WeVote
Log In

Bill

Bill

S 9979

Authorizes retail licensees to purchase alcohol with a business payment

2025 Regular Session Introduced by James Skoufis

Allows retail alcohol licensees to pay using business payment cards (BPCs), with clear invoicing and cost responsibility to the retailer.

1ST REPORT CAL.1085
0
WeVote Research Nonpartisan
Bill Summary · S 9979

Bill Summary: S 9979 (New York, 2025-2026)

Purpose and Intent

S 9979 proposes to authorize retail alcohol licensees in New York to purchase alcohol using a business payment card (BPC). The measure defines what qualifies as a BPC and sets standards for disclosure, eligibility, and cost allocation related to card-based payments. The underlying aim is to expand payment options for retailers while ensuring transparency and fair treatment among payment methods.

Key Provisions and Changes

Definitions (Section 1)

  • Business Payment Card (BPC): A card issued to a retail licensee for business use, either:
    • A credit card or a debit card tied to the licensee’s bank account, issued under an agreement allowing purchases on credit or from the issuer; or
    • A credit or debit card from an issuer accepted by a manufacturer or wholesaler as permitted by the authority in regulation.
    • Excludes cards where a manufacturer or wholesaler has a financial interest or cards whose use benefits a manufacturer/wholesaler.
    • Must be issued in the name of the retail licensee and registered to the same address as the license, unless regulatory permission differs.
  • Final Cash Invoice Amount: The amount charged by a manufacturer or wholesaler to a retail licensee for the beverage under the standard invoicing terms.
  • Final Business Payment Card Invoice Amount: The amount charged to the licensee when a BPC is used, equal to the final cash invoice amount plus all surcharges and fees charged to the manufacturer/wholesaler by the card issuer or related entities.

Payment Terms and Compliance (Section 2)

  • Retailers may pay for beverages either:
    • On the standard terms (final payment date of the credit period) or
    • By using a BPC.
  • If a retailer uses a non-BPC method, the seller is not deemed to have violated the law if reasonable diligence is exercised to ensure compliance.

Manufacturer/Wholesaler Responsibilities and Rights (Section 3)

  • Invoicing Clarity: Vendors accepting BPCs must clearly display both the final cash invoice amount and the final BPC invoice amount on the retailer’s invoice.
  • Retailers retain the option to pay by any permitted method after receiving the invoice.
  • Non-Compulsion: The law does not require wholesalers to accept BPC payments; if accepted, BPCs must be offered on equal terms to all licensees.
  • Cost Allocation: When payment is made with a BPC, the retail licensee bears the cost of the transaction. This provision is intended to neutralize any perceived secondary benefits (e.g., rebates or additional perks) earned by the retailer from using the BPC.

Affected Parties

  • Retail alcohol licensees (e.g., liquor stores, bars, and other beverage retailers) that purchase alcohol from manufacturers or wholesalers.
  • Alcohol manufacturers and wholesalers that issue or accept BPCs.
  • Regulatory authorities overseeing alcohol sales, as the measure may require future regulations on BPC issuance and acceptance.

Timelines and Effective Date

  • The act has an immediate effective date upon enactment.

Potential Impacts and Considerations

  • Flexibility: Retailers gain an additional payment method, which may streamline purchasing or cash flow management.
  • Transparency: Clear invoicing of cash vs. BPC amounts helps retailers compare costs.
  • Costs to Retailers: Since retailers bear the transaction costs for BPC use, the financial advantage of BPCs may be reduced.
  • Competitive Neutrality: The requirement that BPC terms be offered on equal terms helps prevent preferential treatment among licensees.
  • Regulatory Guidance: The measure anticipates future regulations to define acceptable card issuers and conditions for BPC acceptance.

Overall, S 9979 creates a structured framework for allowing BPC payments in the retail alcohol sector while emphasizing clarity, fairness, and cost transparency.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.