S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3460
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01796-01-3
 S. 3460                             2
              

 
   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
 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.