NYS Tied House Law, explained
<p>Upstate NY (USA) here. Reading the NYS State Liquor Authority's <a href="https://sla.ny.gov/system/files/documents/2019/08/Brewery%20Quick%20Reference%20-%20FINAL%20-%208-7-19.pdf" rel="nofollow noreferrer">Brewery Quick Reference Guide</a> and trying to understand the <strong>Tied House Law</strong> passage on page 1:</p>
<blockquote>
<p>&quot;<em>Tied House...Additionally, the 'tied house law' prohibits any person who holds a direct or indirect interest in any retail establishment selling alcoholic beverages (whether in New York State, another state, or abroad) from holding a brewer’s license (or any other manufacturing or wholesaling license) in New York State.</em>&quot;</p>
</blockquote>
<p>Does this actually mean what I <em>think</em> it means? That if I am even part-owner of a NYS restaurant that serves alcoholic beverages, that I would be denied a Brewer's License?</p>
<p>If not, then what <em>is</em> the correct interpretation of that passage? And if I'm correct, then what would be the motivation behind such a stipulation? For instance, what if I wanted to own a &quot;brewpub&quot; where I would not only make and sell beer, but also make and sell food as well? If I'm reading this right, it almost sounds like that's an impossible setup, even though (of course) its not...</p>

<p>The law is <a href="https://www.nysenate.gov/legislation/laws/ABC/101" rel="nofollow noreferrer">here</a> (too long to quote, or understand). There is a <a href="https://www.nysenate.gov/legislation/bills/2019/s5718" rel="nofollow noreferrer">proposed modification</a> of the law which may be enacted. In the section <em>Justification</em>, it is noted that under the existing law</p>
<blockquote>
<p>a global corporation may technically &quot;own&quot; five subsidiary
corporations. Company A may own a winery in France while Company D may
own a hotel containing a restaurant in New York. Under New York Law,
the liquor license for the restaurant would be prohibited - and it
could be subject to financial penalties.</p>
</blockquote>
<p>So the restrictions are broader that you mention (ownership of stock is an &quot;interest&quot;), but certainly what you mention is prohibited. The <a href="https://legislation.nysenate.gov/pdf/bills/2019/s5718" rel="nofollow noreferrer">proposed law</a> limits the effect to an interest in a restaurant or brewery &quot;licensed under this chapter&quot;, i.e. in the state of New York (currently, a NY manufacturer cannot have an interest in an alcohol-selling restaurant anywhere).</p>

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