Bill S6324-2013

Allows retail licensees for on-premises consumption to join in a cooperative agreement for the purchase of alcoholic beverages

Allows two or more retail licensees for on-premises consumption to join in a cooperative agreement for the purchase of alcoholic beverages in larger quantity.

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  • Jan 14, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S6324

TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to allowing retail licensees for on-premises consumption to join in a cooperative agreement for the purchase of alcoholic beverages

PURPOSE: This legislation would establish a cooperative buying system to enable groups of licensees to purchase alcoholic beverages.

SUMMARY OF PROVISIONS: The bill would add a new section 106-c to the alcoholic beverage control law to provide the above measure.

JUSTIFICATION: The practice of groups of individuals or companies joining together to make bulk purchases of goods is a well accepted method for reducing business costs. Trade associations, purchasing groups and many other organizations engage in this practice in order to save money for their participants.

On-premises retail alcohol beverage licensees are currently prohibited from benefiting from this practice to purchase alcoholic beverages from suppliers, a restriction which is a remnant of a regulatory need which has long passed. This increases operating costs and places small business owners at considerable competitive disadvantage to larger, corporate chains that can routinely afford to buy in bulk to keep costs at a minimum.

LEGISLATIVE HISTORY: 2011-2012 A312 Referred to Economic Development 2009-2010 A484 Referred to Economic Development 2007-2008 A80 Referred to Economic Development 2006-2006 A3626 Referred to Economic Development 2003-2004 A207A referred to Economic Development

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 6324 IN SENATE January 14, 2014 ___________
Introduced by Sen. VALESKY -- 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 retail licensees for on-premises consumption to join in a cooperative agreement for the purchase of alcoholic beverages 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: S 106-C. COOPERATIVE AGREEMENTS BY LICENSEES TO SELL AT RETAIL FOR CONSUMPTION ON THE PREMISES. ANY TWO OR MORE RETAIL LICENSEES FOR ON-PREMISES CONSUMPTION MAY JOIN IN A COOPERATIVE AGREEMENT TO MAKE JOINT PURCHASES OF ALCOHOLIC BEVERAGES IN LARGER QUANTITIES THAN MIGHT OTHERWISE BE PURCHASED; PROVIDED, HOWEVER, THAT ALL ALCOHOLIC BEVERAGES PURCHASED PURSUANT TO ANY SUCH AGREEMENT SHALL BE DISTRIBUTED TO NONE OTHER THAN A LICENSEE WHO IS A PARTY TO SUCH AGREEMENT. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that effective immediate- ly, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed by the state liquor authority on or before such effective date.

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