N.Y. AGM Law § 258-C — New York Code / Act AGM / Article 21 / Section 258-C
Granting and revoking licenses
Status: in_force

§ 258-c. Granting and revoking licenses. No license shall be denied to\na person not now engaged in business as a milk dealer, or for the\ncontinuation of a now existing business, and no license shall be denied\nto authorize the extension of an existing business by the operation of\nan additional plant or other new additional facility, unless the\ncommissioner finds after due notice and opportunity of hearing to the\napplicant or licensee, that the applicant is not qualified by character\nor experience or financial responsibility or equipment properly to\nconduct the proposed business, provided however, that no new application\nshall be denied solely for the reason of inadequate equipment if it is\nshown that provision has been made for the acquisition of same. The\ncommissioner may also decline to grant or renew a license or may suspend\nor revoke a license already granted in whole or in part, upon due notice\nand opportunity of hearing to the applicant or licensee, when he is\nsatisfied of the existence of any of the following reasons:\n  (a) That a milk dealer has rejected, without reasonable cause, any\nmilk purchased or has rejected without reasonable cause or reasonable\nadvance notice, milk delivered in ordinary continuance of a previous\ncourse of dealing, except where contract has been lawfully terminated.\n  (b) That the milk dealer has failed to account and make payment\nwithout reasonable cause, for any milk purchased.\n  (c) That the milk dealer has committed any act injurious to the public\nhealth or public welfare.\n  (d) Where the milk dealer is insolvent or has made a general\nassignment for the benefit of creditors or has been adjudged a bankrupt\nor where a money judgment has been secured against him, upon which an\nexecution has been returned wholly or partly unsatisfied.\n  (e) Where the milk dealer has continued in a course of dealing of such\na nature as to satisfy the commissioner of his inability or\nunwillingness properly to conduct the business of receiving or selling\nmilk or to satisfy the commissioner of his intent to deceive or defraud\nproducers or consumers.\n  (f) Where the milk dealer has been a party to a combination to fix\nprices, contrary to law. A co-operative association of dairymen\norganized under or operated pursuant to the provisions of chapter\nseventy-seven of the consolidated laws and engaged in making collective\nsales or marketing for its members or shareholders of dairy products\nproduced by its members or shareholders shall not be deemed or construed\nto be a conspiracy or combination in restraint of trade or an illegal\nmonopoly nor shall the contracts, agreements, arrangements or\ncombinations heretofore or hereafter made by such association, or the\nmembers, officers or directors thereof, in making such collective sales\nand marketing and prescribing the terms and conditions thereof, be\ndeemed or construed to be conspiracies or to be injurious to public\nwelfare, trade or commerce, if otherwise authorized by such chapter or\nlaw. The provisions of and the remedies provided by this subdivision,\nsection and article shall be in addition to and shall not preempt or\ndisplace the provisions of article twenty-two of the general business\nlaw.\n  (g) Where there has been a failure either to keep records or to\nfurnish the statements or information required by the commissioner.\n  (h) Where it is shown that any material statement upon which the\nlicense was issued is or was false or misleading or deceitful in any\nparticular.\n  (i) Where the applicant or licensee has been convicted of a felony.\n  (j) Where the applicant is a partnership or a corporation and any\nindividuals holding any position or interest or power of control therein\nhas previously been responsible in whole or in part for any act on\naccount of which a license may be denied, suspended or revoked, pursuant\nto the provisions of this article.\n  (k) Where the milk dealer has violated any of the provisions of this\nchapter.\n  (l) Where the milk dealer has been duly required to give a bond or an\nadditional bond and has failed to do so, or has failed to make timely\npayment to the producers security fund if he has elected to participate\ntherein, or to the cooperative security fund if required to make\npayments thereto.\n  (m) Where the required permit from the local health officer has\nterminated or been revoked.\n  (n) Where the milk dealer has ceased to operate the milk business for\nwhich the license was issued.\n  (o) Notwithstanding any provision of this article to the contrary, no\nlicense shall be granted by the commissioner in the event an applicant\nfor such license is buying or accepting the business of another dealer\nuntil the applicant has furnished the commissioner sufficient evidence\nthat all payments due producers for milk delivered to the selling dealer\nhave been made in full or that a portion of the purchase price\nreasonably sufficient to satisfy such claims has been placed in an\nescrow account with the commissioner.\n  (p) Assumption of business by licensed dealer. No licensed dealer\npurchasing the assets or assuming the operation of another licensed\ndealer may distribute milk in the area served by the dealer whose assets\nare being purchased or whose operation is being assumed unless such\ndealer purchasing the assets or assuming such operation has furnished\nthe commissioner sufficient evidence that all payments due producers for\nmilk delivered have been made in full or that a portion of the purchase\nprice reasonably sufficient to satisfy such claims has been placed in an\nescrow account with the commissioner.\n  The commissioner may grant or renew a license or may decline to\nsuspend or revoke a license conditionally, or upon the agreement of the\nlicensee or applicant to do or omit to do any definite act, but such\ncondition and/or agreement must have some appropriate relation to the\nadministration of this article.\n  Whenever a milk dealer's license is denied or revoked or any\napplication for an original license is denied, there shall be filed in\nthe office of the division of milk control a memorandum by the\ncommissioner, which memorandum shall state the reasons for the denial of\nthe application or the denial or revocation of the license. There shall\nalso be filed a transcript of the testimony taken at the hearing given\nto the applicant or licensee. A transcript of the testimony taken at the\nhearing shall be given to the applicant or licensee for whom the hearing\nwas held. In addition, the said memorandum as filed in the office of the\ndivision of milk control shall set forth findings of fact and the\nconclusions upon which the said commissioner shall base his denial or\nrevocation. The use of the word license in this article shall include\nthe application for or denial of an extension of license. Upon the\nfiling of the memorandum in the office of the division of milk control a\ncopy thereof shall be mailed forthwith to the applicant or licensee and\nto his attorney if the applicant or licensee has appeared by attorney.\n  The commissioner shall notify an applicant for a license within thirty\ndays of receipt of the application as to whether all information\nrequired by the commissioner is stated within the application. Upon\nreceipt of a completed application, the commissioner shall conduct any\ninvestigation and hearing and shall make a final determination on a\nlicense within one hundred twenty days or, if a hearing has been held\nwith respect to such license, within one hundred eighty days. Where the\ncommissioner finds that a final determination cannot be made within such\nperiod, he shall indicate his reasons for extending the application\nreview period by not more than one hundred twenty days to the license\napplicant. Any delay resulting from adjournments granted at the request\nof the applicant, or as the result of a judicial order, shall not be\ncounted toward any time period provided for in this paragraph.\n