BILL NUMBER: S9516
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to the
exemption of certain parcels of land from the licensing restrictions
prohibiting manufacturers, wholesalers and retailers of alcoholic bever-
ages from sharing an interest in a licensed premises; and providing for
the repeal of such provision upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would add a limited location to the list of premises exempt
from the provisions of law that restrict manufacturers/wholesalers and
retailers from sharing an interest in a retail liquor license.
 
SUMMARY OF PROVISIONS:
Section one of the bill would amend section 101 of the Alcoholic Bever-
age Control law, which relates to restricting the relationships between
retailers and manufacturers and wholesalers, by adding a specific parcel
in the Borough of Manhattan to the list of locations exempt from the
law.
Section two sets forth the effective date.
 
JUSTIFICATION:
Since Prohibition was repealed in the 1930s, New York State law has
restricted holders of alcohol manufacturing and wholesale licenses from
having any interest in a retail license and vice-versa. These "tied-
house" laws have been amended on occasion to exempt certain properties,
narrowly tailored to prevent undue market influence by identifying
select parcels of land.
This bill would permit international wine merchant Kermit Lynch, who has
a longstanding wholesale presence in New York, to continue its oper-
ations notwithstanding its interest in a retail license in California.
The California license does not operate in or affect the New York
market, and the relationship between the two tiers is therefore de
minimis with respect to the concerns the tied-house laws were designed
to address. The exemption is confined to a single floor of a parcel in
lower Manhattan, and is limited to interests acquired prior to the
effective date of this legislation.
 
PRIOR LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.