Relates to brewer's licenses

1 Co-sponsor

• Peter Rivera

BILL NUMBER:A10031

Title of bill

An act to amend the alcoholic beverage control law, in relation to brewer's licenses

Purpose

To allow New York State breweries to maximize the use of their premises and equipment.

Summary of provisions

Section 1: Amends subdivision seven of section fifty-one of the alcoholic beverage control law to allow for premises including space and equipment to be rented by a licensed tenant brewer and allows for brewers to manufacture produce, blend, package, bottle, purchase, sell and deliver alcoholic beverage beverages.

Justification

Alternating proprietorships promote economic development by allowing existing breweries to use excess capacity by leasing space and equipment to tenant brewers. Current federal law allows for brewer- ies to lease space and equipment to a tenant brewer (TTB Circular 2005-2). In addition, State Law and Review Commission in its recent report "The New York State Law Revisions Commission Report on the Alco- holic Beverage Control Law and its Administration, December 15'2009" recommended that, with regards to brewers, "..permitting an alternating proprietorship or a contract brewing arrangement is consistent with federal law and should be made part of the ABC law."

According to recent industry growth data for US breweries small inde- pendent craft brewers who often produce product through alternating proprietorships are an important sector of brewery production accounting for 4% or production and 6.3 % of retail sales. This and other provisions in the bill such as expanding brewery licenses to allow for the manufacture of alcoholic beverages for export are intended to promote the ability of breweries to utilize their existing facilities in the state to expand investment and create additional jobs.

Legislative history

None

Fiscal implications

Increase licensing fees

Local fiscal implications

None.

Effective date

Immediate.