Relates to the exemption of certain parcels of land from the licensing restrictions prohibiting manufacturers, wholesalers and retailers of alcoholic beverages from sharing an interest in a licensed premises

2025 Regular Session Introduced by Brian Kavanagh

A narrow, temporary exemption allows a fifth-floor manufacturer/wholesaler on a specific Manhattan parcel to share an interest in a retail licensee, with termination if the parcel

RETURNED TO SENATE

Summary of Bill S. 9516 (2025-2026) – New York

Purpose and overall intent

The bill amends the New York Alcoholic Beverage Control Law to create a narrow exemption allowing a licensed manufacturer or wholesaler located on the fifth floor of a specific Manhattan parcel to share an interest in a licensed retail premises, under specified conditions.

It provides that the exemption expires if the related parcel is sold or transferred (unless a leasehold interest is obtained as part of the sale/transfer), and requires ongoing notification to keep the law’s text up to date.

Key provisions and changes

New targeted exemption (subparagraph (xix)):

Adds a very detailed, geographically specific parcel in Manhattan as eligible for an exemption.
The parcel is described by a precise metes-and-bounds description beginning at Greene Street and Prince Street and outlining the parcel boundaries and surrounding streets.
The exemption applies to a licensee that is a manufacturer or wholesaler located on the fifth floor of the described parcel.
A crucial condition: the interest in a retail licensee that is shared must have been acquired prior to the effective date of the chapter of the laws of 2026 that added this subparagraph.

Leasehold condition upon transfer (Section 2):

If the parcel described in subparagraph (xix) is sold or transferred, the subparagraph’s exemption would expire unless the licensee immediately obtains a leasehold in connection with the sale/transfer.
If a leasehold is obtained, the exemption continues only until the end or termination of that leasehold.

Administrative data and reporting (Section 2):

The State Liquor Authority (SLA) must notify the Legislative Bill Drafting Commission when a sale, transfer, leasehold acquisition, or non-renewal occurs for the parcels described, to maintain an up-to-date official text in the state’s laws database.

Who would be affected

Licensed manufacturers or wholesalers located on the fifth floor of the specified Manhattan parcel.

Retail licensees with which such manufacturers/wholesalers share an interest, provided the shared interest was acquired before the 2026 enactment date.

The State Liquor Authority, which would implement and monitor the resolution, and the Legislative Bill Drafting Commission for updating the official legal text.

Procedural and timeline aspects

Effective date: Immediate upon enactment.

Expiration mechanism: The exemption expires if the parcel is sold or transferred without a leasehold; if a leasehold is obtained, the exemption persists only for the duration of the lease and expires at lease termination.

Notification requirement: SLA must inform the Legislative Bill Drafting Commission of relevant transactions (sale, transfer, lease, or non-renewal) to keep the statutes current.

Notes on scope and specificity

The bill targets a single, precisely described parcel in Manhattan, indicating a highly localized policy carve-out rather than a broad reform.

It creates a temporary and condition-based exception to the general prohibition on sharing an interest in licensed premises among manufacturers, wholesalers, and retailers of alcoholic beverages.

This summary covers the bill’s main purpose, the exact changes it would make, who is affected, and key timing and administrative steps. If you’d like, I can provide a section-by-section comparison against existing law or a potential impact assessment for stakeholders.