Establishes special class A-1 distiller's license for distillers with alternating premises

Section 2: Amends the Alcoholic Beverage Control Law to add a new subsection 61 (1-b) to allow a small independent distillery that can make no more than 10,000 gallons of liquor annually to operate on the premises of an already established class A-1 distillery (micro-distillery), class B-1 distillery (another type of micro-distillery), or a class C distillery (fruit brandy distillery). All brandy or other liquor produced by such special class A-1 distillery must exclusively use New York grapes, fruits or other locally grown or produced agricultural products. This provision also outlines the application procedure to obtain a license. Further that the special class A-1 distillery licensee shall have all of the privileges of a regular class A-1 distillery, except for the 10,000 gallonage limitation and that it must utilized New York produced agricultural products in its distillation process.

Section 3: Amends Alcoholic Beverage Control Law section 66 to set the license fee for the special distiller's license, class A-1 at $250. This is the same license fee charged for a class A-1 distillery license.

A technical amendment to Alcoholic Beverage Control Law section III to allow a special class A-1 distillery to operate on the premises of an already operating distillery licensee. This is similar to the provisions that already exist in the law to allow a temporary winery permittee, temporary farm winery permittee or special winery licensee to operate on the premises of an already existing winery or farm winery licensee.

Existing law

Current law already authorizes a temporary winery permittee, a temporary farm winery permittee or a special winery licensee to operate on the premises of an already existing winery or farm winery licensee. However, the law does not allow for small boutique or micro distilleries to share equipment or the premises of another distillery to manufacture liquor or brandy.

Justification

In 1993, the State Legislature, in recognition of the difficulties that grape growers were facing due to several years of adverse weather and fruit market dislocations, enacted legislation to allow new startup individual and independent wineries and farm wineries to share wine production facilities to help reduce overhead costs. It created a temporary farm winery permit and special winery license so that grape growers and wine makers could, in an inexpensive manner, obtain a winery license and operate on the premises of another already established wine production facility. This new type of license allowed alternating licensees to use and share the same wine production facility and expensive wine making equipment and helped to ease the financial burden of establishing a new winery and created more demand for New York produced grapes.

This bill creates the same type of regulatory framework for small boutique distilleries. Establishing a distillery with all of the requisite equipment can be capital intensive, so allowing an entrepreneur to share already existing distillery facilities should help lower the costs to enter this business and thereby increase the demand for New York produced agricultural products.

Legislative history

S.1480 of 2008

Fiscal implications

None.

Local fiscal implications

None.

Effective date

180 days after it shall have become law.