Assembly Bill A10535

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10535
 
                           I N  A S S E M B L Y
 
                               March 6, 2026
                                ___________
 
 Introduced by M. of A. STIRPE -- read once and referred to the Committee
   on Economic Development
 
 AN  ACT  to  amend  the  alcoholic  beverage control law, in relation to
   expanding the ability of certain persons who sell alcohol to  set  the
   price of said alcohol
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 101-b of the alcoholic  beverage  control  law,  as
 amended  by chapter 531 of the laws of 1964, subdivision 2 as amended by
 chapter 669 of the laws of 1989,  paragraph  (a)  of  subdivision  3  as
 amended and paragraph (e) of subdivision 3 as added by chapter 24 of the
 laws of 2024, paragraph (b) of subdivision 3 as amended by section 1 and
 paragraph  (d) of subdivision 3 as added by section 2 of part E of chap-
 ter 56 of the laws of 2006, subdivision 4 as amended by chapter  102  of
 the laws of 1979, subdivision 4-a as added by chapter 891 of the laws of
 1986,  subdivision  5 as added and subdivisions 6 and 7 as renumbered by
 chapter 769 of the laws of 1986, paragraphs (a) and (b) of subdivision 5
 as amended by chapter 315 of the laws of  2022,  and  subdivision  6  as
 amended  by  chapter  919  of  the  laws  of 1976, is amended to read as
 follows:
   § 101-b. Unlawful discriminations prohibited[;  filing  of  schedules;
 schedule  listing fund]. 1. [It is the declared policy of the state that
 it is necessary to regulate  and  control  the  manufacture,  sale,  and
 distribution  within the state of alcoholic beverages for the purpose of
 fostering and promoting temperance in their consumption and respect  for
 and  obedience to the law.] In order to eliminate [the undue stimulation
 of sales of alcoholic beverages and] the practice of  manufacturers  and
 wholesalers  in granting discounts, rebates, allowances, free goods, and
 other inducements to selected licensees, which contribute to a disorder-
 ly distribution of alcoholic beverages, and which are detrimental to the
 proper regulation of the liquor industry and contrary to  the  interests
 of  temperance, it is hereby further declared as the policy of the state
 that the sale of alcoholic beverages  should  be  subjected  to  certain
 restrictions, prohibitions and regulations. The necessity for the enact-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14813-05-6
 A. 10535                            2
 
 ment  of  the  provisions  of  this section is, therefore, declared as a
 matter of legislative determination.
   2.  It  shall be unlawful for any person who sells liquors or wines to
 wholesalers or retailers [(a)] to discriminate, directly or  indirectly,
 in  price,  in discounts for time of payment or in discounts on quantity
 of merchandise sold, between one wholesaler and another  wholesaler,  or
 between  one  retailer  and  another  retailer purchasing liquor or wine
 bearing the same brand or trade name and of like age and  quality[;  (b)
 to  grant,  directly  or  indirectly,  any discount, rebate, free goods,
 allowance or other inducement of any kind whatsoever, except a  discount
 or  discounts  for  quantity  of  liquor  or  for quantity of wine and a
 discount not in excess of one per centum for payment on  or  before  ten
 days from date of shipment].
   3.  [(a) No brand of liquor or wine shall be sold to or purchased by a
 wholesaler, irrespective of the place of  sale  or  delivery,  unless  a
 schedule, as provided by this section, is transmitted to and received by
 the  liquor  authority,  and  is  then in effect. Such schedule shall be
 transmitted to the authority in such form, manner, medium and format  as
 the  authority  may  direct; shall be deemed duly verified by the person
 submitting such schedule upon its transmission  to  the  authority;  and
 shall contain, with respect to each item, the exact brand or trade name,
 capacity  of  package, nature of contents, age and proof where stated on
 the label, the number of bottles contained in each case, the bottle  and
 case  price  to  wholesalers,  the net bottle and case price paid by the
 seller, which prices, in each instance, shall  be  individual  for  each
 item  and  not  in  "combination" with any other item, the discounts for
 quantity, if any, and the discounts for time of payment,  if  any.  Such
 brand  of  liquor or wine shall not be sold to wholesalers except at the
 price and discounts then in effect unless prior  written  permission  of
 the authority is granted for good cause shown and for reasons not incon-
 sistent  with the purpose of this chapter. Such schedule shall be trans-
 mitted by (1) the owner of such brand, or (2) a wholesaler selling  such
 brand  and  who  is  designated  as agent for the purpose of filing such
 schedule if the owner of the brand is not licensed by the authority,  or
 (3)  with  the  approval of the authority, by a wholesaler, in the event
 that the owner of the brand is unable to transmit a schedule  or  desig-
 nate an agent for such purpose.
   (b)  No  brand  of  liquor  or wine shall be sold to or purchased by a
 retailer unless a schedule, as provided by this section, is  transmitted
 to  and  received  by  the liquor authority, and is then in effect. Such
 schedule shall be transmitted to the authority  in  such  form,  manner,
 medium  and  format  as  the  authority may direct; shall be deemed duly
 verified by the person submitting such schedule upon its transmission to
 the authority; and shall contain, with respect to each item,  the  exact
 brand  or  trade  name, capacity of package, nature of contents, age and
 proof where stated on the label, the number of bottles contained in each
 case, the bottle and case price to retailers, the net  bottle  and  case
 price paid by the seller, which prices, in each instance, shall be indi-
 vidual  for  each item and not in "combination" with any other item, the
 discounts for quantity, if any, and the discounts for time  of  payment,
 if  any.  Such  brand  of  liquor or wine shall not be sold to retailers
 except at the price and discounts then in effect  unless  prior  written
 permission  of  the  authority  is  granted for good cause shown and for
 reasons not inconsistent with the purpose of this chapter. Such schedule
 shall be transmitted by each manufacturer selling such brand to  retail-
 ers and by each wholesaler selling such brand to retailers.
 A. 10535                            3

   (c)  Provided however, nothing contained in this section shall require
 any manufacturer or wholesaler to list  in  any  schedule  to  be  filed
 pursuant to this section any item offered for sale to a retailer under a
 brand  which  is  owned  exclusively  by one retailer and sold at retail
 within the state exclusively by such retailer.
   (d)  The  authority may make available the schedules in paragraphs (a)
 and (b) of this subdivision to all licensed wholesaler or retail  estab-
 lishments by way of controlled internet access.
   (e)  As  used  in  this subdivision the term "item" shall be deemed to
 include a sealed, pre-wrapped package consisting of a  sealed  container
 or  containers  of  liquor,  wine or wine products and other merchandise
 reasonably used in connection with the preparation, storage,  promotion,
 gifting,  or service of liquor, wine or wine products provided that such
 other merchandise shall not be potable or edible; provided however  that
 any such wine, liquor or wine products sealed or pre-wrapped in combina-
 tion with other items shall also be available individually for sale. For
 the  purposes  of  this  section,  gift and promotional items shall only
 include those items that are complementary and directly associated  with
 the sale of wine or liquor they are gifting or promoting and shall mean:
 (1)  items  that  are  de  minimis  in  value,  but in no instance shall
 merchandise be valued at more than fifteen dollars in total;  (2)  items
 that  are  imprinted  with  the wine or liquor brand logo on the gift or
 promotional item; and (3) items that are included as part of a  manufac-
 tured pre-sealed package with the wine or liquor that is being gifted or
 promoted. Further, for the purposes of this section, gift or promotional
 items shall not include any food, non-alcoholic beverage, or other drink
 or  food  mix,  nor shall these items be offered for sale to the general
 public as individual items.
   4. Each such schedule required by paragraph (a) of  subdivision  three
 of this section shall be filed on or before the twenty-fifth day of each
 month and the prices and discounts set forth therein shall become effec-
 tive  on the first day of the second succeeding calendar month and shall
 be in effect for such second succeeding calendar month. Each such sched-
 ule required by paragraph (b) of subdivision three of this section shall
 be filed on or before the fifth day of each month, and  the  prices  and
 discounts  set  forth therein shall become effective on the first day of
 the calendar month following the filing thereof, and shall be in  effect
 for such calendar month. Within ten days after the filing of such sched-
 ule  the  authority shall make them or a composite thereof available for
 inspection  by  licensees.  Within  three  business  days   after   such
 inspection  is  provided  for, a wholesaler may amend his filed schedule
 for sales to retailers in order  to  meet  lower  competing  prices  and
 discounts  for  liquor  or  wine of the same brand or trade name, and of
 like age and quality, filed pursuant to this  section  by  any  licensee
 selling  such  brand,  provided  such  amended  prices are not lower and
 discounts are not greater than those to be met. Any amended schedule  so
 filed  shall  become  effective  on  the first day of the calendar month
 following the filing thereof and shall be in effect  for  such  calendar
 month.  All  schedules filed shall be subject to public inspection, from
 the time that they are required to be made available for  inspection  by
 licensees,  and  shall not be considered confidential. Each manufacturer
 and wholesaler shall retain in his licensed premises for  inspection  by
 licensees  a  copy  of his filed schedules as then in effect. The liquor
 authority may make such rules as shall be appropriate to carry  out  the
 purpose of this section.
 A. 10535                            4

   4-a.]  No licensee shall refuse to sell any brand of liquor or wine to
 any licensee authorized to purchase such brand of liquor  or  wine  from
 such  licensee  at  the  price  listed in the schedule of prices of such
 brand of liquor or wine [required to be filed] MAINTAINED by such licen-
 see  [with  the  authority  pursuant  to this section] ON THEIR RETAILER
 ORDERING PLATFORM OR OTHER PRICE LIST SUCH LICENSEE MAKES  AVAILABLE  TO
 RETAILERS,  provided  the  purchaser  pays  cash therefor, and except as
 herein provided.
   (a) [A schedule of prices to wholesalers filed by the brand  owner  or
 its  agent  with  the authority, pursuant to this section, may limit the
 distribution or resale of a brand to wholesalers by the  filing  by  the
 brand  owner or its agent with the authority of the names, addresses and
 license numbers of such wholesalers. Such list shall be filed each month
 together with the schedule of prices, and no name shall be added thereto
 or removed therefrom after filing except with permission of the authori-
 ty.
   (b) Only those wholesalers listed, pursuant to paragraph (a)  of  this
 subdivision,  may schedule the price to retailers for such brand, except
 that when not inconsistent with the purpose of this section, the author-
 ity may authorize  any  other  wholesaler  to  schedule  a  price  after
 furnishing  the  quantity,  source of purchase and any other information
 the authority may require.
   (c) When distribution or resale of a brand has been restricted, pursu-
 ant to paragraph (a) of this subdivision, such brand shall not  be  sold
 or  purchased  by  any wholesalers who are not listed in accordance with
 paragraph (a) of this subdivision.
   (d) For good cause shown to the satisfaction of the authority, permis-
 sion may be granted for the filing of schedules  limiting  the  distrib-
 ution or resale of a brand to retailers.
   (e)] Manufacturers and wholesalers may not require or compel retailers
 to purchase other brands in order to be able to buy a particular brand.
   [(f)]  (B) Nothing contained in this subdivision shall be construed as
 authority for permitting any conduct or activity by any brand  owner  or
 its  agent  or  any wholesaler of liquor or wine proscribed by the anti-
 trust laws of this state or the United States.
   [(g)] (C) If any provision of any paragraph of this subdivision or any
 subdivision of this section or the application thereof to any person  or
 circumstance shall be adjudged invalid by a court of competent jurisdic-
 tion,  such  order or judgment shall be confined in its operation to the
 controversy in which it was rendered and shall not affect or  invalidate
 the remainder of any provision of this subdivision or any subdivision of
 this  section or the application of any part thereof to any other person
 or circumstance and to this end the provisions of each paragraph of this
 subdivision and each subdivision of this section are hereby declared  to
 be severable.
   [5.  (a)  (i)  Notwithstanding  any  other provision of law, each such
 schedule required by paragraph (a) of subdivision three of this  section
 which  is filed by a micro-winery, winery, or farm winery, or a class A,
 A-1, B, B-1, C, or D distiller shall be filed annually on or before  the
 twenty-fifth day of November. The prices and discounts set forth therein
 shall  become effective on the first day of the second succeeding calen-
 dar month and shall remain in effect for such twelve succeeding calendar
 months, unless a price change filing is made  pursuant  to  subparagraph
 (ii) of this paragraph.
   (ii)  A  micro-winery,  winery,  or farm winery, or a class A, A-1, B,
 B-1, C, or D distiller licensee may file a price schedule change at  any
 A. 10535                            5

 time  between  the  required  annual  filings.  Each such price schedule
 change shall be filed on or before the twenty-fifth day  of  each  month
 for  a  change  in  prices  to  become effective on the first day of the
 second  succeeding  calendar  month and shall remain in effect until the
 effective date of the next filing.
   (b) (i) Notwithstanding any other provision of law, each such schedule
 required by paragraph (b) of subdivision three of this section which  is
 filed  by a micro-winery, winery, or farm winery licensee, or a class A,
 A-1, B, B-1, C, or D distiller shall be filed annually on or before  the
 fifth  day of December. The prices and discounts set forth therein shall
 become effective on the first day of the calendar  month  following  the
 filing  thereof,  and  shall remain in effect for such twelve succeeding
 calendar months, unless a  price  change  filing  is  made  pursuant  to
 subparagraph (ii) of this paragraph.
   (ii)  A  micro-winery,  winery,  or farm winery, or a class A, A-1, B,
 B-1, C, or D distiller licensee may file a price schedule change at  any
 time  between  the  required  annual  filings.  Each such price schedule
 change shall be filed on or before the fifth day of  each  month  for  a
 change  in  prices  to become effective on the first day of the calendar
 month following the filing thereof and shall remain in effect until  the
 effective date of the next filing.
   (c)  Within  ten days after the filing of such schedules the authority
 shall make them or a  composite  thereof  available  for  inspection  by
 licensees.  Within three business days after such inspection is provided
 for, a wholesaler may amend his filed schedule for sales to retailers in
 order to meet lower competing prices and discounts for wine of the  same
 brand or trade name, and of like age and quality, filed pursuant to this
 section by any licensee selling such brand, provided such amended prices
 are  not  lower  and discounts are not greater than those to be met. Any
 amended schedule so filed shall become effective on the first day of the
 calendar month following the filing thereof and shall be in effect until
 the effective date of the next filing.
   (d) All schedules filed shall be subject to  public  inspection,  from
 the  time  that they are required to be made available for inspection by
 licensees, and shall not be considered confidential.  Each  manufacturer
 and  wholesaler  shall retain in his licensed premises for inspection by
 licensees a copy of his filed schedules as then in  effect.  The  liquor
 authority  may  make such rules as shall be appropriate to carry out the
 purpose of this subdivision.
   6.  For the purpose of raising the  moneys  necessary  to  defray  the
 expenses  incurred  in  the administration of this section, on or before
 the tenth day after this act becomes a law, there shall be paid  to  the
 liquor authority by each manufacturer and wholesaler licensed under this
 chapter  to  sell to retailers liquors and/or wines, a sum equivalent to
 fifteen per centum of the annual license fee prescribed by this  chapter
 for each such licensee. A like sum shall be paid by each person hereaft-
 er applying for any such license or the renewal of any such license, and
 such  sum shall accompany the application and the license fee prescribed
 by this chapter for such license or renewal as the case may be.  In  the
 event  that  any  other  law  requires  the payment of a fee by any such
 licensee or applicant as set forth in this section for schedule listing,
 then and in such event the total fee imposed by this  section  and  such
 other  law  or laws on each such licensee shall not exceed in the aggre-
 gate a sum equivalent to fifteen per centum of the  annual  license  fee
 prescribed by this chapter for such license.
 A. 10535                            6

   7.]  4. The authority may revoke, cancel or suspend any license issued
 pursuant to this chapter, and may recover (as provided  in  section  one
 hundred  twelve  of  this  chapter) the penal sum of the bond filed by a
 licensee, or both, for any sale or purchase in violation of any  of  the
 provisions of this section or [for making a false statement in any sche-
 dule  filed  pursuant to this section or] for failing or refusing in any
 manner to comply with any of the provisions of this section.
   § 2. The opening paragraph of subdivision 4 of section  107-a  of  the
 alcoholic beverage control law, as amended by chapter 354 of the laws of
 2013, is amended to read as follows:
   An  application  for registration of a brand or trade name label shall
 be filed by (1) the owner of the brand or trade name if  such  owner  is
 licensed by the authority, or (2) a wholesaler selling such brand who is
 appointed  as  exclusive agent, in writing, by the owner of the brand or
 trade name for the purpose of filing such application, if the  owner  of
 the  brand  or  trade  name is not licensed by the authority, or (3) any
 wholesaler, with the approval of the authority, in the  event  that  the
 owner of the brand or trade name does not file or is unable to file such
 application  or  designate an agent for such purposes, or (4) any whole-
 saler, with the approval of the authority, in the event that  the  owner
 of the brand or trade name is a retailer who does not file such applica-
 tion,  provided  that  the retailer shall consent to such filing by such
 wholesaler. Such retailer may revoke his consent at any time, upon writ-
 ten notice to the authority and to such wholesaler.
   [Unless otherwise permitted or required by the authority, the applica-
 tion for registration of a liquor or wine  brand  or  trade  name  label
 filed  pursuant  to  this  section  shall  be filed by the same licensee
 filing schedules pursuant to section one hundred one-b of this article.]
   Cordials and wines which differ only as  to  fluid  content,  age,  or
 vintage  year,  as  defined by such regulations, shall be considered the
 same brand; and those that differ as to type or class may be  considered
 the  same  brand  by the authority where consistent with the purposes of
 this section.
   § 3. This act shall take effect immediately.