Legislation

Search OpenLegislation Statutes
This entry was published on 2020-05-01
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 101-AA
Terms of sale
Alcoholic Beverage Control (ABC) CHAPTER 3-B, ARTICLE 8
§ 101-aa. Terms of sale. 1. As used in this section:

a. "Credit period" means a period beginning on the date alcoholic
beverages are delivered and ending thirty days thereafter.

b. "payment period" means the period beginning on the date alcoholic
beverages are delivered and ending on the thirtieth day following the
date on which alcoholic beverages are delivered.

c. "Final payment date" means the last day of a payment period.

d. "Notification date" means, notwithstanding section twenty-five of
the general construction law, for deliveries on:

(i) Monday, the Monday immediately following a final payment date;

(ii) Tuesday, the Tuesday immediately following the final payment
date;

(iii) Wednesday, the Wednesday immediately following the final payment
date;

(iv) Thursday, the Thursday immediately following the final payment
date;

(v) Friday, the Friday immediately following the final payment date.

e. "Retail licensee" means a person licensed to sell liquor and/or
wine at retail for on-premise consumption or for off-premise consumption
(including a person holding a permit granted by the authority pursuant
to subdivision six of section sixty-four of this chapter).

f. "Cash" means and includes currency and coin of the United States of
America, certified check, money order, electronic funds transfer, bank
officer's check or draft, or a check drawn on the account of the retail
licensee payable to the manufacturer or wholesaler and dated no later
than the date of delivery of the alcoholic beverages and which is
honored upon presentment for payment, provided, however, that if any
check or other instrument described herein tendered by a retail licensee
on the delinquent list is not honored upon presentment for payment, the
license of such retail licensee may be suspended for not more than
fifteen days for the first offense, and not more than sixty days for a
subsequent offense, which penalty shall be in addition to the penalty
provided for by the provisions of subdivision six of this section, and
provided further, that nothing herein contained shall require a
manufacturer or wholesaler to accept a check tendered by or drawn on the
account of a retail licensee on the delinquent list unless the same has
been certified.

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
alcoholic beverages on or before the final payment date of the credit
period for which delivery is made.

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
licensees 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. 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 licensees 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. The
receipt of a delinquent list by a manufacturer or wholesaler shall
constitute knowledge 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 retailers licensed under this chapter. Such publication
shall be considered receipt thereof by all manufacturers and
wholesalers.

4. In the event that any dispute shall exist between any manufacturer
or wholesaler and a retail licensee to whom he shall have sold alcoholic
beverages, either as to the fact of payment or as to the amount due for
such alcoholic beverages or as to the quantity of the alcoholic
beverages sold or delivered, which dispute cannot be adjusted between
them, the authority is hereby authorized to receive statements from each
of the parties to such dispute as to the facts and circumstances thereof
and to determine whether or not such retail licensee's name should be
published on the appropriate delinquent list.

5. The authority in the case of a retail licensee who has actually
made payment for alcoholic beverages, or on good cause shown to it, may
permit sales or deliveries to any retail licensee who has received
notice of default or who is named on any delinquent list, on terms other
than for cash, but within the limitations of this section, prior to the
publication of the next appropriate delinquent list.

6. The license of any retail licensee who purchases or accepts
delivery of alcoholic beverages on any terms, other than as provided in
this section, may be suspended for not more than five days for the first
offense and not more than thirty days for a subsequent offense. The
failure of any such retail licensee to pay any amount in default before
the expiration of the period of suspension shall be deemed and
punishable as a subsequent offense until paid. In addition, the
authority may require any such retail licensee, after default in making
payment in accordance with the provisions of this section to make
payment in cash for alcoholic beverages subsequently delivered.

7. a. All retail licensees who fail to pay manufacturers or
wholesalers for alcoholic beverages sold or delivered to such retail
licensees by such manufacturers or wholesalers subsequent to the
effective date of this section, shall liquidate and pay such unpaid
balances to such manufacturers or wholesalers in equal monthly
installments over a period of three months from the date upon which such
unpaid balances become due. The authority, shall not, however, because
of such an indebtedness or failure to pay such refuse to renew the
license of any such licensee.

b. All retail licensees shall, on or before October tenth, nineteen
hundred sixty-five, make payment in full to manufacturers and
wholesalers of all unpaid balances for alcoholic beverages sold and
delivered to such licensees during the month of September, nineteen
hundred sixty-five. All retail licensees in groups two, three, four and
one shall, on or before November tenth, nineteen hundred sixty-five,
make payment in full to manufacturers and wholesalers of all unpaid
balances for alcoholic beverages sold and delivered between October
first and October seventh, fourteenth, twenty-first and thirty-first,
nineteen hundred sixty-five, respectively. The authority may impose any
penalty or condition otherwise authorized by this section in the case of
any such retail licensee who fails or refuses to liquidate and pay
unpaid balance becoming due under this subdivision.

8. Nothing herein contained shall be construed to require any
manufacturer or wholesaler to extend credit to any retail licensee nor
to restrain any manufacturer or wholesaler from seeking to enforce by
legal action or otherwise, payment of any sum or sums of money due or
alleged to be due to any such manufacturer or wholesaler for alcoholic
beverages sold or delivered to any such retail licensee.

9. The state liquor authority is hereby authorized to do such acts,
prescribe such forms and make such rules, regulations and orders as it
may deem necessary or proper fully to effectuate the provisions of this
section, including but not limited to the changing of any date on which
any act or function pursuant to this section is to be performed by any
licensee or by the liquor authority.

10. For the purpose of raising the moneys necessary to defray the
expenses incurred in the administration of this section, on or before
the tenth day after this section becomes a law, there shall be paid to
the liquor authority by each manufacturer and wholesaler licensed under
this chapter to sell to retailers liquor and/or wines or beer, a sum
equivalent to ten per centum of the annual license fee prescribed by
this chapter for each such licensee. A like sum shall be paid by each
person hereafter applying for any such license or the renewal of any
such license, and such sum shall accompany the application and the
license fee prescribed by this chapter for such license or renewal, as
the case may be.