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SECTION 101-AAA
Terms of sale; beer or wine products
Alcoholic Beverage Control (ABC) CHAPTER 3-B, ARTICLE 8
§ 101-aaa. Terms of sale; beer or wine products. 1. As used in this
section:

a. "Credit period" means the following:

(1) A period beginning on Thursday, January first, two thousand four
and ending on Sunday, January eighteenth, two thousand four; and

(2) A period beginning on the first Monday succeeding the concluding
day of each prior period and ending on the second succeeding Sunday
thereafter.

b. "Payment period" means the period ending on the twelfth day
immediately following the last day of any credit period.

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

d. "Delinquent notice date" means the third business day immediately
following a final payment date.

e. "Notification date" means the day immediately following a
delinquent notice date.

f. "Retail licensee" means a person licensed pursuant to this chapter
who purchases beer and/or wine products for resale for on or off
premises consumption, except a person licensed to sell liquor and/or
wine for off premises consumption.

g. "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 in this paragraph 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 in this section 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.

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
credit 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 regulation; 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.

i. "Final cash invoice amount" means the amount charged by a
manufacturer or wholesaler to a retail licensee pursuant to paragraphs
(a) and (b) of subdivision two of this section.

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 three percent of the final cash invoice
amount. The three percent represents the 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.

2. No manufacturer or wholesaler licensed under this chapter shall
sell or deliver any beer, mead, cider or wine products to any retail
licensee except as provided for in this section:

(a) for cash to be paid at the time of delivery;

(b) on terms requiring payment by such retail licensee for such beer,
mead, cider, or wine products on or before the final payment date of any
credit period within which delivery is made; or

(c) by business payment card; provided that a manufacturer or
wholesaler 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.

Provided, however, that the sale of wine products, mead, or cider to a
retail licensee by a wholesaler licensed under section fifty-eight,
sixty-two, or seventy-eight of this chapter, or a licensed manufacturer
of liquor, mead or wine or a cider producer's license, shall be governed
by the provisions of section one hundred-one-aa of this article.

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.

3. Each such manufacturer and wholesaler shall, on or before the
respective delinquent notice date, give written notice of default, by
first class mail, to all such licensees who have failed to make payment
to the manufacturer or wholesaler on or before their final payment date
for beer or wine products sold or delivered to such licensees during the
previous credit period. Any such retail licensee receiving such notice
shall not thereafter purchase beer or wine products except for cash
until such time as the authority determines that its name shall not be
published on the delinquent list as provided in this subdivision, or
until such time as the authority permits sales or deliveries to such
licensee as provided in subdivision five of this section. Each such
manufacturer and wholesaler shall file with the authority, on or before
each notification date, copies of the notices sent by it to all
delinquent retail licensees, 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. The
authority shall, as soon as practicable after each notification date,
compile, publish, and furnish each manufacturer and wholesaler licensed
under this chapter a 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-aa of this article as having failed to make payment as
required by this section or section one hundred one-aa of this article
for beer or wine products 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 beer or wine products 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 otherwise permitted by
this section. 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 beer or wine products as
required by this section. The failure of any manufacturer or wholesaler
to comply with the 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
access shall be restricted to those manufacturers and wholesalers
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 such manufacturer or
wholesaler shall have sold beer or wine products, either as to the fact
of payment or as to the amount due for such beer or wine products or as
to the quantity of the beer or wine products sold or delivered, which
dispute cannot be adjusted between them, the authority is 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 delinquent list.

5. The authority in the case of a retail licensee who has actually
made payment for beer or wine products, or on good cause shown to it,
may permit sales or deliveries to any retial 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 delinquent list.

6. The license of any retail licensee who purchases or accepts
delivery of beer or wine products 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 beer or wine products subsequently delivered.

7. Nothing contained in this section 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 beer or
wine products sold or delivered to any such retail licensee.

8. There shall be paid to the liquor authority by each person applying
after the effective date of this section for any license to sell beer or
wine products to retailers or upon the renewal of such license, a sum
equivalent to ten per centum of the annual license fee prescribed by
this chapter for each such licensee. Such moneys shall be used by the
authority to defray the expenses incurred in the administration of this
section.

9. Notwithstanding the law in effect at the time of the sale, the
final payment date for beer and/or wine products sold prior to the
effective date of this section for which payment has not been made shall
be the first final payment date as determined by the provisions of this
section.