Exempts certain parcels of land from licensing restrictions prohibiting manufacturers, wholesalers and retailers of alcoholic beverages from sharing an interest in a licensed premises and from selling at retail for consumption off the premises.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9812
SPONSOR: Burgos 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Since the 1930s, when Prohibition was repealed, New York State law has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.
STATE OF NEW YORK
________________________________________________________________________
9812
IN ASSEMBLY
April 9, 2024
___________
Introduced by M. of A. BURGOS -- read once and referred to the Committee
on Economic Development
AN ACT to amend the alcoholic beverage control law, in relation to the
exemption of certain parcels of land from licensing restrictions
prohibiting 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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 105 of the alcoholic beverage control law is
2 amended by adding a new subdivision 25 to read as follows:
3 25. (a) The provisions of subdivisions sixteen and seventeen of this
4 section shall not apply to any interest in a manufacturer inside or
5 outside the United States, held by any business or entity located on any
6 parcels of land in the Borough and County of the Bronx, City and State
7 of New York, bounded and described as follows:
8 Parcel A: Beginning at a point within block 1044, lot 15, said point
9 being distant the following four (4) courses from the point formed by
10 the intersection of the westerly line of Baretto street (60 feet wide)
11 with the northerly line of Lafayette (100 feet wide); Along said wester-
12 ly line of Baretto street, north 41 degrees 26 minutes 45 seconds west,
13 a distance of 197.70 feet to an angle point therein, thence; Continuing
14 along said line of Baretto street, north 53 degrees 34 minutes 00
15 seconds west, a distance of 14.21 feet to a point, thence; Through block
16 2739, lot 15, south 55 degrees 00 minutes 00 seconds west, a distance of
17 75.72 feet to a point, thence; Continuing through block 2739, lot 15,
18 south 10 degrees 00 minutes 00 seconds west, a distance of 8.19 feet to
19 the point and place of beginning, thence; From said point of beginning
20 the following four courses; South 35 degrees 00 minutes 00 seconds east,
21 a distance of 42.59 feet to a point, thence; south 55 Degrees 00 minutes
22 00 seconds west, a distance of 18.44 feet to a point, thence; North 35
23 degrees 00 minutes 00 seconds west, a distance of 42.59 feet to a point,
24 thence; North 55 degrees 00 minutes 00 seconds east, a distance of 18.44
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15151-01-4
A. 9812 2
1 feet to the point of beginning. Containing within said bounds 785 square
2 feet or 0.0180 AC.
3 Parcel B: Beginning at a point within block 1044, lot 15, said point
4 being distant the following four (4) courses from the point formed by
5 the intersection of the westerly line of Baretto street (60 feet wide)
6 with the northerly line of Lafayette (100 feet wide); Along said wester-
7 ly line of Baretto Street, North 41 degrees 26 minutes 45 seconds west,
8 a distance of 197.70 feet to an angle point therein, thence; Continuing
9 along said line of Baretto street, North 53 degrees 34 minutes 00
10 seconds west, a distance of 14.21 feet to a point, thence; Through block
11 2739, lot 15, South 55 degrees 00 minutes 00 seconds west, a distance of
12 142.85 feet to a point, thence; Continuing through block 2739, lot 15,
13 South 10 degrees 00 minutes 00 seconds west, a distance of 8.19 feet to
14 the point and place of beginning, thence; From said point of beginning
15 the following four courses; South 35 degrees 00 minutes 00 seconds east,
16 a distance of 42.02 feet to a point, thence; south 55 Degrees 00 minutes
17 00 seconds west, a distance of 40.86 feet to a point, thence; North 35
18 degrees 00 minutes 00 seconds west, a distance of 42.02 feet to a point,
19 thence; North 55 degrees 00 minutes 00 seconds east, a distance of 40.86
20 feet to the point of beginning. Containing within said bounds 1,717
21 square feet or 0.0394 AC.
22 (b) Provided, however, that with respect to such retail licensee's
23 interest in a business engaged in the manufacture of alcoholic beverages
24 described in subdivision sixteen or seventeen of this section:
25 (i) such interest shall have been acquired prior to the effective date
26 of this subdivision; and
27 (ii) such retail licensee shall not purchase alcoholic beverages
28 directly from any such manufacturer.
29 § 2. This act shall take effect immediately; provided, however, that
30 upon the sale or transfer of the parcels detailed in paragraph (a) of
31 subdivision 25 of section 105 of the alcoholic beverage control law, as
32 added by section one of this act, such subdivision shall expire and be
33 deemed repealed unless the licensee immediately obtains a leasehold upon
34 such sale or transfer of such parcel as part of the sale or transfer. If
35 the licensee obtains such a leasehold, the subdivision pertaining to
36 such parcel shall expire and be deemed repealed upon the end or termi-
37 nation of such lease. The state liquor authority shall notify the legis-
38 lative bill drafting commission upon notification by the licensee of the
39 sale, transfer or termination of the leasehold, or non-renewal of the
40 leasehold of the parcel detailed in paragraph (a) of subdivision 25 of
41 section 105 of the alcoholic beverage control law in order that the
42 commission may maintain an accurate and timely effective data base of
43 the official text of the laws of the state of New York in furtherance of
44 effectuating the provisions of section 44 of the legislative law and
45 section 70-b of the public officers law.
