S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3281
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2019
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment 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; and to amend the general municipal law,  in  relation
   to authorizing the sale of cider and wine at games of chance
 
   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, paragraph (b)
 as amended by chapter 171 of the laws of 2017, 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
 other 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00475-02-9

 S. 3281                             2
 
 hotel pursuant to  such  authority  shall  comply  with  all  applicable
 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, paragraph (c) as amended by chapter 171
 of the laws of 2017 and paragraph (g) 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. 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

 S. 3281                             3

 AND HAVE ATTACHED THERETO A LABEL AS SHALL BE REQUIRED  BY  SECTION  ONE
 HUNDRED SEVEN-A OF THIS CHAPTER;
   §  5.  Subdivisions  3  and  5 of section 76 of the alcoholic beverage
 control law, as amended by chapter 221 of the laws of 2011, 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-
 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

 S. 3281                             4
 
 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.
   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
 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.
   §  6.  Paragraphs  (b)  and  (c) of subdivision 2 and subdivision 3 of
 section 76-a of the alcoholic beverage control  law,  paragraph  (b)  of
 subdivision  2  and subdivision 3 as added by chapter 221 of the laws of
 2011 and paragraph (c) of subdivision 2 as amended by chapter 522 of the
 laws of 2018, are amended to read as follows:
   (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, farm meadery, 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,
 cider,  or  mead  manufactured  by  the  licensee  OR ANY NEW YORK STATE
 LABELED CIDER as above set forth and to sell or  deliver  such  wine  or

 S. 3281                             5
 
 cider  to persons outside the state pursuant to the laws of the place of
 such sale or delivery.  All wine, cider, or mead 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;
   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

 S. 3281                             6
 
 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
 adopt rules and regulations regarding such tastings as provided in  this
 subdivision.
   § 6-a. Paragraph (c) of subdivision 2 of section 76-a of the alcoholic
 beverage  control law, as amended by chapter 384 of the laws of 2013, is
 amended to read as follows:
   (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;
   § 7. 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.
   §  8.  Subdivision  3  of section 194 of the general municipal law, as
 amended by chapter 550 of the laws  of  1994,  is  amended  to  read  as
 follows:
   3.  [Service  of  alcoholic  beverages.]  Subject  to  the  applicable
 provisions of the alcoholic beverage control law, beer, CIDER  AND  WINE
 may  be  offered for sale during the conduct of games of chance on games
 of chance premises as such premises are defined in subdivision  nineteen
 of  section  one  hundred eighty-six of this article; provided, however,
 that nothing herein shall be construed to limit the offering for sale of
 any other alcoholic beverage in areas other than  the  games  of  chance
 premises  or  the sale of any other alcoholic beverage in premises where
 only the games of chance known as bell jar or raffles are conducted.
   § 9. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided that:
   1. the amendments to paragraph (c) of subdivision 2 of section 76-a of
 the alcoholic beverage control law made by section  six-a  of  this  act
 shall  take  effect  only  if  the  amendments to such paragraph made by

 S. 3281                             7
 
 section 21 of chapter 522 of the laws of 2018 have not taken  effect  on
 or before the effective date of this act;
   2. if the amendments to paragraph (c) of subdivision 2 of section 76-a
 of  the alcoholic beverage control law made by section 21 of chapter 522
 of the laws of 2018 have not taken effect on  or  before  the  effective
 date  of this act, then the amendments to paragraph (c) of subdivision 2
 of section 76-a of the alcoholic beverage control law  made  by  section
 six  of  this  act  shall  take  effect on the same date and in the same
 manner that such chapter takes effect.
   3. Effective immediately, 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.