursuant 15 to section fifty-three of this chapter shall not exceed the sum of ten 16 thousand dollars where that licensee violates provisions of this chapter 17 during the course of the sale of beer at retail to a person for consump- 18 tion at home, and the sum of one hundred thousand dollars as against the 19 holder of any license issued pursuant to sections fifty-one, sixty-one 20 and sixty-two of this chapter. Any civil penalty so imposed shall be in 21 addition to and separate and apart from the terms and provisions of the 22 bond required pursuant to section one hundred twelve of this chapter. 23 Provided that no appeal is pending on the imposition of such civil 24 penalty, in the event such civil penalty imposed by the division remains 25 unpaid, in whole or in part, more than forty-five days after written 26 demand for payment has been sent by first class mail to the address of 27 the licensed premises, a notice of impending default judgment shall be 28 sent by first class mail to the licensed premises and by first class 29 mail to the last known home address of the person who signed the most 30 recent license application. The notice of impending default judgment 31 shall advise the licensee: (a) that a civil penalty was imposed on the 32 licensee; (b) the date the penalty was imposed; (c) the amount of the 33 civil penalty; (d) the amount of the civil penalty that remains unpaid 34 as of the date of the notice; (e) the violations for which the civil 35 penalty was imposed; and (f) that a judgment by default will be entered 36 in the supreme court of the county in which the licensed premises are 37 located, or other court of civil jurisdiction or any other place 38 provided for the entry of civil judgments within the state of New York 39 unless the division receives full payment of all civil penalties due 40 within twenty days of the date of the notice of impending default judg- 41 ment. If full payment shall not have been received by the division with- 42 in thirty days of mailing of the notice of impending default judgment, 43 the division shall proceed to enter with such court a statement of the 44 default judgment containing the amount of the penalty or penalties 45 remaining due and unpaid, along with proof of mailing of the notice of 46 impending default judgment. The filing of such judgment shall have the 47 full force and effect of a default judgment duly docketed with such 48 court pursuant to the civil practice law and rules and shall in all 49 respects be governed by that chapter and may be enforced in the same 50 manner and with the same effect as that provided by law in respect to 51 execution issued against property upon judgments of a court of record. A 52 judgment entered pursuant to this subdivision shall remain in full force 53 and effect for eight years notwithstanding any other provision of law. 54 S 2. Subdivision 3 of section 17 of the alcoholic beverage control 55 law, as amended by section 3 of chapter 355 of the laws of 2013, is 56 amended to read as follows: S. 4446--A 3 1 3. To revoke, cancel or suspend for cause any license or permit issued 2 under this chapter and/or to impose a civil penalty for cause against 3 any holder of a license or permit issued pursuant to this chapter, 4 PROVIDED, HOWEVER, THAT THE LIQUOR AUTHORITY SHALL NOT HAVE THE POWER TO 5 REVOKE, CANCEL OR SUSPEND ANY LICENSE OR IMPOSE ANY CIVIL PENALTY 6 AGAINST ANY HOLDER OF A LICENSE OR PERMIT BASED UPON CONDUCT OUTSIDE NEW 7 YORK, OR VIOLATIONS OF ANOTHER STATE'S LAW, UNLESS, FOLLOWING DUE PROC- 8 ESS OF LAW, INCLUDING, BUT NOT LIMITED TO A FULL OPPORTUNITY TO BE HEARD 9 THE AUTHORIZED PUBLIC AGENCY OR OFFICIAL HAVING LAWFUL JURISDICTION 10 DETERMINES THAT SUCH LICENSEE OR PERMITTEE HAS VIOLATED SUCH STATE'S 11 LAWS OR REGULATIONS, SUCH DETERMINATION IS FINAL, AND EITHER: 12 (A) SUCH WRONGFUL CONDUCT INDEPENDENTLY VIOLATES A SPECIFIC PROVISION 13 OF THIS CHAPTER; OR 14 (B) SUCH WRONGFUL CONDUCT, HAD IT OCCURRED WITHIN THIS STATE, WOULD 15 CONSTITUTE A VIOLATION OF THIS CHAPTER. 16 Any civil penalty so imposed shall not exceed the sum of ten thousand 17 dollars as against the holder of any retail permit issued pursuant to 18 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 19 paragraph f of subdivision one of section ninety-nine-b of this chapter, 20 and as against the holder of any retail license issued pursuant to 21 sections [fifty-two,] fifty-three-a, fifty-four, fifty-four-a, fifty- 22 five, fifty-five-a, sixty-three, sixty-four, sixty-four-a, sixty-four-b, 23 sixty-four-c, seventy-six-f, seventy-nine, eighty-one, and eighty-one-a 24 of this chapter, and the sum of thirty thousand dollars as against the 25 holder of a license issued pursuant to sections fifty-three, seventy- 26 six, seventy-six-a and seventy-eight of this chapter, provided that the 27 civil penalty against the holder of a wholesale license issued pursuant 28 to section fifty-three of this chapter shall not exceed the sum of ten 29 thousand dollars where that licensee violates provisions of this chapter 30 during the course of the sale of beer at retail to a person for consump- 31 tion at home, and the sum of one hundred thousand dollars as against the 32 holder of any license issued pursuant to sections fifty-one, sixty-one 33 and sixty-two of this chapter. Any civil penalty so imposed shall be in 34 addition to and separate and apart from the terms and provisions of the 35 bond required pursuant to section one hundred twelve of this chapter. 36 Provided that no appeal is pending on the imposition of such civil 37 penalty, in the event such civil penalty imposed by the division remains 38 unpaid, in whole or in part, more than forty-five days after written 39 demand for payment has been sent by first class mail to the address of 40 the licensed premises, a notice of impending default judgment shall be 41 sent by first class mail to the licensed premises and by first class 42 mail to the last known home address of the person who signed the most 43 recent license application. The notice of impending default judgment 44 shall advise the licensee: (a) that a civil penalty was imposed on the 45 licensee; (b) the date the penalty was imposed; (c) the amount of the 46 civil penalty; (d) the amount of the civil penalty that remains unpaid 47 as of the date of the notice; (e) the violations for which the civil 48 penalty was imposed; and (f) that a judgment by default will be entered 49 in the supreme court of the county in which the licensed premises are 50 located, or other court of civil jurisdiction, or any other place 51 provided for the entry of civil judgments within the state of New York 52 unless the division receives full payment of all civil penalties due 53 within twenty days of the date of the notice of impending default judg- 54 ment. If full payment shall not have been received by the division with- 55 in thirty days of mailing of the notice of impending default judgment, 56 the division shall proceed to enter with such court a statement of the S. 4446--A 4 1 default judgment containing the amount of the penalty or penalties 2 remaining due and unpaid, along with proof of mailing of the notice of 3 impending default judgment. The filing of such judgment shall have the 4 full force and effect of a default judgment duly docketed with such 5 court pursuant to the civil practice law and rules and shall in all 6 respects be governed by that chapter and may be enforced in the same 7 manner and with the same effect as that provided by law in respect to 8 execution issued against property upon judgments of a court of record. A 9 judgment entered pursuant to this subdivision shall remain in full force 10 and effect for eight years notwithstanding any other provision of law. 11 S 3. This act shall take effect on the sixtieth day after it shall 12 have become a law; provided that the amendments to subdivision 3 of 13 section 17 of the alcoholic beverage control law, made by section one of 14 this act, shall not affect the expiration and reversion of such subdivi- 15 sion and shall expire and be deemed repealed therewith, when upon such 16 date section two of this act shall take effect.