Cuomo eyes alcoholic beverages in NY theaters, changes to ‘tied house’ law | Eye on NY

Under Cuomo’s proposal, New York’s tied house law would match the federal statute. The federal tied-house law allows relationships between different parts of the industry if the retailer is “wholly owned” by the manufacturer or wholesaler. 

The state’s stricter tied-house law has affected manufacturers and retailers of craft beverages. Cuomo said some businesses have been denied licenses because of the existing provisions. 

Allowing the sale of alcoholic beverages in movie theaters isn’t a new proposal for Cuomo. He’s included it in past State of the State presentations and executive budget proposals. 

Cuomo’s plan would amend the state’s Alcoholic Beverage Control Law to allow movie theaters to sell beer, cider, mead, spirits and wine. Some movie theaters can offer alcoholic beverages under the state’s existing law, but the facilities must have full kitchens and tables inside the screening rooms to sell alcohol. 

The proposal would limit alcohol sales to adults ages 21 and over who have tickets to movies rated PG-13 or higher. Only one drink will be sold to a customer at a time. 

“Theaters all across the state will be able to provide an important amenity to its guests, promote New York state wine and craft beverages, and the tax revenue generated from alcohol sales will benefit the state,” said Joe Masher, president of the National Organization of Theater Owners of New York State and chief operating officer of Bow Tie Cinemas. 

Cuomo also wants to establish a post-secondary institution license to allow higher education programs to produce and sell alcoholic beverages under one license. There is a growing number of colleges and universities offering programs related to craft beverage production. But there are limits on the programs. The student-produced craft beverages can’t be sold unless an exception is provided by the state Legislature. 

According to Cuomo’s office, the new license would help ensure there is a skilled workforce for New York’s craft beverage producers. 

“New York’s craft beverage industry is flourishing thanks to eight years of targeted investments and forward-thinking policies that are attracting new businesses and supporting our booming tourism industry,” Cuomo said. “This measure will remove outdated Prohibition-era rules that hamper private sector investment, ensure we’re training the next generation of workers in a critical industry and give more New Yorkers the opportunity to responsibly enjoy a drink at the movies.” 

The number of craft beverage producers in New York has grown since Cuomo became governor in 2011. The number of licenses issued for farm-based craft beverage producers increased by 181 percent since Cuomo’s first Wine, Beer and Spirits Summit in 2012. There were 282 farm-based producers in October 2012. Today, there are 792. 

New York has the most hard cider producers of any state, has the second-most craft distillers, ranks third in the number of breweries and fourth in total wineries. 

Cuomo will deliver his State of the State address Wednesday in Albany.