BILL NUMBER: S10068
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
licensing restrictions for manufacturers and wholesalers of alcoholic
beverages from on licensees who sell at retail for consumption on the
premises; and providing for the repeal of such provision upon expiration
thereof
 
PURPOSE:
Adding parcels of land to the list of premises which are exempt from the
provision of law which generally restrict manufacturers/wholesalers and
retailers from sharing an interest in a liquor license.
 
SUMMARY OF PROVISIONS:
Amends Section 106 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 products directly from the
distantly related wholesaler/manufacturer, thereby avoiding the concern
behind the tied-house prohibition.
 
EXISTING LAW:
Current law prohibits retail licensees from having even de minimis
interest in any wholesaler/manufacturer.
 
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Since the 1930s, when Prohibition was repealed, New York State law has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
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 those provided by this bill, are narrowly
tailored to prevent undue market influence by identifying select parcels
using meters and bound descriptions.
This bill would allow a New York City retail licensee with an unrelated
and wholly de minimis relationship with a global manufacturer/wholesaler
to operate a cafe in midtown Manhattan pursuant to statutory
restrictions to ensure the integrity of the three-tier system.
 
LEGISLATIVE HISTORY:
New bill.
 
STATE AND LOCAL FISCAL IMPLICATIONS:
The operation of the cafe will generate local revenue.
 
EFFECTIVE DATE:
The act will take effect immediately.