Source: https://www.nysenate.gov/legislation/bills/2011/S7727
Timestamp: 2019-09-18 15:42:13
Document Index: 589040667

Matched Legal Cases: ['§16', '§1136', '§ 3', '§ 3', '§ 51', '§ 51', '§ 56', '§ 56', '§ 61', '§ 16', '§ 1136', '§ 51', '§ 51']

NY State Senate Bill S7727
senate Bill S7727
Creates a farm brewery license
Get Status Alerts for S7727
Jul 18, 2012 signed chap.108
Jul 17, 2012 delivered to governor
Jun 20, 2012 returned to senate
ordered to third reading rules cal.435
substituted for a10694
Jun 18, 2012 referred to codes
ordered to third reading cal.1299
Jun 15, 2012 referred to rules
Jun 18, 2012 - Rules committee Vote
Rules Committee Vote: Jun 18, 2012
S7727 (ACTIVE) - Details
Amd ABC L, generally; amd §16, Ag & Mkts L; amd §1136, Tax L (as proposed in S.7019 & A. 9523)
S7727 (ACTIVE) - Summary
Creates a farm brewery license.
S7727 (ACTIVE) - Sponsor Memo
BILL NUMBER:S7727
An act to amend the alcoholic beverage control law and the agriculture
and markets law, in relation to the creation of a farm brewery license
and to amend the tax law, in relation to farm winery, farm distillery
and farm brewery sales tax information return filing requirements
This legislation would authorize the establishment of farm breweries for
the manufacture and sale of beer and cider made from crops grown in New
York State and would exclude such breweries from the sales tax informa-
tion return filing requirements.
Section 1 of the bill would amend Alcoholic Beverage Control Law
("ABCL") § 3 to define "farm brewery."
Section 2 of the bill would amend ABCL § 3 to define "New York state
labelled beer" and "New York state labeled cider."
Sections 3 and 4 of the bill would amend ABCL § 51 to permit licensed
brewers to produce New York State labeled beer and to: (a) sell such
beer to licensed farm distillers, farm wineries, and farm breweries; (b)
conduct tastings at the licensed premises of such beer production; (c)
sell such beer at retail for consumption off the premises at the State
Fair, recognized county fairs, and farmers markets; (d) sell and conduct
tastings of such beer at retail for consumption on the premises of a
restaurant, conference center, inn, bed and breakfast, or hotel owned
and operated by the licensee in or adjacent to its farm brewery; and (e)
apply for a permit to conduct tastings away from the licensed premises
Section 5 of the bill would create a new ABCL § 51-a to establish a new
license category for farm breweries. A farm brewery would be permitted
to manufacture only New York State labeled beer in quantities not to
exceed 60,000 barrels annually. A farm brewery would also be permitted
to: (a) manufacture New York State labeled cider; (b) sell in bulk its
beer and cider to other licensed manufacturers of alcoholic beverages
and to persons outside the State; (c) sell its beer and cider to whole-
salers, retailers, farm distillers, farm wineries, and other farm brew-
ers; (d) sell its beer and cider at retail for consumption on or off the
premises; (e) conduct tastings on the licensed premises of beer and
cider manufactured by the licensee or any other farm brewery; (f) sell
and conduct tastings of beer and cider manufactured by the licensee or
any other farm brewery at retail for consumption on the premises of a
and operated by the licensee in or adjacent to the farm brewery; (g)
sell beer and cider manufactured by the licensee or any other farm brew-
ery at retail for consumption off the premises at the State Fair, recog-
nized county fairs, and farmers markets; (h) conduct tastings of and
sell at retail for consumption off the premises New York State labeled
wine and liquor; and (i) sell New York State labeled beer, wine, and
liquor at retail and to sell food and other items and to operate up to
five branch offices.
Section 6 of the bill would amend ABCL § 56 to set the annual fee for a
farm brewery license at $320.
Sections 7 and 8 of the bill would amend ABCL § 56-a to make technical
Sections 9 through 14 of the bill would amend ABCL §§ 61, 76, and 76-a
to allow distillers and wineries to sell their New York State labeled
liquor and wine to farm wineries and farm breweries, grant farm wineries
and farm distilleries the same powers to conduct tastings that farm
breweries have and make minor technical corrections.
Section 15 of the bill would amend Agriculture and Markets Law § 16(42)
to grant the Commissioner of Agriculture and Markets the power to inves-
tigate and report on crop losses impacting the production of New York
State labeled beer and cider.
Section 16 of the bill would amend Tax Law § 1136(i)(1)(C) to exempt
farm breweries from the sales tax information return filing require-
Section 17 of the bill provides for the effective date.
Licenses to manufacture beer are issued pursuant to ABCL § 51, the only
distinction between brewers being for "micro-brewers" (those producing
less than 60,000 barrels annually) which pay a reduced license fee.
Brewers also have a limited ability to sell their products at retail,
and are restricted on the activities that can be conducted on their
As noted in the New York State Law Commission's Report on the ABCL, beer
produced by craft brewers is becoming increasingly popular.  However, as
the report also noted, the most significant obstacle facing these busi-
nesses is their inability to compete with larger domestic and multi-na-
tional brewers. This bill would provide small craft brewers with addi-
tional opportunities to market their products. ABCL § 51-a is modeled on
analogous law for farm wineries and for farm distilleries. The farm
winery and farm distillery licensing programs have been an integral part
of promoting these industries in New York.
By allowing farm breweries to expand the activities that can be
conducted at the licensed premises, these businesses, much like farm
wineries, will become destination locations that will promote tourism
within their communities. In addition, the need for ingredients in the
manufacture of New York State labeled beer would create a sustained
demand for products from New York's farmers.
Like farm wineries and farm distilleries, it would be difficult for farm
breweries to absorb the cost of complying with the annual sales tax
information return requirements. Exempting farm breweries from such
requirement will not undermine the effectiveness of the third-party
reporting requirements, because purchases from farm breweries are
expected to account for a very small percentage of retailers' overall
purchases. Moreover, farm breweries will be required to maintain sales
records pursuant to requirements imposed by the State Liquor Authority.
This bill is not expected to have a significant impact on the State's
This act shall take effect on the 180th day after it becomes law, except
that Section 16 shall take effect immediately and apply to annual
returns due on and after March 20, 2012.
S7727 (ACTIVE) - Bill Text download pdf
S. 7727                                                 A. 10694
IN  SENATE  --  Introduced by Sens. RITCHIE, VALESKY, BONACIC, NOZZOLIO,
LAVALLE, O'MARA, DeFRANCISCO -- (at request of the Governor)  --  read
A. Magee, Schimminger, Barrett, Brindisi, Bronson, Gabryszak, Gunther,
Lupardo,  McEneny,  Reilly,  Roberts,  Russell,  Skartados, Zebrowski,
P. Lopez, Montesano, Sayward) -- (at request of the Governor) --  read
once and referred to the Committee on Economic Development
AN  ACT  to amend the alcoholic beverage control law and the agriculture
and to amend the tax law, in relation to farm winery, farm  distillery
by adding a new subdivision 12-aaa to read as follows:
12-AAA.  "FARM  BREWERY"  MEANS  AND  INCLUDES  ANY PLACE OR PREMISES,
LOCATED ON A FARM IN NEW YORK STATE, IN WHICH NEW  YORK  STATE  LABELLED
BEER IS MANUFACTURED, STORED AND SOLD, OR ANY OTHER PLACE OR PREMISES IN
NEW  YORK  STATE  IN WHICH NEW YORK STATE LABELLED BEER IS MANUFACTURED,
STORED AND SOLD.
S 2. Section 3 of the alcoholic beverage control  law  is  amended  by
adding two new subdivisions 20-d and 20-e to read as follows:
20-D. "NEW YORK STATE LABELLED BEER" MEANS:
(A)  FROM  THE EFFECTIVE DATE OF THIS SUBDIVISION UNTIL DECEMBER THIR-
TY-FIRST, TWO THOUSAND EIGHTEEN, BEER MADE  WITH  NO  LESS  THAN  TWENTY
PERCENT, BY WEIGHT, OF ITS HOPS GROWN IN NEW YORK STATE AND NO LESS THAN
TWENTY  PERCENT,  BY  WEIGHT, OF ALL OF ITS OTHER INGREDIENTS, EXCLUDING
WATER, GROWN IN NEW YORK STATE;
(B)  FROM  JANUARY  FIRST,  TWO  THOUSAND  NINETEEN   UNTIL   DECEMBER
THIRTY-FIRST,  TWO  THOUSAND  TWENTY-THREE,  BEER MADE WITH NO LESS THAN
SIXTY PERCENT, BY WEIGHT, OF ITS HOPS GROWN IN NEW  YORK  STATE  AND  NO
LBD12154-04-2
S. 7727                             2                           A. 10694
LESS  THAN  SIXTY  PERCENT,  BY WEIGHT, OF ALL OF ITS OTHER INGREDIENTS,
EXCLUDING WATER, GROWN IN NEW YORK STATE; AND
(C)  FROM JANUARY FIRST, TWO THOUSAND TWENTY-FOUR AND THEREAFTER, BEER
MADE WITH NO LESS THAN NINETY PERCENT, BY WEIGHT, OF ITS HOPS  GROWN  IN
NEW YORK STATE AND NO LESS THAN NINETY PERCENT, BY WEIGHT, OF ALL OF ITS
OTHER INGREDIENTS, EXCLUDING WATER, GROWN IN NEW YORK STATE.
20-E.  "NEW  YORK  STATE  LABELLED CIDER" MEANS CIDER MADE EXCLUSIVELY
FROM APPLES GROWN IN NEW YORK STATE.
S 3. Subdivision 6 of section 51 of  the  alcoholic  beverage  control
law, as amended by chapter 258 of the laws of 2009, is renumbered subdi-
vision 5-a and amended to read as follows:
5-a.  Except  as otherwise provided in subdivisions three, four [and],
five AND SIX-A of this section and except as provided in section  fifty-
two  of  this  article  no brewer shall sell any beer, wine or liquor at
S 4.  Section 51 of the alcoholic beverage control law is  amended  by
adding a new subdivision 6-a to read a follows:
ON THE PREMISES OF A RESTAURANT, CONFERENCE CENTER, INN, BED AND  BREAK-
FAST OR HOTEL BUSINESS OWNED AND OPERATED BY THE LICENSEE IN OR ADJACENT
TO  ITS  FARM  BREWERY. A LICENSEE WHO OPERATES A RESTAURANT, CONFERENCE
(E)  APPLY  FOR  A  PERMIT  TO CONDUCT TASTINGS AWAY FROM THE LICENSED
PREMISES OF SUCH BEER. SUCH PERMIT SHALL BE VALID THROUGHOUT  THE  STATE
PERMIT  AND  THE  EXERCISE  OF  THE  PRIVILEGE  GRANTED THEREBY SHALL BE
SUBJECT TO SUCH RULES AND CONDITIONS OF THE AUTHORITY AS IT DEEMS NECES-
SARY. TASTINGS SHALL BE CONDUCTED SUBJECT TO THE FOLLOWING CONDITIONS:
OR  SOLICITOR  OF  THE LICENSEE. SUCH AGENT, REPRESENTATIVE OR SOLICITOR
SHALL BE PHYSICALLY PRESENT AT ALL TIMES DURING THE CONDUCT OF THE TAST-
LICENSED  UNDER SECTIONS SIXTY-FOUR, SIXTY-FOUR-A, EIGHTY-ONE AND EIGHT-
Y-ONE-A OF THIS CHAPTER. EACH SUCH PERMIT AND THE EXERCISE OF THE PRIVI-
LEGE GRANTED THEREBY SHALL BE SUBJECT TO SUCH RULES  AND  CONDITIONS  OF
THE AUTHORITY AS IT DEEMS NECESSARY.
S  5.  The  alcoholic  beverage control law is amended by adding a new
section 51-a to read as follows:
S. 7727                             3                           A. 10694
S 51-A. FARM BREWERY LICENSE. 1. ANY PERSON MAY APPLY TO THE AUTHORITY
FOR A FARM BREWERY LICENSE AS PROVIDED FOR IN THIS SECTION TO BREW  BEER
WITHIN  THIS  STATE  FOR  SALE. SUCH APPLICATION SHALL BE IN WRITING AND
VERIFIED AND SHALL CONTAIN  SUCH  INFORMATION  AS  THE  AUTHORITY  SHALL
REQUIRE.  SUCH  APPLICATION SHALL BE ACCOMPANIED BY A CHECK OR DRAFT FOR
THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE. IF  THE  AUTHORITY
GRANTS  THE  APPLICATION, IT SHALL ISSUE A LICENSE IN SUCH FORM AS SHALL
BE DETERMINED BY ITS RULES. SUCH LICENSE SHALL CONTAIN A DESCRIPTION  OF
THE  PERSON THEREIN SPECIFICALLY DESIGNATED TO BREW BEER IN THE PREMISES
2. A FARM BREWERY LICENSE SHALL AUTHORIZE THE HOLDER THEREOF TO  OPER-
ATE  A BREWERY FOR THE MANUFACTURE OF NEW YORK STATE LABELLED BEER. SUCH
A LICENSE SHALL ALSO AUTHORIZE THE LICENSEE TO:
(B) SELL IN BULK BEER AND CIDER MANUFACTURED BY THE  LICENSEE  TO  ANY
PERMITTEE  ENGAGED  IN  THE  MANUFACTURE OF PRODUCTS WHICH ARE UNFIT FOR
(C) SELL OR DELIVER BEER AND CIDER MANUFACTURED  BY  THE  LICENSEE  TO
PERSONS  OUTSIDE  THE  STATE  PURSUANT  TO THE LAWS OF THE PLACE OF SUCH
(D) SELL BEER AND CIDER MANUFACTURED BY THE  LICENSEE  TO  WHOLESALERS
AND  RETAILERS  LICENSED  IN  THIS  STATE  TO  SELL SUCH BEER AND CIDER,
LICENSED FARM DISTILLERS, LICENSED FARM WINERIES AND ANY OTHER  LICENSED
FARM  BREWERY.  ALL  SUCH  BEER  AND CIDER SOLD BY THE LICENSEE SHALL BE
SECURELY SEALED AND HAVE ATTACHED THERETO A LABEL AS SHALL  BE  REQUIRED
(E)  SELL  AT THE LICENSED PREMISES BEER AND CIDER MANUFACTURED BY THE
(F) CONDUCT TASTINGS AT THE LICENSED PREMISES OF BEER AND CIDER  MANU-
FACTURED BY THE LICENSEE OR ANY OTHER LICENSED FARM BREWERY;
(G)  SELL  AND  CONDUCT TASTINGS OF BEER AND CIDER MANUFACTURED BY THE
THE PREMISES OF A RESTAURANT, CONFERENCE CENTER, INN, BED AND  BREAKFAST
OR  HOTEL  BUSINESS OWNED AND OPERATED BY THE LICENSEE IN OR ADJACENT TO
ITS FARM BREWERY. A  LICENSEE  WHO  OPERATES  A  RESTAURANT,  CONFERENCE
COMPLY  WITH  ALL  APPLICABLE PROVISIONS OF THIS CHAPTER WHICH RELATE TO
(H) SELL BEER AND CIDER MANUFACTURED BY  THE  LICENSEE  OR  ANY  OTHER
STATE  FAIR,  AT RECOGNIZED COUNTY FAIRS AND AT FARMERS MARKETS OPERATED
(I) CONDUCT TASTINGS OF AND SELL AT RETAIL  FOR  CONSUMPTION  OFF  THE
PREMISES  NEW YORK STATE LABELLED WINE MANUFACTURED BY A LICENSED WINERY
(J) CONDUCT TASTINGS OF AND SELL AT RETAIL  FOR  CONSUMPTION  OFF  THE
PREMISES  NEW  YORK  STATE  LABELLED  LIQUOR  MANUFACTURED BY A LICENSED
DISTILLER OR LICENSED FARM DISTILLER; PROVIDED, HOWEVER, THAT NO CONSUM-
ER MAY BE PROVIDED, DIRECTLY OR INDIRECTLY: (I)  WITH  MORE  THAN  THREE
SAMPLES OF LIQUOR FOR TASTING IN ONE CALENDAR DAY; OR (II) WITH A SAMPLE
OF LIQUOR FOR TASTING EQUAL TO MORE THAN ONE-QUARTER FLUID OUNCE; AND
(K)  ENGAGE  IN ANY OTHER BUSINESS ON THE LICENSED PREMISES SUBJECT TO
SUCH RULES AND REGULATIONS AS THE AUTHORITY MAY  PRESCRIBE.  SUCH  RULES
S. 7727                             4                           A. 10694
PARTICULAR  BUSINESSES  ON THE COMMUNITY AND AREA IN THE VICINITY OF THE
3. (A) A FARM BREWERY LICENSEE MAY APPLY FOR A PERMIT TO CONDUCT TAST-
INGS  AWAY  FROM THE LICENSED PREMISES OF BEER AND CIDER PRODUCED BY THE
LICENSEE. SUCH PERMIT SHALL BE VALID THROUGHOUT THE  STATE  AND  MAY  BE
BOTTLE,  DURING SUCH TASTINGS IN PREMISES LICENSED UNDER SECTIONS SIXTY-
FOUR, SIXTY-FOUR-A, EIGHTY-ONE AND EIGHTY-ONE-A OF THIS CHAPTER.    EACH
SUCH  PERMIT  AND THE EXERCISE OF THE PRIVILEGE GRANTED THEREBY SHALL BE
7.  A FARM BREWERY LICENSE SHALL AUTHORIZE THE HOLDER THEREOF TO MANU-
FACTURE,  BOTTLE AND SELL FOOD CONDIMENTS AND PRODUCTS SUCH AS MUSTARDS,
SAUCES, HOP SEASONINGS, BEER NUTS, AND OTHER HOPS AND BEER RELATED FOODS
IN ADDITION TO BEER AND HOP SOAPS, HOP PILLOWS, HOP  WREATHS  AND  OTHER
SUCH  FOOD  AND  CRAFTS  ON AND FROM THE LICENSED PREMISES. SUCH LICENSE
SHALL AUTHORIZE THE HOLDER THEREOF TO STORE AND SELL  GIFT  ITEMS  IN  A
TAX-PAID ROOM UPON THE LICENSED PREMISES INCIDENTAL TO THE SALE OF BEER.
THESE GIFT ITEMS SHALL BE LIMITED TO THE FOLLOWING CATEGORIES:
(A)  NON-ALCOHOLIC  BEVERAGES  FOR  CONSUMPTION  ON  OR  OFF PREMISES,
(B) FOOD ITEMS FOR THE PURPOSE OF COMPLEMENTING BEER AND  CIDER  TAST-
INGS,  WHICH SHALL MEAN A DIVERSIFIED SELECTION OF FOOD THAT IS ORDINAR-
ILY CONSUMED WITHOUT THE  USE  OF  TABLEWARE  AND  CAN  BE  CONVENIENTLY
S. 7727                             5                           A. 10694
UTILIZED FOR THE STORAGE, SERVING OR CONSUMPTION OF BEER OR FOR  DECORA-
TIVE  PURPOSES.  THESE  SUPPLIES  MAY  BE SOLD AS SINGLE ITEMS OR MAY BE
COMBINED INTO A PACKAGE CONTAINING BEER;
WRITTEN MATERIAL TO ASSIST BEER-MAKERS AND HOME BEER-MAKERS OR HOMEBREW-
ERS TO PRODUCE AND BOTTLE BEER;
(F) SOUVENIR ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE  LIMITED  TO
ARTWORK,  CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER ARTICLES
8. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY,  ANY
FIVE  BRANCH  OFFICES  LOCATED AWAY FROM THE LICENSED FARM BREWERY. SUCH
LOCATIONS SHALL BE CONSIDERED PART OF  THE  LICENSED  PREMISES  AND  ALL
ACTIVITIES  ALLOWED  AT AND LIMITED TO THE FARM BREWERY MAY BE CONDUCTED
AT THE BRANCH OFFICES. SUCH BRANCH OFFICES SHALL NOT BE LOCATED  WITHIN,
SHARE  A  COMMON  ENTRANCE AND EXIT WITH, OR HAVE ANY INTERIOR ACCESS TO
ANY OTHER BUSINESS, INCLUDING PREMISES LICENSED TO SELL ALCOHOLIC BEVER-
AGES AT RETAIL. PRIOR TO COMMENCING OPERATION OF ANY SUCH BRANCH OFFICE,
THE LICENSEE SHALL NOTIFY THE AUTHORITY OF THE LOCATION OF  SUCH  BRANCH
OFFICE AND THE AUTHORITY MAY ISSUE A PERMIT FOR THE OPERATION OF SAME.
FORTY-TWO OF SECTION SIXTEEN OF THE AGRICULTURE AND MARKETS LAW,  DETER-
MINES  THAT A NATURAL DISASTER, ACT OF GOD, OR CONTINUED ADVERSE WEATHER
CONDITION HAS DESTROYED MUCH OF THE NECESSARY  INGREDIENTS  FOR  BREWING
BEER,  SUCH  COMMISSIONER,  IN  CONSULTATION  WITH  THE  CHAIRMAN OF THE
AUTHORITY, MAY GIVE AUTHORIZATION TO A DULY  LICENSED  FARM  BREWERY  TO
MANUFACTURE  OR  SELL  BEER  PRODUCED FROM INGREDIENTS GROWN OR PRODUCED
OUTSIDE THIS STATE. NO SUCH AUTHORIZATION SHALL BE  GRANTED  TO  A  FARM
QUANTITY  OF NEW YORK GROWN INGREDIENTS UNAVAILABLE TO SUCH LICENSEE DUE
TO SUCH NATURAL DISASTER, ACT  OF  GOD  OR  CONTINUING  ADVERSE  WEATHER
CONDITION  AND  SATISFIES SUCH COMMISSIONER THAT REASONABLE EFFORTS WERE
BEER MAKING PURPOSE. NO FARM BREWERY SHALL UTILIZE AN AMOUNT OF  OUT-OF-
STATE  GROWN  OR  PRODUCED  INGREDIENTS EXCEEDING THE AMOUNT OF NEW YORK
GROWN INGREDIENTS THAT SUCH BREWERY IS  UNABLE  TO  OBTAIN  DUE  TO  THE
DESTRUCTION  OF  NEW  YORK  GROWN  OR  PRODUCED INGREDIENTS BY A NATURAL
DISASTER, ACT OF GOD OR CONTINUING ADVERSE WEATHER CONDITION  AS  DETER-
MINED  BY  THE  COMMISSIONER OF AGRICULTURE AND MARKETS PURSUANT TO THIS
SUBDIVISION. FOR PURPOSES OF THIS SUBDIVISION, THE DEPARTMENT  OF  AGRI-
CULTURE  AND MARKETS AND THE AUTHORITY ARE AUTHORIZED TO ADOPT RULES AND
REGULATIONS AS THEY MAY DEEM NECESSARY TO CARRY OUT  THE  PROVISIONS  OF
S. 7727                             6                           A. 10694
THIS SUBDIVISION WHICH SHALL INCLUDE ENSURING THAT IN MANUFACTURING BEER
FARM  BREWERIES  UTILIZE INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE
TO THE EXTENT THEY ARE REASONABLY AVAILABLE, PRIOR TO UTILIZING INGREDI-
ENTS FROM AN OUT-OF-STATE SOURCE FOR SUCH PURPOSE.
TO FARM BREWERIES AND TO THE PUBLIC EACH SPECIFIC INGREDIENT LOSS DETER-
MINATION ISSUED PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVISION  ON  OR
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSIONER OF AGRI-
CULTURE AND MARKETS, IN CONSULTATION WITH THE CHAIRMAN OF THE AUTHORITY,
MAY ISSUE ADDITIONAL INGREDIENT  LOSS  DETERMINATIONS  AND  SHALL  EXPE-
DITIOUSLY  MAKE  AVAILABLE  TO  FARM  BREWERIES  AND  TO THE PUBLIC EACH
12. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF  THIS  SUBDIVISION,  NO
(B)  IN  THE  EVENT  THAT THE COMMISSIONER OF AGRICULTURE AND MARKETS,
AFTER INVESTIGATING AND COMPILING INFORMATION  PURSUANT  TO  SUBDIVISION
FORTY-TWO  OF SECTION SIXTEEN OF THE AGRICULTURE AND MARKETS LAW, DETER-
MINES THAT A NATURAL DISASTER, ACT OF GOD, OR CONTINUED ADVERSE  WEATHER
CONDITION  HAS  DESTROYED MUCH OF THE APPLE CROP NECESSARY FOR PRODUCING
CIDER, SUCH COMMISSIONER, IN  CONSULTATION  WITH  THE  CHAIRMAN  OF  THE
AUTHORITY,  MAY  GIVE  AUTHORIZATION  TO A DULY LICENSED FARM BREWERY TO
SUCH LICENSEE CERTIFIES TO SUCH COMMISSIONER THE QUANTITY  OF  NEW  YORK
GROWN  APPLES UNAVAILABLE TO SUCH LICENSEE DUE TO SUCH NATURAL DISASTER,
ACT OF GOD OR CONTINUING ADVERSE WEATHER CONDITION  AND  SATISFIES  SUCH
COMMISSIONER  THAT  REASONABLE EFFORTS WERE MADE TO OBTAIN APPLES FROM A
NEW YORK STATE SOURCE FOR SUCH CIDER MAKING  PURPOSE.  NO  FARM  BREWERY
SHALL  UTILIZE  AN  AMOUNT  OF  OUT-OF-STATE  GROWN APPLES EXCEEDING THE
AMOUNT OF NEW YORK GROWN APPLES THAT SUCH BREWERY IS  UNABLE  TO  OBTAIN
DUE  TO  THE DESTRUCTION OF NEW YORK GROWN APPLES BY A NATURAL DISASTER,
ACT OF GOD OR CONTINUING ADVERSE WEATHER CONDITION AS DETERMINED BY  THE
COMMISSIONER  OF  AGRICULTURE  AND MARKETS PURSUANT TO THIS SUBDIVISION.
FOR PURPOSES OF THIS SUBDIVISION,  THE  DEPARTMENT  OF  AGRICULTURE  AND
MARKETS  AND THE AUTHORITY ARE AUTHORIZED TO ADOPT RULES AND REGULATIONS
AS THEY MAY DEEM NECESSARY TO CARRY OUT THE PROVISIONS OF THIS  SUBDIVI-
SION WHICH SHALL INCLUDE ENSURING THAT IN MANUFACTURING CIDER FARM BREW-
ERIES  UTILIZE  APPLES  GROWN  IN  NEW YORK STATE TO THE EXTENT THEY ARE
REASONABLY AVAILABLE, PRIOR TO UTILIZING  APPLES  FROM  AN  OUT-OF-STATE
TO FARM BREWERIES AND TO THE PUBLIC EACH SPECIFIC  APPLE  LOSS  DETERMI-
NATION  ISSUED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION ON OR AFTER
AUGUST TWENTIETH OF EACH YEAR.
(D) IN THE EVENT THAT THE CONTINUING EFFECTS OF  A  NATURAL  DISASTER,
ACT  OF GOD, OR ADVERSE WEATHER CONDITION WHICH OCCURRED PRIOR TO AUGUST
S. 7727                             7                           A. 10694
OF EACH YEAR RESULTS IN ANY APPLE CROP LOSS WHICH  MEETS  THE  STANDARDS
MAY  ISSUE  ADDITIONAL  APPLE  CROP  LOSS DETERMINATIONS AND SHALL EXPE-
DITIOUSLY MAKE AVAILABLE TO FARM BREWERIES AND TO THE  PUBLIC  THE  LOSS
DETERMINATION  ISSUED  PURSUANT TO THIS PARAGRAPH PRIOR TO OCTOBER TENTH
13. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW OR OF  ANY  RULE  OR
REGULATION  PROMULGATED  PURSUANT THERETO, AND IN ADDITION TO THE ACTIV-
ITIES WHICH MAY OTHERWISE BE CARRIED OUT BY ANY  PERSON  LICENSED  UNDER
THIS  SECTION,  SUCH  PERSON  MAY,  ON  THE  PREMISES DESIGNATED IN SUCH
(A) PRODUCE, PACKAGE, BOTTLE, SELL AND DELIVER SOFT DRINKS  AND  OTHER
NON-ALCOHOLIC  BEVERAGES,  VITAMINS, MALT, MALT SYRUP, AND OTHER BY-PRO-
(D) STORE BOTTLES, PACKAGES AND SUPPLIES NECESSARY  OR  INCIDENTAL  TO
(F)  ALLOW FOR THE PREMISES INCLUDING SPACE AND EQUIPMENT TO BE RENTED
MAY ISSUE A FARM BREWERY LICENSE TO THE HOLDER OF A FARM WINERY OR  FARM
DISTILLER'S  LICENSE  FOR USE AT SUCH LICENSEE'S EXISTING LICENSED PREM-
ISES. THE HOLDER OF A FARM  WINERY  OR  FARM  DISTILLER'S  LICENSE  THAT
SIMULTANEOUSLY  HOLDS A FARM BREWERY LICENSE ON AN ADJACENT PREMISES MAY
SHARE AND USE THE SAME TASTING ROOM FACILITIES TO CONDUCT  ANY  TASTINGS
15.  THE  AUTHORITY IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS TO EFFECTUATE THE PURPOSES OF THIS SECTION. IN PRESCRIBING  SUCH
RULES  AND  REGULATIONS,  THE  AUTHORITY SHALL PROMOTE THE EXPANSION AND
PROFITABILITY OF BEER AND CIDER PRODUCTION AND OF TOURISM IN  NEW  YORK,
THEREBY  PROMOTING  THE  CONSERVATION, PRODUCTION AND ENHANCEMENT OF NEW
YORK STATE AGRICULTURAL LANDS.
S 6. Subdivision 1 of section 56 of  the  alcoholic  beverage  control
law,  as  amended  by  section  1 of part Z of chapter 85 of the laws of
1. The annual fee for a [brewer's] license TO MANUFACTURE  BEER  shall
(A)  four  thousand  dollars FOR A BREWER'S LICENSE, unless the annual
production of the brewer is less than sixty thousand barrels  per  year,
S  7.  Subdivision 1 of section 56-a of the alcoholic beverage control
law, as amended by section 1 of part B of chapter  56  of  the  laws  of
1.  In addition to the annual fees provided for in this chapter, there
shall be paid to the [division] AUTHORITY with each initial  application
for  a  license filed pursuant to section fifty-one, FIFTY-ONE-A, fifty-
three, fifty-eight, sixty-one, sixty-two, seventy-six  or  seventy-eight
of this chapter, a filing fee of four hundred dollars; with each initial
application  for a license filed pursuant to section sixty-three, sixty-
four, sixty-four-a or sixty-four-b of this chapter, a filing fee of  two
hundred  dollars;  with  each  initial  application  for a license filed
pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
S. 7727                             8                           A. 10694
seventy-nine, eighty-one or eighty-one-a of this chapter, a  filing  fee
of one hundred dollars; with each initial application for a permit filed
pursuant  to  section [seventy-seven,] ninety-one, ninety-one-a, ninety-
two, ninety-two-a, ninety-three, ninety-three-a, if such permit is to be
issued on a calendar year basis, ninety-four, ninety-five, ninety-six or
ninety-six-a,  or  pursuant to paragraph b, c, e or j of subdivision one
of section ninety-nine-b of this chapter if such permit is to be  issued
on  a calendar year basis, or for an additional bar pursuant to subdivi-
sion four of section one hundred of this chapter, a filing fee of twenty
dollars; and with each application for a permit  under  section  ninety-
three-a  of this chapter, other than a permit to be issued on a calendar
year basis, section ninety-seven, ninety-eight, ninety-nine, or  ninety-
nine-b  of  this  chapter,  other than a permit to be issued pursuant to
paragraph b, c, e or j of subdivision one of  section  ninety-nine-b  of
S  8.  Subdivision 2 of section 56-a of the alcoholic beverage control
law, as amended by chapter 55 of the laws of 1992, is amended to read as
fifty-eight,  sixty-one, sixty-two, seventy-six or seventy-eight of this
chapter, a filing fee of one hundred dollars; with each renewal applica-
tion for a license filed pursuant to  section  sixty-three,  sixty-four,
sixty-four-a  or  sixty-four-b  of  this chapter, a filing fee of ninety
dollars; with each renewal application for a license filed  pursuant  to
section  seventy-nine,  eighty-one  or  eighty-one-a  of this chapter, a
filing fee of twenty-five dollars; and with each renewal application for
a license or permit filed pursuant to section fifty-three-a, fifty-four,
fifty-five,  fifty-five-a,  [seventy-seven,]  ninety-one,  ninety-one-a,
ninety-two,  ninety-two-a,  ninety-three, ninety-three-a, if such permit
is issued on a calendar year basis, ninety-four, ninety-five, ninety-six
or ninety-six-a of this chapter or pursuant to subdivisions b, c, e or j
of section ninety-nine-b, if such permit is issued on  a  calendar  year
basis,  or  with each renewal application for an additional bar pursuant
to subdivision four of section one hundred of this chapter, a filing fee
of thirty dollars.
S 9. Subdivision 1 of section 61 of  the  alcoholic  beverage  control
law,  as  amended by chapter 581 of the laws of 1951, is amended to read
1. A class A distiller's license shall authorize the holder thereof to
operate a distillery for the manufacture of liquors by  distillation  or
redistillation  at  the premises specifically designated in the license.
Such a license shall also authorize the sale in bulk  by  such  licensee
from  the  licensed  premises  of  the  products manufactured under such
license  to  any  person  holding  a  distiller's  class  A  license,  a
distiller's class B license or a permittee engaged in the manufacture of
products  which  are unfit for beverage use. It shall also authorize the
sale from the licensed premises and from one other location in the state
of New York of any liquor whether or not manufactured by  such  licensee
to a wholesale or retail liquor licensee or permittee in sealed contain-
ers  of  not more than one quart each. SUCH LICENSE SHALL ALSO AUTHORIZE
THE SALE OF NEW YORK STATE LABELLED LIQUOR TO LICENSED FARM WINERIES AND
FARM BREWERIES IN SEALED CONTAINERS OF NOT MORE  THAN  ONE  QUART  EACH.
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plant under the same terms and conditions as the holder  of  a  class  B
S  10. Paragraph (a) of subdivision 2-c of section 61 of the alcoholic
beverage control law, as amended by chapter 454 of the laws of 2008,  is
(a)  A  class D distiller's license, otherwise known as a farm distil-
lery license, shall authorize the holder of such a license to operate  a
farm distillery at the premises specifically designated in the license:
(i)  To  manufacture  liquor primarily from farm and food products, as
defined in subdivision two of section  two  hundred  eighty-two  of  the
(ii)  To  put  such  liquor into containers of not more than one quart
each, which containers shall then be sealed and to sell such  liquor  at
wholesale, for resale, and to LICENSED FARM WINERIES AND FARM BREWERIES,
wholesale and retail licensees, and permittees;
(iii)  To sell at retail, for personal use, in such sealed containers;
(iv) To sell in bulk, liquor manufactured by the licensee to a  winery
or farm winery licensee, or to the holder of a class A, A-1, B, B-1 or C
distiller's  license,  or  to  the holder of a permit issued pursuant to
paragraph c of subdivision one of section ninety-nine-b  of  this  chap-
ter[.];
(V)  TO CONDUCT TASTINGS OF AND SELL AT RETAIL FOR CONSUMPTION OFF THE
PREMISES NEW YORK STATE LABELLED BEER MANUFACTURED BY A LICENSED  BREWER
OR LICENSED FARM BREWERY;
(VI) TO CONDUCT TASTINGS OF AND SELL AT RETAIL FOR CONSUMPTION OFF THE
PREMISES  NEW YORK STATE LABELLED CIDER MANUFACTURED BY A LICENSED BREW-
ER, LICENSED FARM  BREWERY,  LICENSED  FARM  WINERY  OR  LICENSED  CIDER
PRODUCER; AND
(VII)  TO  CONDUCT  TASTINGS OF AND SELL AT RETAIL FOR CONSUMPTION OFF
THE PREMISES NEW YORK STATE LABELLED WINE  MANUFACTURED  BY  A  LICENSED
WINERY OR LICENSED FARM WINERY.
S  11.  Subdivision  2 of section 76 of the alcoholic beverage control
law, as amended by chapter 221 of the laws of 2011, is amended  to  read
2. A winery license shall authorize the holder thereof:
(a)  to  operate  a winery for the manufacture of wine at the premises
specifically designated in the license;
(b) to receive and possess wine  from  other  states  consigned  to  a
United  States  government bonded winery, warehouse or storeroom located
(c) to sell in bulk from the licensed premises the  products  manufac-
tured  under  such  license  and wine received by such licensee from any
other state to any winery licensee,  any  distiller  licensee  or  to  a
beverage use and to sell or deliver such wine  to  persons  outside  the
state pursuant to the laws of the place of such sale or delivery;
(d)  to  sell  from  the licensed premises to a licensed wholesaler or
retailer, or to a corporation operating railroad cars  or  aircraft  for
consumption  on  such  carriers,  wine  manufactured  or received by the
licensee as above set forth in the original  sealed  containers  of  not
more  than  fifteen  gallons  each  and  to sell or deliver such wine to
persons outside the state pursuant to the laws of the place of such sale
or delivery. All wine sold by such licensee shall be securely sealed and
have attached thereto a label setting forth such information as shall be
required by this chapter; [and]
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(e) TO SELL FROM THE LICENSED PREMISES TO LICENSED FARM  WINERIES  AND
FARM BREWERIES NEW YORK STATE LABELLED WINE MANUFACTURED BY THE LICENSEE
IN THE ORIGINAL SEALED CONTAINERS OF NOT MORE THAN FIFTEEN GALLONS EACH;
(F)  to  operate,  or  use the services of, a custom crush facility as
defined in subdivision nine-a of section three of this chapter.
S 12. Paragraph (c) of subdivision 2 of section 76-a of the  alcoholic
beverage  control  law,  as added by chapter 221 of the laws of 2011, is
(c) sell from the licensed premises to a licensed WINERY, FARM DISTIL-
LER, FARM BREWERY, wholesaler or retailer, or to a corporation operating
railroad cars or aircraft for consumption on such carriers, or at retail
for consumption off the premises, wine  or  cider  manufactured  by  the
licensee as above set forth and to sell or deliver such wine or cider to
or delivery. All wine or cider sold by such licensee for consumption off
the  premises shall be securely sealed and have attached thereto a label
setting forth such information as shall be required by this chapter;
S 13. Subparagraph 6 of paragraph (b) of subdivision 4 of section 76-a
of the alcoholic beverage control law, as amended by chapter 571 of  the
(6)  New  York state labelled wine or liquors produced or manufactured
by any other New York state winery or farm winery  licensee  or  by  the
holder of [a class A-1, B-1, or C] ANY distiller's license. Such wine or
liquors may be purchased outright by the licensee from a New York winery
or  farm  winery  licensee or the holder of [a class A-1, B-1, or C] ANY
distiller's license or obtained on a consignment  basis  pursuant  to  a
written agreement between the selling and purchasing licensee.
S  14. Subdivision 6 of section 76-a of the alcoholic beverage control
law is amended by adding two new paragraphs  (g)  and  (h)  to  read  as
(G)  CONDUCT  TASTINGS  OF  AND SELL AT RETAIL FOR CONSUMPTION OFF THE
OR FARM BREWERY.
(H)  CONDUCT  TASTINGS  OF  AND SELL AT RETAIL FOR CONSUMPTION OFF THE
PREMISES NEW YORK STATE LABELLED CIDER MANUFACTURED BY A LICENSED  BREW-
ER,  LICENSED  FARM  BREWERY,  LICENSED  FARM  WINERY  OR LICENSED CIDER
S 15. Subdivision 42 of section 16 of the agriculture and markets law,
as amended by chapter 227 of the laws of 2006, is  amended  to  read  as
42.  (A)  For  purposes of making timely determinations and consulting
with the chairman of the state liquor authority pursuant to  subdivision
five  of  section  seventy-six-a  of the alcoholic beverage control law,
investigate and compile information relative to natural disasters,  acts
of  God,  or continued adverse weather conditions which shall affect the
crop of grapes or other fruit products used in the production of wine.
(B) FOR PURPOSES OF MAKING TIMELY DETERMINATIONS AND  CONSULTING  WITH
THE CHAIRMAN OF THE STATE LIQUOR AUTHORITY PURSUANT TO SUBDIVISION ELEV-
EN  OF SECTION FIFTY-ONE-A OF THE ALCOHOLIC BEVERAGE CONTROL LAW, INVES-
TIGATE AND COMPILE INFORMATION RELATIVE TO NATURAL  DISASTERS,  ACTS  OF
GOD,  OR  CONTINUED  ADVERSE  WEATHER  CONDITIONS WHICH SHALL AFFECT THE
NECESSARY INGREDIENTS FOR BREWING BEER.
(C) FOR PURPOSES OF MAKING TIMELY DETERMINATIONS AND  CONSULTING  WITH
THE  CHAIRMAN  OF  THE  STATE  LIQUOR  AUTHORITY PURSUANT TO SUBDIVISION
TWELVE OF SECTION FIFTY-ONE-A OF THE  ALCOHOLIC  BEVERAGE  CONTROL  LAW,
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INVESTIGATE  AND COMPILE INFORMATION RELATIVE TO NATURAL DISASTERS, ACTS
OF GOD, OR CONTINUED ADVERSE WEATHER CONDITIONS WHICH SHALL  AFFECT  THE
CROP OF APPLES USED IN THE PRODUCTION OF CIDER.
S  16.  Subparagraph  (C) of paragraph 1 of subdivision (i) of section
1136 of the tax law, as amended by a chapter of the laws of 2012  amend-
ing  the  tax  law relating to farm winery and farm distillery sales tax
information return filing requirements, as proposed in legislative bills
numbers S. 7019 and A. 9523, is amended to read as follows:
(C) Every wholesaler, as defined by section  three  of  the  alcoholic
to  the  wholesaler  for that sale; or (ii) a sale to another wholesaler
to make retail sales of the alcoholic beverage. For each vendor,  opera-
tor,  or  recipient  to  whom  the  wholesaler  has  made a sale without
collecting sales or compensating use tax, the return  must  include  the
total  value of those sales made during the period covered by the return
(excepting the sales described in clauses (i) and (ii) of this  subpara-
ty  license number, along with the information required by paragraph two
of this subdivision. A  person  operating  pursuant  to  a  farm  winery
license  as  provided in section seventy-six-a of the alcoholic beverage
control law, or a person operating pursuant to a farm distillery license
as provided in subdivision two-c of section sixty-one of such law, OR  A
PERSON  OPERATING  PURSUANT  TO  A  FARM  BREWERY LICENSE AS PROVIDED IN
SECTION FIFTY-ONE-A OF THE ALCOHOLIC BEVERAGE CONTROL LAW, or  a  person
operating pursuant to [both] ANY COMBINATION OF such licenses, shall not
be subject to any of the requirements of this subdivision.
S  17.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law; provided that the amendment to subpar-
agraph (C) of paragraph 1 of subdivision (i) of section 1136 of the  tax
law,  as amended by section sixteen of this act shall take effect on the
same date and in the same manner as a chapter of the laws of 2012 amend-
ing the tax law relating to farm winery and farm  distillery  sales  tax
numbers S. 7019 and A. 9523, takes effect.
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