§ 51-a. Farm brewery license. 1. Any person may apply to the authority
for a farm brewery license as provided for in this section to brew 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. A farm brewery license shall authorize the holder thereof to
operate a brewery for the manufacture of New York state labelled beer.
Such a license shall also authorize the licensee to:

(a) manufacture New York state labelled cider and New York state
labeled braggot;

(b) sell in bulk beer, cider, and braggot manufactured by the licensee
to any person licensed to manufacture alcoholic beverages in this state
or to a permittee engaged in the manufacture of products which are unfit
for beverage use;

(c) sell or deliver beer, cider, and braggot manufactured by the
licensee to persons outside the state pursuant to the laws of the place
of such delivery;

(d) sell beer, cider, and braggot manufactured by the licensee to
wholesalers and retailers licensed in this state to sell such beer,
cider, and braggot, licensed farm distillers, licensed farm wineries,
licensed farm cideries, licensed farm meaderies and any other licensed
farm brewery. All such beer, cider, and braggot 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;

(e) sell at the licensed premises beer, cider, and braggot
manufactured by the licensee or any other licensed farm brewery, and
wine and spirits manufactured by any licensed farm winery or farm
distillery, at retail for consumption on or off the licensed premises;

(f) conduct tastings at the licensed premises of beer, cider, and
braggot manufactured by the licensee or any other licensed farm brewery;

(g) 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, beer,
cider, and braggot manufactured by the licensee and any New York state
labeled beer, New York state labeled braggot or New York state labeled
cider. All of the provisions of this chapter relative to licenses to
sell beer, cider, and braggot at retail for consumption on and off the
premises shall apply so far as applicable to such licensee.
Notwithstanding any other provision of law, the licensed farm brewery
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;

(h) sell beer, cider, and braggot manufactured by the licensee or any
other licensed farm brewery 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;

(i) conduct tastings of and sell at retail for consumption off the
premises New York state labelled wine and mead manufactured by a person
licensed to produce wine or mead under this chapter;

(j) conduct tastings of and sell at retail for consumption off the
premises New York state labelled cider manufactured by a licensed cider
producer or licensed farm cidery;

(k) conduct tastings of and sell at retail for consumption off the
premises New York state labelled liquor manufactured by a licensed
distiller or licensed farm distiller; provided, however, that no
consumer may be provided, directly or indirectly: (i) with more than
three samples of liquor for tasting in one calendar day; or (ii) with a
sample of liquor for tasting equal to more than one-quarter fluid ounce;
and

(l) conduct tastings of and sell at retail for consumption off the
premises New York state labelled braggot manufactured by a person
licensed to produce braggot under this chapter; and

(m) engage in any other business on the licensed premises subject to
such rules and regulations as the authority may prescribe. Such rules
and regulations shall determine which businesses will be compatible with
the policy and purposes of this chapter and shall consider the effect of
particular businesses on the community and area in the vicinity of the
farm brewery licensee.

3. (a) A farm brewery licensee may apply for a permit to conduct
tastings away from the licensed premises of beer, cider, and braggot
produced by the licensee. 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 privilege granted thereby shall
be subject to such rules and conditions of the authority as it deems
necessary.

(b) Tastings shall be conducted subject to the following limitations:

(i) tastings shall be conducted by an official agent, representative
or solicitor of one or more farm breweries. 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
tasting of beer, cider, or braggot 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.

4. A licensed farm brewery holding a tasting permit issued pursuant to
subdivision three of this section may apply to the authority for a
permit to sell beer, cider, and braggot 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
necessary.

5. A licensed farm brewery may, under such rules as may be adopted by
the authority, sell beer or cider manufactured by the licensee or any
other licensed farm brewery 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.

6. A licensed farm brewery may apply to the authority for a license to
sell liquor and/or wine at retail for consumption on the premises in a
restaurant owned by him and conducted and operated by the licensee in or
adjacent to its farm brewery. All of the provisions of this chapter
relative to licenses to sell liquor or wine at retail or consumption on
the premises shall apply so far as applicable.

7. A farm brewery license shall authorize the holder thereof to
manufacture, 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 and 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 to: cheeses, 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 cider, beer and/or hop related products;

(d) beer supplies and accessories, which shall include any item
utilized for the storage, serving or consumption of beer or for
decorative 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
homebrewers 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.

8. Notwithstanding any provision of this chapter to the contrary, any
farm brewery licensee may charge for tours of its premises.

9. The holder of a license issued under this section may operate up to
five branch offices located away from the licensed farm brewery. Such
locations shall be considered part of the licensed premises and all
activities allowed at and limited to the farm brewery may be conducted
at the branch offices. Such branch offices 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.

10. (a) No farm brewery shall manufacture in excess of seventy-five
thousand finished barrels of beer, cider, and braggot annually.

(b) A farm brewery shall manufacture at least fifty barrels of beer,
cider, and braggot annually.

11. (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,
determines that a natural disaster, act of God, or continued adverse
weather condition has destroyed much of the necessary ingredients for
brewing beer, such commissioner, in consultation with the chairman of
the authority, may give authorization to a duly licensed farm brewery to
manufacture 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 such 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 such 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 ingredients 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.

(c) The commissioner of agriculture and markets shall make available
to farm breweries and to the public each specific ingredient loss
determination 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
agriculture and markets, in consultation with the chairman of the
authority, may issue additional ingredient loss determinations and shall
expeditiously 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.

12. (a) Except as provided in paragraph (b) of this subdivision, no
licensed farm brewery shall manufacture or sell any cider other than New
York state labelled cider.

(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,
determines that a natural disaster, act of God, or continued adverse
weather condition has destroyed much of the apple crop necessary for
producing cider, such commissioner, in consultation with the chairman of
the authority, may give authorization to a duly licensed farm brewery to
manufacture or sell cider produced from apples grown outside this state.
No such authorization shall be granted to a farm brewery licensee unless
such licensee certifies to such commissioner the quantity of New York
grown apples unavailable to such licensee due to such natural disaster,
act of God or continuing adverse weather condition and satisfies such
commissioner that reasonable efforts were made to obtain apples from a
New York state source for such cider making purpose. No farm brewery
shall utilize an amount of out-of-state grown apples exceeding the
amount of New York grown apples that such brewery is unable to obtain
due to the destruction of New York grown apples 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 cider
farm breweries utilize apples grown in New York state to the extent they
are reasonably available, prior to utilizing apples from an out-of-state
source for such purpose.

(c) The commissioner of agriculture and markets shall make available
to farm breweries and to the public each specific apple loss
determination issued pursuant to paragraph (b) of this subdivision on or
after 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
of each year results in any apple crop loss which meets the standards
provided in paragraph (b) of this subdivision, the commissioner of
agriculture and markets, in consultation with the chairman of the
authority, may issue additional apple crop loss determinations and shall
expeditiously make available to farm breweries and to the public the
loss determination issued pursuant to this paragraph prior to October
tenth of each year.

13. Notwithstanding any contrary provision of law or of any rule or
regulation promulgated pursuant thereto, and in addition to the
activities which may otherwise be carried out by any person licensed
under this section, such person may, on the premises designated in such
license:

(a) produce, package, bottle, sell and deliver soft drinks and other
non-alcoholic beverages, vitamins, malt, malt syrup, and other
by-products;

(b) dry spent grain from the brewery;

(c) recover carbon dioxide and yeast;

(d) store bottles, packages and supplies necessary or incidental to
all such operations;

(e) package, bottle, sell and deliver wine products;

(f) allow for the premises including space and equipment to be rented
by a licensed tenant brewer for the purposes of alternation.

14. Notwithstanding any other provision of this chapter, the authority
may issue a farm brewery license to the holder of a farm winery or farm
distiller's license for use at such licensee's existing licensed
premises. The holder of a farm winery or farm distiller's license that
simultaneously holds a farm brewery license on an adjacent premises may
share and use the same tasting room facilities to conduct any tastings
that such licensee is otherwise authorized to conduct.

15. The authority is hereby authorized to promulgate rules and
regulations to effectuate the purposes of this section. In prescribing
such rules and regulations, the authority shall promote the expansion
and profitability of beer and cider production and of tourism in New
York, thereby promoting the conservation, production and enhancement of
New York state agricultural lands.

16. Notwithstanding any provision of law to the contrary, another
business or other businesses may operate on the licensed premises
subject to such rules and regulations as the liquor authority may
prescribe. Such rules and regulations shall determine which businesses
will be compatible with the policy and purposes of this chapter and
shall consider the effect of particular businesses on the community and
area in the vicinity of the farm brewery premises, provided however that
a retailer business licensed under this chapter shall not be permitted
to operate at a licensed manufacturing premises.