S T A T E   O F   N E W   Y O R K
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                                  8227

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 7, 2011
                               ___________

Introduced  by  M.  of  A. V. LOPEZ, LENTOL, BOYLAND, CASTRO, J. RIVERA,
  TITUS -- Multi-Sponsored by -- M. of A. HEASTIE, HEVESI, ORTIZ -- read
  once and referred to the Committee on Economic Development

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.
  B.  "BREWER/WHOLESALER"  MEANS  THE  HOLDER OF A WHOLESALER'S LICENSE,
PURSUANT TO SECTION FIFTY-THREE OF THIS ARTICLE, WHO  PURCHASES,  OFFERS
TO  SELL,  MARKETS, PROMOTES, WAREHOUSES, OR PHYSICALLY DISTRIBUTES BEER
PREDOMINANTLY BREWED BY THE LICENSEE.
  C. "CASE", "DRAFT  PACKAGE"  OR  "SPECIAL  PACKAGE"  MEANS  A  PACKAGE
PRODUCED BY A BREWER AND SOLD TO A BEER WHOLESALER.
  D. "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.
                                                           LBD08886-02-1
              

A. 8227                             2

  E. "FORKLIFT" MEANS ANY MECHANICAL SYSTEM ABLE TO UNLOAD PALLETS OFF A
DELIVERY VEHICLE.
  F.  "LOADING DOCK" MEANS A PLATFORM WHERE TRUCKS, SEMI-TRUCKS, AND SEA
OR RAIL CONTAINERS ARE UNLOADED BY FORKLIFTS.
  G. "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.
  H. "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.
  I. "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 AND BREWER/WHOLESALERS SHALL POST WITH THE AUTHOR-
ITY 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 POSTED PRICE TO NON-CONTRACTED
WHOLESALERS 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, 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

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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.
  D.  REQUIRING BEER WHOLESALERS AND BREWER/WHOLESALERS TO REGISTER WITH
THE AUTHORITY EACH CONTRACT AND AGREEMENT, INCLUDING THE NAMES OF  BREW-
ERS  AND  IMPORTERS  WITH  WHICH SUCH WHOLESALER HAS CONTRACTS OR AGREE-
MENTS, AND REQUIRING WHOLESALERS TO MAINTAIN FORMS, RECORDS AND MEMORAN-
DA 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.