S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9747
 
                           I N  A S S E M B L Y
 
                             February 7, 2020
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Economic Development
 
 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:
 
   Section 1. Paragraphs h and j of subdivision 1 of section  101-aaa  of
 the alcoholic beverage control law, as added by a chapter of the laws of
 2019,  amending the alcoholic beverage control law relating to authoriz-
 ing retail licenses to purchase beer, wine or  liquor  with  a  business
 payment  card, as proposed in legislative bills numbers S. 4241-A and A.
 6701-A, are amended to read as follows:
   h. "Business payment card" means: (1) 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 cred-
 it of the issuer or a debit card that provides access to a bank  account
 of a retail licensee; (2) A CREDIT OR DEBIT CARD FROM AN ISSUER ACCEPTED
 BY THE MANUFACTURER OR WHOLESALER AS PERMITTED BY THE AUTHORITY IN REGU-
 LATION;  AND  (3)  SUCH  CREDIT  CARD SHALL NOT INCLUDE CARDS IN WHICH A
 MANUFACTURER OR WHOLESALER HAS A FINANCIAL INTEREST OR  CARDS  BY  WHICH
 THEIR  USE  BENEFITS  A  MANUFACTURER  OR  WHOLESALER. 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.
   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] THREE PERCENT OF
 THE  FINAL  CASH  INVOICE  AMOUNT.  THE  THREE  PERCENT  REPRESENTS  THE
 SURCHARGES  AND  FEES THAT ARE CHARGED TO THE MANUFACTURER OR WHOLESALER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10011-04-9

 A. 9747                             2
 
 BY THE BUSINESS PAYMENT CARD ISSUER OR A  PERSON  OR  ENTITY  ASSOCIATED
 WITH THE ISSUER.
   §  2.  Subdivision  2-a  of  section 101-aaa of the alcoholic beverage
 control law, as added by a chapter of the laws  of  2019,  amending  the
 alcoholic  beverage  control law relating to authorizing retail licenses
 to purchase beer, wine or  liquor  with  a  business  payment  card,  as
 proposed  in  legislative  bills  numbers  S.  4241-A  and A. 6701-A, is
 amended and a new subdivision 2-b is added to read as follows:
   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] PREVENT, a retail licensee that  receives  such
 an invoice from electing to use any OTHER FORM OF payment method permit-
 ted  pursuant  to  subdivision  two of this section following receipt of
 such invoice.
   2-B. NOTHING HEREIN  CONTAINED  SHALL  BE  CONSTRUED  TO  REQUIRE  ANY
 MANUFACTURER  OR WHOLESALER TO ACCEPT BUSINESS PAYMENT CARDS AS A METHOD
 OF PAYMENT BY ANY RETAIL LICENSEE, PROVIDED THAT IF SUCH PAYMENT  METHOD
 IS  MADE  AVAILABLE  IT  SHALL BE AVAILABLE ON EQUAL TERMS TO ALL RETAIL
 LICENSEES.
   § 3. Subdivision 2 of section 55-b of the alcoholic  beverage  control
 law, as amended by a chapter of the laws of 2019, amending the alcoholic
 beverage control law relating to authorizing retail licenses to purchase
 beer, wine or liquor with a business payment card, as proposed in legis-
 lative  bills  numbers  S.  4241-A  and A. 6701-A, is amended to read as
 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] THREE PERCENT OF THE FINAL
 CASH  INVOICE  AMOUNT  to  reasonably  remunerate  such  wholesaler  for
 surcharges and fees incurred for  business  payment  card  payments,  as
 [determined by the authority pursuant to] PROVIDED FOR BY 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.
   § 4. Paragraphs g, h, and i of subdivision 1 of section 101-aa of  the
 alcoholic  beverage  control  law,  as added by a chapter of the laws of
 2019 amending the alcoholic beverage control law relating to authorizing
 retail licenses to purchase beer, wine or liquor with a business payment
 card, as proposed in legislative bills numbers  S.4241-A  and  A.6701-A,
 are REPEALED.
   § 5. Subdivision 2 of section 101-aa of the alcoholic beverage control
 law,  as amended by a chapter of the laws of 2019 amending the alcoholic

 A. 9747                             3
 
 beverage control law relating to authorizing retail licenses to purchase
 beer, wine or liquor with a business payment card, as proposed in legis-
 lative bills numbers S.4241-A  and  A.6701-A,  is  amended  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].
   § 6. Subdivision 2-a of  section  101-aa  of  the  alcoholic  beverage
 control  law,  as  added  by  a chapter of the laws of 2019 amending the
 alcoholic beverage control law relating to authorizing  retail  licenses
 to  purchase  beer,  wine  or  liquor  with  a business payment card, as
 proposed  in  legislative  bills  numbers  S.4241-A  and  A.6701-A,   is
 REPEALED.
   §  7.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2019, amending the alcoholic beverage
 control law relating to authorizing retail licenses  to  purchase  beer,
 wine  or liquor with a business payment card, as proposed in legislative
 bills numbers S. 4241-A and A. 6701-A, takes effect.