Bill S499-2013

Relates to amending schedules which have been filed with the liquor authority

Relates to amending schedules which have been filed with the liquor authority.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S499

TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to amending schedules which have been filed with the liquor authority

PURPOSE: This bill will promote competition amongst wholesalers by allowing wholesalers to amend their prices below that of their competitors.

SUMMARY OF PROVISIONS: Section 1. Amends subdivision (4) of section 101-b of the alcoholic beverage control law as amended by chapter 102 of the laws of 1979 by allowing a wholesaler of liquor or wine to amend their schedule within ten days as long as such amended prices are lower and such amended discounts are greater.

Section 2. Amends paragraph (c) of subdivision 5 of section 101-b of the alcoholic beverage control law as added by chapter 769 of the laws of 1986 by allowing a micro-winery, winery, or farm winery to amend their schedule within ten days as long as such amended prices are lower and such amended discounts are greater.

Section 3. Effective date.

EXISTING LAW: Currently, a wholesaler may amend their price schedule, but they are prohibited from amending their prices below that of a competitor or amending their discounts to be greater than that of a competitor.

JUSTIFICATION: The current price posting law allows a wholesaler to amend their filing schedule but prohibits them from amending their prices below that of a competitor or amending their discounts to be greater than that of a competitor. This leads to implicit collusion as each wholesaler can set an above market price with the assurance that if their competitors do not follow suit, they will have the opportunity to lower their price to match their competitors. This bill will eliminate such perverse incentives by allowing distributors to amend prices below those of their competitors. This creates a competitive environment and causes prices to reflect actual market price.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 499 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the alcoholic beverage control law, in relation to amending schedules which have been filed with the liquor authority THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 4 of section 101-b of the alcoholic beverage control law, as amended by chapter 102 of the laws of 1979, is amended to read as follows: 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 SUCH AMENDED 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. S 2. Paragraph (c) of subdivision 5 of section 101-b of the alcoholic beverage control law, as added by chapter 769 of the laws of 1986, is amended to read as follows: (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 SUCH AMENDED 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. S 3. This act shall take effect immediately.

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