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


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

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2019-06-20 - returned to senate [S04241 Detail]

Download: New_York-2019-S04241-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4241--A
            Cal. No. 411

                               2019-2020 Regular Sessions

                    IN SENATE

                                      March 5, 2019
                                       ___________

        Introduced  by  Sens.  KAMINSKY, LANZA, ADDABBO, GOUNARDES -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on Investigations and Government Operations -- reported favorably from
          said committee, ordered to first and second report, ordered to a third
          reading, amended and ordered reprinted, retaining  its  place  in  the
          order of third reading

        AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
          authorizing retail licenses to purchase beer, wine or  liquor  with  a
          business payment 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 three new paragraphs g, h and i to read
     3  as follows:
     4    g.  "Business  payment  card"  means  a credit card issued to a retail
     5  licensee for business or commercial use pursuant to  an  agreement  that
     6  allows  the holder thereof to obtain goods and services on the credit of
     7  the issuer, or a debit card that provides access to the bank account  of
     8  a retail licensee. Such card must be issued in the same name as a retail
     9  licensee and registered to the same address as the address on the retail
    10  license, or as otherwise permitted by the authority in regulation.
    11    h.  "Final cash invoice amount" means the amount charged by a manufac-
    12  turer or wholesaler to a retail licensee pursuant to paragraphs (a)  and
    13  (b) of subdivision two of this section.
    14    i.  "Final  business  payment  card  invoice  amount" means the amount
    15  charged by a manufacturer or wholesaler to a retail licensee pursuant to
    16  paragraph (c) of subdivision two of this section; and  shall  equal  the
    17  final  cash  invoice  amount  plus  remuneration for surcharges and fees
    18  incurred by a manufacturer or wholesaler as a result of  such  a  trans-
    19  action,  which shall be calculated by multiplying the final cash invoice
    20  amount by a rate determined annually by the authority.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10011-02-9

        S. 4241--A                          2

     1    § 2. Subdivision 2 of section 101-aa of the alcoholic beverage control
     2  law, as amended by chapter 242 of the laws of 2012, is amended and a new
     3  subdivision 2-a is added to read as follows:
     4    2.  No  manufacturer  or  wholesaler licensed under this chapter shall
     5  sell or deliver any liquor or wine to  any  retail  licensee  except  as
     6  provided for in this section:
     7    (a) for cash to be paid at the time of delivery; [or]
     8    (b)  on terms requiring payment by such retail licensee for such alco-
     9  holic beverages on or before the final payment date of the credit period
    10  for which delivery is made; or
    11    (c) by business payment card; provided that a manufacturer  or  whole-
    12  saler  that  exercises  reasonable diligence to ensure the sale comports
    13  with the requirements of  this  section  shall  not  be  found  to  have
    14  violated  this  subdivision  where  a retail licensee uses a credit card
    15  other than a business payment card.
    16    2-a. A manufacturer or wholesaler that accepts business payment  cards
    17  shall clearly state the final cash invoice amount and the final business
    18  payment card invoice amount on an invoice provided to a retail licensee.
    19  Nothing  in  this  section  shall  preclude, or permit a manufacturer or
    20  wholesaler to preclude, a retail licensee that receives such an  invoice
    21  from  electing  to use any payment method permitted pursuant to subdivi-
    22  sion two of this section following receipt of such invoice.
    23    § 3. Subdivision 1  of  section  101-aaa  of  the  alcoholic  beverage
    24  control law is amended by adding three new paragraphs h, i and j to read
    25  as follows:
    26    h.  "Business  payment  card" means any credit card issued to a retail
    27  licensee for business or commercial use pursuant to  an  agreement  that
    28  allows  the holder thereof to obtain goods and services on the credit of
    29  the issuer or a debit card that provides access to a bank account  of  a
    30  retail  licensee.  Such card must be issued in the same name as a retail
    31  licensee and registered to the same address as the address on the retail
    32  license, or as otherwise permitted by the authority in regulation.
    33    i. "Final cash invoice amount" means the amount charged by a  manufac-
    34  turer  or wholesaler to a retail licensee pursuant to paragraphs (a) and
    35  (b) of subdivision two of this section.
    36    j. "Final business payment  card  invoice  amount"  means  the  amount
    37  charged by a manufacturer or wholesaler to a retail licensee pursuant to
    38  paragraph  (c)  of  subdivision two of this section; and shall equal the
    39  final cash invoice amount plus  remuneration  for  surcharges  and  fees
    40  incurred  by  a  manufacturer or wholesaler as a result of such a trans-
    41  action, which shall be calculated by multiplying the final cash  invoice
    42  amount by a rate determined annually by the authority.
    43    §  4.  Subdivision  2  of  section  101-aaa  of the alcoholic beverage
    44  control law, as amended by chapter 522 of the laws of 2018,  is  amended
    45  and a new subdivision 2-a is added to read as follows:
    46    2.  No  manufacturer  or  wholesaler licensed under this chapter shall
    47  sell or deliver any beer, mead, cider or wine  products  to  any  retail
    48  licensee except as provided for in this section:
    49    (a) for cash to be paid at the time of delivery; [or]
    50    (b)  on terms requiring payment by such retail licensee for such beer,
    51  mead, cider, or wine products on or before the final payment date of any
    52  credit period within which delivery is made; or
    53    (c) by business payment card; provided that a manufacturer  or  whole-
    54  saler  that  exercises  reasonable diligence to ensure the sale comports
    55  with the requirements of  this  section  shall  not  be  found  to  have

        S. 4241--A                          3

     1  violated  this  subdivision  where  a retail licensee uses a credit card
     2  other than a business payment card.
     3    Provided, however, that the sale of wine products, mead, or cider to a
     4  retail  licensee  by  a  wholesaler  licensed under section fifty-eight,
     5  sixty-two, or seventy-eight of this chapter, or a licensed  manufacturer
     6  of liquor, mead or wine or a cider producer's license, shall be governed
     7  by the provisions of section one hundred-one-aa of this article.
     8    2-a.  A manufacturer or wholesaler that accepts business payment cards
     9  shall clearly state the final cash invoice amount and the final business
    10  payment card invoice amount on an invoice provided to a retail licensee.
    11  Nothing in this section shall preclude,  or  permit  a  manufacturer  or
    12  wholesaler  to preclude, a retail licensee that receives such an invoice
    13  from electing to use any payment method permitted pursuant  to  subdivi-
    14  sion two of this section following receipt of such invoice.
    15    §  5.  Subdivision 2 of section 55-b of the alcoholic beverage control
    16  law, as amended by chapter 322 of the laws of 1978, is amended  to  read
    17  follows:
    18    2. No brewer or beer wholesaler may increase the price per case, draft
    19  package  or  special  package of beer sold to beer wholesalers or retail
    20  licensees until at least one hundred eighty days have elapsed since  his
    21  last  price  decrease  on  such  case, draft package or special package,
    22  provided, however, that the brewer or beer wholesaler may  increase  any
    23  price  established  by  him  at any time in the amount of any direct tax
    24  increase on beer or in the amount  necessary  to  reasonably  remunerate
    25  such  wholesaler  for  surcharges and fees incurred for business payment
    26  card payments, as determined by the authority pursuant to paragraph j of
    27  subdivision one of section one hundred one-aaa of this  chapter,  or  on
    28  containers thereof, actually paid by such brewer or beer wholesaler, and
    29  provided  further,  however,  that  if  a  brewer or beer wholesaler has
    30  increased his price to beer wholesalers at  any  time  pursuant  to  the
    31  provisions  hereof,  the  beer  wholesaler may increase the price estab-
    32  lished by him on such package in an amount equal  to  the  direct  price
    33  increase  to  the  beer wholesaler. The price per case, draft package or
    34  special package of beer sold to beer wholesalers or retail licensees  on
    35  the  first  day  of  the  month following the effective date of this act
    36  shall be deemed the base price, to or  from  which  price  increases  or
    37  decreases may be made in accordance with the provisions of this section.
    38    § 6. This act shall take effect on the one hundred twentieth day after
    39  it shall have become a law.  Effective immediately, the addition, amend-
    40  ment and/or repeal of any rule or regulation necessary for the implemen-
    41  tation  of  this act on its effective date are authorized to be made and
    42  completed on or before such effective date.
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