Assembly Bill A10306

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10306
 
                           I N  A S S E M B L Y
 
                               May 13, 2022
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Bronson) --
   read once and referred to the Committee on Economic Development
 
 AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
   allowing cooperative agreements by licensees to sell wine or liquor at
   retail for consumption off the premises
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The alcoholic beverage control law is amended by  adding  a
 new section 106-c to read as follows:
   § 106-C. COOPERATIVE AGREEMENTS BY LICENSEES TO SELL WINE OR LIQUOR AT
 RETAIL FOR CONSUMPTION OFF THE PREMISES. NO MORE THAN TEN LICENSEES WITH
 LICENSES  FOR  THE  SALE  AT  RETAIL  OF WINE OR LIQUOR FOR OFF-PREMISES
 CONSUMPTION AS ESTABLISHED IN SECTION SIXTY-THREE  OR  SECTION  SEVENTY-
 NINE  OF  THIS  CHAPTER,  MAY JOIN A COOPERATIVE AGREEMENT TO MAKE JOINT
 PURCHASES OF ALCOHOLIC  BEVERAGES,  PROVIDED  THAT  SUCH  AGREEMENT  AND
 ACTIVITY SHALL CONFORM TO THE FOLLOWING STANDARDS:
   1.  THE  COOPERATIVE MAY HIRE EMPLOYEES TO ACT IN AN ADMINISTRATIVE OR
 MANAGEMENT CAPACITY FOR THE COOPERATIVE'S PURCHASE, STORAGE  AND  TRANS-
 PORTATION OF ALCOHOLIC BEVERAGES.  SUCH EMPLOYEES SHALL BE IN COMPLIANCE
 WITH  SECTIONS  ONE  HUNDRED  TWENTY-SIX AND ONE HUNDRED TWENTY-EIGHT OF
 THIS ARTICLE;
   2. NO COOPERATIVE AGREEMENT SHALL PROHIBIT ANY LICENSEE  FROM  JOINING
 ANY OTHER COOPERATIVE AGREEMENT;
   3. NO COOPERATIVE AGREEMENT SHALL PROHIBIT ANY RETAILER FROM ADVERTIS-
 ING OR SELLING ANY PRODUCT AT ANY OTHERWISE LAWFUL PRICE;
   4. ANY LICENSEE MAY WITHDRAW FROM A COOPERATIVE AGREEMENT WITHIN THIR-
 TY  DAYS  OF FORMING SUCH COOPERATIVE BY WRITTEN NOTICE TO THE REMAINING
 PARTICIPATING MEMBERS OF SUCH COOPERATIVE  AND  NO  PENALTIES  SHALL  BE
 CHARGED FOR SUCH WITHDRAWAL;
   5.  ALL  PURCHASES ON CREDIT THROUGH OR BY COOPERATIVE AGREEMENT SHALL
 BE REDUCED TO WRITING, SIGNED BY  THE  WHOLESALER  AND  EACH  INDIVIDUAL
 PARTICIPATING  MEMBER OF THE COOPERATIVE AND BE CONSISTENT WITH SECTIONS
 ONE HUNDRED ONE-AA AND ONE HUNDRED ONE-AAA OF THIS ARTICLE.  ALL  CREDIT
 TERMS  SHALL  INCLUDE  ADEQUATE ASSURANCES OF PAYMENT BY EACH INDIVIDUAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15533-01-2
 A. 10306                            2
 
 PARTICIPATING MEMBER OF THE COOPERATIVE BY EITHER THE POSTING OF A  BOND
 BY THE COOPERATIVE MEMBER OR A PROVISION THAT EACH MEMBER OF THE COOPER-
 ATIVE  SHALL  BE  JOINTLY  AND  SEVERALLY  LIABLE  FOR  PAYMENT  FOR THE
 PURCHASES  MADE  THROUGH  THE COOPERATIVE. A COPY OF SUCH WRITTEN AGREE-
 MENTS SHALL BE MAINTAINED BY THE WHOLESALER AND BY THE REGISTERED BUYING
 COOPERATIVE MEMBER;
   6. ALL INDIVIDUAL PURCHASES THROUGH OR BY COOPERATIVE AGREEMENT  SHALL
 BE  SEPARATELY  INVOICED CONSISTENT WITH SECTIONS ONE HUNDRED ONE-AA AND
 ONE HUNDRED ONE-AAA OF THIS ARTICLE AND SHALL CONTAIN THE  COOPERATIVE'S
 REGISTRATION NUMBER;
   7. ALL PURCHASES THROUGH OR BY A COOPERATIVE AGREEMENT SHALL BE TRANS-
 PORTED CONSISTENT WITH SECTION ONE HUNDRED SEVENTEEN OF THIS ARTICLE;
   8. NO LICENSED PARTY TO A COOPERATIVE AGREEMENT SHALL COMMINGLE INVEN-
 TORY,  FUNDS OR OTHER ASSETS INCONSISTENT WITH ANY SECTION OF THIS CHAP-
 TER;
   9. ANY PURCHASE OR TRANSFER IN VIOLATION OF ANY SECTION OF THIS  CHAP-
 TER  OR  THE REGULATIONS PROMULGATED THEREUNDER, SHALL BE A VIOLATION BY
 ALL MEMBERS OF THE COOPERATIVE PURCHASE AGREEMENT;
   10. NOTHING HEREIN SHALL BE DEEMED TO REQUIRE  THE  SERVICING  OF  ANY
 COOPERATIVE AGREEMENT WITH QUANTITY OR CASH DISCOUNTS IF THERE EXISTS NO
 CORRESPONDING JUSTIFICATION FOR THE DIFFERENTIAL; AND
   11. EACH LICENSED COOPERATIVE BUYING GROUP MAY MAINTAIN A PUBLIC WARE-
 HOUSE  PROVIDED  THAT  THE COOPERATIVE COMPLIES WITH SECTION ONE HUNDRED
 TWO OF THIS ARTICLE, THE COOPERATIVE PUBLIC WAREHOUSE MAINTAINS ASSIGNED
 SPACE FOR EACH INDIVIDUAL PARTICIPATING MEMBER OF  THE  COOPERATIVE  AND
 THE  INVENTORY  IS  TRANSFERRED  TO  THAT SPACE WITHIN SEVENTY-TWO HOURS
 AFTER DELIVERY. ALL PURCHASES THROUGH OR BY  THE  COOPERATIVE  AGREEMENT
 SHALL  BE  TRANSPORTED TO AND FROM THE WAREHOUSE CONSISTENT WITH SECTION
 ONE HUNDRED SEVENTEEN OF THIS ARTICLE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.