S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9060
 
                           I N  A S S E M B L Y
 
                             February 6, 2024
                                ___________
 
 Introduced by M. of A. STIRPE -- 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.
              

                                                            LBD01796-01-3
 A. 9060                             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.