2023 New York Laws › AGM - Agriculture and Markets › Article 21 - Milk Control › 258-C - Granting and Revoking Licenses.

§ 258-c. Granting and revoking licenses. No license shall be denied to
a  person  not  now  engaged  in  business  as a milk dealer, or for the
continuation of a now existing business, and no license shall be  denied
to  authorize  the extension of an existing business by the operation of
an additional  plant  or  other  new  additional  facility,  unless  the
commissioner  finds  after  due notice and opportunity of hearing to the
applicant or licensee, that the applicant is not qualified by  character
or  experience  or  financial  responsibility  or  equipment properly to
conduct the proposed business, provided however, that no new application
shall be denied solely for the reason of inadequate equipment if  it  is
shown  that  provision  has  been  made for the acquisition of same. The
commissioner may also decline to grant or renew a license or may suspend
or revoke a license already granted in whole or in part, upon due notice
and opportunity of hearing to the applicant  or  licensee,  when  he  is
satisfied of the existence of any of the following reasons:
(a)  That  a  milk  dealer has rejected, without reasonable cause, any
milk purchased or has rejected without reasonable  cause  or  reasonable
advance  notice,  milk  delivered  in ordinary continuance of a previous
course of dealing, except where contract has been lawfully terminated.
(b) That the milk dealer  has  failed  to  account  and  make  payment
without reasonable cause, for any milk purchased.
(c) That the milk dealer has committed any act injurious to the public
health or public welfare.
(d)  Where  the  milk  dealer  is  insolvent  or  has  made  a general
assignment for the benefit of creditors or has been adjudged a  bankrupt
or  where  a  money judgment has been secured against him, upon which an
execution has been returned wholly or partly unsatisfied.
(e) Where the milk dealer has continued in a course of dealing of such
a  nature  as  to  satisfy  the  commissioner  of   his   inability   or
unwillingness  properly  to conduct the business of receiving or selling
milk or to satisfy the commissioner of his intent to deceive or  defraud
producers or consumers.
(f)  Where  the  milk  dealer has been a party to a combination to fix
prices,  contrary  to  law.  A  co-operative  association  of   dairymen
organized  under  or  operated  pursuant  to  the  provisions of chapter
seventy-seven of the consolidated laws and engaged in making  collective
sales  or  marketing  for  its members or shareholders of dairy products
produced by its members or shareholders shall not be deemed or construed
to be a conspiracy or combination in restraint of trade  or  an  illegal
monopoly   nor   shall   the   contracts,  agreements,  arrangements  or
combinations heretofore or hereafter made by such  association,  or  the
members,  officers or directors thereof, in making such collective sales
and marketing and prescribing  the  terms  and  conditions  thereof,  be
deemed  or  construed  to  be  conspiracies or to be injurious to public
welfare, trade or commerce, if otherwise authorized by such  chapter  or
law.  The  provisions  of and the remedies provided by this subdivision,
section and article shall be in addition to and  shall  not  preempt  or
displace  the  provisions  of article twenty-two of the general business
law.
(g) Where there has been a  failure  either  to  keep  records  or  to
furnish the statements or information required by the commissioner.
(h)  Where  it  is  shown  that  any material statement upon which the
license was issued is or was false or misleading  or  deceitful  in  any
particular.
(i) Where the applicant or licensee has been convicted of a felony.
(j)  Where  the  applicant  is  a partnership or a corporation and any
individuals holding any position or interest or power of control therein
has previously been responsible in whole or  in  part  for  any  act  on

account of which a license may be denied, suspended or revoked, pursuant
to the provisions of this article.
(k)  Where  the milk dealer has violated any of the provisions of this
chapter.
(l) Where the milk dealer has been duly required to give a bond or  an
additional  bond  and  has failed to do so, or has failed to make timely
payment to the producers security fund if he has elected to  participate
therein,  or  to  the  cooperative  security  fund  if  required to make
payments thereto.
(m) Where the required  permit  from  the  local  health  officer  has
terminated or been revoked.
(n)  Where the milk dealer has ceased to operate the milk business for
which the license was issued.
(o) Notwithstanding any provision of this article to the contrary,  no
license  shall  be granted by the commissioner in the event an applicant
for such license is buying or accepting the business of  another  dealer
until  the  applicant has furnished the commissioner sufficient evidence
that all payments due producers for milk delivered to the selling dealer
have been made  in  full  or  that  a  portion  of  the  purchase  price
reasonably  sufficient  to  satisfy  such  claims  has been placed in an
escrow account with the commissioner.
(p) Assumption of business by  licensed  dealer.  No  licensed  dealer
purchasing  the  assets  or  assuming  the operation of another licensed
dealer may distribute milk in the area served by the dealer whose assets
are being purchased or whose operation  is  being  assumed  unless  such
dealer  purchasing  the  assets or assuming such operation has furnished
the commissioner sufficient evidence that all payments due producers for
milk delivered have been made in full or that a portion of the  purchase
price reasonably sufficient to satisfy such claims has been placed in an
escrow account with the commissioner.
The  commissioner  may  grant  or  renew  a  license or may decline to
suspend or revoke a license conditionally, or upon the agreement of  the
licensee  or  applicant  to  do or omit to do any definite act, but such
condition and/or agreement must have some appropriate  relation  to  the
administration of this article.
Whenever  a  milk  dealer's  license  is  denied  or  revoked  or  any
application for an original license is denied, there shall be  filed  in
the  office  of  the  division  of  milk  control  a  memorandum  by the
commissioner, which memorandum shall state the reasons for the denial of
the application or the denial or revocation of the license. There  shall
also  be  filed a transcript of the testimony taken at the hearing given
to the applicant or licensee. A transcript of the testimony taken at the
hearing shall be given to the applicant or licensee for whom the hearing
was held. In addition, the said memorandum as filed in the office of the
division of milk control shall  set  forth  findings  of  fact  and  the
conclusions  upon  which  the said commissioner shall base his denial or
revocation. The use of the word license in this  article  shall  include
the  application  for  or  denial  of  an extension of license. Upon the
filing of the memorandum in the office of the division of milk control a
copy thereof shall be mailed forthwith to the applicant or licensee  and
to his attorney if the applicant or licensee has appeared by attorney.
The commissioner shall notify an applicant for a license within thirty
days  of  receipt  of  the  application  as  to  whether all information
required by the commissioner is  stated  within  the  application.  Upon
receipt  of  a completed application, the commissioner shall conduct any
investigation and hearing and shall make  a  final  determination  on  a
license  within  one  hundred twenty days or, if a hearing has been held
with respect to such license, within one hundred eighty days. Where  the

commissioner finds that a final determination cannot be made within such
period,  he  shall  indicate  his  reasons for extending the application
review period by not more than one hundred twenty days  to  the  license
applicant.  Any delay resulting from adjournments granted at the request
of the applicant, or as the result of a judicial  order,  shall  not  be
counted toward any time period provided for in this paragraph.