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: A7594
SPONSOR: Rosenthal L 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
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:
This legislation makes amendments to the Alcoholic Beverage Control Law
to address differences between United States Laws and laws of foreign
jurisdictions which result in unduly restricting foreign commerce while
at the same time not advancing the true purpose of New York legislation.
EXISTING LAW:
Alcoholic Beverage Control Law Section 101(1)(a) prohibits alcohol
manufacturers and wholesalers from having an interest in alcohol retail
places. ABC Law Section 105 (16) and (17) prohibit retail licensees for
off-premises consumption from having an interest in or engaging in
certain transactions with any premises where alcohol is manufactured or
sold at wholesale.
JUSTIFICATION:
Since the 1930s, when Prohibition was repealed, New York State law has
restricted owners of alcohol manufacturer's licenses, wholesale licenses
and retail licenses from having an interest in each other. Known as the
"tied-house laws", efforts have been made to modernize the law by
addressing these types of archaic ownership issues. In the meantime,
this bill exempts specific locations from these provisions of law. Many
foreign countries, such as the United Kingdom and Singapore do not
distinguish between wholesalers and retailers the way New York does. In
these countries, businesses, which engage in auctions and sales of wine
and spirits, must have licenses which provide for both wholesale and
retail sales. The possession of a necessary license in one of these
countries by an entity which is owned in whole or in part by persons
with a New York retail license, could result in a violation of New York
law. The New York statutes in question were not designed to restrict
these types of activities. The proposed statute allows New Yorkers to do
business in accordance with the laws of the foreign country and still
sell alcoholic beverages at retail and at auction in accordance with the
laws of the State of New York.
These provisions have been amended on occasion by exempting certain
properties to support local economic development goals. Exemptions, such
as the one provided by this bill, are narrowly tailored to prevent undue
market influence by identifying select parcels using metes and bounds
descriptions. A licensee can only make use of this kind of exemption if
each of its New York-based alcohol Manufacturing, wholesale and retail
business parcels are exempted. This bill's exemption will assist New
Yorkers who wish to participate in international markets in accordance
with the laws of the foreign countries, while at the same time preserv-
ing those tied-house restriction that apply within the state of New
York. It does not allow any New York retailer to hold a New York whole-
sale license.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This legislation will take effect immediately.
