Senate Bill S6361

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6361
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the alcoholic beverage control law, in relation  to  the
   terms  of sale of alcoholic beverages by manufacturers and wholesalers
   to retail licensees

   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 as  the authority determines that his or her name shall not be published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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11750-01-7

 S. 6361                             2
 
 WHOLESALER  IN  CASH.  Each  such  manufacturer and wholesaler is hereby
 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.