BILL NUMBER:  S2530

 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
seven (7) New York City locations and it is anticipated that another
five (5) 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The "tied house rule" is an outdated, Prohibition era relic of New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 :

2016: S.4919-A - Passed the Senate
2015: S.4919 - Passed the Senate

 FISCAL IMPLICATIONS :

None

 LOCAL FISCAL IMPLICATIONS :

Substantial increase in sales tax revenues and increased employment

 EFFECTIVE DATE :
This act shall take effect immediately.