Bill Text: NY A07875 | 2017-2018 | General Assembly | Introduced

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Bill Title: Requires delinquent licensees to make future alcoholic beverage purchases to the manufacturer or wholesaler from which they are delinquent in cash; requires a licensee who has become delinquent on a second account within thirty days to make future alcoholic beverage purchases to any manufacturer or wholesaler in cash.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - referred to economic development [A07875 Detail]

Download: New_York-2017-A07875-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7875
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      May 18, 2017
                                       ___________
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Economic Development
        AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
          requiring delinquent  licensees  to  make  future  alcoholic  beverage
          purchases to manufacturers and wholesalers in cash
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 3 of section 101-aa of the  alcoholic  beverage
     2  control  law,  as amended by chapter 588 of the laws of 2008, is amended
     3  to read as follows:
     4    3. Each such manufacturer and wholesaler is  hereby  required,  on  or
     5  before  the  respective  notification  dates for each retail license, to
     6  give written notice of default, by first class mail, to all such  licen-
     7  sees  therein who have failed to make payment to him or her on or before
     8  their final payment date for alcoholic beverages sold  or  delivered  to
     9  them  during  a  credit  period  ending  on their final payment date. No
    10  retail licensee shall be placed in default if the wholesaler has  issued
    11  an  account credit to the licensee, which after application to all debts
    12  owed by the retail licensee, is equal to or greater than the  amount  of
    13  the  default.  Any  such retail licensee receiving such notice shall not
    14  thereafter purchase alcoholic beverages [except for cash until such time
    15  as the authority determines that his or her name shall not be  published
    16  on  the delinquent list as provided in subdivision four of this section,
    17  or until such time as the authority permits sales or deliveries  to  him
    18  or  her  as  provided  in  subdivision  five  of  this section] from the
    19  manufacturer or wholesaler such delinquent licensee received a notice of
    20  default from, unless such purchase is made in cash. If  such  delinquent
    21  licensee  becomes  delinquent  on a second account within thirty days of
    22  their first delinquency, such delinquent licensee shall be  required  to
    23  make  all  future  alcoholic  beverage  purchases to any manufacturer or
    24  wholesaler in cash. Each such  manufacturer  and  wholesaler  is  hereby
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11421-02-7
        A. 7875                             2
     1  required  to  file  with  the  authority, on or before each notification
     2  date, copies of the notices sent by him or her to all delinquent  retail
     3  licensees  as  required  in  this  subdivision,  and in addition, if the
     4  authority  shall  so require, a written list setting forth the names and
     5  addresses of all  such  delinquent  licensees.  The  authority,  in  its
     6  discretion,  may  extend  for a period not exceeding three days the date
     7  for giving written notice of default to delinquent retail licensees  and
     8  extend  for three days the date for filing with the authority the copies
     9  of notices sent to such licensees and/or the written list of  delinquent
    10  retail  licensees as required in this subdivision. The authority, in its
    11  discretion, may limit the documents to be filed  to  those  relating  to
    12  licensees  who  are  to  be  added  or deleted from the default list and
    13  direct that the manufacturer or wholesaler maintain copies of all  other
    14  documents  required  under  this  section  for  future inspection by the
    15  authority. The authority  shall,  as  soon  as  practicable  after  each
    16  notification date, compile and publish and furnish each manufacturer and
    17  wholesaler  licensed  under  this  chapter  a list, to be designated the
    18  delinquent list containing the names and addresses of all retail  licen-
    19  sees who have been reported by manufacturers and wholesalers pursuant to
    20  the  provisions  of  this section or section one hundred one-aaa of this
    21  article as having failed to make payment as required by this section for
    22  alcoholic beverages sold or delivered to them, and no such  manufacturer
    23  or  wholesaler,  on  or  after  the  fifth day after the receipt of such
    24  delinquent list, shall knowingly,  wilfully  or  intentionally  sell  or
    25  deliver  any alcoholic beverages to any such licensee whose name appears
    26  on such list, except for cash, until such  time  as  the  name  of  such
    27  licensee   is   removed  therefrom,  except  as  hereinafter  permitted;
    28  provided, however, a manufacturer or  wholesaler  may  sell  or  deliver
    29  alcoholic  beverages  to  a licensee licensed to sell liquor and/or wine
    30  for off-premises consumption on the delinquent list when  such  licensee
    31  is  not  in default to such manufacturer or wholesaler. The receipt of a
    32  delinquent list by a manufacturer or wholesaler shall  constitute  know-
    33  ledge  of  the  names  of  the  retail licensees who have failed to make
    34  payment for alcoholic beverages as required by this section. The failure
    35  of  any  manufacturer  or  wholesaler  to  comply  with  the   foregoing
    36  provisions  of  this  section  may,  at the discretion of the authority,
    37  subject the license of such manufacturer or wholesaler to suspension for
    38  not more than five days for the first offense, and not more than  thirty
    39  days  for a subsequent offense. The authority may publish the delinquent
    40  list on its website;  provided,  however,  that  full  access  shall  be
    41  restricted  to  those  manufacturers and wholesalers licensed under this
    42  chapter and access to their specific status shall be provided to retail-
    43  ers licensed under this chapter. Such publication  shall  be  considered
    44  receipt thereof by all manufacturers and wholesalers.
    45    §  2.  This  act shall take effect on the ninetieth day after it shall
    46  have become a law.