S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5330

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 13, 2015
                               ___________

Introduced  by  Sens.  VALESKY, KLEIN -- read twice and ordered printed,
  and when printed to be committed to the Committee on Commerce, Econom-
  ic Development and Small Business

AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
  promoting  economic  development  by  expanding  products sold by farm
  cideries and authorizing such cideries to sell cider to  other  licen-
  sees for resale

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 3-a of section 58 of  the  alcoholic  beverage
control  law, as added by chapter 384 of the laws of 2013, is amended to
read as follows:
  3-a. A licensed cider producer producing New York state labelled cider
may:
  (a) sell such cider OR ANY NEW YORK STATE LABELED  CIDER  to  licensed
farm  distillers, farm wineries, WINERIES, farm cideries [and], CIDERIES
AND farm breweries.   All such cider  sold  by  the  licensee  shall  be
securely  sealed  and have attached thereto a label as shall be required
by section one hundred seven-a of this chapter;
  (b) conduct tastings at the licensed premises of such cider OR ANY NEW
YORK STATE LABELED CIDER;
  (c) sell such cider OR ANY NEW YORK STATE LABELED CIDER at retail  for
consumption  off  the  premises  at the state fair, at recognized county
fairs and at farmers markets operated on a not-for-profit basis;
  (d) sell and conduct tastings of such cider  OR  ANY  NEW  YORK  STATE
LABELED CIDER at retail for consumption on 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 cidery.  A  licensee
who  operates a restaurant, conference center, inn, bed and breakfast or
hotel pursuant to  such  authority  shall  comply  with  all  applicable

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11092-01-5

              

S. 5330                             2

provisions  of  this  chapter  which relate to licenses to sell cider at
retail for consumption on the premises;
  (e)  apply  for  a  permit  to conduct tastings away from the licensed
premises of such cider OR ANY NEW YORK STATE LABELED CIDER.  Such permit
shall be valid throughout the state and may be issued on an annual basis
or for individual events. Each such permit and the exercise of the priv-
ilege granted thereby shall be subject to such rules and  conditions  of
the authority as it deems necessary. Tastings shall be conducted subject
to the following conditions:
  (i)  tastings  shall be conducted by an official agent, representative
or solicitor of the licensee. Such agent,  representative  or  solicitor
shall be physically present at all times during the conduct of the tast-
ings; and
  (ii)  any  liability  stemming from a right of action resulting from a
tasting of cider as authorized [herein] IN THIS PARAGRAPH and in accord-
ance with the provisions of sections 11-100 and 11-101  of  the  general
obligations law, shall accrue to the licensee.
  (f)  if  it holds a tasting permit issued pursuant to paragraph (e) of
this subdivision, apply to the authority for a permit to sell such cider
OR ANY NEW YORK STATE LABELED CIDER, for consumption off  the  premises,
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
subject to such rules and conditions of the authority as it deems neces-
sary.
  S 2. Paragraphs (c) and (g) of subdivision 2 of section  58-c  of  the
alcoholic  beverage  control law, as added by chapter 384 of the laws of
2013, are amended to read as follows:
  (c) sell cider manufactured by the licensee  OR  ANY  NEW  YORK  STATE
LABELED  CIDER  to  wholesalers  and retailers licensed in this state to
sell such cider, TO licensed farm distillers,  licensed  farm  wineries,
LICENSED  WINERIES, licensed farm breweries, and any other licensed farm
cidery OR LICENSED CIDERY.  All such cider sold by the licensee shall be
securely sealed and have attached thereto a label as shall  be  required
by section one hundred seven-a of this chapter;
  (g) sell cider manufactured by the licensee or any other licensed farm
cidery,  OR  ANY  NEW YORK STATE LABELED CIDER at retail for consumption
off the premises, at the state fair, at recognized county fairs  and  at
farmers markets operated on a not-for-profit basis;
  S  3.  Subdivision 5 of section 58-c of the alcoholic beverage control
law, as added by chapter 384 of the laws of 2013, is amended to read  as
follows:
  5.  A  licensed farm cidery may, under such rules as may be adopted by
the authority, sell cider manufactured by  the  licensee  or  any  other
licensed  farm  cidery, OR ANY NEW YORK STATE LABELED CIDER at retail in
bulk by the keg, cask or barrel for consumption and not for resale at  a
clam-bake,  barbeque,  picnic, outing or other similar outdoor gathering
at which more than fifty persons are assembled.
  S 4. Paragraphs (b) and (e) of subdivision 7 of section  58-c  of  the
alcoholic  beverage  control law, as added by chapter 384 of the laws of
2013, are amended to read as follows:
  (b) food items for the purpose of complementing cider 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

S. 5330                             3

to:  cheeses,  fruits,  vegetables,  chocolates,  breads,  BAKED  GOODS,
mustards and crackers;
  (e) cider-making equipment and supplies including, but not limited to,
APPLES,  APPLE  JUICE,  OTHER POME FRUITS, OTHER POME FRUIT JUICES, home
cider-making kits, PRESSES, PUMPS, filters, YEASTS, CHEMICALS AND  OTHER
CIDER ADDITIVES, bottling equipment, BOTTLES, CIDER STORAGE AND FERMENT-
ING  VESSELS,  BARRELS,  and  books  or other written material to assist
cider-makers and home cider-makers to produce and bottle cider;
  S 5. Subdivision 2 of section 76 of the alcoholic beverage control law
is amended by adding a new paragraph (d-1) to read as follows:
  (D-1) TO SELL FROM THE LICENSED PREMISES TO LICENSED FARM  DISTILLERS,
FARM  WINERIES,  WINERIES,  FARM CIDERIES, CIDERIES AND FARM BREWERS ANY
NEW YORK STATE LABELED CIDER. ALL SUCH CIDER SHALL  BE  SECURELY  SEALED
AND  HAVE  ATTACHED  THERETO A LABEL AS SHALL BE REQUIRED BY SECTION ONE
HUNDRED SEVEN-A OF THIS CHAPTER;
  S 6. Subdivisions 3, 4 and 5 of section 76 of the  alcoholic  beverage
control  law, subdivisions 3 and 5 as amended by chapter 221 of the laws
of 2011 and subdivision 4 as amended by chapter 431 of the laws of 2014,
are amended to read as follows:
  3. (a) Any person having applied for  and  received  a  license  as  a
winery  under  this  section  may conduct wine AND CIDER tastings of New
York state labelled wines OR CIDERS  in  establishments  licensed  under
sections  sixty-three  and seventy-nine of this chapter to sell wine for
off-premises consumption.  Such winery may charge a fee for each wine OR
CIDER sample tasted. The state liquor authority shall  promulgate  rules
and regulations regarding such tastings as provided for in this subdivi-
sion.
  (a-1) Any person having applied for and received a license as a winery
under this section may conduct wine AND CIDER tastings of New York state
labelled  wines OR CIDERS and apply to the liquor authority for a permit
to sell wine produced by such winery OR ANY NEW YORK STATE LABELED CIDER
by the bottle, during such tastings  in  establishments  licensed  under
section  sixty-four, section sixty-four-a, section eighty-one or section
eighty-one-a of this chapter to sell wine for consumption on  the  prem-
ises. Such winery may charge a fee of no more than twenty-five cents for
each  wine  OR  CIDER  sample  tasted.  The state liquor authority shall
promulgate rules and regulations regarding such tastings as provided for
in this subdivision.
  (b) Tastings shall be conducted subject to the following limitations:
  (i) wine AND CIDER tastings shall be conducted by an  official  agent,
representative  or solicitor of one or more wineries. Such agent, repre-
sentative or solicitor shall be physically present at all  times  during
the conduct of the tastings; and
  (ii)  any  liability  stemming from a right of action resulting from a
wine OR CIDER tasting as authorized herein and in  accordance  with  the
provisions of sections 11-100 and 11-101 of the general obligations law,
shall accrue to the winery licensee.
  (c)(i)  Any  person  having  applied  for  and received a license as a
winery under this section may conduct wine AND  CIDER  tastings  of  New
York  state  labelled wines OR CIDERS and sell such wine OR CIDER by the
bottle, during such tasting, for off-premises consumption at outdoor  or
indoor  gatherings,  functions,  occasions  or  events, within the hours
fixed by or pursuant to subdivision fourteen of section one hundred five
of this chapter, sponsored by a bona fide charitable  organization.  For
the  purposes  of  this  paragraph,  a bona fide charitable organization
shall mean and include any bona fide religious or  charitable  organiza-

S. 5330                             4

tion or bona fide educational, fraternal or service organization or bona
fide  organization  of  veterans or volunteer firefighters, which by its
charter, certificate of  incorporation,  constitution,  or  act  of  the
legislature,  shall  have among its dominant purposes one or more of the
lawful purposes as defined in subdivision five of  section  one  hundred
eighty-six of the general municipal law.
  (ii)  Upon  application,  the  liquor  authority shall issue an annual
permit authorizing such winery to participate in outdoor or indoor gath-
erings, functions, occasions or events sponsored by a charitable  organ-
ization.    The  winery  must  give  the authority written or electronic
notice of the date, time and specific location of each tasting at  least
fifteen  days  prior  to  the tasting. A winery that obtains a permit to
conduct such wine OR CIDER tastings does not need to apply for or obtain
a temporary beer or wine permit pursuant to section ninety-seven of this
chapter or any other permit to conduct such a tasting or to sell wine OR
CIDER by the bottle for off-premises consumption at such tastings.
  (iii) Such winery may charge a fee for each wine OR CIDER sample tast-
ed. Tastings shall be conducted by an official agent, representative  or
solicitor  of  such  winery.  The  state liquor authority may promulgate
rules and regulations regarding such tastings as provided  for  in  this
subdivision.
  4.  A  licensed  winery may at the licensed premises, conduct tastings
of, and sell at retail for consumption on or off the licensed  premises,
any  wine  or  wine product manufactured by the licensee or any New York
state labeled wine or New York state labeled wine  product  OR  ANY  NEW
YORK  STATE LABELED CIDER. Provided, however, for tastings and sales for
on-premises consumption, the licensee shall regularly keep  food  avail-
able  for sale or service to its retail customers for consumption on the
premises. A licensee providing the following shall be deemed in  compli-
ance  with  this  provision:  (i) sandwiches, soups or other such foods,
whether fresh, processed, pre-cooked or frozen; and/or (ii)  food  items
intended  to  complement 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: cheeses, fruits, vegetables,
chocolates, breads, mustards and crackers. All of the provisions of this
chapter relative to licenses to sell wine at retail for  consumption  on
or off the premises shall apply so far as applicable to such licensee.
  5.  Notwithstanding any provision of this chapter to the contrary, any
one or more winery licensees, singly or jointly, may apply to the liquor
authority for a license or licenses to sell wine AND ANY NEW YORK  STATE
LABELED  CIDER at retail for consumption off the premises. For licensees
applying singly, the duration of such license shall be coextensive  with
the  duration  of  such  licensee's winery license, and the fee therefor
shall be five hundred dollars if such  retail  premises  is  located  in
cities having a population of one million or more; in cities having less
than  one  million  population  and  more than one hundred thousand, two
hundred fifty dollars; and elsewhere, the sum of one hundred twenty-five
dollars. Such license shall entitle the holder thereof to sell at retail
for consumption off the premises any New York  state  labelled  wine  OR
CIDER.  Such  license  shall  also entitle the holder thereof to conduct
wine AND CIDER tastings.  Such license shall also authorize the sale  by
the  holder  thereof of New York state labelled wine OR CIDER, in sealed
containers for off-premises consumption,  from  the  specially  licensed
premises of any person licensed pursuant to section eighty-one-a of this
article  to sell wine at retail for consumption on premises in which the

S. 5330                             5

principal business is the operation of  a  legitimate  theater  or  such
other  lawful adult entertainment or recreational facility as the liquor
authority may classify for eligibility pursuant to  subdivision  six  of
section  sixty-four-a  of this chapter. Not more than five such licenses
shall be issued, either singly or jointly, to any licensed  winery.  All
other  provisions  of  this chapter relative to licenses to sell wine at
retail for consumption off the premises shall apply so far as applicable
to such application. The liquor authority is hereby authorized to  adopt
such  rules  as  it  may deem necessary to carry out the purpose of this
subdivision, provided that all licenses issued pursuant to this subdivi-
sion shall be subject to the same rules and regulations as are  applica-
ble  to  the  sale of wine at retail for consumption off the premises of
the winery licensee.
  S 7. Subdivisions 2 and 3 of section 76-a of  the  alcoholic  beverage
control  law, as added by chapter 221 of the laws of 2011, paragraph (c)
of subdivision 2 as amended by chapter 384 of the laws  of  2013,  para-
graph  (f)  of  subdivision  2  as amended by chapter 431 of the laws of
2014, are amended to read as follows:
  2. A farm winery license shall authorize the holder thereof to:
  (a) operate a farm winery for the manufacture of wine or cider at  the
premises specifically designated in the license;
  (b)  sell in bulk from the licensed premises the products manufactured
under such license OR ANY NEW YORK STATE LABELED  CIDER  to  any  winery
licensee, any other farm winery licensee, any distiller licensee or to a
permittee  engaged  in  the  manufacture of products which are unfit for
beverage use and to sell or  deliver  such  wine  OR  CIDER  to  persons
outside  the  state  pursuant  to  the laws of the place of such sale or
delivery;
  (c) sell from the licensed premises to a licensed winery, farm distil-
ler, farm brewery, farm cidery, wholesaler or retailer, or to  a  corpo-
ration  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  OR  ANY NEW YORK STATE LABELED CIDER as
above set forth and to sell or deliver such wine  or  cider  to  persons
outside  the  state  pursuant  to  the laws of the place of such sale 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;
  (d) operate, or use the  services  of,  a  custom  crush  facility  as
defined in subdivision nine-a of section three of this chapter;
  (e)  sell cider and wine at retail for consumption on or off the prem-
ises;
  (f) 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, wine,
cider and wine products manufactured by the licensee and  any  New  York
state  labeled  wine,  New  York  state  labeled cider or New York state
labeled wine product. All of the provisions of this chapter relative  to
licenses  to  sell  wine at retail for consumption on the premises shall
apply so far as applicable to such licensee. Notwithstanding  any  other
provision  of  law, the licensed winery may apply to the authority for a
license under article four of  this  chapter  to  sell  other  alcoholic
beverages  at  retail for consumption on the premises at such establish-
ment.
  3. (a) Any person having applied for and received a license as a  farm
winery  under  this  section  may conduct wine AND CIDER tastings of New

S. 5330                             6

York state labelled wines AND CIDERS in  establishments  licensed  under
section  sixty-three  of  this  chapter and section seventy-nine of this
article to sell wine OR ANY NEW YORK STATE LABELED CIDER for off-premis-
es consumption. Such farm winery may charge a fee for each wine OR CIDER
sample  tasted.  The  state  liquor authority shall promulgate rules and
regulations regarding such tastings as provided for in this subdivision.
  (b) Any person having applied for and received a  license  as  a  farm
winery  under  this  section  may conduct wine AND CIDER tastings of New
York state labelled wines AND CIDERS and apply to the  liquor  authority
for  a  permit to sell wine produced by such farm winery OR ANY NEW YORK
STATE LABELED CIDER, by the bottle, during such tastings  in  establish-
ments  licensed under sections sixty-four and sixty-four-a of this chap-
ter and section eighty-one or section eighty-one-a of  this  article  to
sell wine for consumption on the premises. Such farm winery may charge a
fee  of  no  more  than  twenty-five cents for each wine OR CIDER sample
tasted. The state liquor authority  shall  promulgate  rules  and  regu-
lations regarding such tastings as provided for in this subdivision.
  (c) Tastings shall be conducted subject to the following limitations:
  (i)  wine  OR  CIDER tastings shall be conducted by an official agent,
representative or solicitor of one or more farm  wineries.  Such  agent,
representative  or  solicitor  shall  be physically present at all times
during the conduct of the tastings; and
  (ii) any liability stemming from a right of action  resulting  from  a
wine  tasting as authorized herein and in accordance with the provisions
of sections 11-100 and 11-101 of  the  general  obligations  law,  shall
accrue to the farm winery.
  (d) (i) Any person having applied for and received a license as a farm
winery  under  this  section  may conduct wine AND CIDER tastings of New
York state labelled wines AND CIDERS and sell such wine OR CIDER by  the
bottle,  during such tasting, for off-premises consumption at outdoor or
indoor gatherings, functions, occasions  or  events,  within  the  hours
fixed by or pursuant to subdivision fourteen of section one hundred five
of  this  chapter, sponsored by a bona fide charitable organization. For
the purposes of this paragraph,  a  bona  fide  charitable  organization
shall  mean  and include any bona fide religious or charitable organiza-
tion or bona fide educational, fraternal or service organization or bona
fide organization of veterans or volunteer firefighters,  which  by  its
charter,  certificate  of  incorporation,  constitution,  or  act of the
legislature, shall have among its dominant purposes one or more  of  the
lawful  purposes  as  defined in subdivision five of section one hundred
eighty-six of the general municipal law.
  (ii) Upon application, the liquor  authority  shall  issue  an  annual
permit  authorizing  such  farm winery to participate in such outdoor or
indoor gatherings, functions, occasions or events sponsored by a  chari-
table  organization.  The farm winery must give the authority written or
electronic notice of the date, time and specific location of each  tast-
ing  at  least  fifteen  days  prior  to the tasting. A farm winery that
obtains a permit to conduct such wine OR CIDER tastings does not need to
apply for or obtain a temporary beer or wine permit pursuant to  section
ninety-seven of this chapter or any other permit to conduct such a tast-
ing  or to sell wine OR CIDER by the bottle for off-premises consumption
at such tastings.
  (iii) Such farm winery may charge a fee for each wine OR CIDER  sample
tasted.    Tastings  shall  be conducted by an official agent, represen-
tative or solicitor of such farm winery. The state liquor authority  may

S. 5330                             7

adopt  rules and regulations regarding such tastings as provided in this
subdivision.
  S  8.  Paragraph  (a) of subdivision 7-b of section 3 of the alcoholic
beverage control law, as amended by chapter 384 of the laws of 2013,  is
amended to read as follows:
  (a)  "Cider"  means  the  partially or fully fermented juice of fresh,
whole apples or other pome fruits, containing more than three  and  two-
tenths  per centum but not more than eight and one-half per centum alco-
hol by volume: (i) to which nothing has been added to increase the alco-
holic content produced by natural fermentation; and (ii) with the  usual
cellar  treatments  and  necessary  additions  to correct defects due to
climate, [saccharine] SUGAR  levels  and  seasonal  conditions.  Nothing
contained  in  this  subdivision  shall be deemed to preclude the use of
such methods or materials as may be  necessary  to  encourage  a  normal
alcoholic  fermentation  and  to make a product that is free of microbi-
ological activity at the  time  of  sale.  Cider  may  be  sweetened  or
flavored  after  fermentation with fruit juice, fruit juice concentrate,
sugar, maple syrup, honey, spices or other agricultural products,  sepa-
rately  or  in  combination.  Cider may contain retained or added carbon
dioxide.
  S 9. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.