This bill has been amended

Bill S4812A-2013

Relates to manufacturers of alcohol and their interest in any premises where alcohol is sold and retail licenses

Relates to manufacturers and wholesalers of alcohol and their interest in any premises where alcohol is sold and retail licenses.

Details

Actions

  • May 14, 2013: PRINT NUMBER 4812A
  • May 14, 2013: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Apr 24, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S4812A        REVISED MEMO 05/15/13

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 laws" 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) to allow a manufacturer of alcoholic beverages to have an interest in a premises that is licensed to sell alcoholic beverages so long as it does not sell its own alcoholic beverage.

Section 2. Amends Section 103 by adding a new sub section 10 to allow a manufacturer to have an interest in a licensed premises.

Section 3. This act shall take effect immediately.

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The "tied house rule" is an outdated, Prohibition era relic of New York's liquor laws that has not kept pace with the times and is significantly restricting economic development, consumer choice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 from opening - and creating jobs.

This bill will allow a manufacturer or distributor of alcoholic beverages to have either a direct or indirect interest in 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 sell 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.

FISCAL IMPLICATIONS:

Substantial increase in sales tax revenues and increased employment.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4812--A 2013-2014 Regular Sessions IN SENATE April 24, 2013 ___________
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the alcoholic beverage control law, in relation to manufacturers of alcohol and retail interest and licenses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of paragraph (a) of subdivision 1 of section 101 of the alcoholic beverage control law, as amended by chapter 22 of the laws of 2011, is amended to read as follows: Be interested directly or indirectly in any premises where any alco- holic beverage is sold at retail EXCEPT THAT IT SHALL NOT BE UNLAWFUL FOR A MANUFACTURER LICENSED UNDER THIS CHAPTER TO BE INTERESTED DIRECTLY OR INDIRECTLY IN ANY RESTAURANT AS DEFINED IN THIS CHAPTER WHERE ALCO- HOLIC BEVERAGES ARE SOLD SO LONG AS THE MANUFACTURER'S ALCOHOLIC BEVER- AGE IS NOT SOLD AT SAID RESTAURANT AS DEFINED IN THIS CHAPTER; or in any business devoted wholly or partially to the sale of any alcoholic bever- age at retail by stock ownership, interlocking directors, mortgage or lien or any personal or real property, or by any other means. The provisions of this paragraph shall not apply to S 2. Section 103 of the alcoholic beverage control law is amended by adding a new subdivision 10 to read as follows: 10. ANY MANUFACTURER SHALL BE PERMITTED A RETAIL LICENSE FOR ON-PREM- ISES CONSUMPTION IN ANY RESTAURANT AS DEFINED IN THIS CHAPTER WHERE LIQUORS, WINES OR BEER ARE SOLD, EXCEPT THAT SAID MANUFACTURER SHALL BE PROHIBITED FROM SELLING ITS PRODUCT AT SAID RESTAURANT WHERE IT HAS A RETAIL LICENSE. S 3. This act shall take effect immediately.

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