BILL NUMBER: S9643A
SPONSOR: KRUEGER
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
licensing restrictions for manufacturers and wholesalers of alcoholic
beverages on licensees who sell at retail; and providing for the repeal
of certain provisions upon expiration thereof
 
PURPOSE:
To add parcels of land to the list of premises which are exempt from the
provisions of law which generally restrict manufacturers/wholesalers and
retailers from sharing an interest in a liquor license.
 
SUMMARY OF PROVISIONS:
Amends Section 106 (13) of the Alcoholic Beverage Control Law, which
restrict the relationships between retailers and
manufacturers/wholesalers by adding specific parcels of land to the list
of retail locations which are exempt from these laws..
 
EXISTING LAW:
ABC Law Section 106 (13) prohibits retail licensees from having an
interest in any premises where alcohol is sold by a manufacturer, whole-
saler, or importer.
 
JUSTIFICATION:
Since the 1930s, when Prohibition was repealed, New York State law has
restricted holders of alcohol manufacturing/ wholesale licenses from
having an interest in a retail license, and vice versa. Known as the
"tied-house" laws, efforts have been made to modernize the law by
addressing these types of archaic ownership issues.
In the meantime, these provisions have been amended on occasion by
exempting certain properties to support local economic development
goals. Exemptions, such as that provided by this bill, are narrowly
tailored to prevent undue market influence by identifying select parcels
using metes and bounds descriptions.
Laduree is a French Pastry House, that specializes in Macaroons. The
company has two locations in NYC with full restaurants, as well as a
carry out location in Penn Station. The licensee's parent company has a
new investor that holds an interest in wineries in France. This bill
would allow Laduree to continue to hold liquor licenses at the
locations. identified in the legislation.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
This legislation will help generate sales, excise, and property tax
revenue.
 
EFFECTIVE DATE:
This legislation will take effect immediately.

Statutes affected:
S9643: 106 alcoholic beverage control law, 106(13) alcoholic beverage control law
S9643A: 106 alcoholic beverage control law, 106(13) alcoholic beverage control law