S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1078
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sens.  VALESKY,  KLEIN, SEWARD -- read twice and ordered
   printed, and  when  printed  to  be  committed  to  the  Committee  on
   Commerce, Economic 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.
                                                            LBD06861-01-7
              

 S. 1078                             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.
   § 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;
   §  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.
   § 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. 1078                             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;
   § 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;
   § 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. 1078                             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. 1078                             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.
   § 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  (e)  of  subdivision  2  as amended by chapter 328 of the laws of
 2016, paragraph (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 at the licensed premises cider and wine manufactured  by  the
 licensee  or  any other licensed farm winery, and beer and spirits manu-
 factured by any licensed farm brewery or farm distillery, at retail  for
 consumption on or off the licensed premises;
   (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

 S. 1078                             6
 
 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
 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.

 S. 1078                             7
 
   (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
 adopt  rules and regulations regarding such tastings as provided in this
 subdivision.
   §  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.
   § 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.