S T A T E O F N E W Y O R K
________________________________________________________________________
1068
2021-2022 Regular Sessions
I N A S S E M B L Y
January 7, 2021
___________
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as the authority determines that his or her name shall not be published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.
LBD01455-01-1
A. 1068 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.