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.