NY Alcoh Bev Ctrl L § 61 (2021)
2021 New York Laws ABC - Alcoholic Beverage Control Article 5 - Special Provisions Relating to Liquor 61 - Distiller's Licenses.

§ 61. Distiller's  licenses.  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 containers of not more than one quart each. Such license shall also authorize the sale  of  New York  state  labelled  liquor  to licensed farm wineries, farm cideries, farm distilleries and farm breweries in sealed containers  of  not  more than  one  quart  each. Such license shall also include the privilege to operate a rectifying plant under the same terms and  conditions  as  the holder  of  a  class  B  distiller's  license without the payment of any additional fee.   1-a. A class  A-1  distiller's  license  shall  authorize  the  holder thereof  to  operate  a distillery which has a production capacity of no more than seventy-five thousand gallons per year 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 winery  license, farm  winery license, 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 liquors manufactured by such licensee to a wholesale or retail liquor licensee  or  permittee  in sealed containers of not more than one quart each. In addition, it shall authorize such licensee  to  sell  from  the licensed  premises  New  York  state  labelled  liquors to licensed farm wineries, farm breweries, farm distilleries and farm cideries in  sealed containers  of  not more than one quart for retail sale for off-premises consumption. Such license shall also include the privilege to operate  a rectifying  plant under the same terms and conditions as the holder of a class B-1 distiller's license without the payment of any additional fee.   2. A class B distiller's license shall authorize the holder thereof to operate a rectifying plant  for  the  manufacture  of  the  products  of rectification  by  purifying or combining alcohol, spirits, wine or beer and the manufacture of gin and cordials by the redistillation of alcohol or spirits over or  with  any  materials.  Such  a  license  shall  also authorize  the  holder  thereof to blend, reduce proof and bottle on his licensed premises or in a United States  customs  bonded  warehouse  for which  a  warehouse  permit  has  been  issued  under  this  chapter for wholesale liquor licensees or for persons authorized to sell  liquor  at wholesale  pursuant  to  the  laws  and  regulation  of any other state, territorial possession of the United States or  foreign  country  liquor received  in  bulk  by  such  wholesalers from other states, territorial possessions of the United States or a foreign country, and  to  rebottle or  recondition  for  wholesale  liquor or wine licensees or for persons authorized to sell liquor or wine at wholesale pursuant to the laws  and regulations  of  any  other  state, territorial possession of the United States or foreign country,  liquor  or  wine  manufactured  outside  the state,  which  was  purchased and received by such wholesalers in sealed containers not exceeding one quart each of  liquor  or  fifteen  gallons  each  of  wine.  Such  a  license shall also authorize the sale from the licensed premises of the products manufactured by  such  licensee  to  a wholesale  or  retail licensee in sealed containers of not more than one quart each.   2-a.  A class C distiller's license shall authorize the holder thereof to operate a distillery for the manufacture only of fruit brandy and the sale of such product by such licensee to a wholesale or retail  licensee in  sealed  containers  of  not more than one quart each. Such a license shall also authorize the sale in  bulk  of  fruit  brandy  to  a  winery licensee,  to  a  farm  winery  licensee,  to  the  holder  of a class B distiller's license or to 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 any fruit brandy whether or not manufactured by such  licensee  to  a wholesale or retail liquor licensee or permittee in sealed containers of not  more  than  one  quart  each.  In addition, it shall authorize such licensee to sell from the licensed  premises  New  York  state  labelled liquors  to a farm winery licensee in sealed containers of not more than one quart for retail sale for off-premises consumption.   2-b. A class  B-1  distiller's  license  shall  authorize  the  holder thereof to operate a rectifying plant which has a production capacity of no  more than seventy-five thousand gallons per year for the manufacture of the products of rectification  by  purifying  or  combining  alcohol, spirits,   wine,  or  beer  and  the  manufacture  of  cordials  by  the redistillation of alcohol or spirits over or with any materials. Such  a license  shall  also authorize the holder thereof to blend, reduce proof and bottle on his licensed premises or in a United States customs bonded warehouse for which a  warehouse  permit  has  been  issued  under  this chapter for wholesale liquor licensees or for persons authorized to sell liquor  at  wholesale  pursuant  to the laws and regulation of any other state, territorial possession of the United States  or  foreign  country liquor   received  in  bulk  by  such  wholesalers  from  other  states, territorial possessions of the United States or a foreign  country,  and to rebottle or recondition for wholesale liquor or wine licensees or for persons  authorized  to sell liquor or wine at wholesale pursuant to the laws and regulations of any other state, territorial possession  of  the United  States  or  foreign country, liquor or wine manufactured outside the state, which was purchased  and  received  by  such  wholesalers  in sealed  containers  not  exceeding  one  quart each of liquor or fifteen gallons each of wine. Such a license shall also authorize the sale  from the licensed premises of the products manufactured by such licensee to a wholesale  or  retail licensee in sealed containers of not more than one quart each. In addition, it shall authorize such licensee to  sell  from the  licensed  premises New York state labelled liquors to a farm winery licensee in sealed containers of not more than one quart for retail sale for off-premises consumption.   2-c. (a) A class D distiller's license,  otherwise  known  as  a  farm distillery  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 agriculture and markets law;  (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,  farm  cideries, farm  breweries  and  other  farm  distilleries,  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 chapter;  (v)  To  conduct  tastings of and sell at retail for consumption on or 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  on  or off  the  premises  New  York  state  labelled  cider  manufactured by a licensed brewer, licensed farm brewery, licensed farm  winery,  licensed cider producer or licensed farm cidery;  (vii)  To conduct tastings of and sell at retail for consumption on or off the premises New York state labelled wine manufactured by a licensed winery or licensed farm winery;  (viii) To conduct tastings of and sell at retail for consumption on or off the premises New York state labelled mead manufactured by  a  person licensed to produce mead under this chapter; and  (ix)  To  conduct tastings of and sell at retail for consumption on or off the premises New York  state  labelled  braggot  manufactured  by  a person licensed to produce braggot under this chapter.  (b)(i)  Retail sales by a licensed farm distillery may be made only to customers who are physically present upon the licensed premises and such sale shall be concluded by the customer's taking, with him  or  her,  of the sealed containers purchased by the customer at the time the customer leaves the licensed premises except as provided for in subparagraph (iv) of this paragraph;  (ii)  Such retail sales shall not be made where the order is placed by letter, telephone, fax or e-mail, or where the customer  otherwise  does not  place  the  order while the customer is physically present upon the premises of the licensed premises except as provided for in subparagraph (iv) of this paragraph;  (iii) Such retail sales shall not be made where the contemplated  sale requires  the  licensee  to  transport or ship by common carrier, sealed containers of liquor to a customer;  (iv) A licensed farm distillery may apply to the liquor authority  for a  permit  to  sell  liquor  in  a  sealed  container  for  off-premises consumption at the  state  fair,  at  recognized  county  fairs  and  at farmers'  markets  operated on a not-for-profit basis. As a condition of the permit a representative from the distillery must be present  at  the time of sale.  (c) A licensed farm distillery may conduct upon the licensed premises, or  at  approved  locations  as  permitted  in  subdivision  six of this section, consumer tastings of liquor manufactured by  the  licensee  and from no more than three other class A, A-1, B, B-1, C or D distilleries, subject to the following limitations:  (i) Only liquor manufactured primarily from farm and food products, as defined  in  subdivision  two  of  section two hundred eighty-two of the agriculture and markets law, shall be used in the tastings;  (ii) An official agent, servant or employee of the licensee  shall  be physically  present  at  all  times  during  the conduct of the consumer tasting of liquor;  (iii) No consumer may be provided, directly or  indirectly:  (A)  more than  three  samples  of  liquor for tasting in one calendar day; or (B) with a sample of liquor for tasting equal to more than one-quarter fluid ounce;  (iv) Any liability stemming from a right of action  resulting  from  a consumer   tasting  of  liquor  authorized  by  this  paragraph  and  in  accordance with the provisions of sections  11-100  and  11-101  of  the general obligations law, shall accrue to the licensee.  (d) Notwithstanding any other provision of this chapter, the authority may  issue a farm distillery license to the holder of a class A, A-1, B, B-1 or C distiller's license, a winery license or a farm winery  license for  use at such licensee's existing licensed premises. For the purposes of this chapter, the  premises  of  the  class  A,  A-1,  B,  B-1  or  C distillery,  winery  or  farm winery shall be considered the premises of the farm distillery. The  holder  of  a  farm  distillery  license  that simultaneously holds a winery, farm winery or any class of a distiller's license  on  the  same  premises may share and use the same tasting room facilities to conduct wine and liquor tastings  that  such  licensee  is otherwise authorized to conduct.  (e)  Notwithstanding  any  other provision of law to the contrary, the holder of  a  farm  distillery  license  may  (i)  sell  at  retail  for consumption  on  the  licensed  premises, any liquor manufactured by the licensee or any New York state labeled liquor.  Provided,  however,  the licensee  shall regularly keep food available for sale or service to its retail customers for consumption on the premises. A  licensee  providing the  following  shall  be  deemed  in  compliance  with  this provision: sandwiches,  soups  or  other  such  foods,  whether  fresh,  processed, pre-cooked  or  frozen;  and/or  food  items  intended to compliment the tasting of alcoholic beverages, which shall mean a diversified selection of food that is ordinarily consumed without the use of tableware and can be conveniently consumed while standing or walking,  including  but  not limited to: cheese, fruits, vegetables, chocolates, breads, mustards and crackers.  All of the provisions of this chapter relative to licenses to sell liquor at retail for consumption on the premises shall apply so far as applicable to such licensee; and  (ii) operate a restaurant, hotel,  catering  establishment,  or  other food  and drinking establishment in or adjacent to the licensed premises and sell at such place, at  retail  for  consumption  on  the  premises, liquor  manufactured  by  the  licensee  and  any New York state labeled liquor. All of the provisions of this chapter relative  to  licenses  to sell liquor at retail for consumption on the premises shall apply so far as  applicable  to such licensee. Notwithstanding any other provision of law, the licensee may apply to the authority for a  license  under  this chapter  to  sell other alcoholic beverages at retail for consumption on the premises at such establishment.  (f) No holder of a farm distillery license shall manufacture in excess of seventy-five thousand gallons of liquor annually. In the case of  the holder of a class A, A-1, B, B-1 or C distiller's license who operates a farm  distillery  on the same premises, the liquor manufactured pursuant to the farm distillery license shall not be considered with  respect  to any  limitation  on  the volume that may be manufactured by the class A, A-1, B, B-1 or C distillery.  (g) The holder of a license issued under this subdivision may  operate up  to one branch office located away from the licensed farm distillery. Such location shall be considered part of the licensed premises and  all activities  allowed  at  and  limited  to  the  farm  distillery  may be conducted at the branch office. Such branch office 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 beverages 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.  (h)  A  farm  distillery license shall authorize the holder thereof to manufacture, bottle and sell food condiments and products such as  nuts, popcorn,  mulling  spices  and other spirits related food in addition to 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 liquor. These gift items shall be limited to the following categories:  (i)  non-alcoholic  beverages  for  consumption  on  or  off premises, including but not limited to bottled water, juice and soda beverages;  (ii) food items for the  purpose  of  complementing  liquor  tastings, which  shall  mean  a  diversified  selection of food that is ordinarily consumed without the use of tableware and can be  conveniently  consumed while  standing  or  walking.  Such  food items shall include but not be limited to: cheeses, fruits, vegetables,  chocolates,  breads,  mustards and crackers;  (iii)  food  items, which shall include locally produced farm products and any food or food product not  specifically  prepared  for  immediate consumption  upon  the  premises. Such food items may be combined into a package containing liquor related products;  (iv) liquor supplies and accessories, which  shall  include  any  item utilized  for  the  storage,  serving  or  consumption  of liquor or for decorative purposes. These supplies may be sold as single items  or  may be combined into a package containing liquor;  (v)  liquor-making  equipment  and supplies including, but not limited to, filters, bottling equipment, and books or other written material  to assist spirits makers to produce and bottle liquor; and  (vi)  souvenir  items,  which  shall  include,  but  not be limited to artwork, crafts, clothing, agricultural products and any other  articles which can be construed to propagate tourism within the region.   3.  A  distiller's  license of any class shall not authorize more than one of said activities, namely, that of a distillery, a rectifying plant or a fruit brandy distillery, and a separate license shall  be  required for  each  such  activity, except as provided in subdivision one of this section.   4. Any person may apply to the  liquor  authority  for  a  distiller's license  as  provided  for in this section. Such application shall be in writing and verified and shall contain such information  as  the  liquor 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 liquor authority shall grant the application  it  shall  issue  a license in such form as shall be determined by its rules.   5. No distiller shall be engaged in any other business on the licensed premises.  No  distiller shall sell or agree to sell any liquor, alcohol or spirits to any wholesaler or any retailer who is  not  duly  licensed under  this  article  to sell liquor, alcohol or spirits at wholesale or retail at the time of such agreement and sale or sell or agree  to  sell any  liquor,  alcohol  or  spirits  to  persons outside the state except pursuant to the laws of the place of such sale or delivery.   6. Any person having applied for and received  a  license  as  a  farm distillery  under  this  section may conduct consumer tastings of liquor pursuant to rules or regulations promulgated by  the  liquor  authority, and  subject  to the limitations set forth in paragraph c of subdivision two-c of this section at the state fair, at recognized county fairs  and at farmers' markets operated on a not-for-profit basis.   7.  Any  person licensed under this section shall manufacture at least fifty gallons of liquor per year.   8. Notwithstanding any other provision of law to the contrary, a  farm distillery  licensed  under subdivision two-c of this section may engage  in custom liquor production for  a  non-licensed  individual  under  the following conditions:  (a)  the  licensee may allow such non-licensed individual to assist in the production of such custom liquors;  (b)  the  licensee  shall  only  sell  such  custom  liquor  to   such non-licensed  individual  for  that individual's personal or family use, and not for resale;  (c) the brand label of such custom liquor shall clearly state that the product is not for resale;  (d) such custom liquor shall not  be  offered  for  sale  pursuant  to section ninety-nine-g of this chapter;  (e)  any  tastings  conducted  pursuant  to  this subdivision shall be subject to the provisions of paragraph (c) of subdivision two-c of  this section;  (f)  the  licensee  or  an  employee or agent of the licensee shall be present at all times when the non-licensed individual  is  assisting  in the production of the custom liquor;  (g)  the  licensee  shall be responsible for obtaining approval of the liquor's brand label pursuant to section one  hundred  seven-a  of  this chapter  and  the  payment  of all taxes due before the custom liquor is delivered to the non-licensed individual;  (h) any custom liquor produced under this subdivision must  be  a  New York labelled liquor as defined in subdivision twenty-c of section three of this chapter; and  (i) any custom liquor produced under this subdivision shall be counted toward  the  maximum  production  limit  set  forth  in paragraph (f) of subdivision two-c of this section.