The Business Council of New York State, the state’s leading statewide business and industry association, strongly supports S.7728/A.10248 that would amend the alcoholic beverage control law, in relation to the authority of the state liquor authority (SLA) to revoke, suspend, or cancel a license or permit.
Specifically, this bill clarifies the SLA’s legal authority to penalize licensees based on perceived violations of the laws of other states laws by specifically outlining “for cause” criteria. The SLA shall “not include conduct by a license outside New York or violations of another state’s laws or regulations unless:”
- The “conduct independently violates a specific provision of this chapter”,
- The licensee or permittee, after due process of law, has been found to guilty in another state by “authorities of competent jurisdiction”,
- The licensee or permittee, after being notified by another state’s authorities that it has engaged in illegal conduct, continues to engage in the activity,
- There are sales to minors, and/or,
- Taxes have not been paid in such other states where taxes are properly owed.
- These specific provisions have been added in this new version to address concerns raised in last year’s veto message (#281 of 2015).
With the changing landscape of the wine and spirits industry, and of state-level alcoholic beverage control laws, the lack of clarity and the perception of selective enforcement under New York’s alcoholic beverage control law has created an unpredictable regulatory environment. This bill seeks to clarify the State Liquor Authority’s legal authority as it pertains to enforcing laws of another state. This legislation specifically lays out the exact scenarios under which the SLA should address violations by New York State licensees or permittees in regards to another state.
The alcohol industry continues to be an important part of New York’s economy. The industry provides tens of thousands of jobs and billions of dollars economic activity throughout the State. A predictable regulatory environment will help ensure this important industry remains strong and continues to experience the growth we have seen in recent years.
For these reasons, The Business Council recommends approval of S.7728/A.10248