Relates to providing alcoholic beverages on credit; removes restrictions.
BILL NUMBER:S3828 REVISED 4/25/13
TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to providing alcoholic beverages on credit
PURPOSE: To permit wine and liquor retailers to extend store credit to customers
SUMMARY OF PROVISIONS:
Section one amends subdivisions 5, 6, and 7 of section 100 of the alcoholic beverage control law by removing the prohibition on selling, delivering, or giving away any alcoholic beverage on credit by retail licensees for off-premises consumption.
Section two provides the effective date.
JUSTIFICATION: Currently, a wine and liquor retailer may accept credit cards for payment of merchandise, but may not extend its own credit This is often problematic with large corporate customers or customers ordering for an event, since a retailer is not able to deliver the product and then send an invoice for payment. Customers are instead required to pay up front, in advance of delivery. By lifting this restriction, wine and liquor retailers can bill though the use of an invoice and operate in conformance with standard business practices.
LEGISLATIVE HISTORY: A.9361 of 2012, referred to economic development.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3828 2013-2014 Regular Sessions IN SENATE February 21, 2013 ___________Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the alcoholic beverage control law, in relation to providing alcoholic beverages on credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions 5, 6 and 7 of section 100 of the alcoholic beverage control law, subdivision 5 as amended by chapter 797 of the laws of 1986, subdivision 6 as added by chapter 526 of the laws of 1939 and subdivision 7 as added by chapter 256 of the laws of 1978, are amended to read as follows: 5.
[No retail licensee for off-premises consumption shall sell, deliv- er or give away, or cause, permit or procure to be sold, delivered or given away any alcoholic beverage, other than as provided herein, on credit: a retail licensee for off-premises consumption, except a winery licensee, may accept third party credit cards for the sale of any alco- holic beverage for which it is licensed; a winery licensee having the right to sell wine at retail for off-premises consumption may accept third party credit cards for the sale of said beverages at the winery premises only; and any person duly authorized to sell wine at retail for consumption off the premises may sell on credit to any regularly organ- ized church, synagogue or religious organization, wines to be used for sacramental purposes only. For purposes of this subdivision, beer and wine products that are delivered and left at the residence of a consumer without payment of the balance due thereon shall not constitute a sale on credit. 6.]No licensee shall sell or purchase any receipts, certificates, contracts or other documents issued for the storage of alcoholic bever- ages except as provided by the rules of the liquor authority. The liquor authority shall prescribe such rules for the purchase and sale of suchEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05060-01-3 S. 3828 2
receipts, certificates, contracts or other documents issued for the storage of alcoholic beverages which, in its opinion, will best accom- plish (1) Elimination of fraudulent and deceptive transactions; (2) Protection of purchasers against defaults by sellers; (3) The delivery of the alcoholic beverages represented by such receipts or documents, and (4) The payment of all taxes due thereon to the state.
[7.]6. Within ten days after filing a new application to sell liquor at retail under section sixty-three, sixty-four, sixty-four-a or sixty- four-b of this chapter, a notice thereof, in the form prescribed by the authority, shall be posted by the applicant in a conspicuous place at the entrance to the proposed premises. The applicant shall make reason- able efforts to insure such notice shall remain posted throughout the pendency of the application. The provisions hereof shall apply only where no retail liquor license has previously been granted for the proposed premise and shall, specifically, not be applicable to a proposed sale of an existing business engaged in the retail sale of liquor. The authority may adopt such rules it may deem necessary to carry out the purpose of this subdivision. S 2. This act shall take effect immediately.