BILL NUMBER: S9979
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
authorizing retail licensees to purchase alcohol with a business payment
card
 
PURPOSE:
To expand the payment options available to retail licensees of spirits
to pay manufacturers and wholesalers to include business payment cards.
 
SUMMARY OF PROVISIONS:
Section one of the bill amends section 101-aa of the alcoholic beverage
control law to add the definitions of "business payment card", "final
cash invoice amount", and "final business payment card invoice amount".
Section two amends section 101-aa to provide retail licensees the addi-
tional payment option of a business payment card in transactions with
manufacturers and wholesalers of spirits. This section additionally
provides that manufacturers and wholesalers that exercise reasonable
diligence in ensuring the sale comports with the law shall not be found
to have violated the subdivision where a retail licensee uses a credit
card other than a business payment card.
Section three amends section 101-aa to provide that 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 the retail licensee, and clarifies that
the retail licensee shall bear the costs associated with this statute.
Section four provides the effective date.
 
JUSTIFICATION:
This bill will amend the Alcoholic Beverage Control law allowing retail
alcohol licensees to purchase liquor and bottled wine from wholesalers
and manufacturers using business credit or debit cards. Wholesalers must
clearly show both cash and card prices on invoices and are not required
to accept card payments. If wholesalers choose to accept credit card
payments, any credit card processing fees will be paid by the purchaser.
In 2019, NY took the first step to modernize business to business alco-
hol payments by allowing beer, cider and wine products to be purchased
using a business credit or debit card. Despite a successful implementa-
tion of the first phase of alcohol sales modernization over the last 7
years; the global economy has outpaced the U.S. in payments technology.
Given the successful first phase of updating regulations for the busi-
ness to business sale of beer, cider and wine products for restaurants,
local cafes and third spaces, we believe New York should move to the
second phase and update the regulations to provide restaurants with
parity. Whether they're buying beer or wine, restaurants, performance
venues and other licensed retailers should be able to use their
preferred method of payment, including a business credit or debit card.
Now more than ever, businesses are inundated with economic uncertainty,
tariffs and unnecessary red tape. Limiting a restaurateur's ability to
purchase wine with a preferred credit card can result in serious finan-
cial burdens. By removing unnecessary restrictions on credit cards New
York will help its businesses navigate through an unprecedented economy.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
None to the State
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9979: 101-aa alcoholic beverage control law, 101-aa(1) alcoholic beverage control law, 101-aa(2) alcoholic beverage control law