§ 5-09 Membership in Trade Associations.
RCNY § 5-09
(a)No licensee or principal thereof shall be a member or hold a position in any trade association: (i) where such association, or a predecessor thereof as determined by the Commission has violated state or federal antitrust statutes or regulations, or has been convicted of a racketeering activity or similar crime, including but not limited to the offenses listed in subdivision one of section nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organizations 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; (ii) where a person holding a position in such trade association, or a predecessor thereof as determined by the Commission, has violated state or federal antitrust statutes or regulations, or has been convicted of a racketeering activity or similar crime, including but not limited to the offenses listed in subdivision one of section nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organizations 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; (iii) where a person holding a position in such trade association, or a predecessor thereof as determined by the Commission, is a member or associate of an organized crime group as identified by a federal, state or city law enforcement or investigative agency; or (iv) where the trade association has failed to cooperate fully with the Commission in connection with any investigation conducted pursuant to this chapter. The Commission may determine, for purposes of this subdivision, that a trade association is a predecessor of another such trade association by finding that transfers of assets have been made between them or that all or substantially all of the persons holding positions in the two associations are the same.
(b)Notwithstanding the provisions of subdivision a of this section, the Commission may permit a licensee to be a member of a trade association where such membership would be prohibited by such subdivision upon a determination that such association no longer operates in a manner inconsistent with the purposes of this chapter.
