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.