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

2 Co-sponsors

• Martin J. Golden
• George D. Maziarz

BILL NUMBER:S4812D

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 amend the Alcohol Beverage Control Law with respect to an exception to the so called "tied house laws" to allow a baker/restaurant in the borough of Manhattan that has a financial partner who has an interest in a winery in France to obtain an on premises license for the sale of alcohol at its current locations.

Summary of provisions

Section 1, Amends Section 106 (13a) to allow a bakery/restaurant to apply for an on premises license to serve alcohol at its current locations

Justification

The "tied house rule" is a post-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 post-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 bakery/restaurant in the borough of Manhattan that has a financial partner who has an interest in a winery in France to obtain an on premises license for the sale of alcohol at its current locations. It must be made clear that the operators of the locations in New York State have neither an interest in the financial partner nor an interest in the winery There only tie to the winery is that group they receive their funding from has the interest in the winery.

To date, they have already invested approximately $7 million dollars in construction of its current outlets and currently employ over 300 people at its locations The enactment of this bill will allow the hiring of an estimated additional 275 workers, Moreover, the current estimate is the four locations will gross $15 million dollars and with the enactment of this bill they anticipate to gross over $30 million dollars a year. This bill will increased revenues to the State and to the local government by virtue of increased sales tax revenues and increased payroll taxes.

Legislative history

New Bill

Fiscal implications

Increased Sales Tax revenue and increased employment.

Fiscal implications

Substantial increase in sales tax revenues and increased employment.

Effective date

Immediately.