NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6499A REVISED MEMO 05/16/13
SPONSOR: Lentol TITLE OF BILL: An act to amend the alcoholic beverage control law, in
relation to manufacturers of alcohol and retail interest and licenses
PURPOSE:
The Purpose of this legislation is to update the Alcohol Beverage
Control Law with respect to the so called "tied house fans" to allow a
tied house to have an interest in an establishment where alcohol is
sold, just not its product.
SUMMARY OF PROVISIONS:
Section 1. Amends Section 101(a) allow a manufacturer or wholesaler of
alcoholic beverages to have an interest in a premises that is licensed
to sell alcoholic beverages so long as it does Hot sell its own alcohol-
ic beverage.
Section 2. Amends Section 103 by adding a new subsection 10 to allow a
manufacturer to have an interest in a licensed premises.
JUSTIFICATION:
The "tied house rule" is an outdated. Prohibition era relic of New
York's liquor laws that has not kept pace with the times and is signif-
icantly restricting economic development, consumer choice and job
creation in many New York State and New York City neighborhoods. While
this law was created during the Prohibition era to essentially encourage
competition, one of its clear impacts today is to prevent high quality,
healthy, full service restaurants frets opening - and creating jobs.
This bill will allow a manufacturer or distributor of alcoholic beverag-
es to have either a direct or indirect interest its a Restaurant, as is
defined by the Alcohol Beverage Control Law, so long as the manufacturer
or distributor's product is not sold at the Restaurant. The enactment of
this bill will promote competition-consistent with the intent of the
Tied House Laws because it forces a manufacturer or distributor to self
its competitor's product(s) and not its own.
It is important to note that such an exemption would be strictly limited
to full service, sit down restaurants - as defined in the statute. These
amendments does nothing to change the requirements set out by the State
Liquor Authority in granting a license save who can apply.
LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS:;
None
LOCAL FISCAL IMPLICATIONS:
Substantial increase in sales tax revenues and increased employment.
EFFECTIVE DATE:
Immediately
