N.Y. Alcoholic Beverage Control Law § 55-b: Manner of changing beer prices to wholesalers and retail licensees

§ 55-b. Manner of changing beer prices to wholesalers and retail

licensees. 1. It is hereby declared as the policy of the state that the

sale and distribution of beer shall be subject to certain restrictions,

prohibitions 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. No brewer or beer wholesaler may increase the price per case, draft

package or special package of beer sold to beer wholesalers or retail

licensees until at least one hundred eighty days have elapsed since his

last price decrease on such case, draft package or special package,

provided, however, that the brewer or beer wholesaler may increase any

price established by him at any time in the amount of any direct tax

increase on beer or three percent of the final cash invoice amount to

reasonably remunerate such wholesaler for surcharges and fees incurred

for business payment card payments, as provided for by paragraph j of

subdivision one of section one hundred one-aaa of this chapter, or on

containers thereof, actually paid by such brewer or beer wholesaler, and

provided further, however, that if a brewer or beer wholesaler has

increased his price to beer wholesalers at any time pursuant to the

provisions hereof, the beer wholesaler may increase the price

established by him on such package in an amount equal to the direct

price increase to the beer wholesaler. The price per case, draft package

or special package of beer sold to beer wholesalers or retail licensees

on the first day of the month following the effective date of this act

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.

3. 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,

that,

(1) Whenever a brewer or beer wholesaler decreases his price per case,

draft package or special package of beer to beer wholesalers, the beer

wholesaler may decrease his price to retail licensees on such reduced

item or items by no more than the amount in dollars and cents by which

the brewer or beer wholesaler has decreased the price per case, draft

package or special package to the beer wholesaler.

(2) Whenever the price per case, draft package or special package of

beer is increased to retail licensees by action of the brewer or beer

wholesaler following a price decrease, the brewer or beer wholesaler may

not increase its price to retailers on any item or items more than

one-half of the price decrease previously granted, nor may the brewer or

beer wholesaler selling such item or items to the beer wholesaler

increase its price to such beer wholesaler more than one-half of the

price decrease previously granted, provided, however, such restrictions

on price increases by both brewers and beer wholesalers shall remain in

effect for the period of one hundred eighty days.

(3) Whenever a brewer or beer wholesaler lowers its price per case,

draft package or special package of beer to any beer wholesaler in New

York state it must lower its price on each item or items by the same

amount to all beer wholesalers throughout New York state to whom such

item or items is offered for sale.

(4) Whenever a brewer or beer wholesaler, following a price decrease,

raises its price per case, draft package or special package of beer to

any beer wholesaler in New York state it must raise its price on each

item or items by the same amount to all beer wholesalers throughout New

York state to whom such item or items are offered for sale.

c. Providing that for good cause shown to its satisfaction, the

authority may grant waivers to licensees adversely affected by this

section, under such terms and conditions as the authority deems

appropriate.

d. 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

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.

4. For the purpose of defraying the expenses incurred in the

administration of this section, there shall be paid to the authority by

each person hereafter applying for a license as brewer or beer

wholesaler the following sums: brewer whose annual production is sixty

thousand barrels per year or more, one thousand dollars; brewer whose

annual production is less than sixty thousand barrels per year, one

hundred dollars; beer wholesaler, one hundred dollars. A like sum shall

be paid by each person hereafter applying for the issuance or 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

thereof, as the case may be. The sums prescribed by this subdivision

shall not be pro-rated for any portion of the license fee and shall have

no refund value.

5. 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.