S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4241--A
     Cal. No. 411
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   Section 1. Subdivision 1 of section 101-aa of the  alcoholic  beverage
 control law is amended by adding three new paragraphs g, h and i to read
 as follows:
   G.  "BUSINESS  PAYMENT  CARD"  MEANS  A CREDIT CARD ISSUED TO A RETAIL
 LICENSEE FOR BUSINESS OR COMMERCIAL USE PURSUANT TO  AN  AGREEMENT  THAT
 ALLOWS  THE HOLDER THEREOF TO OBTAIN GOODS AND SERVICES ON THE CREDIT OF
 THE ISSUER, OR A DEBIT CARD THAT PROVIDES ACCESS TO THE BANK ACCOUNT  OF
 A RETAIL LICENSEE. SUCH CARD MUST BE ISSUED IN THE SAME NAME AS A RETAIL
 LICENSEE AND REGISTERED TO THE SAME ADDRESS AS THE ADDRESS ON THE RETAIL
 LICENSE, OR AS OTHERWISE PERMITTED BY THE AUTHORITY IN REGULATION.
   H.  "FINAL CASH INVOICE AMOUNT" MEANS THE AMOUNT CHARGED BY A MANUFAC-
 TURER OR WHOLESALER TO A RETAIL LICENSEE PURSUANT TO PARAGRAPHS (A)  AND
 (B) OF SUBDIVISION TWO OF THIS SECTION.
   I.  "FINAL  BUSINESS  PAYMENT  CARD  INVOICE  AMOUNT" MEANS THE AMOUNT
 CHARGED BY A MANUFACTURER OR WHOLESALER TO A RETAIL LICENSEE PURSUANT TO
 PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION; AND  SHALL  EQUAL  THE
 FINAL  CASH  INVOICE  AMOUNT  PLUS  REMUNERATION FOR SURCHARGES AND FEES
 INCURRED BY A MANUFACTURER OR WHOLESALER AS A RESULT OF  SUCH  A  TRANS-
 ACTION,  WHICH SHALL BE CALCULATED BY MULTIPLYING THE FINAL CASH INVOICE
 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
 
   § 2. Subdivision 2 of section 101-aa of the alcoholic beverage control
 law, as amended by chapter 242 of the laws of 2012, is amended and a new
 subdivision 2-a is added to read as follows:
   2.  No  manufacturer  or  wholesaler licensed under this chapter shall
 sell or deliver any liquor or wine to  any  retail  licensee  except  as
 provided for in this section:
   (a) for cash to be paid at the time of delivery; [or]
   (b)  on terms requiring payment by such retail licensee for such alco-
 holic beverages on or before the final payment date of the credit period
 for which delivery is made; OR
   (C) BY BUSINESS PAYMENT CARD; PROVIDED THAT A MANUFACTURER  OR  WHOLE-
 SALER  THAT  EXERCISES  REASONABLE DILIGENCE TO ENSURE THE SALE COMPORTS
 WITH THE REQUIREMENTS OF  THIS  SECTION  SHALL  NOT  BE  FOUND  TO  HAVE
 VIOLATED  THIS  SUBDIVISION  WHERE  A RETAIL LICENSEE USES A CREDIT CARD
 OTHER THAN A BUSINESS PAYMENT CARD.
   2-A. A MANUFACTURER OR WHOLESALER THAT ACCEPTS BUSINESS PAYMENT  CARDS
 SHALL CLEARLY STATE THE FINAL CASH INVOICE AMOUNT AND THE FINAL BUSINESS
 PAYMENT CARD INVOICE AMOUNT ON AN INVOICE PROVIDED TO A RETAIL LICENSEE.
 NOTHING  IN  THIS  SECTION  SHALL  PRECLUDE, OR PERMIT A MANUFACTURER OR
 WHOLESALER TO PRECLUDE, A RETAIL LICENSEE THAT RECEIVES SUCH AN  INVOICE
 FROM  ELECTING  TO USE ANY PAYMENT METHOD PERMITTED PURSUANT TO SUBDIVI-
 SION TWO OF THIS SECTION FOLLOWING RECEIPT OF SUCH INVOICE.
   § 3. Subdivision 1  of  section  101-aaa  of  the  alcoholic  beverage
 control law is amended by adding three new paragraphs h, i and j to read
 as follows:
   H.  "BUSINESS  PAYMENT  CARD" MEANS ANY CREDIT CARD ISSUED TO A RETAIL
 LICENSEE FOR BUSINESS OR COMMERCIAL USE PURSUANT TO  AN  AGREEMENT  THAT
 ALLOWS  THE HOLDER THEREOF TO OBTAIN GOODS AND SERVICES ON THE CREDIT OF
 THE ISSUER OR A DEBIT CARD THAT PROVIDES ACCESS TO A BANK ACCOUNT  OF  A
 RETAIL  LICENSEE.  SUCH CARD MUST BE ISSUED IN THE SAME NAME AS A RETAIL
 LICENSEE AND REGISTERED TO THE SAME ADDRESS AS THE ADDRESS ON THE RETAIL
 LICENSE, OR AS OTHERWISE PERMITTED BY THE AUTHORITY IN REGULATION.
   I. "FINAL CASH INVOICE AMOUNT" MEANS THE AMOUNT CHARGED BY A  MANUFAC-
 TURER  OR WHOLESALER TO A RETAIL LICENSEE PURSUANT TO PARAGRAPHS (A) AND
 (B) OF SUBDIVISION TWO OF THIS SECTION.
   J. "FINAL BUSINESS PAYMENT  CARD  INVOICE  AMOUNT"  MEANS  THE  AMOUNT
 CHARGED BY A MANUFACTURER OR WHOLESALER TO A RETAIL LICENSEE PURSUANT TO
 PARAGRAPH  (C)  OF  SUBDIVISION TWO OF THIS SECTION; AND SHALL EQUAL THE
 FINAL CASH INVOICE AMOUNT PLUS  REMUNERATION  FOR  SURCHARGES  AND  FEES
 INCURRED  BY  A  MANUFACTURER OR WHOLESALER AS A RESULT OF SUCH A TRANS-
 ACTION, WHICH SHALL BE CALCULATED BY MULTIPLYING THE FINAL CASH  INVOICE
 AMOUNT BY A RATE DETERMINED ANNUALLY BY THE AUTHORITY.
   §  4.  Subdivision  2  of  section  101-aaa  of the alcoholic beverage
 control law, as amended by chapter 522 of the laws of 2018,  is  amended
 and a new subdivision 2-a is added to read as follows:
   2.  No  manufacturer  or  wholesaler licensed under this chapter shall
 sell or deliver any beer, mead, cider or wine  products  to  any  retail
 licensee except as provided for in this section:
   (a) for cash to be paid at the time of delivery; [or]
   (b)  on terms requiring payment by such retail licensee for such beer,
 mead, cider, or wine products on or before the final payment date of any
 credit period within which delivery is made; OR
   (C) BY BUSINESS PAYMENT CARD; PROVIDED THAT A MANUFACTURER  OR  WHOLE-
 SALER  THAT  EXERCISES  REASONABLE DILIGENCE TO ENSURE THE SALE COMPORTS
 WITH THE REQUIREMENTS OF  THIS  SECTION  SHALL  NOT  BE  FOUND  TO  HAVE

 S. 4241--A                          3
 
 VIOLATED  THIS  SUBDIVISION  WHERE  A RETAIL LICENSEE USES A CREDIT CARD
 OTHER THAN A BUSINESS PAYMENT CARD.
   Provided, however, that the sale of wine products, mead, or cider to a
 retail  licensee  by  a  wholesaler  licensed under section fifty-eight,
 sixty-two, or seventy-eight of this chapter, or a licensed  manufacturer
 of liquor, mead or wine or a cider producer's license, shall be governed
 by the provisions of section one hundred-one-aa of this article.
   2-A.  A MANUFACTURER OR WHOLESALER THAT ACCEPTS BUSINESS PAYMENT CARDS
 SHALL CLEARLY STATE THE FINAL CASH INVOICE AMOUNT AND THE FINAL BUSINESS
 PAYMENT CARD INVOICE AMOUNT ON AN INVOICE PROVIDED TO A RETAIL LICENSEE.
 NOTHING IN THIS SECTION SHALL PRECLUDE,  OR  PERMIT  A  MANUFACTURER  OR
 WHOLESALER  TO PRECLUDE, A RETAIL LICENSEE THAT RECEIVES SUCH AN INVOICE
 FROM ELECTING TO USE ANY PAYMENT METHOD PERMITTED PURSUANT  TO  SUBDIVI-
 SION TWO OF THIS SECTION FOLLOWING RECEIPT OF SUCH INVOICE.
   §  5.  Subdivision 2 of section 55-b of the alcoholic beverage control
 law, as amended by chapter 322 of the laws of 1978, is amended  to  read
 follows:
   2. No brewer or beer wholesaler may increase the price per case, draft
 package  or  special  package of beer sold to beer wholesalers or retail
 licensees until at least one hundred eighty days have elapsed since  his
 last  price  decrease  on  such  case, draft package or special package,
 provided, however, that the brewer or beer wholesaler may  increase  any
 price  established  by  him  at any time in the amount of any direct tax
 increase on beer OR IN THE AMOUNT  NECESSARY  TO  REASONABLY  REMUNERATE
 SUCH  WHOLESALER  FOR  SURCHARGES AND FEES INCURRED FOR BUSINESS PAYMENT
 CARD PAYMENTS, AS DETERMINED BY THE AUTHORITY PURSUANT TO PARAGRAPH J OF
 SUBDIVISION ONE OF SECTION ONE HUNDRED ONE-AAA OF THIS  CHAPTER,  or  on
 containers thereof, actually paid by such brewer or beer wholesaler, and
 provided  further,  however,  that  if  a  brewer or beer wholesaler has
 increased his price to beer wholesalers at  any  time  pursuant  to  the
 provisions  hereof,  the  beer  wholesaler may increase the price estab-
 lished by him on such package in an amount equal  to  the  direct  price
 increase  to  the  beer wholesaler. The price per case, draft package or
 special package of beer sold to beer wholesalers or retail licensees  on
 the  first  day  of  the  month following the effective date of this act
 shall be deemed the base price, to or  from  which  price  increases  or
 decreases may be made in accordance with the provisions of this section.
   § 6. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.