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

BILL NUMBER:A484

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.

Existing law

Not in the current law.

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 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

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.