What's happening
This bill allows retail alcohol licensees in New York to purchase beer, wine, or liquor using business payment cards.
Why it matters
Increases financial flexibility for retail alcohol businesses. By allowing payment with business credit/debit cards, retailers can better manage cash flow, potentially invest in inventory more strategically, and streamline payments, especially for small businesses that may not always have large amounts of cash on hand.
Sets rules for transparency and fairness in card transactions. The bill requires invoices to clearly state both the amount due if paying by cash and the total if paying by business payment card, including any surcharges or fees. This ensures retailers are fully informed about extra costs before choosing a payment method.
Protects manufacturers and wholesalers from penalty over card use errors. If a retailer mistakenly uses a non-business card, the manufacturer or wholesaler is shielded from legal violations as long as they exercised reasonable diligence, reducing unnecessary enforcement and administrative burdens.
Adjusts pricing regulations to reflect new payment methods. The bill allows wholesalers to increase prices specifically to cover surcharges and fees incurred from business payment card transactions, but only by an annually set rate, balancing additional costs with consumer protection.
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Who cares
Headline styles
Let Stores Buy Booze With Cards
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Approval memo.91
- Signed chap.745
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.703
- Substituted for A6701A
- Referred to economic development
- Delivered to assembly
- Passed senateVote 58–4
- Amended on third reading (t) 4241a
- Advanced to third reading
Show 3 earlier actions
- 2nd report cal.
- 1st report cal.411
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allow Card Payments for Alcohol
Assembly Floor Calendar · Sponsor Robin Schimminger
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4241--A Cal. No. 411
2019-2020 Regular Sessions
IN SENATE
March 5, 2019
Introduced by Sens. KAMINSKY, LANZA, ADDABBO, GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the alcoholic beverage control law, in relation to authorizing retail licenses to purchase beer, wine or liquor with a business payment card
The People of the State of New York, represented in Senate and Assembly, 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 a 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 the bank account of a retail licensee. 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 manufacturer 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 remuneration for surcharges and fees incurred by a manufacturer or wholesaler as a result of such a transaction, which shall be calculated by multiplying the final cash invoice amount by a rate determined annually by the authority.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10011-02-9
S. 4241--A 2
§ 2. Subdivision 2 of section 101-aa of the alcoholic beverage control law, as amended by chapter 242 of the laws of 2012, is amended and a new subdivision 2-a is added to read as follows:
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; 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.
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 preclude, a retail licensee that receives such an invoice from electing to use any payment method permitted pursuant to subdivision two of this section following receipt of such invoice.
§ 3. Subdivision 1 of section 101-aaa of the alcoholic beverage control law is amended by adding three new paragraphs h, i and j to read as follows:
h. "Business payment card" means 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. 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 remuneration for surcharges and fees incurred by a manufacturer or wholesaler as a result of such a transaction, which shall be calculated by multiplying the final cash invoice amount by a rate determined annually by the authority.
§ 4. Subdivision 2 of section 101-aaa of the alcoholic beverage control law, as amended by chapter 522 of the laws of 2018, is amended and a new subdivision 2-a is added to read as follows:
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; [or]
(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
S. 4241--A 3
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 preclude, a retail licensee that receives such an invoice from electing to use any payment method permitted pursuant to subdivision two of this section following receipt of such invoice.
§ 5. Subdivision 2 of section 55-b of the alcoholic beverage control law, as amended by chapter 322 of the laws of 1978, is amended to read follows:
2. No brewer or beer wholesaler may increase the price per case, draft package or special package of beer sold to beer wholesalers or retail licensees until at least one hundred eighty days have elapsed since his last price decrease on such case, draft package or special package, provided, however, that the brewer or beer wholesaler may increase any price established by him at any time in the amount of any direct tax increase on beer or in the amount necessary to reasonably remunerate such wholesaler for surcharges and fees incurred for business payment card payments, as determined by the authority pursuant to paragraph j of subdivision one of section one hundred one-aaa of this chapter, or on containers thereof, actually paid by such brewer or beer wholesaler, and provided further, however, that if a brewer or beer wholesaler has increased his price to beer wholesalers at any time pursuant to the provisions hereof, the beer wholesaler may increase the price established by him on such package in an amount equal to the direct price increase to the beer wholesaler. The price per case, draft package or special package of beer sold to beer wholesalers or retail licensees on the first day of the month following the effective date of this act shall be deemed the base price, to or from which price increases or decreases may be made in accordance with the provisions of this section.
§ 6. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to authorizing retail licenses to purchase beer, wine or liquor with a business payment card
Purpose
OF THE BILL:
To allow licensed retailers to use business credit cards to purchase wine, wine products, beer and liquor from licensed distributors and wholesalers.
Summary of provisions
Section 1 amends S 101-aa(1) of the Alcoholic Beverage Control Law to establishes definitions.
Section 2 amends S 101-aa(2) of the Alcoholic Beverage Control Law to permit retail licensees to use business payment cards for the purchase of wine and liquor.
Section 3 amends S 101-aaa(1) of the Alcoholic Beverage Control Law to establish the definitions.
Section 4 amends § 101-aaa(2) of the Alcoholic Beverage Control Law.
Section 5 amends § 55-b to address the 180 day rule
Section 6 establishes the effective date.
Existing law
Under current law, retail licensees may only pay for the purchase of liquor, wine, beer, cider, and wine products with cash, certified check, money order, electronic funds transfer, bank officer's check or draft, or check.
Justification
Credit cards are basic tools of modern commerce, and are used regularly throughout the world today. As such, alcohol beverage retailers should be permitted to use to business credit cards to purchase products from duly licensed alcohol beverage wholesalers and distributors. Allowing licensed retailers to buy alcohol beverages from distributors using credit cards will facilitate commercial transactions and improve accountability through enhanced record-keeping, while preserving regula- tory policy objectives such as credit limitations and tied-house restrictions.
If a retailer uses a credit card to buy alcohol beverage inventory, the wholesaler receives payment immediately. The wholesaler is not extending credit to the retailer; rather, credit is extended by a financial insti- tution that has no direct interest in the alcohol beverage industry. The involvement of the third-party financial institution actually creates an additional barrier between the retailer and the, wholesaler, effectively alleviating the historical concerns behind these credit limitations.
Moreover, the involvement of the financial institution issuing the cred- it card increases timely and effective accountability through independ- ent, timely and effective record-keeping as to all credit card trans- actions. Hence, as a matter of alcohol regulatory policy, the use of a credit card in no way affords the wholesaler an opportunity to gain undue influence with the retailer; the ensuing credit obligation owed by the retailer is to the card-issuer, not the merchant selling the alcohol inventory to the card holder.
Prior legislative history
2018- S7591 (Lanza) FISCAL IMPLICATIONS:
None.
Effective date
This act shall take effect 90 days after enactment, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.