Senate Bill S1315

Signed By Governor
2011-2012 Legislative Session

Relates to agreements between brewers and beer wholesalers

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-S1315 (ACTIVE) - Details

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

2011-S1315 (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.

2011-S1315 (ACTIVE) - Sponsor Memo

2011-S1315 (ACTIVE) - Bill Text download pdf

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

                                  1315

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 6, 2011
                               ___________

Introduced  by  Sen.  GRIFFO -- 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  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
WHOLESALER MAY WITHIN FORTY-FIVE DAYS OF TERMINATION SUBMIT THE QUESTION
OF  FAIR  MARKET  VALUE  OF  THE  APPLICABLE DISTRIBUTION RIGHTS LOST OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01630-01-1
              

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