Senate Bill S6711

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

                                  6711

                            I N  S E N A T E

                             March 12, 2012
                               ___________

Introduced  by  Sens.  VALESKY,  CARLUCCI, KLEIN, RITCHIE, SAVINO -- (at
  request of the State Liquor  Authority)  --  read  twice  and  ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations

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

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

  Section  1. Section 3 of the alcoholic beverage control law is amended
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 BEER IS MANUFACTURED AND
SOLD.
  S 2. Section 3 of the alcoholic beverage control  law  is  amended  by
adding a new subdivision 20-d 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 SEVENTEEN, BEER MADE WITH  NO  LESS  THAN  TWENTY
PERCENT OF ITS HOPS GROWN OR PRODUCED IN NEW YORK STATE AND NO LESS THAN
FORTY  PERCENT  OF ALL OF ITS OTHER INGREDIENTS GROWN OR PRODUCED IN NEW
YORK STATE; AND
  (B)  FROM  JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN   UNTIL   DECEMBER
THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, BEER MADE WITH NO LESS THAN SIXTY
PERCENT OF ITS HOPS GROWN OR PRODUCED IN NEW YORK STATE AND NO LESS THAN
SEVENTY-FIVE  PERCENT  OF ALL OF ITS OTHER INGREDIENTS GROWN OR PRODUCED
IN NEW YORK STATE; AND
  (C) FROM JANUARY FIRST, TWO THOUSAND TWENTY-THREE AND THEREAFTER, BEER
MADE WITH NO LESS THAN NINETY PERCENT OF ITS HOPS GROWN OR  PRODUCED  IN
NEW  YORK  STATE  AND  NO  LESS  THAN NINETY PERCENT OF ALL OF ITS OTHER
INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE.
  S 3. The alcoholic beverage control law is amended  by  adding  a  new
section 51-a to read as follows:
  S 51-A. FARM BREWERY LICENSE.  1. ANY PERSON MAY APPLY TO THE AUTHORI-
TY  FOR  A  FARM BREWERY LICENSE AS PROVIDED FOR IN THIS CHAPTER TO BREW

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

                                                           LBD14554-02-2

S. 6711                             2

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 LICENSED PREMISES AND IN FORM AND IN SUBSTANCE SHALL BE A LICENSE TO
THE PERSON THEREIN SPECIFICALLY DESIGNATED TO BREW BEER IN THE  PREMISES
THEREIN SPECIFICALLY LICENSED.
  2.  EXCEPT  AS  PROVIDED  FOR  IN SUBDIVISIONS SEVEN AND EIGHT OF THIS
SECTION, THE PROVISIONS OF SECTION FIFTY-ONE OF THIS ARTICLE SHALL APPLY
TO A LICENSE ISSUED UNDER THIS SECTION.
  3. (A) A FARM BREWERY LICENSEE MAY APPLY FOR A PERMIT TO CONDUCT TAST-
INGS OF BEER PRODUCED BY THE  LICENSEE.  SUCH  PERMITS  SHALL  BE  VALID
THROUGHOUT  THE  STATE AND MAY BE ISSUED ON AN ANNUAL BASIS OR FOR INDI-
VIDUAL EVENTS. EACH SUCH PERMIT AND THE EXERCISE OF THE PRIVILEGE GRANT-
ED THEREBY SHALL BE SUBJECT TO SUCH RULES AND CONDITIONS OF THE AUTHORI-
TY AS IT DEEMS NECESSARY.
  (B) TASTINGS SHALL BE CONDUCTED SUBJECT TO THE FOLLOWING LIMITATIONS:
  (I) BEER TASTINGS SHALL BE CONDUCTED BY AN OFFICIAL  AGENT,  REPRESEN-
TATIVE OR SOLICITOR OF ONE OR MORE FARM BREWERIES. SUCH AGENT, REPRESEN-
TATIVE  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
BEER  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 BREWERY.
  (C) SUCH FARM BREWERY MAY CHARGE A FEE FOR EACH BEER SAMPLE TASTED.
  4. A FARM BREWERY LICENSEE HOLDING A TASTING PERMIT ISSUED PURSUANT TO
SUBDIVISION  THREE  OF  THIS  SECTION  MAY  APPLY TO THE AUTHORITY FOR A
PERMIT TO SELL BEER PRODUCED BY SUCH FARM BREWERY, BY THE 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
SUBJECT TO SUCH RULES AND CONDITIONS OF THE AUTHORITY AS IT DEEMS NECES-
SARY.
  5.  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,
INCLUDING BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES.
  (B)  FOOD  ITEMS FOR THE PURPOSE OF COMPLEMENTING BEER TASTINGS, SHALL
MEAN A DIVERSIFIED SELECTION OF FOOD WHICH IS ORDINARILY CONSUMED  WITH-
OUT THE USE OF TABLEWARE AND CAN CONVENIENTLY BE CONSUMED WHILE STANDING
OR WALKING.  SUCH FOOD ITEMS SHALL INCLUDE BUT NOT BE LIMITED TO: CHEES-
ES, FRUITS, VEGETABLES, CHOCOLATES, BREADS, MUSTARDS AND CRACKERS.
  (C) 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 BEER AND/OR HOP RELATED PRODUCT.

S. 6711                             3

  (D)  BEER  SUPPLIES  AND  ACCESSORIES,  WHICH  SHALL  INCLUDE ANY ITEM
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.
  (E)  BEER-MAKING EQUIPMENT AND SUPPLIES INCLUDING, BUT NOT LIMITED TO,
HOME BEER-MAKING OR HOMEBREWING KITS, FILTERS, BOTTLING EQUIPMENT, HOPS,
BARLEY, YEASTS, CHEMICALS AND OTHER BEER ADDITIVES, AND BOOKS  OR  OTHER
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
WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE REGION.
  (G)  NEW  YORK  STATE  LABELLED  BEER  PRODUCED  OR  MANUFACTURED BY A
LICENSED BREWER OR FARM BREWERY. SUCH BEER MAY BE PURCHASED OUTRIGHT  BY
THE  LICENSEE  FROM THE LICENSED BREWER OR FARM BREWERY OR OBTAINED ON A
CONSIGNMENT BASIS PURSUANT TO A WRITTEN AGREEMENT  BETWEEN  THE  SELLING
AND PURCHASING LICENSEE.
  (H)  NEW  YORK  STATE  LABELLED  WINE  PRODUCED  OR  MANUFACTURED BY A
LICENSED WINERY OR FARM WINERY. SUCH WINE MAY BE PURCHASED  OUTRIGHT  BY
THE  LICENSEE  FROM  A  LICENSED  WINERY OR FARM WINERY OR OBTAINED ON A
CONSIGNMENT BASIS PURSUANT TO A WRITTEN AGREEMENT  BETWEEN  THE  SELLING
AND PURCHASING LICENSEE.
  6.  NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, ANY
FARM BREWERY LICENSEE MAY CHARGE FOR TOURS OF ITS PREMISES.
  7. NO FARM BREWERY SHALL  MANUFACTURE  IN  EXCESS  OF  SIXTY  THOUSAND
FINISHED BARRELS OF BEER ANNUALLY.
  8.  (A)  EXCEPT  AS  PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, NO
LICENSED FARM BREWERY SHALL MANUFACTURE OR SELL ANY BEER OTHER THAN  NEW
YORK STATE LABELLED BEER.
  (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 NECESSARY INGREDIENTS FOR BREWING
BEER, THE COMMISSIONER, IN CONSULTATION WITH THE CHAIRMAN OF THE AUTHOR-
ITY, MAY GIVE AUTHORIZATION TO A DULY LICENSED FARM BREWERY TO  MANUFAC-
TURE  OR  SELL  BEER PRODUCED FROM INGREDIENTS GROWN OR PRODUCED OUTSIDE
THIS STATE. NO SUCH AUTHORIZATION SHALL BE GRANTED  TO  A  FARM  BREWERY
LICENSEE UNLESS SUCH LICENSEE CERTIFIES TO THE COMMISSIONER THE 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 THE COMMISSIONER THAT REASONABLE EFFORTS WERE MADE  TO  OBTAIN
BREWING  INGREDIENTS  FROM  A NEW YORK STATE SOURCE FOR SUCH 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 INGREDI-
ENTS 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 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 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   INGREDIENTS   FROM   AN
OUT-OF-STATE SOURCE FOR SUCH PURPOSE.

S. 6711                             4

  (C)  THE  COMMISSIONER OF AGRICULTURE AND MARKETS SHALL MAKE AVAILABLE
TO FARM BREWERIES AND TO THE PUBLIC EACH SPECIFIC INGREDIENT LOSS DETER-
MINATION ISSUED PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVISION  ON  OR
BEFORE 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
TWENTIETH OF EACH YEAR OR THE EFFECTS OF A NATURAL DISASTER, ACT OF GOD,
OR ADVERSE WEATHER CONDITION WHICH OCCURS SUBSEQUENT TO AUGUST TWENTIETH
EACH  YEAR  RESULTS  IN  ANY  INGREDIENT  LOSS WHICH MEETS THE STANDARDS
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
SPECIFIC INGREDIENT LOSS DETERMINATION ISSUED PURSUANT TO THIS PARAGRAPH
PRIOR TO OCTOBER TENTH OF EACH YEAR.
  S 4. 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
2002, is amended to read as follows:
  1. The annual fee for a [brewer's] license TO MANUFACTURE  BEER  shall
be:
  (A)  four  thousand  dollars FOR A BREWER'S LICENSE, unless the annual
production of the brewer is less than sixty thousand barrels  per  year,
in which case the annual fee shall be three hundred twenty dollars;
  (B) THREE HUNDRED TWENTY DOLLARS FOR A FARM BREWERY LICENSE.
  S  5.  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
2004, is amended to read as follows:
  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,
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
this chapter on a calendar year basis, a filing fee of ten dollars.
  S  6. 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
follows:
  2.  In addition to the annual fees provided for in this chapter, there
shall be paid to the authority  with  each  renewal  application  for  a

S. 6711                             5

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 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  7.  Subdivision 6 of section 76-a of the alcoholic beverage control
law is amended by adding a new paragraph (g) to read as follows:
  (G) SELL FOR CONSUMPTION OFF THE PREMISES NEW YORK STATE LABELLED BEER
MANUFACTURED BY A LICENSED BREWER OR FARM BREWERY.
  S 8. Subdivision 6 of section 76-a of the alcoholic  beverage  control
law is amended by adding a new paragraph (h) to read as follows:
  (H) CONDUCT TASTINGS OF NEW YORK STATE LABELLED BEER MANUFACTURED BY A
LICENSED BREWER OR FARM BREWERY.
  S  9. 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
follows:
  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 EIGHT
OF  SECTION  FIFTY-ONE-A OF THE ALCOHOLIC BEVERAGE CONTROL LAW, INVESTI-
GATE AND COMPILE INFORMATION RELATIVE TO NATURAL DISASTERS, ACTS OF GOD,
OR CONTINUED ADVERSE WEATHER CONDITIONS WHICH SHALL AFFECT THE NECESSARY
INGREDIENTS FOR BREWING BEER.
  S 10. This act shall take effect on  the  one  hundred  eightieth  day
after it shall have become a law.