§ 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.