Senate Bill S8177A

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

                                 8177--A

                            I N  S E N A T E

                              June 14, 2010
                               ___________

Introduced   by   Sens.   ESPADA,   ADAMS,   HUNTLEY,  KRUGER,  ONORATO,
  STEWART-COUSINS -- read twice and ordered printed, and when printed to
  be committed to the Committee on Rules -- 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  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.  The alcoholic beverage control law is amended by adding a
new section 53-b to read as follows:
  S 53-B. MANNER OF POSTING AND CHANGING BEER PRICES TO WHOLESALERS  AND
RETAIL LICENSEES IN CITIES OF ONE MILLION OR MORE.
  1.  IT IS HEREBY DECLARED AS THE POLICY OF THE STATE THAT THE SALE AND
DISTRIBUTION OF BEER SHALL BE SUBJECT TO CERTAIN RESTRICTIONS,  PROHIBI-
TIONS  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 LEGISLATIVE 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 AND IS OWNED, PARTIALLY OR FULLY BY A
BREWER OR OFFERS TO SELL, MARKETS, PROMOTES,  WAREHOUSES  OR  PHYSICALLY
DISTRIBUTES  IN  FIFTEEN NEW YORK STATE COUNTIES OR PURCHASES, OFFERS TO
SELL, MARKETS, PROMOTES, WAREHOUSES OR PHYSICALLY DISTRIBUTES FORTY-NINE
PERCENT OR MORE OF THE BEER IN A CITY OF ONE MILLION OR MORE.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD17663-02-0
              

S. 8177--A                          2

  D. "FORKLIFT" MEANS ANY MECHANICAL SYSTEM ABLE TO UNLOAD PALLETS OFF A
DELIVERY VEHICLE.
  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 AND (3)
IS LOCATED IN A CITY OF ONE MILLION OR MORE.
  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. 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 CASE, DRAFT PACKAGE OR SPECIAL PACKAGE PRICE
TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE PALLET;
  C. SEVEN AND ONE-HALF PERCENT ABOVE THE CASE, DRAFT PACKAGE OR SPECIAL
PACKAGE  PRICE  TO NON-CONTRACTED WHOLESALERS IF PURCHASED BY THE TRUCK-
LOAD;
  D. TEN PERCENT ABOVE THE 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, TO OR FROM WHICH PRICE INCREASES  OR  DECREASES  MAY  BE
MADE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  4.  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,
POSTING OF PRICE ON THE AUTHORITY'S WEBSITE.
  C. 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

S. 8177--A                          3

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.
  D.  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.
  5.  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 A BEER WHOLESALER THE FOLLOW-
ING  SUMS:  BEER WHOLESALER, FIVE THOUSAND DOLLARS; FOR EACH CONTRACT OR
AGREEMENT ENTERED INTO BY A BEER WHOLESALER, FIVE  THOUSAND  DOLLARS;  A
NON-CONTRACTED  WHOLESALER,  FIVE  THOUSAND DOLLARS; A LIKE SUM SHALL BE
PAID BY EACH PERSON HEREAFTER APPLYING FOR THE ISSUANCE  OR  RENEWAL  OF
ANY  SUCH  LICENSE  AND/OR  FOR EACH CONTRACT OR AGREEMENT, 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  PRORATED  FOR  ANY
PORTION OF THE LICENSE FEE AND SHALL HAVE NO REFUND VALUE.
  6.  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 sixtieth day after it shall
have become a law.