BILL NUMBER: S9162A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
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
 
PURPOSE:
This bill will repeal an antiquated administrative requirement known as
"price posting" or "post-and-hold" that keeps prices for wine and liquor
artificially high in New York State.
 
SUMMARY OF PROVISIONS:
Section 1: Amends section 101-b of the alcoholic beverage control law to
remove a reference to filing schedules ("price posting").
Section 2: Amends the opening paragraph of subdivision 4 of section
107-a of the alcoholic beverage control law to remove a reference to
filing schedules ("price posting").
Section 3: Sets effective date.
 
JUSTIFICATION:
In the alcohol and beverage control law, the system of "price posting"
currently requires manufacturers, importers, and wholesalers of wine and
liquor to file with the State Liquor Authority on a monthly basis the
exact prices at which they plan to sell products, and any available
quantity discounts. Once prices are locked in two months in advance of
sale, these entities have no flexibility to adjust prices when selling
to licensed retailers; all retailers must be offered products at the
exact price set two months prior.
New York is one of a small number of states that still requires this
"price posting" or "post-and-hold" practice, which keeps prices arti-
ficially high and prevents competitive pricing. In recent years, New
York has ranked between 42nd and 50th in the nation when it comes to the
affordability of wine and liquor products, despite ranking in the top
five for beer affordability; beer manufacturers, suppliers, and whole-
salers do not have this same "post-and-hold" requirement.
By repealing the regressive and outdated practice of "price posting,"
New York can lower shelf prices for individual consumers as well as bars
and restaurants, promote wholesale competition and industry transparen-
cy, and level the playing field for countless small businesses who are
currently unable to access quantity discounts due to limited space. This
would further eliminate a monthly administrative burden for manufactur-
ers, suppliers, and wholesalers, and would result in modest annual
savings for the State Liquor Authority, which could eliminate its
contract with the online platform currently used for "post-and-hold"
registration.
 
LEGISLATIVE HISTORY:
Senate New Bill
 
FISCAL IMPLICATIONS:
Modest operational savings by the SLA.
 
EFFECTIVE DATE:
TBD

Statutes affected:
S9162: 101-b alcoholic beverage control law, 107-a alcoholic beverage control law, 107-a(4) alcoholic beverage control law
S9162A: 107-a alcoholic beverage control law, 107-a(4) alcoholic beverage control law