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Bill

A 10890

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 Deborah Glick

A narrow exemption allows a fifth-floor Manhattan manufacturer/wholesaler to share a retail license, but only if pre-2026, with sunset tied to parcel ownership/lease changes.

SUBSTITUTED BY S9516
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Bill Summary · A 10890

Overview

Bill A.10890 (2025-2026, New York) proposed by Assemblymember Glick adds a new exemption to the Alcoholic Beverage Control Law. The exemption would allow a licensed manufacturer or wholesaler located on the fifth floor of a specific Manhattan parcel to share an interest in a licensed retail premises, subject to conditions and a sunset tied to the sale, transfer, or leasehold status of that parcel. The bill includes a mechanism to repeal the exemption if the relevant parcel changes ownership or lease status, and requires administrative notice to keep the state’s official text up to date.

Main purpose and intent

  • Create a limited exemption permitting a licensed manufacturer or wholesaler to share an interest in a retail licensee (i.e., a licensed retail premises) under narrowly defined geographic and structural conditions.
  • Provide a clear, location-specific exception to existing licensing restrictions that generally prohibit manufacturers, wholesalers, and retailers from sharing an interest in a licensed premises.
  • Establish a deadline-driven, temporary status for the exemption that ends when ownership/leasehold conditions change or upon expiration of the leasehold, ensuring periodic reevaluation.

Key provisions and changes

  • New subparagraph (xix) added to paragraph (a) of subdivision 1 of section 101 of the Alcoholic Beverage Control Law.
  • Geographic and structural specificity:
    • The exemption applies to a licensed manufacturer or wholesaler located on the fifth floor of a defined parcel in Manhattan, bounded by Greene Street, Prince Street, Mercer Street, and adjacent blocks as described in the bill.
  • Qualification condition:
    • The interest in a retail licensee may be exempt only if the manufacturer/wholesaler’s interest was acquired prior to the effective date of the 2026 amendments introducing this subparagraph.
  • Sunset and repeal trigger:
    • If the parcel is sold or transferred, the subparagraph expires unless the licensee immediately obtains a leasehold on the parcel as part of the sale/transfer.
    • If a leasehold is obtained, the subparagraph expires at the end or termination of the lease.
  • Administrative requirement:
    • The New York State Liquor Authority (SLA) must notify the Legislative Bill Drafting Commission when a sale, transfer, or termination of the leasehold of the parcel occurs, to maintain an accurate official text and data base.

Who/what is affected

  • A licensed manufacturer or wholesaler located on the specified fifth-floor parcel in Manhattan.
  • A licensed retail licensee with which the exempted manufacturer/wholesaler would share an interest.
  • The bill would also affect SLA administrative processes and codification of the law through required notices to the Legislative Bill Drafting Commission.

Procedural and timeline aspects

  • Effective date: Immediate upon enactment.
  • Conditional expiration:
    • If the parcel is sold or transferred, the exemption expires unless the licensee secures a leasehold on the parcel; expiration occurs at the end of the lease if a leasehold is obtained.
  • Notification requirement:
    • SLA must notify the Legislative Bill Drafting Commission upon sale, transfer, or leasehold termination to keep the statewide statute text up to date.
  • Legislative process timeline indicated in the bill’s action history:
    • Referred to Economic Development (April 8, 2026), subsequently moved through committees, and ultimately substituted by S9516 (June 1, 2026), with references changing to Ways and Means.

Potential impact and considerations

  • Provides a narrowly tailored exemption that may enable certain vertical integration (manufacturers/wholesalers sharing in retail licenses) within a defined Manhattan parcel, potentially affecting competition and ownership structures for that parcel.
  • The highly specific geographic description limits applicability to a single, identifiable property, reducing broader market impact.
  • The sunset/leasehold mechanism ensures ongoing oversight and alignment with real estate/ownership changes, minimizing long-term entrenchment absent continued leasehold arrangements.
  • Administrative data accuracy requirements aim to improve legislative text clarity and record-keeping.

Compiled from official sources — confirm details with the bill’s official record.

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