What's happening
This bill creates specific exceptions to alcohol license restrictions for certain manufacturers, wholesalers, and retailers at designated Manhattan locations.
Why it matters
Targets very specific locations in Manhattan. , providing tailored exceptions to alcohol license rules that otherwise prohibit manufacturers and wholesalers from holding interests in certain retail locations—this could set a precedent for site-specific carve-outs in state alcohol laws.
Limits potential for vertical integration and market dominance. by capping at 15% the amount of alcohol a retail licensee can source from a related manufacturer, and by prohibiting direct sales between connected parties, aiming to prevent unfair competitive advantages.
Applies only to pre-existing business relationships. , meaning the exemptions are not open-ended for future business deals, but rather protect established interests as of the bill’s effective date—suggesting the legislation is designed to address unique circumstances or challenges faced by current businesses.
Includes a sunset provision for at least one of the exceptions. , which means the law anticipates revisiting or reconsidering these special allowances, thereby allowing for legislative oversight and adjustment based on observed impacts or changes in the marketplace.
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Who cares
Headline styles
Liquor License Rules Loosened
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.611
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.514
- Substituted for A7756A
- Referred to codes
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.1634
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Liquor License Exemptions for Manhattan
Assembly Floor Calendar · Sponsor Richard Gottfried
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6451
2019-2020 Regular Sessions
IN SENATE
June 11, 2019
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the alcoholic beverage control law, in relation to licensing restrictions for manufacturers and wholesalers of alcoholic beverages on licensees who sell at retail for on-premises consumption; and providing for the repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 101 of the alcoholic beverage control law is amended by adding a new subdivision 1-a to read as follows:
1-a. The provisions of paragraph (a) of subdivision one of this section shall not apply to any licensed manufacturer or wholesaler located on the second floor of premises in the borough of Manhattan, city, county and state of New York, bounded and described as follows: Beginning at the corner formed by the intersection of the southerly side of West 16th Street with the westerly side of 10th Avenue; running thence westerly along the said southerly side of West 16th Street, 262 feet 5-1/4 inches to the corner formed by the intersection of the southerly side of West 16th Street with the easterly side of 11th Avenue (formerly Marginal Street); running thence southeasterly along the easterly side of said 11th Avenue (formerly Marginal Street) 221 feet 4-1/2 inches to the corner formed by the intersection of said easterly side of 11th Avenue (formerly Marginal Street) with the northerly side of said West 15th Street; running thence easterly along the northerly side of West 15th Street, 182 feet 8 inches to the corner formed by the intersection of said northerly side of West 15th Street with the said westerly side of 10th Avenue; running thence northerly along said westerly side of 10th Avenue, 206 feet 6 inches to the point or place of beginning. Provided, however, that with respect to such manufacturer's or wholesaler's interest in a retail licensee located at premises described
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11698-03-9
S. 6451 2
in paragraph (a-1) of subdivision thirteen of section one hundred six of this article: (i) such interest must have been acquired prior to the effective date of the chapter of the laws of two thousand nineteen which added this subdivision; (ii) such manufacturer or wholesaler may not sell alcoholic beverages directly to such retail licensee; and (iii) no more than fifteen percent of the annual dollar value of alcoholic beverages purchased by such retail licensee for sale on the premises may be produced by any such manufacturer.
§ 2. Section 101 of the alcoholic beverage control law is amended by adding a new subdivision 1-a to read as follows:
1-a. The provisions of paragraph (a) of subdivision one of this section shall not apply to any licensed manufacturer or wholesaler located on the 35th floor of premises in the borough of Manhattan, city, county and state of New York, bounded and described as follows: beginning at the corner formed by the intersection of the easterly side of Washington Street and the southerly side of Barclay Street; running thence easterly along the southerly side of Barclay Street, the following three (3) courses and distances: (1) South 88 degrees 37 minutes 20 seconds East 161.04 feet; (2) South 88 degrees 39 minutes 01 seconds East 67.81 feet; and (3) South 88 degrees 36 minutes 50 seconds East 112.04 feet to the corner formed by the intersection of the southerly side of Barclay Street and the westerly side of West Broadway; thence southerly along the westerly side of West Broadway, the following three (3) courses and distances: (1) South 13 degrees 29 minutes 10 seconds West 33.54 feet; (2) South 88 degrees 37 minutes 31 seconds East 7.16 feet; and (3) South 13 degrees 29 minutes 10 seconds West 172.20 feet to the corner formed by the intersection of the westerly side of West Broadway and the northerly side of Vesey Street; thence westerly along the northerly side of Vesey Street, North 88 degrees 37 minutes 31 seconds West 233.48 feet to the corner formed by the intersection of the northerly side of Vesey Street and the easterly side of Washington Street; and thence northerly along the easterly side of Washington Street, North 18 degrees 10 minutes 00 seconds West 213.45 feet to the point or place of beginning. Provided, however that, with respect to such manufacturer's or wholesaler's interest in a retail licensee located at premises described in paragraph (a-1) of subdivision thirteen of section one hundred six of this article: (i) such interest must have been acquired prior to the effective date of the chapter of the laws of two thousand nineteen which added this subdivision; (ii) such manufacturer or wholesaler may not sell alcoholic beverages directly to such retail licensee; and (iii) no more than fifteen percent of the annual dollar value of alcoholic beverages purchased by such retail licensee for sale on the premises may be produced by any such manufacturer.
§ 3. Subdivision 13 of section 106 of the alcoholic beverage control law is amended by adding a new paragraph (a-1) to read as follows:
(a-1) The provisions of paragraph (a) of this subdivision shall not apply to the holder of a retail on-premises consumption license issued for a premises located in the borough of Manhattan, city, county and state of New York, bounded and described as follows: Beginning at a point on the northerly side of 52nd Street, distant 375 feet westerly from the northwesterly corner of 52nd Street and Fifth Avenue; running thence northerly parallel with Fifth Avenue and part of the way through a party wall, 75 feet 5 inches; thence westerly parallel with the northerly side of 52nd Street, 11 feet 2-3/4 inches; thence northerly parallel with Fifth Avenue, 25 feet to the center line of the block; thence easterly along said center line of the block, 71 feet 2-3/4 inches;
S. 6451 3
thence southerly parallel with Fifth Avenue and part of the way through a party wall, 100 feet 5 inches to the northerly side of 52nd Street; thence westerly along the northerly side of 52nd Street, 60 feet to the point or place of beginning. Provided, however, that with respect to such retail licensee's interest in a business engaged in the manufacture or sale at wholesale of alcoholic beverages described in subdivision 1-a of section one hundred one of this article: such interest must have been acquired prior to the effective date of the chapter of the laws of two thousand nineteen which added this paragraph; (ii) such retail licensee may not purchase alcoholic beverages directly from any such manufacturer or wholesaler; and (iii) no more than fifteen percent of the annual dollar value of alcoholic beverages purchased by such retail licensee for sale on the premises may be produced by any such manufacturer.
§ 4. This act shall take effect immediately; provided, however, that the provisions of section one of this act shall expire and be deemed repealed April 1, 2021, when upon such date the provisions of section two of this act shall take effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to licensing restrictions for manufacturers and wholesalers of alcoholic beverages on licensees who sell at retail for on-premises consumption; and providing for the repeal of certain provisions upon expiration ther- eof
Purpose
To allow an iconic New York City restaurant to continue to hold a retail liquor license for on-premise consumption while being held by the same parent company as an equally iconic distributor of fine wines and spir- its.
Summary of provisions
Sections 1 and 2 exempt the property upon which a landmark New York City restaurant is located, in order to allow it to continue to hold a retail liquor license, notwithstanding the fact that it is owned by the same parent company as a world-renowned distributorship of fine wines and spirits.
Existing law
Click here
Justification
New York's Alcoholic Beverage Control Law prohibits a distributor (wholesaler) or manufacturer from holding an interest, directly or indi- rectly, in a licensed retailer of alcoholic beverage, such as a restau- rant. Likewise, a retailer may not hold an interest, directly or indi- rectly in a distributor or manufacturer. These are known as the "tied-house" laws.
The original intent of these post-prohibition statutes was to ensure that manufacturers and/or wholesalers of alcoholic beverages were not positioned to exert undue influence, or worse yet, monopoly power, over retail establishments. In fact, in most jurisdictions the danger to be avoided is spelled out more specifically by prohibiting undue influence and inducements between the manufacturer and wholesaler tiers and the retail tier of the "three-tiered" system in order to trigger a tied- house issue. New York, on the other hand, has a long tradition of strict interpretation that any relationship, however diminimus, is prohibited - even when there is no undue influence remotely present.
While originally aimed at promoting competition, in today's highly complex corporate world, current law and its strict interpretation in New York creates unintended consequences especially where the evil to be avoided is not remotely present. In this case, the parent company of an alcohol distributorship subsequently purchased a series of hospitality- related properties, one of which is a landmark Manhattan restaurant. Absent this legislation, the retail liquor license of the restaurant would be in jeopardy. Based on the historic expectations of the loyal customers of both entities, the evil to be avoided by the tied-house laws is clearly absent. This legislation will allow both iconic New York City-based entities to continue to operate in New York.
Legislative history
New Bill
Fiscal implications
none
Local fiscal implications
none
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.