BILL NUMBER: S9706
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to the
exemption of certain parcels of land from licensing restrictions prohib-
iting manufacturers, wholesalers and retailers of alcoholic beverages
from sharing an interest in a licensed premises or to sell at retail for
consumption off the premises; and providing for the repeal of such
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 105 of the Alcoholic Beverage Control Law, which
restricts the relationships between retailers and manufacturers or
wholesalers by adding specific parcels of land to the list of retail
locations which are exempt from these laws. The legislation would also
prohibit the retailer from purchasing product directly from the distant-
ly related manufacturer/winery, thereby avoiding the concern behind the
tied-house prohibition.
 
EXISTING LAW:
Current law prohibits retail licensees from having even de minimis
interest in any premises where alcohol is manufactured.
 
JUSTIFICATION:
Since the 1930s, when Prohibition was repealed, New York State law has
restricted holders of alcohol manufacturing/wholesale licenses from
having any 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 - particularly when
the evil to be avoided is absent or the relationship between two tiers
is de minimis.
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.
This bill would allow a New York City retail licensee with an unrelated
and wholly de minimis relationship with wineries located outside of New
York to serve the Bronx community in which it is located without running
afoul the tied-house restrictions.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
This legislation will help generate sales, excise, and property tax
revenue.
 
EFFECTIVE DATE:
This act will take effect immediately.