The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5437
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced  by  M.  of  A. D. ROSENTHAL -- 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  alcohol  with a business
   payment card
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 101-aa of the alcoholic beverage
 control law is amended by adding three new paragraphs g, h and i to read
 as follows:
   G. "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.
   H. "FINAL CASH INVOICE AMOUNT" MEANS THE AMOUNT CHARGED BY A  MANUFAC-
 TURER  OR WHOLESALER TO A RETAIL LICENSEE PURSUANT TO PARAGRAPHS (A) AND
 (B) OF SUBDIVISION TWO OF THIS SECTION.
   I. "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 THE EXACT SURCHARGES AND  FEES  THAT  ARE
 CHARGED  TO  THE MANUFACTURER OR WHOLESALER BY THE BUSINESS PAYMENT CARD
 ISSUER, OR A PERSON OR ENTITY ASSOCIATED WITH THE ISSUER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06778-01-3

 A. 5437                             2
 
   § 2. Paragraph (b) of subdivision 2 of section 101-aa of the alcoholic
 beverage control law, as amended by section 5 of subpart W of part XX of
 chapter 55 of the laws of 2020, is amended and a new  paragraph  (c)  is
 added to read as follows:
   (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.
   § 3. Section 101-aa of the alcoholic beverage control law  is  amended
 by adding two new subdivisions 2-a and 2-b 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  PREVENT, A RETAIL LICENSEE THAT RECEIVES SUCH AN INVOICE
 FROM ELECTING TO USE ANY OTHER FORM OF PAYMENT METHOD PERMITTED 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.
   § 4. This act shall take effect immediately.