Bill Text: NY S06957 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to authorizing retail licenses to purchase beer with a business payment card.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-01-28 - referred to economic development [S06957 Detail]

Download: New_York-2019-S06957-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6957

                               2019-2020 Regular Sessions

                    IN SENATE

                                     January 6, 2019
                                       ___________

        Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
          authorizing  retail licensees to purchase beer with a business payment
          card; and to repeal certain provisions of such law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraphs h and j of subdivision 1 of section 101-aaa of
     2  the alcoholic beverage control law, as added by a chapter of the laws of
     3  2019, amending the alcoholic beverage control law relating to  authoriz-
     4  ing  retail  licenses  to  purchase beer, wine or liquor with a business
     5  payment card, as proposed in legislative bills numbers S. 4241-A and  A.
     6  6701-A, are amended to read as follows:
     7    h.  "Business  payment  card"  means:  (1) any credit card issued to a
     8  retail licensee for business or commercial use pursuant to an  agreement
     9  that allows the holder thereof to obtain goods and services on the cred-
    10  it  of the issuer or a debit card that provides access to a bank account
    11  of a retail licensee; (2) a credit or debit card from an issuer accepted
    12  by the manufacturer or wholesaler as permitted by the authority in regu-
    13  lation; and (3) such credit card shall not  include  cards  in  which  a
    14  manufacturer  or  wholesaler  has a financial interest or cards by which
    15  their use benefits a manufacturer  or  wholesaler.  Such  card  must  be
    16  issued  in the same name as a retail licensee and registered to the same
    17  address as the address on the retail license, or as otherwise  permitted
    18  by the authority in regulation.
    19    j.  "Final  business  payment  card  invoice  amount" means the amount
    20  charged by a manufacturer or wholesaler to a retail licensee pursuant to
    21  paragraph (c) of subdivision two of this section; and  shall  equal  the
    22  final  cash  invoice  amount  plus [remuneration for surcharges and fees
    23  incurred by a manufacturer or wholesaler as a result of  such  a  trans-
    24  action,  which shall be calculated by multiplying the final cash invoice

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10011-04-9
        S. 6957                             2

     1  amount by a rate determined annually by the authority] three percent  of
     2  the  final  cash  invoice  amount.  The  three  percent  represents  the
     3  surcharges and fees that are charged to the manufacturer  or  wholesaler
     4  by  the  business  payment  card issuer or a person or entity associated
     5  with the issuer.
     6    § 2. Subdivision 2-a of section  101-aaa  of  the  alcoholic  beverage
     7  control  law,  as  added  by a chapter of the laws of 2019, amending the
     8  alcoholic beverage control law relating to authorizing  retail  licenses
     9  to  purchase  beer,  wine  or  liquor  with  a business payment card, as
    10  proposed in legislative bills  numbers  S.  4241-A  and  A.  6701-A,  is
    11  amended and a new subdivision 2-b is added to read as follows:
    12    2-a.  A manufacturer or wholesaler that accepts business payment cards
    13  shall clearly state the final cash invoice amount and the final business
    14  payment card invoice amount on an invoice provided to a retail licensee.
    15  Nothing in this section shall preclude,  or  permit  a  manufacturer  or
    16  wholesaler  to  [preclude] prevent, a retail licensee that receives such
    17  an invoice from electing to use any other form of payment method permit-
    18  ted pursuant to subdivision two of this  section  following  receipt  of
    19  such invoice.
    20    2-b.  Nothing  herein  contained  shall  be  construed  to require any
    21  manufacturer or wholesaler to accept business payment cards as a  method
    22  of  payment by any retail licensee, provided that if such payment method
    23  is made available it shall be available on equal  terms  to  all  retail
    24  licensees.
    25    §  3.  Subdivision 2 of section 55-b of the alcoholic beverage control
    26  law, as amended by a chapter of the laws of 2019, amending the alcoholic
    27  beverage control law relating to authorizing retail licenses to purchase
    28  beer, wine or liquor with a business payment card, as proposed in legis-
    29  lative bills numbers S. 4241-A and A. 6701-A,  is  amended  to  read  as
    30  follows:
    31    2. No brewer or beer wholesaler may increase the price per case, draft
    32  package  or  special  package of beer sold to beer wholesalers or retail
    33  licensees until at least one hundred eighty days have elapsed since  his
    34  last  price  decrease  on  such  case, draft package or special package,
    35  provided, however, that the brewer or beer wholesaler may  increase  any
    36  price  established  by  him  at any time in the amount of any direct tax
    37  increase on beer or [in the amount necessary] three percent of the final
    38  cash  invoice  amount  to  reasonably  remunerate  such  wholesaler  for
    39  surcharges  and  fees  incurred  for  business payment card payments, as
    40  [determined by the authority pursuant to] provided for by paragraph j of
    41  subdivision one of section one hundred one-aaa of this  chapter,  or  on
    42  containers thereof, actually paid by such brewer or beer wholesaler, and
    43  provided  further,  however,  that  if  a  brewer or beer wholesaler has
    44  increased his price to beer wholesalers at  any  time  pursuant  to  the
    45  provisions  hereof,  the  beer  wholesaler may increase the price estab-
    46  lished by him on such package in an amount equal  to  the  direct  price
    47  increase  to  the  beer wholesaler. The price per case, draft package or
    48  special package of beer sold to beer wholesalers or retail licensees  on
    49  the  first  day  of  the  month following the effective date of this act
    50  shall be deemed the base price, to or  from  which  price  increases  or
    51  decreases may be made in accordance with the provisions of this section.
    52    §  4. Paragraphs g, h, and i of subdivision 1 of section 101-aa of the
    53  alcoholic beverage control law, as added by a chapter  of  the  laws  of
    54  2019 amending the alcoholic beverage control law relating to authorizing
    55  retail licenses to purchase beer, wine or liquor with a business payment
        S. 6957                             3

     1  card,  as  proposed  in legislative bills numbers S.4241-A and A.6701-A,
     2  are REPEALED.
     3    § 5. Subdivision 2 of section 101-aa of the alcoholic beverage control
     4  law,  as amended by a chapter of the laws of 2019 amending the alcoholic
     5  beverage control law relating to authorizing retail licenses to purchase
     6  beer, wine or liquor with a business payment card, as proposed in legis-
     7  lative bills numbers S.4241-A  and  A.6701-A,  is  amended  to  read  as
     8  follows:
     9    2.  No  manufacturer  or  wholesaler licensed under this chapter shall
    10  sell or deliver any liquor or wine to  any  retail  licensee  except  as
    11  provided for in this section:
    12    (a) for cash to be paid at the time of delivery; or
    13    (b)  on terms requiring payment by such retail licensee for such alco-
    14  holic beverages on or before the final payment date of the credit period
    15  for which delivery is made[; or
    16    (c) by business payment card; provided that a manufacturer  or  whole-
    17  saler  that  exercises  reasonable diligence to ensure the sale comports
    18  with the requirements of  this  section  shall  not  be  found  to  have
    19  violated  this  subdivision  where  a retail licensee uses a credit card
    20  other than a business payment card].
    21    § 6. Subdivision 2-a of  section  101-aa  of  the  alcoholic  beverage
    22  control  law,  as  added  by  a chapter of the laws of 2019 amending the
    23  alcoholic beverage control law relating to authorizing  retail  licenses
    24  to  purchase  beer,  wine  or  liquor  with  a business payment card, as
    25  proposed  in  legislative  bills  numbers  S.4241-A  and  A.6701-A,   is
    26  REPEALED.
    27    §  7.  This  act  shall  take  effect on the same date and in the same
    28  manner as a chapter of the laws of 2019, amending the alcoholic beverage
    29  control law relating to authorizing retail licenses  to  purchase  beer,
    30  wine  or liquor with a business payment card, as proposed in legislative
    31  bills numbers S. 4241-A and A. 6701-A, takes effect.