senate Bill S5614B

2009-2010 Legislative Session

Relates to agreements between brewers and beer wholesalers

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A488 - Passed Assembly


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 30, 2010 3rd reading cal.1330
substituted for s5614b
Jun 30, 2010 substituted by a488c
Jun 29, 2010 ordered to third reading cal.1330
committee discharged and committed to rules
Jan 13, 2010 print number 5614b
Jan 13, 2010 amend and recommit to commerce, economic development and small business
Jan 06, 2010 referred to commerce, economic development and small business
Jun 18, 2009 print number 5614a
Jun 18, 2009 amend and recommit to commerce, economic development and small business
May 21, 2009 referred to commerce, economic development and small business

Votes

view votes

Jun 29, 2010 - Rules committee Vote

S5614B
20
1
committee
20
Aye
1
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

S5614 - Details

See Assembly Version of this Bill:
A488
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §55-c, ABC L
Versions Introduced in 2011-2012 Legislative Session:
S1315, A789, A8962

S5614 - Summary

Permits brewers with a certain annual volume and with a certain percentage of sales to terminate an agreement with a beer wholesaler without having good cause; requires payment of fair market value of the applicable distribution rights lost; allows for the arbitration panel to review the fair market value; sets forth definitions.

S5614 - Sponsor Memo

S5614 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5614

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 21, 2009
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
  agreements between small brewers and beer wholesalers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  4  of section 55-c of the alcoholic beverage
control law is amended by adding a new paragraph (c) to read as follows:
  (C) NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE CONTRARY:
  (I) ANY BREWER WITH AN ANNUAL VOLUME AS DEFINED IN THIS  PARAGRAPH  OF
LESS  THAN  THREE HUNDRED THOUSAND BARRELS OF BEER AND WHOSE SALES TO AN
AFFECTED BEER WHOLESALER ARE THREE PERCENT OR LESS OF  THE  BEER  WHOLE-
SALER'S  TOTAL  ANNUAL  BRAND SALES MEASURED IN CASE EQUIVALENT SALES OF
TWENTY-FOUR--TWELVE OUNCE UNITS, HEREINAFTER  REFERRED  TO  AS  "COVERED
BREWERS,"  MAY  TERMINATE  AN AGREEMENT WITH ANY BEER WHOLESALER WITHOUT
HAVING GOOD CAUSE FOR SUCH TERMINATION, AS DEFINED IN PARAGRAPH  (E)  OF
SUBDIVISION  TWO  OF THIS SECTION, AND SHALL NOT BE SUBJECT TO LIABILITY
TO THE BEER WHOLESALER UNDER PARAGRAPH (B) OF SUBDIVISION SEVEN OF  THIS
SECTION  PROVIDED  THAT, PRIOR TO THE EFFECTIVE DATE OF THE TERMINATION,
SUCH COVERED BREWER PAYS THE BEER WHOLESALER THE FAIR  MARKET  VALUE  OF
THE  DISTRIBUTION  RIGHTS  WHICH WILL BE LOST OR DIMINISHED BY REASON OF
THE TERMINATION. IF SUCH BREWER  AND  BEER  WHOLESALER  CANNOT  MUTUALLY
AGREE  TO  THE  FAIR  MARKET VALUE OF THE APPLICABLE DISTRIBUTION RIGHTS
LOST OR DIMINISHED BY REASON OF THE TERMINATION, THEN THE COVERED BREWER
SHALL PAY THE BEER WHOLESALER A GOOD FAITH ESTIMATE OF THE  FAIR  MARKET
VALUE OF THE APPLICABLE DISTRIBUTION RIGHTS.
  (II) IF THE BEER WHOLESALER BEING TERMINATED UNDER SUBPARAGRAPH (I) OF
THIS  PARAGRAPH DISPUTES THAT THE PAYMENT MADE BY THE COVERED BREWER WAS
LESS THAN THE FAIR MARKET VALUE OF THE  DISTRIBUTION  RIGHTS,  THEN  THE
BEER  WHOLESALER  MAY  WITHIN  FORTY-FIVE DAYS OF TERMINATION SUBMIT THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03513-03-9

Co-Sponsors

S5614A - Details

See Assembly Version of this Bill:
A488
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §55-c, ABC L
Versions Introduced in 2011-2012 Legislative Session:
S1315, A789, A8962

S5614A - Summary

Permits brewers with a certain annual volume and with a certain percentage of sales to terminate an agreement with a beer wholesaler without having good cause; requires payment of fair market value of the applicable distribution rights lost; allows for the arbitration panel to review the fair market value; sets forth definitions.

S5614A - Sponsor Memo

S5614A - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5614--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 21, 2009
                               ___________

Introduced  by  Sens. VALESKY, GRIFFO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Commerce, Econom-
  ic Development  and  Small  Business  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
  agreements between small brewers and beer wholesalers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 4 of section 55-c  of  the  alcoholic  beverage
control law is amended by adding a new paragraph (c) to read as follows:
  (C) NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE CONTRARY:
  (I)  ANY  BREWER WITH AN ANNUAL VOLUME AS DEFINED IN SUBPARAGRAPH (IV)
OF THIS PARAGRAPH OF LESS THAN THREE HUNDRED THOUSAND  BARRELS  OF  BEER
AND WHOSE SALES TO AN AFFECTED BEER WHOLESALER ARE THREE PERCENT OR LESS
OF  THE  BEER  WHOLESALER'S  TOTAL  ANNUAL  BRAND SALES MEASURED IN CASE
EQUIVALENT SALES OF TWENTY-FOUR--TWELVE OUNCE  UNITS  MAY  TERMINATE  AN
AGREEMENT  WITH  ANY  BEER WHOLESALER WITHOUT HAVING GOOD CAUSE FOR SUCH
TERMINATION, AS DEFINED IN PARAGRAPH (E)  OF  SUBDIVISION  TWO  OF  THIS
SECTION,  AND  SHALL  NOT BE SUBJECT TO LIABILITY TO THE BEER WHOLESALER
UNDER PARAGRAPH (B) OF SUBDIVISION SEVEN OF THIS SECTION PROVIDED  THAT,
PRIOR TO THE EFFECTIVE DATE OF THE TERMINATION, THE BREWER PAYS THE BEER
WHOLESALER  THE  FAIR MARKET VALUE OF THE DISTRIBUTION RIGHTS WHICH WILL
BE LOST OR DIMINISHED BY REASON OF THE TERMINATION. IF SUCH  BREWER  AND
BEER  WHOLESALER  CANNOT  MUTUALLY AGREE TO THE FAIR MARKET VALUE OF THE
APPLICABLE DISTRIBUTION RIGHTS LOST  OR  DIMINISHED  BY  REASON  OF  THE
TERMINATION,  THEN THE BREWER SHALL PAY THE BEER WHOLESALER A GOOD FAITH
ESTIMATE OF THE FAIR MARKET VALUE OF THE APPLICABLE DISTRIBUTION RIGHTS.
  (II) IF THE BEER WHOLESALER BEING TERMINATED UNDER SUBPARAGRAPH (I) OF
THIS PARAGRAPH DISPUTES THAT THE PAYMENT MADE BY  THE  BREWER  WAS  LESS
THAN  THE  FAIR  MARKET  VALUE OF THE DISTRIBUTION RIGHTS, THEN THE BEER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03513-04-9

Co-Sponsors

S5614B (ACTIVE) - Details

See Assembly Version of this Bill:
A488
Law Section:
Alcoholic Beverage Control Law
Laws Affected:
Amd §55-c, ABC L
Versions Introduced in 2011-2012 Legislative Session:
S1315, A789, A8962

S5614B (ACTIVE) - Summary

Permits brewers with a certain annual volume and with a certain percentage of sales to terminate an agreement with a beer wholesaler without having good cause; requires payment of fair market value of the applicable distribution rights lost; allows for the arbitration panel to review the fair market value; sets forth definitions.

S5614B (ACTIVE) - Sponsor Memo

S5614B (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5614--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 21, 2009
                               ___________

Introduced  by  Sens. VALESKY, GRIFFO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Commerce, Econom-
  ic Development  and  Small  Business  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- recommitted to the Committee on Commerce, Economic  Development
  and Small Business in accordance with Senate Rule 6, sec. 8 -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
  agreements between small brewers and beer wholesalers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 4 of section 55-c  of  the  alcoholic  beverage
control law is amended by adding a new paragraph (c) to read as follows:
  (C) NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE CONTRARY:
  (I)  ANY  BREWER WITH AN ANNUAL VOLUME AS DEFINED IN SUBPARAGRAPH (IV)
OF THIS PARAGRAPH OF LESS THAN THREE HUNDRED THOUSAND  BARRELS  OF  BEER
AND WHOSE SALES TO AN AFFECTED BEER WHOLESALER ARE THREE PERCENT OR LESS
OF  THE  BEER  WHOLESALER'S  TOTAL  ANNUAL  BRAND SALES MEASURED IN CASE
EQUIVALENT SALES OF TWENTY-FOUR--TWELVE OUNCE  UNITS  MAY  TERMINATE  AN
AGREEMENT  WITH  ANY  BEER WHOLESALER WITHOUT HAVING GOOD CAUSE FOR SUCH
TERMINATION, AS DEFINED IN PARAGRAPH (E)  OF  SUBDIVISION  TWO  OF  THIS
SECTION,  AND  SHALL  NOT BE SUBJECT TO LIABILITY TO THE BEER WHOLESALER
UNDER PARAGRAPH (B) OF SUBDIVISION SEVEN OF THIS SECTION PROVIDED  THAT,
PRIOR TO THE EFFECTIVE DATE OF THE TERMINATION, THE BREWER PAYS THE BEER
WHOLESALER  THE  FAIR MARKET VALUE OF THE DISTRIBUTION RIGHTS WHICH WILL
BE LOST OR DIMINISHED BY REASON OF THE TERMINATION. IF SUCH  BREWER  AND
BEER  WHOLESALER  CANNOT  MUTUALLY AGREE TO THE FAIR MARKET VALUE OF THE
APPLICABLE DISTRIBUTION RIGHTS LOST  OR  DIMINISHED  BY  REASON  OF  THE
TERMINATION,  THEN THE BREWER SHALL PAY THE BEER WHOLESALER A GOOD FAITH
ESTIMATE OF THE FAIR MARKET VALUE OF THE APPLICABLE DISTRIBUTION RIGHTS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03513-07-0

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