2023 New York Laws › ABC - Alcoholic Beverage Control › Article 8 - General Provisions › 101-AAA - Terms of Sale; Beer or Wine Products.

§  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.