Section 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.