Senate Bill S9273

2025-2026 Legislative Session

Exempts certain parcels of land from licensing restrictions prohibiting manufacturers, wholesalers and retailers of alcoholic beverages from sharing an interest in a licensed premises; repealer

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Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 20, 2026	referred to investigations and government operations

2025-S9273 (ACTIVE) - Details

See Assembly Version of this Bill:: A10620
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Rpld §105 sub 25, amd §§105 & 106, ABC L

2025-S9273 (ACTIVE) - Summary

Exempts certain parcels of land from licensing restrictions prohibiting manufacturers, wholesalers and retailers of alcoholic beverages from sharing an interest in a licensed premises and from selling at retail for consumption on and off the premises.

2025-S9273 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9273

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to the
exemption of certain parcels of land from licensing restrictions prohib-
iting manufacturers, wholesalers and retailers of alcoholic beverages
from sharing an interest in a licensed premises or to sell at retail for
consumption off and on the premises; to repeal certain provisions of
such law relating thereto; and providing for the repeal of such
provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow for a New York City business to serve alcoholic beverages at an
on-site cafe and to relocate an off-premises retail establishment owned
by that business to the same site notwithstanding that there is a de
minimis corporate relationship with a foreign winery.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill repeals an existing tied-house exemption granted
by the Legislature for an off-premises retail establishment owned by a
New York corporation and reinstates it at its New York corporate head-
quarters. Section 2 allows for the licensure of an on-premises retail
establishment at the same location.  In both cases, the retail estab-
lishment is prohibited from purchasing products from the manufacturer
(winery) for retail sale.

 
JUSTIFICATION:

New York's Alcoholic Beverage Control Law prohibits a distributor
(wholesaler) or manufacturer (including vineyards and wineries) from
holding an interest, directly or indirectly, in a licensed retailer of
alcoholic beverages, such as a restaurant or liquor store.  Likewise, a
retailer may not hold an interest, directly or indirectly in a distribu-
tor 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 de minimis, is prohibited.

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. The Legislature has regularly addressed
these challenges by exempting certain properties in order to support
rational economic development goals. Exemptions, such as those provided
by this bill, are narrowly tailored to prevent undue market influence by
identifying select locations using metes and bounds descriptions.


This bill will allow an established New York corporation to consolidate
a retail store to its New York headquarters as well as open a cafe at
the same location. Product may not be purchased from the manufacturer to
be sold at retail at either retail establishment.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S9273 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9273
 
                             I N  S E N A T E
 
                             February 20, 2026
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the alcoholic beverage control law, in relation  to  the
   exemption  of  certain  parcels  of  land  from licensing restrictions
   prohibiting manufacturers,  wholesalers  and  retailers  of  alcoholic
   beverages  from  sharing an interest in a licensed premises or to sell
   at retail for consumption off and on the premises; to  repeal  certain
   provisions  of such law relating thereto; and providing for the repeal
   of such provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  25  of section 105 of the alcoholic beverage
 control law is REPEALED and a new subdivision 25 is  added  to  read  as
 follows:
   25.  (A)  THE PROVISIONS OF SUBDIVISIONS SIXTEEN AND SEVENTEEN OF THIS
 SECTION SHALL NOT APPLY TO ANY INTEREST  IN  A  MANUFACTURER  INSIDE  OR
 OUTSIDE THE UNITED STATES, HELD BY ANY BUSINESS OR ENTITY LOCATED ON ANY
 PARCELS OF LAND IN THE BOROUGH OF MANHATTAN, CITY AND STATE OF NEW YORK,
 BOUNDED AND DESCRIBED AS FOLLOWS:
   BEGINNING AT A POINT ON THE NORTHERLY SIDE OF WEST 48TH STREET DISTANT
 200  FEET  WESTERLY  FROM  THE  CORNER FORMED BY THE INTERSECTION OF THE
 NORTH SIDE OF WEST 48TH STREET WITH  THE  WEST  SIDE  OF  FIFTH  AVENUE;
 RUNNING  THENCE  WESTERLY  ALONG  THE NORTH SIDE OF WEST 48TH STREET 175
 FEET TO THE WESTERLY SIDE OF ROCKEFELLER PLAZA; THENCE  NORTHERLY  ALONG
 THE  WESTERLY  SIDE OF ROCKEFELLER PLAZA 200 FEET 10 INCHES TO THE SOUTH
 SIDE OF WEST 49TH STREET; THENCE EASTERLY ALONG THE SOUTH SIDE  OF  WEST
 49TH  STREET 150 FEET TO A POINT DISTANT 225 FEET WESTERLY FROM THE WEST
 SIDE OF FIFTH AVENUE; THENCE SOUTHERLY PARALLEL WITH  FIFTH  AVENUE  AND
 FOR  PART OF THE DISTANCE THROUGH A PARTY WALL 100 FEET 5 INCHES; THENCE
 EASTERLY PARALLEL WITH WEST  49TH  STREET,  25  FEET;  THENCE  SOUTHERLY
 PARALLEL  WITH FIFTH AVENUE, 100 FEET 5 INCHES TO THE NORTH SIDE OF WEST
 48TH STREET AT THE PLACE OF BEGINNING.
   (B) PROVIDED, HOWEVER, THAT WITH RESPECT  TO  SUCH  RETAIL  LICENSEE'S
 INTEREST IN A BUSINESS ENGAGED IN THE MANUFACTURE OF ALCOHOLIC BEVERAGES
 DESCRIBED IN SUBDIVISION SIXTEEN OR SEVENTEEN OF THIS SECTION:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14930-01-6
 S. 9273                             2
 
   (I) SUCH INTEREST SHALL HAVE BEEN ACQUIRED PRIOR TO THE EFFECTIVE DATE
 OF THIS SUBDIVISION; AND
   (II)  SUCH  RETAIL LICENSEE SHALL NOT PURCHASE ALCOHOLIC BEVERAGES FOR
 RESALE DIRECTLY FROM ANY SUCH MANUFACTURER; PROVIDED  FURTHER  THAT  THE
 ACQUISITION  OF  ANY  SUCH  BEVERAGES FROM ANY SUCH MANUFACTURER VIA THE
 CONSIGNMENT PROCESS FOR THE PURPOSES OF A SALE PURSUANT TO SECTION NINE-
 TY-NINE-G OF THIS CHAPTER SHALL NOT BE DEEMED A PURCHASE FOR RESALE  FOR
 THE PURPOSES OF THIS SECTION.
   §  2.  Subdivision 13 of section 106 of the alcoholic beverage control
 law is amended by adding a new paragraph (a-2) to read as follows:
   (A-2) (I) THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVISION  SHALL
 NOT  APPLY  TO  THE  HOLDER  OF A RETAIL ON-PREMISES CONSUMPTION LICENSE
 ISSUED FOR 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 WEST 48TH STREET DISTANT 200 FEET WESTER-
 LY FROM THE CORNER FORMED BY THE INTERSECTION OF THE NORTH SIDE OF  WEST
 48TH  STREET WITH THE WEST SIDE OF FIFTH AVENUE; RUNNING THENCE WESTERLY
 ALONG THE NORTH SIDE OF WEST 48TH STREET 175 FEET TO THE  WESTERLY  SIDE
 OF ROCKEFELLER PLAZA; THENCE NORTHERLY ALONG THE WESTERLY SIDE OF ROCKE-
 FELLER  PLAZA  200 FEET 10 INCHES TO THE SOUTH SIDE OF WEST 49TH STREET;
 THENCE EASTERLY ALONG THE SOUTH SIDE OF WEST 49TH STREET 150 FEET  TO  A
 POINT  DISTANT  225  FEET  WESTERLY  FROM THE WEST SIDE OF FIFTH AVENUE;
 THENCE SOUTHERLY PARALLEL WITH FIFTH AVENUE AND FOR PART OF THE DISTANCE
 THROUGH A PARTY WALL 100 FEET 5 INCHES; THENCE  EASTERLY  PARALLEL  WITH
 WEST  49TH STREET, 25 FEET; THENCE SOUTHERLY PARALLEL WITH FIFTH AVENUE,
 100 FEET 5 INCHES TO THE NORTH SIDE OF WEST 48TH STREET AT THE PLACE  OF
 BEGINNING.
   (II)  PROVIDED,  HOWEVER,  THAT WITH RESPECT TO SUCH RETAIL LICENSEE'S
 INTEREST IN A BUSINESS ENGAGED IN THE MANUFACTURE OF ALCOHOLIC BEVERAGES
 DESCRIBED IN THIS SUBDIVISION:
   (1) SUCH INTEREST SHALL HAVE BEEN ACQUIRED PRIOR TO THE EFFECTIVE DATE
 OF THIS SUBDIVISION; AND
   (2) SUCH RETAIL LICENSEE SHALL NOT PURCHASE  ALCOHOLIC  BEVERAGES  FOR
 SALE AT RETAIL DIRECTLY FROM ANY SUCH MANUFACTURER.
   §  3.  This act shall take effect immediately; provided, however, that
 upon the sale or transfer of the parcels detailed in  paragraph  (a)  of
 subdivision  25 of section 105 or subparagraph (i) of paragraph (a-2) of
 subdivision 13 of section 106 of the alcoholic beverage control law,  as
 added  by  sections one and two of this act, respectively, such subdivi-
 sion 25 and paragraph (a-2), respectively, shall expire  and  be  deemed
 repealed  unless  the licensee immediately obtains a leasehold upon such
 sale or transfer of such parcel as part of the sale or transfer. If  the
 licensee  obtains  such  a leasehold, then subdivision 25 of section 105
 and paragraph (a-2) of subdivision 13 of section 106, of  the  alcoholic
 beverage  control  law,  pertaining  to  such parcel shall expire and be
 deemed repealed upon the end or termination of  such  lease.  The  state
 liquor  authority  shall notify the legislative bill drafting commission
 upon notification by the licensee of the sale, transfer  or  termination
 of the leasehold, or non-renewal of the leasehold of the parcel detailed
 in  paragraph  (a) of subdivision 25 of section 105, or subparagraph (i)
 of paragraph (a-2) of subdivision 13 of section 106,  of  the  alcoholic
 beverage control law, in order that the commission may maintain an accu-
 rate  and timely effective data base of the official text of the laws of
 the state of New York in furtherance of effectuating the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.

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Senate Bill S9273

Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2025-S9273 (ACTIVE) - Details

2025-S9273 (ACTIVE) - Summary

2025-S9273 (ACTIVE) - Sponsor Memo

2025-S9273 (ACTIVE) - Bill Text download pdf

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Sponsored By

Liz Krueger

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2025-S9273 (ACTIVE) - Details

2025-S9273 (ACTIVE) - Summary

2025-S9273 (ACTIVE) - Sponsor Memo

2025-S9273 (ACTIVE) - Bill Text download pdf

Comments