Section 22-265. Registration of wholesale trade association; disqualification from office-holding

A  wholesaler trade association shall, within the  time  period  prescribed  by  the  commissioner,   register   with   the
  commissioner  and shall disclose such information to the commissioner as
  the commissioner may by rule require, including but not limited  to  the
  names  of  all  members  of  such association and of all persons holding
  office in  such  association.  The  commissioner  may  promulgate  rules
  requiring  that  an  association  required  to register pursuant to this
  section maintain financial statements, records, ledgers, receipts, bills
  and such other  written  records  as  the  commissioner  determines  are
  necessary  or useful for carrying out the purposes of this chapter. Such
  records shall be maintained for a period of  time  not  to  exceed  five
  years  to  be determined by rule by the commissioner; provided, however,
  that such rule may  provide  that  the  commissioner  may,  in  specific
  instances  at  his or her discretion, require that records be maintained
  for a period of time exceeding five years. Such records  shall  be  made
  available for inspection and audit at the request of the commissioner at
  either the offices of the association or the offices of the department.
    b.  An  officer  of a wholesale trade association required to register
  pursuant to this section  shall  inform  the  commissioner,  on  a  form
  prescribed by the commissioner, of: (i) all criminal convictions, in any
  jurisdiction,  of  such  officer;  (ii)  any  pending  civil or criminal
  actions to which such officer is a party;  and  (iii)  any  criminal  or
  civil  investigation by a federal, state, or local prosecutorial agency,
  investigative agency or regulatory  agency,  in  the  five  year  period
  preceding  the  date  of  registration pursuant to subdivision a of this
  section and at any time subsequent to such  registration,  wherein  such
  officer  has (A) been the subject of such investigation, or (B) received
  a subpoena requiring the  production  of  documents  or  information  in
  connection   with   such   an  investigation.  Any  material  change  in
  information reported pursuant to this subdivision shall be  reported  to
  the  commissioner  within thirty calendar days thereof. The commissioner
  may, if he or she has reasonable cause to believe that such  an  officer
  of  a  trade  association  lacks  good character, honesty and integrity,
  require that such officer be fingerprinted by a person designated by the
  commissioner for such and pay a fee to be submitted to the  division  of
  criminal justice for the purpose of obtaining criminal history records.
    c.  The  commissioner  may,  after notice and opportunity to be heard,
  disqualify a person from holding office in a wholesale trade association
  when such person:  (i)  has  failed,  by  the  date  prescribed  by  the
  commissioner,  to be fingerprinted or to provide truthful information in
  connection with the reporting requirements  of  subdivision  b  of  this
  section;  (ii) is the subject of a pending indictment or criminal action
  against such officer for a crime  which  bears  a  relationship  to  the
  lawful   and  orderly  operation  of  the  market,  in  which  case  the
  commissioner may defer a determination pending a  determination  by  the
  court before which such action is pending; (iii) has been convicted of a
  crime  which, under the standards of article 23-A of the correction law,
  bears a relationship to the lawful and orderly operation of the  market;
  (iv)  has  committed a racketeering activity or associated with a person
  who has been convicted of a racketeering  activity,  including  but  not
  limited  to  the  offenses listed in subdivision one of section nineteen
  hundred sixty-one of the Racketeer Influenced and  Corrupt  Organization
  statute (18 U.S.C. § 1961 et seq) or of an offense listed in subdivision
  one  of section 460.10 of the penal law, as such statutes may be amended
  from time to time, when the officer knew or should have  known  of  such
  conviction;  or  (v)  has  associated with any member or associate of an
  organized crime group as identified by a  federal,  state  or  city  law

  enforcement or investigative agency when the officer knew or should have
  known  of  the  organized  crime associations of such person. An officer
  required to disclose information  pursuant  to  subdivision  a  of  this
  section may submit to the commissioner any material or explanation which
  such  officer  believes demonstrates that the officer does not lack good
  character, honesty  and  integrity.  Upon  receiving  an  order  of  the
  commissioner  pursuant  to  this subdivision disqualifying a person from
  holding office in a  wholesale  trade  association,  such  person  shall
  vacate such office or, if such person fails to vacate such office within
  the  time  period  specified by the commissioner, such association shall
  remove such person forthwith from such office. Failure of such person to
  vacate such office within the time specified by the  commissioner  shall
  subject  such  person  to  the  penalties  set forth in subdivision a of
  section 22-258 of this chapter or  to  injunctive  action  by  the  city
  pursuant to subdivision c of such section. An office-holder who has been
  disqualified  pursuant  to  the  provisions  of  this subdivision may be
  excluded by the commissioner from the market. Nothing  in  this  section
  shall  be  construed  to  authorize  the  commissioner  to  disqualify a
  wholesale trade association from representing or seeking to represent  a
  business  required  to  be registered pursuant to section 22-253 of this
  chapter.