§ 101-AA — Terms of sale

§ 101-aa. Terms of sale. 1. As used in this section:\n a. "Credit period" means a period beginning on the date alcoholic\nbeverages are delivered and ending thirty days thereafter.\n b. "payment period" means the period beginning on the date alcoholic\nbeverages are delivered and ending on the thirtieth day following the\ndate on which alcoholic beverages are delivered.\n c. "Final payment date" means the last day of a payment period.\n d. "Notification date" means, notwithstanding section twenty-five of\nthe general construction law, for deliveries on:\n (i) Monday, the Monday immediately following a final payment date;\n (ii) Tuesday, the Tuesday immediately following the final payment\ndate;\n (iii) Wednesday, the Wednesday immediately following the final payment\ndate;\n (iv) Thursday, the Thursday immediately following the final payment\ndate;\n (v) Friday, the Friday immediately following the final payment date.\n e. "Retail licensee" means a person licensed to sell liquor and/or\nwine at retail for on-premise consumption or for off-premise consumption\n(including a person holding a permit granted by the authority pursuant\nto subdivision six of section sixty-four of this chapter).\n f. "Cash" means and includes currency and coin of the United States of\nAmerica, certified check, money order, electronic funds transfer, bank\nofficer's check or draft, or a check drawn on the account of the retail\nlicensee payable to the manufacturer or wholesaler and dated no later\nthan the date of delivery of the alcoholic beverages and which is\nhonored upon presentment for payment, provided, however, that if any\ncheck or other instrument described herein tendered by a retail licensee\non the delinquent list is not honored upon presentment for payment, the\nlicense of such retail licensee may be suspended for not more than\nfifteen days for the first offense, and not more than sixty days for a\nsubsequent offense, which penalty shall be in addition to the penalty\nprovided for by the provisions of subdivision six of this section, and\nprovided further, that nothing herein contained shall require a\nmanufacturer or wholesaler to accept a check tendered by or drawn on the\naccount of a retail licensee on the delinquent list unless the same has\nbeen certified.\n 2. No manufacturer or wholesaler licensed under this chapter shall\nsell or deliver any liquor or wine to any retail licensee except as\nprovided for in this section:\n (a) for cash to be paid at the time of delivery; or\n (b) on terms requiring payment by such retail licensee for such\nalcoholic beverages on or before the final payment date of the credit\nperiod for which delivery is made.\n 3. Each such manufacturer and wholesaler is hereby required, on or\nbefore the respective notification dates for each retail license, to\ngive written notice of default, by first class mail, to all such\nlicensees therein who have failed to make payment to him or her on or\nbefore their final payment date for alcoholic beverages sold or\ndelivered to them during a credit period ending on their final payment\ndate. No retail licensee shall be placed in default if the wholesaler\nhas issued an account credit to the licensee, which after application to\nall debts owed by the retail licensee, is equal to or greater than the\namount of the default. Any such retail licensee receiving such notice\nshall not thereafter purchase alcoholic beverages except for cash until\nsuch time as the authority determines that his or her name shall not be\npublished on the delinquent list as provided in subdivision four of this\nsection, or until such time as the authority permits sales or deliveries\nto him or her as provided in subdivision five of this section. Each such\nmanufacturer and wholesaler is hereby required to file with the\nauthority, on or before each notification date, copies of the notices\nsent by him or her to all delinquent retail licensees as required in\nthis subdivision, and in addition, if the authority shall so require, a\nwritten list setting forth the names and addresses of all such\ndelinquent licensees. The authority, in its discretion, may extend for a\nperiod not exceeding three days the date for giving written notice of\ndefault to delinquent retail licensees and extend for three days the\ndate for filing with the authority the copies of notices sent to such\nlicensees and/or the written list of delinquent retail licensees as\nrequired in this subdivision. The authority, in its discretion, may\nlimit the documents to be filed to those relating to licensees who are\nto be added or deleted from the default list and direct that the\nmanufacturer or wholesaler maintain copies of all other documents\nrequired under this section for future inspection by the authority. The\nauthority shall, as soon as practicable after each notification date,\ncompile and publish and furnish each manufacturer and wholesaler\nlicensed under this chapter a list, to be designated the delinquent list\ncontaining the names and addresses of all retail licensees who have been\nreported by manufacturers and wholesalers pursuant to the provisions of\nthis section or section one hundred one-aaa of this article as having\nfailed to make payment as required by this section for alcoholic\nbeverages sold or delivered to them, and no such manufacturer or\nwholesaler, on or after the fifth day after the receipt of such\ndelinquent list, shall knowingly, wilfully or intentionally sell or\ndeliver any alcoholic beverages to any such licensee whose name appears\non such list, except for cash, until such time as the name of such\nlicensee is removed therefrom, except as hereinafter permitted. The\nreceipt of a delinquent list by a manufacturer or wholesaler shall\nconstitute knowledge of the names of the retail licensees who have\nfailed to make payment for alcoholic beverages as required by this\nsection. The failure of any manufacturer or wholesaler to comply with\nthe foregoing provisions of this section may, at the discretion of the\nauthority, subject the license of such manufacturer or wholesaler to\nsuspension for not more than five days for the first offense, and not\nmore than thirty days for a subsequent offense. The authority may\npublish the delinquent list on its website; provided, however, that full\naccess shall be restricted to those manufacturers and wholesalers\nlicensed under this chapter and access to their specific status shall be\nprovided to retailers licensed under this chapter. Such publication\nshall be considered receipt thereof by all manufacturers and\nwholesalers.\n 4. In the event that any dispute shall exist between any manufacturer\nor wholesaler and a retail licensee to whom he shall have sold alcoholic\nbeverages, either as to the fact of payment or as to the amount due for\nsuch alcoholic beverages or as to the quantity of the alcoholic\nbeverages sold or delivered, which dispute cannot be adjusted between\nthem, the authority is hereby authorized to receive statements from each\nof the parties to such dispute as to the facts and circumstances thereof\nand to determine whether or not such retail licensee's name should be\npublished on the appropriate delinquent list.\n 5. The authority in the case of a retail licensee who has actually\nmade payment for alcoholic beverages, or on good cause shown to it, may\npermit sales or deliveries to any retail licensee who has received\nnotice of default or who is named on any delinquent list, on terms other\nthan for cash, but within the limitations of this section, prior to the\npublication of the next appropriate delinquent list.\n 6. The license of any retail licensee who purchases or accepts\ndelivery of alcoholic beverages on any terms, other than as provided in\nthis section, may be suspended for not more than five days for the first\noffense and not more than thirty days for a subsequent offense. The\nfailure of any such retail licensee to pay any amount in default before\nthe expiration of the period of suspension shall be deemed and\npunishable as a subsequent offense until paid. In addition, the\nauthority may require any such retail licensee, after default in making\npayment in accordance with the provisions of this section to make\npayment in cash for alcoholic beverages subsequently delivered.\n 7. a. All retail licensees who fail to pay manufacturers or\nwholesalers for alcoholic beverages sold or delivered to such retail\nlicensees by such manufacturers or wholesalers subsequent to the\neffective date of this section, shall liquidate and pay such unpaid\nbalances to such manufacturers or wholesalers in equal monthly\ninstallments over a period of three months from the date upon which such\nunpaid balances become due. The authority, shall not, however, because\nof such an indebtedness or failure to pay such refuse to renew the\nlicense of any such licensee.\n b. All retail licensees shall, on or before October tenth, nineteen\nhundred sixty-five, make payment in full to manufacturers and\nwholesalers of all unpaid balances for alcoholic beverages sold and\ndelivered to such licensees during the month of September, nineteen\nhundred sixty-five. All retail licensees in groups two, three, four and\none shall, on or before November tenth, nineteen hundred sixty-five,\nmake payment in full to manufacturers and wholesalers of all unpaid\nbalances for alcoholic beverages sold and delivered between October\nfirst and October seventh, fourteenth, twenty-first and thirty-first,\nnineteen hundred sixty-five, respectively. The authority may impose any\npenalty or condition otherwise authorized by this section in the case of\nany such retail licensee who fails or refuses to liquidate and pay\nunpaid balance becoming due under this subdivision.\n 8. Nothing herein contained shall be construed to require any\nmanufacturer or wholesaler to extend credit to any retail licensee nor\nto restrain any manufacturer or wholesaler from seeking to enforce by\nlegal action or otherwise, payment of any sum or sums of money due or\nalleged to be due to any such manufacturer or wholesaler for alcoholic\nbeverages sold or delivered to any such retail licensee.\n 9. The state liquor authority is hereby authorized to do such acts,\nprescribe such forms and make such rules, regulations and orders as it\nmay deem necessary or proper fully to effectuate the provisions of this\nsection, including but not limited to the changing of any date on which\nany act or function pursuant to this section is to be performed by any\nlicensee or by the liquor authority.\n 10. For the purpose of raising the moneys necessary to defray the\nexpenses incurred in the administration of this section, on or before\nthe tenth day after this section becomes a law, there shall be paid to\nthe liquor authority by each manufacturer and wholesaler licensed under\nthis chapter to sell to retailers liquor and/or wines or beer, a sum\nequivalent to ten per centum of the annual license fee prescribed by\nthis chapter for each such licensee. A like sum shall be paid by each\nperson hereafter applying for any such license or the renewal of any\nsuch license, and such sum shall accompany the application and the\nlicense fee prescribed by this chapter for such license or renewal, as\nthe case may be.\n