Relates to licenses to sell at retail for consumption on the premises

Title of bill

An act to amend the alcoholic beverage control law, in relation to licenses to sell at retail for consumption on the premises

Purpose

The purpose of this legislation is to allow Cosmoledo, operating as Maison Kayser, to apply for a beer and wine license at one of its locations in New York City.

Summary of provisions

Section one of this bill amends section 106 of the Alcoholic Beverage Control Law by adding a new subdivision 13-a that specifically exempts one location New York City from the prohibition against a manufacturer applying a beer and wine on premises license. In addition, this legislation will prohibit the sale of any alcoholic beverage(s) manufactured or sold at wholesale by any business in which the applicant has any direct or indirect interest.

Section two of this bill provides that this act shall take effect immediately.

Justification

Maison Kayser is a French bakery with multiple locations in Manhattan. The company started in Paris and has expanded globally to locations as diverse and as distant as Moscow and Hong Kong. There are currently ten (10) New York City locations and it is anticipated that another three (3) will be added over the course of the next twelve (12) months.

Additionally, Maison Kayser is making a large investment in the South Bronx. They are currently constructing a 20,000 square foot baking facility at 711 East 135th Street in the Bronx to service their Cafes in Manhattan. This facility has received funding from the Governor's regional council including low cost power through RechargeNY. They are also considering purchasing another property across the street at 688 East 135th Street, which will add an additional 20,000 square feet. In 2016, Maison Kayser has doubled the number of stores it operates in New York City and will employ at least 1000 full time people, with over 250 in the Bronx by the end of this year.

Maison Kayser receives training grants from the State. These grants can and will be used to train and hire new employees from the Bronx. Maison Kayser expects that there will be over 400 employees at the Bronx commissary by the end of 2016. When the second commissary is constructed across the street, that there will be an additional 400 new jobs in the South Bronx.

The "tied house rule" is an outdated, Prohibition era relic of New York's liquor laws that has not kept pace with the times and is significantly restricting economic development, consumer choice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

It is important to note the exemption sought would be strictly limited to one location and Maison Kayser or any of its affiliates or assigns not be able to sell their own products. Moreover, these amendments do nothing to change the requirements set out by the State Liquor

Authority in granting a license. Maison Kayser would still need to apply for a license and meet all requirements for licensure.

Legislative history

New bill

Fiscal implications

None

Local fiscal implications

Substantial increase in sales tax revenues and increased employment

Effective date

This act shall take effect immediately.