S T A T E O F N E W Y O R K
________________________________________________________________________
2089
2009-2010 Regular Sessions
I N S E N A T E
February 11, 2009
___________
Introduced by Sens. ESPADA, DIAZ, KRUGER, ONORATO -- read twice and
ordered printed, and when printed to be committed to the Committee on
Commerce, Economic Development and Small Business
AN ACT to amend the alcoholic beverage control law, in relation to the
manner of posting and changing beer prices to wholesalers and retail
licensees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 55-b of the alcoholic beverage control law, as
added by chapter 899 of the laws of 1973, subdivision 2 as amended by
chapter 322 of the laws of 1978 and subdivision 4 as amended by chapter
176 of the laws of 1999, is amended to read as follows:
S 55-b. Manner of POSTING AND changing beer prices to wholesalers and
retail licensees. 1. It is hereby declared as the policy of the state
that the sale and distribution of beer shall be subject to certain
restrictions, prohibitions and regulations which tend to maintain an
orderly market and prevent destructive competition. The necessity of the
provisions of this section is therefore declared as a matter of legisla-
tive necessity.
2. AS USED IN THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOW-
ING MEANINGS:
A. "BEER WHOLESALER" OR "WHOLESALER" MEANS THE HOLDER OF A WHOLE-
SALER'S LICENSE, PURSUANT TO SECTION FIFTY-THREE OF THIS ARTICLE, WHO
PURCHASES, OFFERS TO SELL, MARKETS, PROMOTES, WAREHOUSES OR PHYSICALLY
DISTRIBUTES BEER SOLD BY A BREWER.
B. "CASE", "DRAFT PACKAGE" OR "SPECIAL PACKAGE" MEANS A PACKAGE
PRODUCED BY A BREWER AND SOLD TO A BEER WHOLESALER.
C. "COD" MEANS CASH, CHECK OR ELECTRONIC PAYMENT AT THE TIME OF DELIV-
ERY.
D. "FORKLIFT" MEANS ANY MECHANICAL SYSTEM ABLE TO UNLOAD PALLETS OFF A
DELIVERY VEHICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08692-01-9
S. 2089 2
E. "LOADING DOCK" MEANS A PLATFORM WHERE TRUCKS, SEMI-TRUCKS, AND SEA
OR RAIL CONTAINERS ARE UNLOADED BY FORKLIFTS.
F. "NON-CONTRACTED WHOLESALER" MEANS THE HOLDER OF A WHOLESALER'S
LICENSE ISSUED OR RENEWED PRIOR TO JULY FIRST, NINETEEN HUNDRED SIXTY,
AND THEREAFTER RENEWED OR TRANSFERRED WHO (1) PURCHASES PRODUCTS FROM A
BEER WHOLESALER AND (2) IS NOT SUBJECT TO ANY AGREEMENT WITH A BREWER OR
BEER WHOLESALER PURSUANT TO SECTION FIFTY-FIVE-C OF THIS ARTICLE.
G. "PALLET" MEANS A QUANTITY OF CASES, DRAFT PACKAGES OR SPECIAL PACK-
AGES PRODUCED BY A BREWER AND STACKED ON A DEVICE MOVABLE BY A FORKLIFT
OR OTHER MECHANICAL METHOD.
H. "TRUCKLOAD" MEANS A QUANTITY OF PALLETS CONTAINING CASES, DRAFT
PACKAGES OR SPECIAL PACKAGES OF NOT LESS THAN THE MAXIMUM QUANTITY
FITTING TYPE OF VEHICLE OR LEGAL WEIGHT LIMIT.
3. No brewer or beer wholesaler may increase the price per case, draft
package or special package of beer sold to beer wholesalers [or],
NON-CONTRACTED WHOLESALERS (EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION
FOUR OF THIS SECTION) AND retail licensees until at least one hundred
eighty days have elapsed since his OR HER 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 OR
HER at any time in the amount of any direct tax increase on beer, 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 OR HER price to beer wholesalers at any time pursuant to
the provisions hereof, the beer wholesaler may increase the price estab-
lished by him OR HER 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]
SECTION 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.
[3.] 4. BEER WHOLESALERS SHALL POST WITH THE AUTHORITY THE PRICE PER
CASE, DRAFT PACKAGE OR SPECIAL PACKAGE OF BEER SOLD TO RETAIL LICENSEES
EVERY ONE HUNDRED EIGHTY DAYS. THE POSTED PRICE ON SUCH CASE, DRAFT
PACKAGE OR SPECIAL PACKAGE TO RETAIL LICENSEES MUST BE A MINIMUM OF
A. TWO AND ONE-HALF PERCENT ABOVE THE PRICE TO NON-CONTRACTED WHOLE-
SALERS IF PURCHASED BY THE CASE, DRAFT PACKAGE OR SPECIAL PACKAGE;
B. FIVE PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE OR SPECIAL PACK-
AGE PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE PALLET;
C. SEVEN AND ONE-HALF PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE OR
SPECIAL PACKAGE PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE
TRUCKLOAD;
D. TEN PERCENT ABOVE THE POSTED CASE, DRAFT PACKAGE OR SPECIAL PACKAGE
PRICE TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE TRAILERLOAD; AND
E. IF A FORKLIFT AND/OR A LOADING DOCK IS USED TO UNLOAD THE PALLETS
FROM THE DELIVERY VEHICLE, A MINIMUM OF AN ADDITIONAL TWO AND ONE-HALF
PERCENT SHALL BE DEDUCTED FROM THE CASE, DRAFT PACKAGE OR SPECIAL PACK-
AGE PRICE.
IF THE NON-CONTRACTED WHOLESALER PAYS COD FOR THE PURCHASE A MINIMUM
OF TWO AND ONE-HALF PERCENT SHALL BE DEDUCTED FROM THE PRICE PER CASE,
DRAFT PACKAGE OR SPECIAL PACKAGE. FURTHERMORE, NOTHING IN THIS SECTION
SHALL REQUIRE A NON-CONTRACTED WHOLESALER TO POST PRICING. THE PRICE PER
CASE, DRAFT PACKAGE OR SPECIAL PACKAGE OF BEER SOLD TO NON-CONTRACTED
WHOLESALERS OR RETAIL LICENSEES ON THE FIRST DAY OF THE MONTH FOLLOWING
THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE DEEMED THE BASE PRICE,
S. 2089 3
TO OR FROM WHICH PRICE INCREASES OR DECREASES MAY BE MADE IN ACCORDANCE
WITH THE PROVISIONS OF THIS SECTION.
5. The authority is authorized and empowered to do such acts,
prescribe such forms and adopt rules and regulations as it may deem
necessary or proper to carry into effect the purpose and provisions of
this section and to prevent circumvention or evasion thereof.
Without limiting the generality of the foregoing, and in addition to
its other powers, the authority may, in its discretion, adopt rules or
regulations:
a. Particularizing the standards of packaging which constitute a case,
special package and draft package of beer.
b. Defining the guidelines relating to "price" within the purview of
this section which guidelines may provide, without limitation thereto,
that,
(1) Whenever a brewer or beer wholesaler decreases his OR HER price
per case, draft package or special package of beer to beer wholesalers,
the beer wholesaler may decrease his OR HER price to retail licensees on
such reduced item or items by no more than the amount in dollars and
cents by which the brewer or beer wholesaler has decreased the price per
case, draft package or special package to the beer wholesaler.
(2) Whenever the price per case, draft package or special package of
beer is increased to retail licensees by action of the brewer or beer
wholesaler following a price decrease, the brewer or beer wholesaler may
not increase its price to retailers on any item or items more than one-
half of the price decrease previously granted, nor may the brewer or
beer wholesaler selling such item or items to the beer wholesaler
increase its price to such beer wholesaler more than one-half of the
price decrease previously granted, provided, however, such restrictions
on price increases by both brewers and beer wholesalers shall remain in
effect for the period of one hundred eighty days.
(3) Whenever a brewer or beer wholesaler lowers its price per case,
draft package or special package of beer to any beer wholesaler in New
York state it must lower its price on each item or items by the same
amount to all beer wholesalers throughout New York state to whom such
item or items is offered for sale.
(4) Whenever a brewer or beer wholesaler, following a price decrease,
raises its price per case, draft package or special package of beer to
any beer wholesaler in New York state it must raise its price on each
item or items by the same amount to all beer wholesalers throughout New
York state to whom such item or items are offered for sale.
c. Providing that for good cause shown to its satisfaction, the
authority may grant waivers to licensees adversely affected by this
section, under such terms and conditions as the authority deems appro-
priate.
d. Requiring licensees to file with the authority reports certifying
their prices of beer, the dates of any changes in the price of any item
of beer, and such other matters as the authority may determine from time
to time to be necessary to disclose accurately the price of beer during
the previous twelve months and requiring licensees to keep forms,
records and memoranda prescribed by the authority.
[4.] E. REQUIRING BEER WHOLESALERS TO REGISTER WITH THE AUTHORITY EACH
CONTRACT AND AGREEMENT, INCLUDING THE NAMES OF BREWERS AND IMPORTERS
WITH WHICH SUCH WHOLESALER HAS CONTRACTS OR AGREEMENTS, AND REQUIRING
WHOLESALERS TO MAINTAIN FORMS, RECORDS AND MEMORANDA PRESCRIBED BY THE
AUTHORITY.
S. 2089 4
6. For the purpose of defraying the expenses incurred in the adminis-
tration of this section, there shall be paid to the authority by each
person hereafter applying for a license as brewer or beer wholesaler the
following sums: brewer whose annual production is sixty thousand barrels
per year or more, one thousand dollars; brewer whose annual production
is less than sixty thousand barrels per year, one hundred dollars; beer
wholesaler, [one] FIVE hundred dollars; FOR EACH CONTRACT OR AGREEMENT
ENTERED INTO BY A NON-CONTRACTED WHOLESALER, FIVE HUNDRED DOLLARS. A
like sum shall be paid by each person hereafter applying for the issu-
ance or renewal of any such license AND/OR FOR EACH CONTRACTOR OR AGREE-
MENT, and such sum shall accompany the application and the license fee
prescribed by this chapter for such license or renewal thereof, as the
case may be. The sums prescribed by this subdivision shall not be pro-
rated for any portion of the license fee and shall have no refund value.
[5.] 7. For any violation of any provision of this section or of any
rule or regulation duly promulgated under this section the authority may
revoke, cancel or suspend a license or recover, as provided in section
one hundred twelve of this chapter, the penal sum of the bond filed by
the licensee.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.