Bill Text: NY S04241 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes retail licensees to purchase beer, wine and liquor by means of a business credit card.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced) 2019-04-10 - 2ND REPORT CAL. [S04241 Detail]

Download: New_York-2019-S04241-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4241
                               2019-2020 Regular Sessions
                    IN SENATE
                                      March 5, 2019
                                       ___________
        Introduced  by  Sens. KAMINSKY, LANZA -- read twice and ordered printed,
          and when printed to be committed to the  Committee  on  Investigations
          and Government Operations
        AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
          authorizing retail licenses to purchase beer, wine or  liquor  with  a
          business credit card
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 1 of section 101-aa of the  alcoholic  beverage
     2  control law is amended by adding new paragraph g to read as follows:
     3    g.  "Business credit card" means any card issued pursuant to an agree-
     4  ment that allows the holder thereof to obtain goods and services on  the
     5  credit  of  the  issuer, and such card was provided to a retail licensee
     6  for business or commercial use.
     7    § 2. Subdivision 2 of section 101-aa of the alcoholic beverage control
     8  law, as amended by chapter 242 of the laws of 2012, is amended and a new
     9  subdivision 3-a is added to read as follows:
    10    2. No manufacturer or wholesaler licensed  under  this  chapter  shall
    11  sell  or  deliver  any  liquor  or wine to any retail licensee except as
    12  provided for in this section:
    13    (a) for cash to be paid at the time of delivery; [or]
    14    (b) on terms requiring payment by such retail licensee for such  alco-
    15  holic beverages on or before the final payment date of the credit period
    16  for which delivery is made; or
    17    (c)  by  business  credit card; provided that a manufacturer or whole-
    18  saler shall exercise reasonable diligence to ensure  the  sale  comports
    19  with  the  requirements of this section; and, upon exercising such dili-
    20  gence, shall not be found to have violated this paragraph where a retail
    21  licensee uses a credit card other than a business credit card.
    22    3-a. Where a retail licensee uses a business credit card  pursuant  to
    23  this  section,  such  retail  licensee shall reimburse the wholesaler or
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10011-01-9

        S. 4241                             2
     1  manufacturer for credit card surcharges and fees incurred as a result of
     2  the transaction. This rate shall be determined on an annual basis by the
     3  authority based on an assessment of surcharges and fees imposed by cred-
     4  it card issuers, and reimbursed in a manner established by regulations.
     5    §  3.  Subdivision  1  of  section  101-aaa  of the alcoholic beverage
     6  control law is amended by adding a new paragraph h to read follows:
     7    h. "Business credit card" means any card issued pursuant to an  agree-
     8  ment  that allows the holder thereof to obtain goods and services on the
     9  credit of the issuer, and such card was provided to  a  retail  licensee
    10  for business or commercial use.
    11    §  4.  Subdivision  2  of  section  101-aaa  of the alcoholic beverage
    12  control law, as amended by chapter 522 of the laws of 2018,  is  amended
    13  and a new subdivision 3-a is added to read as follows:
    14    2.  No  manufacturer  or  wholesaler licensed under this chapter shall
    15  sell or deliver any beer, mead, cider or wine  products  to  any  retail
    16  licensee except as provided for in this section:
    17    (a) for cash to be paid at the time of delivery; [or]
    18    (b)  on terms requiring payment by such retail licensee for such beer,
    19  mead, cider, or wine products on or before the final payment date of any
    20  credit period within which delivery is made; or
    21    (c) by business credit card; provided that a  manufacturer  or  whole-
    22  saler  shall  exercise  reasonable diligence to ensure the sale comports
    23  with the requirements of this section; and, upon exercising  such  dili-
    24  gence, shall not be found to have violated this paragraph where a retail
    25  licensee uses a credit card other than a business credit card.
    26    Provided, however, that the sale of wine products, mead, or cider to a
    27  retail  licensee  by  a  wholesaler  licensed under section fifty-eight,
    28  sixty-two, or seventy-eight of this chapter, or a licensed  manufacturer
    29  of liquor, mead or wine or a cider producer's license, shall be governed
    30  by the provisions of section one hundred-one-aa of this article.
    31    3-a.  Where  a retail licensee uses a business credit card pursuant to
    32  this section, such retail licensee shall  reimburse  the  wholesaler  or
    33  manufacturer for credit card surcharges and fees incurred as a result of
    34  the transaction. This rate shall be determined on an annual basis by the
    35  authority based on an assessment of surcharges and fees imposed by cred-
    36  it card issuers, and reimbursed in a manner established by regulations.
    37    § 5. This act shall take effect on the one hundred twentieth day after
    38  it  shall  have  become a law; provided, however, that if chapter 522 of
    39  the laws of 2018 shall not have taken effect on or before such date then
    40  section four of this act shall take effect on the same date and  in  the
    41  same  manner as such chapter of the laws of 2018 takes effect. Effective
    42  immediately, the addition, amendment and/or repeal of any rule or  regu-
    43  lation  necessary  for  the  implementation of this act on its effective
    44  date are authorized to be made and completed on or before such effective
    45  date.
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