Assembly Bill A7875

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7875
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section 1. Subdivision 3 of section 101-aa of the  alcoholic  beverage
 control  law,  as amended by chapter 588 of the laws of 2008, is amended
 to read as follows:
   3. Each such manufacturer and wholesaler is  hereby  required,  on  or
 before  the  respective  notification  dates for each retail license, to
 give written notice of default, by first class mail, to all such  licen-
 sees  therein who have failed to make payment to him or her on or before
 their final payment date for alcoholic beverages sold  or  delivered  to
 them  during  a  credit  period  ending  on their final payment date. No
 retail licensee shall be placed in default if the wholesaler has  issued
 an  account credit to the licensee, which after application to all debts
 owed by the retail licensee, is equal to or greater than the  amount  of
 the  default.  Any  such retail licensee receiving such notice shall not
 thereafter purchase alcoholic beverages [except for cash until such time
 as the authority determines that his or her name shall not be  published
 on  the delinquent list as provided in subdivision four of this section,
 or until such time as the authority permits sales or deliveries  to  him
 or  her  as  provided  in  subdivision  five  of  this section] FROM THE
 MANUFACTURER OR WHOLESALER SUCH DELINQUENT LICENSEE RECEIVED A NOTICE OF
 DEFAULT FROM, UNLESS SUCH PURCHASE IS MADE IN CASH. IF  SUCH  DELINQUENT
 LICENSEE  BECOMES  DELINQUENT  ON A SECOND ACCOUNT WITHIN THIRTY DAYS OF
 THEIR FIRST DELINQUENCY, SUCH DELINQUENT LICENSEE SHALL BE  REQUIRED  TO
 MAKE  ALL  FUTURE  ALCOHOLIC  BEVERAGE  PURCHASES TO ANY MANUFACTURER OR
 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
 
 required  to  file  with  the  authority, on or before each notification
 date, copies of the notices sent by him or her to all delinquent  retail
 licensees  as  required  in  this  subdivision,  and in addition, if the
 authority  shall  so require, a written list setting forth the names and
 addresses of all  such  delinquent  licensees.  The  authority,  in  its
 discretion,  may  extend  for a period not exceeding three days the date
 for giving written notice of default to delinquent retail licensees  and
 extend  for three days the date for filing with the authority the copies
 of notices sent to such licensees and/or the written list of  delinquent
 retail  licensees as required in this subdivision. The authority, in its
 discretion, may limit the documents to be filed  to  those  relating  to
 licensees  who  are  to  be  added  or deleted from the default list and
 direct that the manufacturer or wholesaler maintain copies of all  other
 documents  required  under  this  section  for  future inspection by the
 authority. The authority  shall,  as  soon  as  practicable  after  each
 notification date, compile and publish and furnish each manufacturer and
 wholesaler  licensed  under  this  chapter  a list, to be designated the
 delinquent list containing the names and addresses of all retail  licen-
 sees who have been reported by manufacturers and wholesalers pursuant to
 the  provisions  of  this section or section one hundred one-aaa of this
 article as having failed to make payment as required by this section for
 alcoholic beverages sold or delivered to them, and no such  manufacturer
 or  wholesaler,  on  or  after  the  fifth day after the receipt of such
 delinquent list, shall knowingly,  wilfully  or  intentionally  sell  or
 deliver  any alcoholic beverages to any such licensee whose name appears
 on such list, except for cash, until such  time  as  the  name  of  such
 licensee   is   removed  therefrom,  except  as  hereinafter  permitted;
 PROVIDED, HOWEVER, A MANUFACTURER OR  WHOLESALER  MAY  SELL  OR  DELIVER
 ALCOHOLIC  BEVERAGES  TO  A LICENSEE LICENSED TO SELL LIQUOR AND/OR WINE
 FOR OFF-PREMISES CONSUMPTION ON THE DELINQUENT LIST WHEN  SUCH  LICENSEE
 IS  NOT  IN DEFAULT TO SUCH MANUFACTURER OR WHOLESALER. The receipt of a
 delinquent list by a manufacturer or wholesaler shall  constitute  know-
 ledge  of  the  names  of  the  retail licensees who have failed to make
 payment for alcoholic beverages as required by this section. The failure
 of  any  manufacturer  or  wholesaler  to  comply  with  the   foregoing
 provisions  of  this  section  may,  at the discretion of the authority,
 subject the license of such manufacturer or wholesaler to suspension for
 not more than five days for the first offense, and not more than  thirty
 days  for a subsequent offense. The authority may publish the delinquent
 list on its website;  provided,  however,  that  full  access  shall  be
 restricted  to  those  manufacturers and wholesalers licensed under this
 chapter and access to their specific status shall be provided to retail-
 ers licensed under this chapter. Such publication  shall  be  considered
 receipt thereof by all manufacturers and wholesalers.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.