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Who cares
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Sponsors
Senator · Senate District 59
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.