Provides an exemption for certain parcels of land from the 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 on the premises; provides for the repeal of certain provisions upon expiration thereof.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8796
SPONSOR: Bores 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:
To add 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 product directly from the distant-
ly-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Since the 1930s, when Prohibition was repealed, New York State law has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
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 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.
STATE OF NEW YORK
________________________________________________________________________
8796
2025-2026 Regular Sessions
IN ASSEMBLY
June 5, 2025
___________
Introduced by M. of A. BORES -- read once and referred to the Committee
on Economic Development
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 expira-
tion thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 13 of section 106 of the alco-
2 holic beverage control law is amended by adding a new subparagraph
3 (xxiv) to read as follows:
4 (xxiv) Parcel A
5 The fourth floor of all that certain lot, piece or parcel of land,
6 together with the buildings and improvements now or hereafter erected
7 thereon, situate, lying and being in the Borough of Manhattan, City,
8 County and State of New York, bounded and described as follows:
9 Beginning at a point on the southerly side of East 57th Street,
10 distant 125 feet easterly from the intersection of the easterly side of
11 Fifth Avenue and the southerly side of 57th Street, thence southerly and
12 parallel with the easterly side of Fifth Avenue 100 feet 5 inches;
13 thence easterly and parallel with the southerly side of 57th Street 50
14 feet; thence northerly and again parallel with the easterly side of
15 Fifth Avenue 100 feet 5 inches to the southerly side of 57th Street;
16 thence westerly along the southerly side of 57th Street 50 feet to the
17 point or place of beginning.
18 Parcel B
19 ALL that certain plot, piece or parcel of land, situate, lying and
20 being in the borough of Manhattan, County, City and State of New York,
21 bounded and described as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13301-01-5
A. 8796 2
1 Beginning at a point on the easterly line of Fifth Avenue, distant 118
2 feet 9 1/2 inches southerly from the intersection of the said easterly
3 line of Fifth avenue with the southerly line of East 58th Street and
4 opposite the center of a certain party wall; running thence easterly and
5 part of the way along the center of said party wall and a line in
6 prolongation thereof 100.00 feet to a point distant 118 feet 11 1/2
7 inches southerly from the southerly line of East 58th Street, measured
8 on a line parallel with Fifth Avenue and distant 100.00 feet from the
9 easterly line thereof, measured along the southerly line of East 58th
10 Street; thence southerly, parallel with Fifth Avenue, 19 feet 6 1/2
11 inches to a point opposite the center of another party wall and distant
12 62 feet 4 inches northerly from the northerly line of East 57th Street,
13 measured at right angles thereto; thence westerly and part of the way
14 along the center line of said last mentioned party wall 100.00 feet to a
15 point on the easterly side of Fifth Avenue, distant 62 feet 6 inches
16 northerly from the intersection of the easterly line of Fifth Avenue and
17 the northerly line of East 57th street; thence northerly along the east-
18 erly line of Fifth Avenue, 19 feet 6 1/2 inches to the point or place of
19 beginning.
20 Provided, however, that with respect to such retail licensee's inter-
21 est in a business engaged in the manufacture or sale at wholesale of
22 alcoholic beverages described in subdivision one-a of section one
23 hundred one of this article: (i) such interest must have been acquired
24 prior to the effective date of this subdivision; (ii) such retail licen-
25 see may not purchase alcoholic beverages directly from any such manufac-
26 turer or wholesaler; and (iii) no more than fifteen percent of the annu-
27 al dollar value of alcoholic beverages purchased by such retail licensee
28 for sale on the premises may be produced by 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 subparagraph (xxiv)
31 of paragraph (a) of subdivision 13 of section 106 of the alcoholic
32 beverage control law, as added by section one of this act, such subpara-
33 graph shall expire and be deemed repealed unless the licensee immediate-
34 ly obtains a leasehold upon such sale or transfer of such parcel as part
35 of the sale or transfer. If the licensee obtains such a leasehold, the
36 subparagraph pertaining to such parcel shall expire and be deemed
37 repealed upon the end or termination of such lease. The state liquor
38 authority shall notify the legislative bill drafting commission upon
39 notification by the licensee of the sale, transfer or termination of the
40 leasehold, or non-renewal of the leasehold of the parcels detailed in
41 subparagraph (xxiv) of paragraph (a) of subdivision 13 of section 106 of
42 the alcoholic beverage control law in order that the commission may
43 maintain an accurate and timely effective data base of the official text
44 of the laws of the state of New York in furtherance of effectuating the
45 provisions of section 44 of the legislative law and section 70-b of the
46 public officers law.
